French Property Market Trends: What We Are Watching

The French property cycle is entering a more selective phase. Financing has stabilized after several turbulent quarters, and the assets that clear the market today are those with clear operating stories.

We observe a pronounced flight to quality in Paris intra-muros, sustained demand for well-located commercial assets with strong tenant covenants, and a widening gap between energy-compliant and non-compliant residential stock.

Regional cities continue to outperform on a total-return basis. Lyon and Bordeaux in particular attract long-term capital as their economic bases diversify.

For opportunistic buyers, distressed situations are re-emerging in secondary retail and older office stock, offering repositioning entry points at replacement cost.