France new housing market sees rise in first-time buyers

New housing is regaining attractiveness among first-time buyers in France. According to the Catella group, the market is increasingly driven by owner-occupiers rather than investors. In the Île-de-France region, investors accounted for only 16% of new home sales in the first half of 2026, a significant drop from the 10-year average of 34% reported by Capem.

Several factors are contributing to this shift, including stabilizing mortgage rates and specialized financing offers. Some banks have introduced subsidized rates, such as 1.99% for 25-year loans, specifically targeting first-time buyers. Additionally, new property prices have seen a correction; data indicates that the average price for a three-room new apartment fell to €317,611 in March, representing a 1.26% decrease over six months. In a study of 89 French cities, 56 recorded price decreases while 33 saw increases.