France economic outlook: social benefits, interest rates, and real estate

Economic updates in France indicate potential shifts in social benefits and investment returns. The 'prime d'activité' may face a freeze in 2027, as Labor Minister Jean-Pierre Farandou suggested it could be part of frozen aid, though this requires a vote within the Social Security budget.

Regarding savings, rising interest rates from the European Central Bank could increase the net return of the Livret A from 1.70% to 2.40% by February. Life insurance euro funds may also see yields reach 2.9% in 2026. Conversely, mortgage rates are rising, with averages ranging between 3.23% and 3.61% depending on the term.

In the real estate sector, monthly revaluations of the 'taux d'usure' (usury rate) are expected to provide banks with more flexibility to grant mortgages, potentially revitalizing the market. Real estate remains a preferred investment for many, with options including rental properties, SCPI, and real estate crowdfunding.