Overall residential en bloc investment in France*, as defined by ImmoStat, rose by 11% in H1 2025, to €1.9 billion, but this volume was mainly driven by two XXL transactions: the sale by Gecina of the YouFirst Campus portfolio to the JV formed by Nuveen Real Estate and GSA for €538 million, and the acquisition by Éric Sitruk and Thomas Fabius of the îlot Chirac for €165 million.
With Q2 2025 up 32% on Q2 2024, reaching €1.1 bn, the boards agree that these two significant transactions have had a significant impact on overall volume, but also on the "dynamism" observed in the market.
" The resurgence of activity in portfolios over the last few months is a very good sign of renewed confidence", emphasizes Jean-François Morineau, Managing Director of BNP Paribas Real Estate's Conseil Habitation et Hospitality.
" The return of major transactions this quarter signals that the market is entering a recovery phase, with sellers confident that liquidity will return to residential typology", comments François-Xavier Pascal, Director of Residential Investment Properties at CBRE France.
Solid recovery
"Whereas in 2024, deals in excess of €100 million were absent from investment volumes in France, the1st half of 2025, and more particularly the2nd quarter, saw a resurgence in major transactions", adds Dimitri Philippon, Investment & Agency Director at BPCE Solutions Immobilières.
" The volumes recorded in the first half of the year testify to a solid and lasting recovery in the residential market in France", says Alexandra Paulin, Director of Residential & Healthcare Capital Markets France at Cushman & Wakefield. "The classic residential market, driven by value-added players, but also a number of core investors who are very active in this type of property, is attracting liquidity thanks to attractive metric prices, while student residences and coliving remain at the heart of the strategies of many foreign and French institutional investors. "
In other words: "Investors continue to position themselves in this sector for the secure income aspect and in order to diversify their asset portfolio", comments Béatrice de Quinsonas, Director of Research at BPCE Solutions Immobilières.
Marie-Noëlle Sixtre, Director of Ikory Capital Markets, adds: "Against a backdrop of recovery in residential investment, the year 2025 is proving to be surprising. Value-add players are finding themselves competing with medium- and long-term investors capable of accepting tighter rates, as long as the discount between block and cut remains significant".
While the sale of Gecina's portfolio of student residences is the flagship transaction of the half-year, the market remains dominated by small-scale operations, mainly in existing residential: 81% of transactions involve assets under €20m, although operations over €100m alone account for 40% of committed volumes.
Conventional and intermediate residential assets are slipping
According to ImmoStat figures released today, conventional and intermediate residential assets totalled €1.1 billion in H1 2025 (-12%), including €487 million in Q2 (-23%).
While conventional housing remains the market's main driver, with over €1 billion invested inH1 2025, or almost 60% of total volume, it nevertheless recorded an 8% year-on-year decline in performance, notes BNP Paribas Real Estate in its analysis. "The intermediate housing market saw an even bigger drop: €77 million in H1, down 48% year-on-year.
While social landlords had been particularly dynamic in this market in recent years, several of them have opted in recent months to refocus social housing on their core business, thereby reducing their investment in intermediate housing.
"With regard to conventional housing, the first half of the year has mainly consisted of developer deals or disposals of unit assets worth less than €50m, held mainly by insurers and private investors, but larger-scale deals are expected to be signed in thesecond half of the year", predicts Florence Sémelin, Director of Residential Investment and Managed Assets in JLL's Investment Department.
In this market segment, almost 80% of volumes concern assets in the Paris region. "However, there have been some good transactions in the regions, notably in Lyon and Bordeaux, illustrating investor interest in well-located real estate in all major French cities, all of which are affected by the shortage of supply in the rental market", notes François-Xavier Pascal.
" We anticipate a more significant2nd half-year for conventional and intermediate residential property, given the activity of players in the market and the expected signing of major transactions", predicts Marie-Noëlle Sixtre. "Investors' appetite for a stable, resilient asset class is intact. The sector is booming, with investment strategies and differentiating approaches demonstrating their capacity for innovation and their desire to play a societal role."
Under the impact of the Gecina deal, residential assets under management totaled €719 billion in H1 2025 (+122%), including €628 million in Q2 alone (+190%). Excluding this portfolio, the market for managed residences remains well below its long-term average.
Four deals involving unit assets totalling €115 million were nevertheless recorded, including Greystar's acquisition from Linkcity of a 390-apartment student and coliving residence in Toulouse, and Aberdeen's acquisition of a 144-unit residence in Suresnes.
"This quarter's results, and the projects we are currently working on, confirm the strong interest shown by investors in student residences," says Florence Sémelin.
Conversely, the other asset classes posted mixed results, with investments of €17 million in senior residences (down 65% year-on-year) and €11 million in coliving (down 94%).
Ongoing projects
In France's residential investment market, "the second half of the year looks promising, with a multitude of assets currently being marketed and significant portfolios expected to be completed by the end of the year", anticipates Alexandra Paulin.
" In view of the projects in progress, including several large portfolios, the second half of 2025 should remain lively", insists François-Xavier Pascal.
| The "amount of residential investment in France" indicator, as calculated by ImmoStat, represents the overall volume of bulk residential assets acquired over a given period by players with a view to deriving a financial return from the ownership of the property acquired. The indicator includes all residential assets sold en bloc, whether conventional or intermediate rental housing, student and senior residences (excluding Ehpad) as well as coliving residences, and mixed residential assets. Pure social housing is excluded from this indicator. To reinforce the reliability of this new indicator, GIE ImmoStat members (BNPPRE, CBRE, Cushman & Wakefield and JLL) have joined forces with three partners with a strong presence in the residential market: BPCE Solutions immobilières, Esset Valorisation and Ikory. |