After a challenging 2024, Paris is gradually returning to price growth. In March 2025, apartment prices have increased by 0.7% year-over-year and 0.6% over the past three months.

Post-Olympic Renaissance: The Capital’s Market Finds Its Footing

The recovery comes following multiple slowdowns in previous months linked to rising interest rates, the Olympic Games, the dissolution of the National Assembly, and the vote of no confidence against the short-lived Barnier government. Compared to other Île-de-France departments, the Parisian market suffered the least severe decline in activity: -10% for 2023 and -30% compared to 2022, according to the spokesperson for the Greater Paris Chamber of Notaries. Last year saw 25,000 transactions—a historically low level.

As of March 1, 2025, the average sale price for apartments stands at 9,380 €/m², while the average apartment rental price has reached 31.8 €/m². For houses, the average price is higher at 10,004 €/m², with rentals averaging 28.5 €/m². These figures represent a modest but significant turning point for the market after the prolonged downturn.

Buyers have been returning since spring 2024, thanks to falling interest rates and, more importantly, price reductions. According to the latest figures published by the Notaries, average apartment prices settled at 9,470 euros per square meter in the fourth quarter of 2024, down 3% year-over-year. Depending on the area, price ranges continue to vary widely, from 6,610 euros per square meter in La Chapelle (18th arrondissement) to 15,500 euros per square meter in Saint-Germain-des-Prés (6th).

In the central areas of the capital, where prices comfortably exceed 10,000 euros per square meter for turnkey luxury properties worth tens of millions of euros, activity has regained momentum after the Olympic Games. “As we see it, the beginning of the year looks very promising for properties that are in the best locations and are presented with quality updates and modern amenities,” shares Miranda Junowicz, founder of Paris Property Group. “There are market prices, and then there are outstanding properties with exceptional features that simply exceed the market entirely.” As illustrated by a recent sale of a nearly 500 m² apartment in a private mansion on rue du Faubourg Saint-Honoré (8th arrondissement) for €33.85 million (nearly 70,000 euros per square meter).

A Tale of Two Cities: The Price Divide Between East and West

Far from these rare and stratospheric transactions, the market for larger, more conventional homes has also awakened, particularly for apartments in traditional neighborhoods of western Paris priced between 1.5 and 3 million euros, according to industry experts. Families looking to upsize are attempting mobility: for example, in the 15th arrondissement, those who cannot or do not want to pay up to 13,000 euros per square meter in La Motte-Picquet, Ségur, or Cambronne are finding an extra bedroom toward Convention, at 9,500 euros per square meter.

The spillover effect is significant: between the 11th and 12th arrondissements, for a 100 m² property, the price difference allows buyers to save up to 60,000 euros. First-time buyers are more likely to explore eastern Paris, which is more affordable. For example, they are looking for studios and one-bedroom apartments in the 19th arrondissement where, depending on the neighborhood, the condition of the property (including its energy rating), and its potential assets (view, balcony, etc.), prices range from 5,400 to 10,400 euros per square meter.

A New Dawn for International Buyers

This renewed activity across diverse market segments suggests Paris real estate may be entering a new growth cycle, albeit with more realistic price expectations than in pre-pandemic years. The capital’s enduring appeal, combined with adjusting prices and improving financing conditions, appears to be creating favorable conditions for sustained recovery throughout 2025.

For international investors, the Paris market presents a particularly attractive opportunity in early 2025. With the euro maintaining relative stability against major currencies and Paris property prices still below their historical peaks, foreign buyers are finding greater value in the French capital than they have in years. American, British, and Middle Eastern investors have been especially active in the luxury segment above 15,000 euros per square meter, while Asian buyers are increasingly exploring opportunities in up-and-coming neighborhoods like the 10th and 11th arrondissements, where properties offer strong rental yield potential alongside the promise of capital appreciation as the market continues its recovery.

Source: Adapted from market analysis data published March 1, 2025

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