Paris, July 7 – The Parisian real estate market has experienced a significant slowdown in the first five months of 2026, marked by a 24% decrease in apartment sales. This figure stands in stark contrast to the 35% increase recorded during the same period last year, according to Le Parisien.
Transaction Volume Declines Despite Stable Prices
Despite the sharp drop in transaction volume, prices have remained relatively stable, averaging around 9,530 euros per square meter. This suggests a market where demand is cooling, but sellers are not yet significantly lowering their asking prices.
This downturn follows a period of accelerated purchases in late 2025, driven by an increase in transfer duties to 5% that took effect on April 1, 2025. Buyers rushed to finalize transactions before the tax hike, making comparisons between the first quarters of 2025 and 2026 potentially misleading.
Banks Tighten Lending Conditions
A major factor contributing to the decline in sales is the tightening of credit conditions by banks. Loan rejections are more frequent, and the personal down payment required from buyers has increased. Bridging loans, once a common financing tool, are now scarcer and only finance 50% of a property’s value, down from 70% previously.
“This shows that bankers have less confidence in the market,” explained Élodie Frémont, president of the real estate statistics commission of the Chambre des notaires du Grand Paris.
Energy Performance Diagnostics Deter Buyers
Another significant hurdle for potential buyers is the energy performance diagnostic (DPE). In Paris, nearly 60% of the housing stock is classified as E, F, or G (energy inefficient), with many Haussmannian buildings being particularly expensive to renovate. The high costs associated with bringing these properties up to modern energy standards are discouraging buyers.
Geopolitical Tensions Add to Market Uncertainty
The international context, including tensions in Iran and their repercussions on inflation, is also weighing on household morale. This broader economic uncertainty is contributing to a cautious approach from both buyers and sellers in the real estate market.
Real estate professionals are hopeful for a recovery in the autumn, though they acknowledge the lack of certainty surrounding such a rebound.
Expert Commentary and Outlook
According to aujo22, a commenter on Boursorama, the current situation was
