When looking to buy an apartment right now, the first surprise often comes from the broker: the monthly payment has changed compared to the simulations done six months earlier. The French real estate market is going through a phase where every parameter – rates, price per square meter, rental taxation – evolves in sometimes contradictory directions. Understanding these movements allows for concrete decisions, not just following the news.
Rising mortgage rates: what it changes for a purchase
Since July 2026, mortgage rates have started to rise again after a period of relative stability. According to the Crédit Logement/CSA Observatory, the average rate stands at 3.30% in July 2026, with a continuous increase since spring.
The direct consequence on the ground is the lengthening of loan durations. The average loan term reaches 253 months, which is just over 21 years. The share of loans of 25 years and more now exceeds half of new credits, compared to less than half in 2025.
For a household borrowing, this concretely means that they are repaying for a longer time for the same amount. Purchasing power decreases if they maintain the same duration as before. Two levers remain available: negotiating borrower insurance (which represents a significant part of the total cost) and increasing personal contributions to reduce the borrowed capital. These analyses can also be found among the real estate information on Expertise Maison, which detail possible trade-offs based on buyer profiles.
Real estate prices in France: a very uneven recovery depending on the cities
The market is not just a national curve. Since the beginning of 2026, we observe what some observers qualify as a “convalescent” recovery: transaction volumes are slightly rising, but prices do not follow the same trajectory everywhere.
Large metropolitan areas show different dynamics. Paris remains in a correction phase after several years of decline, while some medium-sized cities see their prices stabilize or even rise modestly. Feedback on this point varies according to employment pools and the presence of infrastructure projects.
What really affects the price of a property
Beyond location, the DPE (energy performance diagnosis) has become a major negotiation criterion. A property classified as F or G suffers a depreciation upon resale, and the necessary energy renovation work to improve the rating weighs on the buyer’s budget.
- The DPE class directly influences the sale price: a poorly rated property sells for less and stays on the market longer
- Notary fees, which have been increased in many departments since 2025, add several thousand euros to the total acquisition cost
- Zoning (tense area or not) determines the rules for rent control and thus the potential rental profitability
Rental investment and SCPI: balancing between direct management and delegated investment
It is often said that rental investment “no longer pays off.” The reality is more nuanced. The return depends on the management mode and the type of property chosen, not on a general trend.
In direct management, buying an apartment to rent remains profitable in certain high-demand areas, provided all costs are taken into account: renovations, rental vacancy, taxation. The tax regime for non-professional furnished landlords (LMNP) has undergone recent adjustments that change the calculation of net profitability.
SCPI: a return without management constraints
SCPI (real estate investment companies) allow investment in real estate without managing tenants or renovations. You buy shares, and the management company takes care of the real estate assets.
- The invested capital is pooled across several buildings, which reduces the risk associated with a single property
- The annual return generally ranges from a few percent, varying according to the SCPI and sector (offices, retail, residential)
- Liquidity is lower than a stock investment: selling shares can take several weeks to several months
- Entry and management fees reduce the displayed gross return
For a first-time investor who does not want to manage tenants, SCPI represents an entry point. For someone looking to build tangible real estate assets with leverage through credit, direct purchase remains more powerful in the long term, despite the constraints.
Real estate taxation 2026: changes impacting property owners
The start of the 2026 school year brings its share of tax adjustments. The scope of the tax on vacant housing has been expanded, now affecting municipalities that were not previously targeted. For an owner who keeps an unoccupied property, the tax on vacant housing can represent a significant annual cost.
On the rental investment side, the tax rules for LMNP and the Pinel scheme (being phased out) continue to evolve. It is recommended to check each year the applicable thresholds and caps, as a tax-optimized structure in 2024 may no longer be so in 2026.
Notary fees: a variable often underestimated
Transfer taxes, commonly referred to as notary fees, have increased in the majority of departments. On a purchase of several hundred thousand euros, the impact amounts to several thousand euros more compared to the previous year. This is a cost to factor in from the calculation of the overall budget, even before visiting.
The French real estate market this back-to-school season rewards those who calculate before positioning themselves. Rising rates, heterogeneous prices, shifting taxation: each purchase or rental investment project deserves an updated simulation, not a six-month-old spreadsheet.