Residential Market 2025

Paris: Stabilization after a market correction

Paris has largely completed its price adjustment phase. After several years of declining values, prices have stabilized and transaction volumes are slowly increasing.

Key Trends

• Prices are generally stable, with slight increases in some prime districts.
• Buyers are becoming more active as financing conditions improve.
• Energy-efficient, turnkey properties attract the strongest demand.
• Properties requiring major renovation or with poor energy ratings often face significant discounts.

Most Sought-After Areas

Premium districts remain highly desirable:

• 6th Arrondissement (Saint-Germain-des-Prés)
• 7th Arrondissement
• 8th Arrondissement
• 16th Arrondissement

Some emerging neighborhoods in the 18th and northeastern districts are also attracting investors looking for future appreciation potential.

Investment Perspective

Paris remains primarily a wealth-preservation market rather than a high-yield investment market.

Typical gross rental yields range from approximately 3% to 4%, but the city continues to offer exceptional long-term liquidity and capital security.

French Riviera: Continued Strength in the Luxury Segment

The French Riviera remains one of Europe’s most resilient luxury property markets. International demand is strong, and prices in prime locations continue to rise.

Key Trends

• Increased transaction activity due to improved financing conditions.
• Strong demand from international buyers, particularly from Northern Europe, the Middle East, and North America.
• Limited inventory in the luxury segment continues to support prices.
• High demand for properties with sea views, outdoor living spaces, wellness amenities, and turnkey finishes.

Hotel Real Estate Market Study: Paris and the French Riviera (2025)

The French hotel investment market remained one of the strongest real estate sectors in Europe in 2025. Despite higher financing costs compared with the pre-2022 period, investor appetite for hospitality assets remained robust, particularly for luxury hotels, lifestyle concepts, and prime locations. 

Executive Summary

• Paris remains the most liquid hotel investment market in France, attracting private investors, family offices, institutional funds, and international buyers.
• The French Riviera (Côte d’Azur) continues to benefit from strong international tourism and luxury demand, with Nice, Cannes, Antibes, Cap d’Antibes, Saint-Jean-Cap-Ferrat, and Saint-Tropez remaining highly sought-after.
• Investors increasingly favor:
   
  • Luxury and ultra-luxury hotels
  • Boutique lifestyle hotels
  • Assets with redevelopment potential
  • Mixed-use hospitality and branded residence projects
• Trophy assets remain scarce, creating strong competition and supporting values.  

Paris Hotel Market

Transaction Activity

Paris experienced a significant increase in hotel transactions during 2025.