Buying an apartment or a house in France in 2026 is no longer the same operation as it was two years ago. Credit rates are rising, a new tax system is reshuffling the cards of rental investment, and the new market remains in difficulty while the old market is slowly regaining its appeal. Here are the real estate market trends that you really need to understand to make an informed decision.
Rising mortgage rates: what it really changes
Have you noticed that credit monthly payments have increased in recent months? The average rate reached 3.30% in July 2026 according to the Crédit Logement/CSA observatory, up from the previous month. This increase contrasts with the prevailing discourse on the “normalization” of the market.
Specifically, for a household borrowing over twenty years, each additional tenth of a point reduces their purchasing power by several thousand euros. Buyers must therefore reconsider their budget or accept smaller spaces. The profiles most affected are first-time buyers, whose personal contribution is often limited.
Analyses published on magazine-immobilier.fr regularly detail these rate changes and their impact on the real estate purchasing power of French households.
Another direct consequence: the tightening of financing weighs more heavily than the drop in prices. Even if some cities show slightly declining prices, the total cost of credit largely offsets this decrease. It’s a common trap: focusing on the displayed price of the property while forgetting that the real cost mainly depends on the rate at which one borrows.
Jeanbrun system: the new tax framework for rental investment
Since February 21, 2026, the Pinel system no longer exists. Its replacement is called the Jeanbrun system, integrated into the 2026 finance law. The mechanism is different: instead of a tax reduction, the investor benefits from an annual depreciation of between 3.5% and 5.5% on 80% of the property’s value.
The ceiling for property deficits has also been raised to 21,400 euros per year for private landlords. This doubling of the previous ceiling aims to attract individuals back to long-term rentals, a segment that has been losing momentum for several years.
Strict condition: DPE A or B
The Jeanbrun system is not open to all properties. Only properties with an energy performance rating of class A or B are eligible. This directs capital towards the most efficient new programs, often located in eco-neighborhoods or recent high-insulation residences.
Why this choice? The reform of the private landlord status, adopted in the same legislative text, seeks to reconcile two objectives: reviving the supply of rental housing and accelerating the energy transition of the housing stock. Investors targeting poorly rated old properties on the DPE are therefore excluded from the system, unless they undertake significant renovations to achieve class B.
- Depreciation of 3.5% to 5.5% per year on 80% of the property’s value, depending on the chosen rental commitment duration
- Ceiling for property deficits doubled to 21,400 euros, allowing for greater deduction of expenses from rental income
- Eligibility reserved for properties rated DPE A or B, which excludes the vast majority of the old stock without renovations
- Parallel creation of a private landlord status to secure long-term rental investment
Real estate transactions in 2026: real recovery or plateau?
The old market is recovering. Approximately 940,000 transactions are expected in 2026, a significant rebound from the low point of 780,000 sales in 2024. In Paris, volumes increased by 15% in the first quarter of 2026 compared to the same period in 2025.
This rebound should be put into perspective. The record of 1.1 million transactions dates back to 2021. A return to a million is not expected before 2027 or 2028 according to available projections. The market is stabilizing, but at a level lower than that before the rate crisis.
The new market remains in difficulty
On the new housing side, the situation is more strained. Sales to individuals saw another decline in the second quarter of 2026. Construction is struggling to recover after two years of crisis, despite signals from the French Building Federation anticipating a slight improvement.
Developers face a double problem: still high construction costs and weakened demand due to rising rates. The new market mainly attracts investors eligible for the Jeanbrun system, further segmenting the market between high-end programs that are very efficient in terms of energy and the rest of the offering.
Real estate prices in France: widening gaps between regions
Prices do not follow a single trend. Major metropolitan areas show relative stability, sometimes even slight increases driven by the return of buyers. In contrast, some medium-sized cities and rural areas see their prices stagnate or decline.
This phenomenon can be explained by the concentration of demand. Households that maintain sufficient borrowing capacity are turning to the best-served locations, close to employment hubs. Properties poorly rated on the DPE, far from transportation or requiring significant work, are experiencing increasingly marked depreciation.
- Properties rated DPE F or G are losing attractiveness, as energy renovation costs add to the purchase price
- Cities connected to the rapid public transport network maintain their value better
- The supply of student housing remains deficient, with about fifteen years of backlog to catch up according to FPI France
The French real estate market in 2026 is not just a uniform recovery. The rise in rates, the Jeanbrun system, and regional disparities create a landscape where each purchase requires careful analysis. Checking the DPE of the property, calculating the total cost of credit, and comparing local price dynamics are three reflexes to adopt before signing.
