Financing for individuals
The classic mortgage
This is the dominant route for individuals building a house or buying off plan. It is granted by retail banks on the basis of repayment capacity, a maximum debt service of 35 % of net income under the national recommendations, generally over 15 to 25 years.
| Minimum deposit | 10 to 20 %, covering at least the legal fees |
|---|---|
| Rate | 3.10 % on average in May 2026 on new housing loans excluding renegotiations, according to the central bank, after a peak of 3.59 % in January 2024. The rate actually obtained varies with the term and the borrower's profile. |
| Security | A charge on the property or a bank guarantee |
| Term | 15 to 25 years, up to 30 in some cases |
Assisted loans
| The zero-interest loan | An interest-free loan for first-time buyers subject to income conditions. Since offers issued from 1 April 2025 it covers every new dwelling across the whole country. |
|---|---|
| The social access loan | A regulated loan for modest households, giving entitlement to housing benefit on purchase. State guaranteed. |
| Shared-equity tenure | Land and building are separated: the buyer acquires the building and leases the land from a land trust. The cost falls by 30 to 40 %. |
Financing for professionals
The development loan
Short-term finance, 12–36 months, granted to operators to fund the delivery of a development. Funds are drawn progressively and repaid from off-plan sales. Typical conditions: 40–50 % pre-sales, 10–20 % equity, a completion guarantee mandatory.
Dedicated article: The development loan: how it works and how it is obtained
Corporate finance
For large property companies and institutions: bond issues, capital increases, property debt funds. These instruments give access to substantial volumes on terms potentially better than bank credit.
Club deals and co-investment
For operations of 5 to 50 M€, co-investment structures, family offices, institutions, foundations, allow projects beyond a single operator's capacity to be funded, sharing the risks.
Financing public facilities
| State deposit institution loans | Long-term loans, 20–40 years, at subsidised rates for authorities and social landlords, funded from regulated savings. |
|---|---|
| State equipment grants | Central grants to local authorities. The subsidy rate varies from 20 to 50 % according to the project. |
| European regional development funds | Co-financing up to 50 % for eligible projects, managed by the regions. |
| Public-private partnership | Entrusts finance, construction and maintenance to a private operator in exchange for a charge over 20–30 years. |
Combining sources
The great majority of projects combine several sources. Optimisation means maximising the share of the cheapest capital, grants, subsidised loans, and minimising the share of the dearest.
ℹ An example, a typical social housing operation: 15 % landlord equity · 45 % subsidised state loan · 20 % local authority grant · 10 % central grant · VAT at 5.5 %, an implicit subsidy. That combination makes the operation viable despite rents capped below the open market.
Related articles: The development loan · Construction grants and subsidies · Property crowdfunding
Cost estimates, pricing schedules, development appraisals, summary notes. Produce in minutes the deliverables you prepare manually today. First project free. → quostra.com
The rates and conditions correspond to the French market. Consult a broker or specialist financial adviser for an analysis adapted to your situation.
The nature of the figures quoted
The percentages and amounts quoted on this page are orders of magnitude for framing, not measurements. They illustrate mechanisms and proportions, and they substitute neither for a tender exercise nor for an estimate prepared on drawings.
Articles liés
Sources: the BT construction cost indices published monthly by INSEE on its 2010 base, used to update the figures · construction cost statistics from SDES, the statistical service of the ministry responsible for construction · regulatory texts published in the Journal officiel and consolidated on Légifrance for the requirements cited.