# French real estate and economic trends > Live situation record from CLSTR: https://clstr.news/situations/french-real-estate-and-economic-trends > Updated: 2026-09-08T07:38:23.000Z. Sources: 29. Developments: 5. The French real estate market continues to navigate a period of transition and uncertainty, exacerbated by rising interest rates. In early September 2026, 10-year OAT rates reached 4.24%, up from under 3.6% in June. This upward pressure is compounded by the European Central Bank preparing a 0.25 point rate hike to address inflation, which is expected to drive bank lending rates higher. Recent data from the Notaires-Insee index indicates that prices for existing real estate in France fell by 0.8% year-on-year in the second quarter of 2026, reversing a 1.1% increase seen in 2025. This downturn was primarily driven by a 1.3% decrease in house prices, whereas apartment prices remained nearly stable with a marginal decline of 0.1%. In the Île-de-France region, overall prices dropped by 0.3% as a 1.5% decrease in house prices offset a 0.3% increase in apartment values. Other regions reported a 1% annual decline, with houses experiencing sharper drops than apartments. While sales forecasts for 2026 remain between 900,000 and 955,000 units, Insee noted that 958,000 existing housing transactions were recorded in the twelve-month period ending June 2026. These volumes have stabilized since the start of the year, following a recovery between October 2024 and December 2025 that followed a decline beginning in April 2022. The new construction market remains in a significant downturn, with reservation volumes 50% lower than 2021 levels, particularly in the Nord and Centre-Val de Loire regions. ## Timeline ### 2026-09-08: France existing real estate prices fall 0.8% year-on-year Existing real estate prices in France fell by 0.8% year-on-year in Q2 2026, driven largely by a 1.3% drop in house prices, according to the Notaires-Insee index. 5 sources. https://clstr.news/cluster/france-existing-real-estate-prices-fall-08-year-on-year ### 2026-09-02: French real estate market faces instability amid rising rates The French real estate market faces a downturn as new construction plunges and mortgage rates rise, driven by high OAT yields and expected European Central Bank interest rate hikes. 12 sources. https://clstr.news/cluster/france-real-estate-market-faces-uncertainty-amid-new-construction-decline ### 2026-09-02: Real estate investment trends shift in France Real estate investment in France is seeing a decline in buy-to-let interest as profitability concerns rise and upcoming inheritance trends and potential tax changes shift the market landscape. 2 sources. https://clstr.news/cluster/real-estate-investment-trends-shift-in-france ### 2026-08-25: France economic outlook shows real estate stability amid low consumer confidence France faces a dual economic landscape in 2026: a stabilizing real estate market with projected growth and rising transaction volumes, contrasted by low consumer confidence and increased household savings. 10 sources. https://clstr.news/cluster/france-economic-outlook-shows-real-estate-stability-amid-low-consumer-confidence ### 2026-08-23: French real estate historical wealth performance Historical data shows French residential real estate generated 0% real annual wealth between 1965 and 2000, challenging long-held beliefs about property as a primary investment vehicle. 3 sources. https://clstr.news/cluster/french-real-estate-historical-wealth-performance --- Cite as: French real estate and economic trends. CLSTR, https://clstr.news/situations/french-real-estate-and-economic-trends