After reaching a low point in 2024, the French residential investment market rebounded in 2025, with investment volumes up by 22%, totalling €4.2 billion. However, the recovery remained highly uneven, depending on geography, asset classes and investor profiles.
The rebound was mainly driven by large-scale transactions, with six deals above €100 million accounting for 37% of total invested volumes. At the same time, the overall number of transactions fell by more than 10%, reflecting increased investor selectivity. Residential assets nonetheless strengthened their position in real estate allocations, reaching a record 24% share of total real estate investment in France.
2025 was an exceptional year for managed residential assets, which represented 35% of total residential investment, compared with 16% in 2024. Student housing largely dominated this segment, with over €1.2 billion invested, mainly through large portfolio transactions acquired by international investors, primarily Anglo-Saxon and North American. Conversely, co-living remained marginal, while senior housing, despite growth, continued to lag behind historical levels.
The traditional residential segment, almost exclusively driven by French investors, totalled €2.7 billion, slightly down year on year. Activity was heavily concentrated in Paris and the Île-de-France region, which captured 85% of invested volumes, particularly in the most prestigious districts. Block sale discounts continued to narrow, reaching 17% in 2025 in Paris and Hauts-de-Seine.
The City of Paris and social housing landlords remained key players in the Parisian market, with more than €730 million invested in 2025 through acquisitions and pre-emptions to support the development of public housing. In a context of persistently weak new construction, these transactions have become the main lever for achieving the target of 40% public housing by 2035.
Outlooks for 2026 remain shaped by political and regulatory uncertainty, which could prolong investor caution and limit investment volumes in the first half of the year. Student housing is expected to continue attracting international capital, while traditional residential investment will remain constrained by low risk premiums. Over the longer term, residential real estate retains its appeal as a resilient asset class within diversified investment portfolios.