The Paris real estate market is experiencing a period of stabilization and renewed activity. After a phase of price corrections between 2022 and 2024, the average price per square meter in Paris has stabilized around €10,200 as of early 2026. This marks a slight increase of 1 to 2% from the mid-2024 low point. Transaction volumes have also rebounded, with approximately 32,000 annual sales, indicating a market that is active without being overheated.
Interest Rates and Buyer Dynamics
Mortgage rates have stabilized between 3.0 and 3.5% over 20 years, restoring purchasing power for borrowers. This has led to the return of first-time buyers and investors who had been sidelined by previous rate increases. International buyers are also showing renewed interest, attracted by the stabilized euro and the enduring appeal of Paris.
Neighborhood Trends
Central arrondissements, such as the 6th and 7th, have shown remarkable resilience, with limited supply and sustained demand keeping prices stable. In contrast, peripheral areas like the 13th, 19th, and 20th arrondissements remain more affordable, with modest price increases of 0.5 to 1% in the first quarter of 2026.
Policy Initiatives and Housing Development
To address the housing shortage, the Paris government has launched initiatives to convert vacant office spaces into residential units. Announced in April 2026, this plan aims to transform over 8,200 vacant offices into homes, including 3,900 student units and 50% social housing. Additionally, the city plans to nearly double the vacant home tax by 2027 to encourage owners to sell or rent out unoccupied properties, targeting a return of at least 20,000 homes to the market.
Outlook
Looking ahead, the Paris real estate market is expected to experience moderate price growth of approximately 2 to 3% during 2026, assuming interest rates remain stable. The combination of stabilized prices, increased transaction volumes, and proactive housing policies suggests a cautiously optimistic future for both buyers and investors.