The French property market is going through a period of transition. According to the market report published by the Notaires de France on October 22, 2026, existing-home transactions increased over the past twelve months, but growth slowed significantly from late 2025 onward.
Mortgage lending conditions remain demanding, prices are not falling sharply, and the energy performance of homes is reshaping the decisions of both buyers and investors. Whether you are planning to buy, sell or invest in a rental property, the factors to watch are no longer the same as they were three years ago.
Energy ratings and the rental ban timeline: a filter few buyers apply early enough
A home’s energy rating is no longer just an indicator of comfort. It now determines whether a property can be rented at all. Homes rated G have been banned from the rental market since 2025, those rated F will be affected from 2028, followed by homes rated E from 2034.
For an investor, ignoring this timeline means buying an asset whose rental income could fall to zero within a few years. The asking price is no longer enough: you also need to factor in the cost of the energy-efficiency upgrades required to reach at least a D rating, or even C, to ensure the property can be rented out over the long term.
The Notaires de France have also observed an increase in the share of existing homes sold with better energy ratings, particularly those rated C and D in 2025, while the share of homes rated E has declined. This trend should be interpreted with caution: changes to the DPE thresholds for homes under 40 m², which took effect on January 1, 2024, mechanically reclassified some properties even though their actual energy performance had not changed.
Before making an offer on a property intended for rental, several checks are essential:
- The date of the current DPE: an assessment carried out before the 2024 threshold changes may overstate the home’s actual rating, especially for smaller properties.
- The gap between the current rating and the minimum rating required over your intended holding period (2028 for F-rated homes, 2034 for E-rated homes).
- The type of work required (wall insulation, heating system replacement, ventilation) and whether it can be carried out in a condominium, where collective decisions can delay a project by several years.
Published in the property section of Blog Introduction, this kind of checklist helps structure a purchase project by taking regulatory requirements into account from the outset.
Negotiating property prices: what current discounts reveal about the market
Buyers now have more room to negotiate than they did during the period of strong demand, and negotiation margins have widened across a significant part of the country.
These margins vary considerably by location. In high-demand areas, where demand still exceeds supply, sellers are less willing to compromise. In medium-sized towns and rural areas, discounts between the asking price and the final sale price can reach several percentage points.
For sellers, the temptation to hold out for a high price comes with a real risk: an overpriced property stays on the market longer and ultimately sells for less than one priced appropriately from the outset.
Notaries point out that, in the short term, the main risk is a decline in transaction volumes rather than a sharp drop in prices. In other words, properties that fail to attract buyers at a given price simply do not sell, rather than undergoing a steep price cut.
Three indicators to check before setting an asking price
The median price per square metre in the neighbourhood, available through notarial databases, provides an initial benchmark. The average time comparable properties in the same area take to sell offers a more precise signal: if similar homes take more than four months to sell, the asking price is probably too high.
The third indicator, often overlooked, is the mortgage rate in effect at the time of sale. A rise in rates mechanically reduces buyers’ borrowing capacity, pushing acceptable prices down even if the property’s intrinsic value has not changed.
Property financing and mortgage rates: weighing up whether to wait or buy
The question comes up time and again: should you buy now or wait for rates to fall? The available data do not allow for a definitive answer, because rate movements depend on monetary policy decisions whose timing remains uncertain.
What we do know, however, is that lending conditions have tightened. Banks are scrutinising applications more closely, with greater emphasis on personal contributions, employment stability and debt-to-income ratios.
The decision to wait or buy depends more on personal circumstances than on market predictions:
- A buyer with a substantial deposit and plans to live in the property long term has little reason to delay, as a hypothetical fall in rates could be accompanied by rising prices.
- A rental property investor whose net yield depends heavily on borrowing costs should model several interest-rate scenarios before committing, including the cost of energy-efficiency upgrades.
- A seller planning to buy again immediately after selling needs to coordinate both transactions, which means securing a mortgage agreement in principle before signing the preliminary sale agreement for the property being sold.
Deed of sale and the notary’s role: what happens in the final weeks
Signing the final deed of sale before a notary is not a mere formality. It is when the legal checks are completed: mortgage status, planning compliance, easements and mandatory property assessments. A defect discovered after signing can make the seller liable, but legal remedies are lengthy and costly.
The period between the preliminary agreement and the final deed, usually two to three months, is specifically intended to resolve these issues. During this time, the buyer has a cooling-off period and must then secure a mortgage. If financing is refused and a suspensive condition has been included, the sale is cancelled without penalty.
Having a notary who is independent of the seller review the preliminary agreement remains an underused precaution. It costs the buyer nothing, since the two notaries share the fees, but having a second pair of eyes review the clauses can help avoid unfavourable commitments, particularly conditions related to the mortgage or the discovery of hidden defects.
The 2026 property market rewards thorough preparation. A home’s price no longer tells the whole story: its energy rating, precise location and financing conditions are just as important to the success of a purchase, sale or investment project.
