The real estate market in Paris is showing signs of stabilisation after several years of correction, with luxury demand remaining resilient even as affordability pressures continue to weigh on the broader housing sector.
Recent market reports suggest average residential prices in Paris have steadied at around €9,700-9,850 per square metre in 2026, supported by improving mortgage conditions and limited supply in prime districts. Analysts say the sharp downturn feared during the interest-rate cycle has largely been avoided.
Luxury real estate continues to outperform the wider market. Demand for high-end homes in districts such as Saint-Germain-des-Prés and the 16th arrondissement remains strong, with prices for premium properties ranging between €15,000 and €25,000 per square metre.
The city is also attracting growing international investor interest. According to recent reports, Paris is positioning itself more aggressively in the global “super-prime” housing market, with branded luxury residences and ultra-premium developments becoming increasingly prominent.
At the same time, policymakers are attempting to address chronic housing shortages. Paris authorities announced plans to tighten measures on vacant homes by nearly doubling taxes on empty properties from 2027, aiming to bring around 20,000 apartments back onto the market.
Sustainability has also become a defining factor in valuations. Energy-efficient homes are commanding significant premiums as stricter environmental regulations begin reshaping buyer preferences across France. Older properties with poor energy ratings are increasingly difficult to sell or rent, prompting a wave of renovation activity.
Industry observers say the outlook for Paris real estate now depends heavily on interest-rate stability, infrastructure upgrades linked to the Grand Paris project, and whether housing reforms can improve supply in one of Europe’s most expensive urban property.
