Actualité - Luxury Real Estate Trends in 2025: Towards a Market Recovery

Article updated on 14/10/2026

Prestige real estate in France, renowned for its ability to withstand economic crises, is facing major changes in 2025 after a 2024 marked by a degree of instability. Despite a complex economic and geopolitical environment, luxury real estate has shown remarkable resilience. Forecasts for the coming year point to a gradual recovery, driven by several key factors.

In summary

In 2024, the prestige market was mixed: +8% for rural properties, -30% for the urban market.
Châteaux account for 40% of transactions, ahead of townhouses (21%) and apartments (20%).
For 2025, the article anticipated a recovery driven by lower interest rates, more transactions and stabilising prices.
Sustainable luxury, ultra-connectivity, rare locations and personalised services make the difference with buyers.

Update of Wednesday 14 October 2026:
After activity rose by more than 20% in 2025 (Engel & Völkers), the luxury market is becoming more selective in 2026: negotiations of 7 to 15%, growth in off-market sales, and a 9% drop in the value of sales in the first half of the year at Barnes. Source: MonImmeuble; Bourse Inside, 2026.

A 2024 marked by contrasts

Performance varying by type of property

In 2024, the prestige real estate market saw contrasting trends. On the one hand, rural properties posted an exceptional performance with growth of 8%. These properties, often synonymous with space and tranquillity, appealed to buyers looking for peace and quiet away from the big cities. On the other hand, the urban market contracted significantly, by 30%, affected by a less favourable economic climate and falling demand for luxury properties in the city.

Châteaux and townhouses dominate

Châteaux continued to dominate the market, accounting for 40% of transactions. These exceptional properties attract buyers with a passion for history and architecture, looking for large-scale properties full of character. They are followed by townhouses, which account for 21% of transactions, then apartments (20%), character houses (15%) and private mansions (5%). This overview shows a strong appetite for properties offering both prestige and a certain architectural standing.

2025: an expected recovery for the prestige market

Falling interest rates: a decisive factor

One of the main drivers of the recovery in the luxury real estate market in 2025 is the forecast of a significant fall in interest rates. According to experts, rates should fall to around 3% for a 20-year mortgage in spring 2025. This trend will automatically stimulate demand, particularly among foreign investors and buyers looking for an exceptional property. Lower rates are a real lever for making prestige properties more affordable, while supporting a revaluation of the market.

A sharp rise in the number of transactions

After a significant drop in the number of transactions in 2024, sales volumes should pick up again in 2025. Forecasts estimate that around 900,000 transactions will take place, marking a clear recovery after a year of decline. This rebound will be supported by buyers’ growing interest in prestige properties and rising consumer confidence in a more stable economic environment.

Price stabilisation: a slight rise expected

After the price falls seen in 2024, prestige properties should see prices stabilise, or even rise slightly by around 2% by the end of the year. This stabilisation should reassure investors and potential buyers looking to secure their wealth while taking advantage of a more favourable market. The adjustments made in 2024 will have helped reach a certain balance, and the growing demand expected for 2025 should support this stabilisation with a slight revaluation.

The criteria that make the difference in luxury and prestige real estate in 2025

The rise of sustainable luxury

In 2025, prestige real estate is no longer just about aesthetics and location: environmental standards are now a fundamental criterion. Buyers are looking for properties that incorporate sustainable materials, rainwater harvesting systems and green innovations such as solar panels. High-end villas and apartments are now designed to minimise their carbon footprint thanks to smart technologies. This “sustainable luxury” appeals to buyers keen to combine comfort, modernity and environmental responsibility.

Ultra-connectivity serving comfort

Technological innovation is transforming luxury real estate in 2025. High-end properties are equipped with advanced home automation, allowing centralised control of lighting, temperature and security. Artificial intelligence personalises the occupants’ experience by automatically adjusting the home’s settings to their preferences. Some properties even include spaces with augmented reality, changing the way people interact with their living space.

Exceptional locations: rarity at the heart of value

While location remains a key criterion, the rarity of a site is becoming a real differentiating factor in 2025. Buyers are looking for properties in exclusive places: private islands, isolated summits or secure enclaves in the heart of major cities. The concept of “semi-isolation”, which combines tranquillity with quick access to modern infrastructure, is booming.

An exceptional lifestyle and ultra-personalised services

Luxury properties no longer simply offer a prestigious setting: they now come with ultra-personalised services. Private chefs, 24/7 concierge services, automated wine cellars and digitally controlled swimming pools have become standard features for attracting demanding buyers. The unique experience a property offers plays an increasingly central role in the purchase decision.

Prestige real estate as a safe haven

Despite economic fluctuations, luxury real estate remains a strategic investment. Exceptional properties are a safe haven that attracts both French and foreign buyers. In times of financial uncertainty, investing in tangible real estate assets makes it possible to secure one’s wealth and ensure intergenerational transmission. Buyers, particularly UHNWIs (Ultra High Net Worth Individuals), favour properties that reflect values of sustainability and circularity, notably through the renovation of historic properties and the use of eco-friendly materials.

Conclusion: a promising prestige market in 2025

Luxury real estate in France looks set to be resilient and dynamic in 2025. After a year of challenges and readjustments in 2024, the market is heading for a significant recovery, supported by falling interest rates, the rise of sustainable luxury and the growing appeal of rare and exclusive locations. Ultra-personalised services and ultra-connectivity are transforming the high-end real estate experience, while the environmental dimension is becoming an essential criterion. In short, 2025 will mark a return to growth for prestige real estate, offering new opportunities to investors and buyers looking for exceptional properties.

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To find out more, watch our video The Luxury & Prestige division.