Thursday, 16 October 2025
The French housing rent reference index (IRL) rose by 0.87 percent year on year in the third quarter of 2025, according to data released by the national statistics institute INSEE. The index reached 145.77, marking a slower pace of increase than in the previous quarter, when it climbed 1.04 percent.
This index, which serves as the official benchmark for adjusting residential rents, continues to reflect a gradual cooling in rental price growth following several quarters of steady moderation. In the French overseas departments and regions governed under Article 73 of the Constitution, the index stood at 142.97, while in Corsica it reached 141.58, both showing the same annual growth rate of 0.87 percent.
The housing rent reference index is updated quarterly and is tied to movements in consumer prices excluding tobacco and housing rents. Its evolution is directly influenced by inflation trends while remaining subject to government-imposed caps designed to protect tenants from sharp rent hikes. Between the third quarter of 2022 and the first quarter of 2024, national legislation limited annual IRL increases to 3.5 percent, with stricter limits of 2.5 percent in overseas territories and 2.0 percent in Corsica.
The latest figures show that rent indexation remains subdued, mirroring the broader slowdown in French consumer inflation. This deceleration provides some relief to households renewing leases after a period of elevated inflation in 2022–2023, when annual rent adjustments were significantly higher.
Source:Insee
