French property market update: Breakthrough for British second-home owners, April 2025

Property transactions bounce back as interest rates fall

The French property market is showing promising signs of recovery after a challenging period. While the dizzy heights of August 2021's record 1.2 million transactions seem a distant memory, Notaires are projecting a respectable 750,000 resale transactions by the end of 2024.

The European Central Bank's decision to lower key rates appears to be having the desired effect, with banking institutions showing renewed energy and opening their doors (and wallets) to prospective buyers. The price decline is also easing, with the 5% drop in resale home values during 2024's second quarter expected to slow significantly to just 2.6% by November.

Foreign buyers are making their presence felt once again, particularly in areas like Haute Savoie and Gers, where they now represent 12% and 7% of transactions respectively. The perennially popular Alpes Maritimes saw foreign buyers account for 13% of purchases, up from 9% in 2021 – proving that the allure of the French Riviera remains as strong as ever.

Brits still besotted with Dordogne while Germans stick close to home

When it comes to property preferences, it seems national stereotypes hold true. According to the latest data from Kyero, British buyers continue their long-standing love affair with the bucolic charms of Dordogne, Charente, and Aude – apparently unable to resist the siren call of reasonably priced farmhouses and an endless supply of local wine.

Dutch buyers, ever practical, are splitting their attention between the sunny shores of Var and Alpes-Maritimes and the more accessible northern region of Pas-de-Calais – balancing their desire for sunshine with the convenience of a shorter drive home.

German buyers, meanwhile, display a touching reluctance to stray too far from the Fatherland, concentrating their purchases in the border regions of Bas-Rhin and Haut-Rhin. Americans and Russians, predictably, head straight for the prestige locations of Paris and the Côte d'Azur, apparently allergic to anywhere without a Michelin-starred restaurant within walking distance.

Across all nationalities, Herault and Alpes-Maritime rank consistently highly – proving that sun, sea, and a slower pace of life remain universally appealing, regardless of which passport you hold.

Chamonix says "non" to new hotels and holiday flats

In a bold move that's sending shockwaves through the Alpine property market, Chamonix has become the first French town to ban new hotels and holiday flats. The popular ski resort, home to 9,000 permanent residents, is taking decisive action to increase accommodation for those who actually live and work in the town.

British skiers, who have long considered Chamonix their spiritual winter home, will now face stiffer competition when hunting for that perfect chalet. The construction of new holiday homes will be outlawed from May 1st, effectively pulling up the drawbridge on foreign investors.

The move highlights a growing trend across Europe's most popular destinations, where locals increasingly find themselves priced out of their own communities. For prospective buyers, the message is clear: if you've been dreaming of an Alpine retreat, you might want to accelerate those plans before other resorts follow Chamonix's lead.

Parisian streets to become pedestrian paradise

Parisians have voted overwhelmingly to pedestrianise 500 more streets in the French capital, giving a significant boost to the left-leaning town hall's efforts to curb car usage and improve air quality. The referendum passed with a convincing 65.96% in favour, though the 4.06% turnout suggests most Parisians were too busy enjoying their cafés to make it to the polling stations.

This marks the third such referendum in as many years, following a 2023 vote that banned e-scooters and last year's decision to triple parking charges for large SUVs. The new measure will eliminate 10,000 more parking spots, adding to the 10,000 already removed since 2020.

The 500 additional streets will bring the total number of these "green lungs" to nearly 700, just over one-tenth of the capital's streets. Despite these changes, Paris still lags behind other European capitals in terms of green infrastructure, with only 26% of the city area comprised of green spaces compared to the European average of 41%.

For property investors, these changes could significantly impact both rental appeal and property values in affected areas – potentially making pedestrianised zones the next hot ticket in the City of Light.

Mountain property owners get energy efficiency reprieve

Owners of mountain properties with poor energy ratings can breathe a sigh of relief, as the proposed ban on renting out category G properties has been postponed until 2034 in mountainous areas of France. The ban, originally scheduled to take effect on January 1, 2025, was part of broader efforts to improve energy efficiency and reduce carbon emissions across the country.

This postponement provides a welcome reprieve for ski resort property owners, many of whom would have struggled to meet the new standards. The unique challenges of insulating traditional mountain properties, combined with their seasonal usage patterns, make energy efficiency improvements particularly challenging and expensive.

While the ban is postponed, property owners should note that the process of gradually increasing energy efficiency standards will continue, with rental restrictions likely to become more stringent after 2034. For buyers considering a mountain property, this extended timeline offers an opportunity to purchase and upgrade without immediate rental restrictions.

French residency card holders face tougher language tests

Expats seeking long-term residency in France will soon need to brush up on their French, as tougher language tests are set to come into force for some French residency cards following recent changes to immigration law.

The new rules, which must be implemented by January 2026, will require applicants for multi-year residency cards to pass a test at level A2 of the Common European Framework of Reference for Languages. This is a significant change from the current requirement, which only asks that applicants take language lessons without necessarily passing a test.

For those applying for the coveted 10-year carte de résident, the language requirement will increase from A2 to B1 level. The requirements for French nationality will also increase, from B1 to B2 level proficiency.

Fortunately for retirees, the rules don't apply to British WA 'Brexit card' holders or to people applying for one-year 'temporary' residency cards. Those over 65 applying for 10-year cards will also remain exempt from the language requirements.

Brexit Brits continue to seek French citizenship

For Brits determined to maintain their European ties, French citizenship continues to be an attractive option. New data from France's Interior Ministry reveals that almost 18,000 Britons have been granted French citizenship since the Brexit vote in 2016, with the UK consistently ranking among the top five countries for new French citizens.

This trend reflects the deep connections many British residents have formed with France, as well as practical considerations around freedom of movement and property ownership. 

French government confirms post-Brexit residency card renewals

In positive news for British residents in France, the official French government website has been updated to confirm that Britons with 5-year Withdrawal Agreement cards can now apply for 10-year permanent cards once they've completed 5 years of legal residency.

This clarification will come as a relief to many British residents who have been uncertain about their status and renewal options since Brexit. The process, detailed at service-public.fr, provides a clear pathway for those who wish to secure their long-term future in France.

French push for visa concessions for second-home owners

French politicians are continuing to push for visa concessions for second-home owners – particularly Britons who bought before Brexit found themselves limited to 90-day stays. With an estimated 86,000 French second homes owned by UK residents, this remains a significant issue for both property owners and the communities that benefit from their presence.

Philippe Lottiaux of the Rassemblement National is now calling for action to implement an "automatic visa" idea that would allow Britons to spend up to half the year in France with minimal formalities. The proposal, which originated from Senator Martine Berthet, would enable British homeowners to come and go by simply showing proof of nationality and home ownership.

"My proposal is first and foremost focused on British landlords wishing to visit France more and for longer," Berthet told the Bulletin. "It offers them an entry procedure that is more suited to their style of stay than the current rule of 90 days in 180 days or the long-stay visa procedure."

The move could potentially set a precedent for other EU countries, including Spain, which has been considering similar measures. For second-home owners currently juggling calendars and counting days, this potential change could restore the flexibility they enjoyed pre-Brexit.