Households continue to adopt a wait-and-see approach to housing

International context and economic situation in the euro zone: resilience in the face of instability

The year 2025 began in an international environment fraught with uncertainty driven by trade tensions linked to US economic policy and rising geopolitical risks. Against this backdrop, global economic activity appears to be threatened with a slowdown.

In the eurozone, inflation has begun to fall without triggering a recession. Inflation stood at 2.2% in March 2025 and is approaching the target of 2%. The resilience of the European economy to international shocks means that, to date, growth for 2025 is expected to be around 0.8% (International Monetary Fund), despite the repercussions of global trade tensions and the recessionary risks of protectionist measures. The general climate contributed to greater volatility in the financial markets in April, weakening household and business confidence. Under these conditions, the European Central Bank chose to continue its accommodative monetary policy, lowering its key interest rate to 2.25% in April.

The French real estate market: between caution and new opportunities in 2025

In France, these mixed macroeconomic conditions could moderate GDP (gross domestic product) growth in 2025 (to around 0.6%), with household consumption remaining sluggish despite lower inflation. People’s fears about their income, social protection (particularly for retirement), and the potential rise in unemployment are prompting them to adopt a wait-and-see attitude toward investment, even though the INSEE confidence indicator remained stable in April 2025.

45% The proportion of French people who are undecided about whether to undertake a real estate project.

Despite these concerns, however, the mortgage market has shown signs of recovery since the end of 2024. The easing of interest rates has signaled to solvent households wishing to undertake a real estate project that a more favorable period may be on the horizon.

In addition, the extension of the zero-interest loan (PTZ) to the entire country and to all types of new housing, starting in April 2025, now makes this facility accessible to a larger number of first-time buyers. This reform increases the opportunities for low-income households to purchase their first primary residence, which could help stimulate the new-build housing market.

Signs of recovery despite persistent uncertainties

For most real estate activity, which focuses on existing housing, the situation appears more nuanced. Signs of recovery are emerging in more and more markets but the pace and scale of these movements still need to be consolidated before a general turnaround can be imagined. Price declines are generally less frequent and less dramatic, but the generalization of upward trends has not yet been confirmed in markets that are structurally heterogeneous in terms of activity and price levels. Demand continues to outstrip supply, which is still characterized by frequent wait-and-see attitudes in the face of multiple uncertainties.