Good news for borrowers: March 2025 brings a further fall in interest rates, following some moderate rises at the start of the year. This represents an excellent opportunity for those who have a property project in the pipeline. However, in this situation, it’s essential to understand exactly what’s changing, what rates the banks are now offering, and whether it’s better to wait for a further fall or act now. Here’s all the information you need to make an informed choice.
Significant rate cuts in March: what you need to know
March 2025 marks a turning point for borrowers with a general reduction in interest rates. The average fall in rates is around 0.10%, but for the best profiles, the fall can be as much as 0.30%. For the latter, rates are now below 3%, a situation not seen for several months. These adjustments follow the decision by the European Central Bank (ECB) to cut its key rates by 0.25%, a move that encourages banks to offer more favourable terms to borrowers.
| Loan term | Average rates in March 2025 | Best negotiated rates |
|---|---|---|
| 15 years old | 3 % | 2,7 % |
| 20 years old | 3,20 % | 2,7 % |
| 25 years old | 3,40 % | 2,9 % |
This development is particularly important for those who are considering buying a property, as it considerably reduces their monthly repayments and increases their borrowing capacity. If you have a project in mind, March could be a golden opportunity to obtain advantageous finance.
Reductions of up to 0.30%: how are these rates calculated?
Interest rates are defined by a number of criteria. For a standard borrower, rates are calculated according to the term of the loan, the borrower’s profile (income, professional stability, personal contribution) and the lending bank’s policy. In March 2025, average rates were as follows:
- 15 years: 3% on average, with the lowest rates negotiated at 2.7% for the strongest profiles.
- 20 years: 3.20% on average, with rates as low as 2.7% for the best deals.
- 25 years: 3.40% on average, with the lowest rates negotiated at 2.9%.
This means that a borrower with an optimal profile (high income, stability, low level of debt) will be able to negotiate very attractive rates, well below 3%, a rate that was unthinkable just a few months ago.
A return of buyers: a sign that the property market is picking up again
The property market is experiencing a real rebound thanks to the fall in interest rates that began just over a year ago. According to the latest figures, loan applications have risen sharply since the start of 2025. January and February saw :
- A 35% increase in credit applications compared with the same period in 2024.
- A 45% increase in loans finalised over the same period.
This renewed interest can also be seen in property searches, with a 5.2% increase in searches in January 2025 compared with the previous year. This upturn is largely due to more favourable financing conditions and falling property prices in some regions.
The combined effect of falling interest rates and prices: a window of opportunity to be seized
The combination of a fall in interest rates and a reduction in property prices offers a unique window of opportunity for buyers. Indeed, property prices have fallen in many French towns and cities, making it possible to buy at more affordable prices than a few months ago. However, this trend could soon be reversed as buyers return to the market. In some towns and cities, prices are already starting to rise, proof that the balance between supply and demand is shifting.
Should we wait for a further fall or act now?
Experts agree that interest rates will not necessarily continue to fall significantly. Indeed, although the ECB announced a 0.25% cut in its key rates in March, it is unlikely that rates will return to levels as low as they were two years ago, around 1%. So if you’re thinking of buying a property, it’s best to take advantage of the current situation. Not only are interest rates still relatively low, but property prices are also attractive in some regions.
A key moment for investing or selling in 2025
March 2025 represents a pivotal moment for anyone looking to buy or sell a property. Financing conditions are favourable, and falling prices in some regions mean that bargains can be found. It is therefore crucial to seize this opportunity, before a possible resurgence of buyers causes prices to rise again. What’s more, the current banking and economic climate may not last forever, and an opportunity like this may not come along again soon.
Conclusion: March 2025, a turning point for the property market
March 2025 is therefore a decisive time for those with a property project in mind. Whether you’re buying or selling, the conditions are right for a profitable transaction. Interest rates are still low, property prices are falling in several regions, and the prospects of a further fall are uncertain. This is the ideal time to move ahead with your property project, before the situation changes.
➡ Advice: Are you looking for a property in Antibes? With Tanit Immobilier, you benefit from personalised support and a bespoke selection of properties, whether you’re looking for a flat with a sea view, a city flat, a luxury villa on Cap d’Antibes or any other property search. Our team is dedicated to finding the perfect property to meet your needs and expectations. Contact us today to make your real estate project a reality!
