France economic outlook shows real estate stability amid low consumer confidence

The French economy is showing signs of stabilization heading into 2026, though consumer sentiment remains cautious. The real estate market is expected to see a return to activity, with transaction volumes projected to reach approximately 960,000 operations. National property prices are anticipated to see moderate growth between 2% and 3%, with Paris maintaining stability around €9,700 per square meter.

Key drivers in the housing sector include a focus on ecological criteria, sustainable building practices, and the integration of smart home technologies. While urban centers like Lyon and Bordeaux remain attractive, rural areas and smaller towns are gaining interest due to more accessible pricing.

Despite these market shifts, household confidence in France remains low. According to Insee, the consumer confidence index held steady at 86 points in August 2026, significantly below the historical average of 100. While the decline in sentiment has paused, households express growing concerns regarding unemployment and future price increases. This uncertainty has led to an increase in savings as citizens prioritize financial reserves over consumption, potentially impacting broader economic recovery.