Summary

The French real estate agency market, particularly the segment comprising networks of agents, has experienced significant growth with agent networks developing a strong online presence. These networks offer more competitive commissions—about 10-15% lower on average—than traditional agencies due to reduced structural costs. As of 2020, there are approximately 90 networks with about 40,000 agents in France. The agent networks have been growing rapidly. Despite the impact of the COVID-19 crisis, which saw a sharp drop in real estate agency activity in April 2020, recovery was swift later in the year.

The main determinant for agency activity is the dynamic existing property market, with many households preferring to buy and renovate existing properties rather than build new ones. Furthermore, the real estate agency market remains highly intermediated, emphasizing the continued relevance of agents in transactions. Agent networks account for 14% of all real estate transactions, while traditional agencies make up 74%.

The real estate sector's regulation is governed historically by the Hoguet Law, with further modernization under the 2019 ELAN law. As of 2020, the cumulative turnover of agent networks is estimated to be just under €1 billion, with projections to exceed €1.5 billion by 2023.

.Flourishing Real Estate Agencies: A Digital Approach to the Housing Demand

In the dynamic landscape of the real estate market, the demand is chiefly driven by residential requirements in the concerned country. Individuals are increasingly leaning towards purchasing existing properties to renovate rather than opting for new constructions. This trend is vividly reflected in the burgeoning number of transactions within the old property segment, showcasing a steady rise over the years. The impulse driving this market is multifaceted. On one hand, the demand is fueled by those seeking a primary or secondary home, while on the other, it caters to investors aiming to procure residential properties for rental purposes. Year after year, the existing property market has witnessed an upward trajectory, with transactions escalating to the tune of tens of thousands.

Government incentives, such as tax cuts and extension of interest-free loan packages, have been pivotal in stimulating the housing demand. Alongside, property prices and mortgage rates are significant influencers—where declining interest rates over the past two decades have simplified access to home loans, further stoking the need for real estate agency services. Residential mobility, a measure of how frequently tenants relocate, maintains its stability.

A notable finding is the higher mobility associated with smaller living spaces such as studio apartments. Moreover, the proportion of homeowners versus renters has remained relatively unchanged, with over half the population owning their homes. In this thriving market, the number of intermediated transactions by real estate agencies accounts for around 70%, testifying to the enduring trust placed in professional consultation, despite the advent of digital solutions. The country has witnessed an impressive compound annual growth rate of 29% for the turnover of agent networks, signaling the potent appeal and competitiveness of digital, agent-based real estate services.

Key Players in the French Real Estate Agent Network Market

The French real estate agent network market is a dynamic and rapidly evolving industry, and several key players dominate the landscape. These companies have been instrumental in shaping the way real estate transactions are handled in France, leveraging digital advancements and innovative business models to service clients in the property market.

  • IAD France stands out as one of the leading networks of agents in the country. Known for its strong digital presence and large number of agents, IAD France has become a household name for many looking to buy, sell, or rent properties. Through its platform, it offers a comprehensive suite of services that helps streamline the real estate process for both agents and clients.

  • SAFTI is another major force within the French market. Like IAD, SAFTI has also embraced a digital approach, providing its growing network of independent agents with the tools they need to offer high-quality services. SAFTI prides itself on its no-brick-and-mortar ethos, enabling them to keep operational costs low and pass these savings on to their clients.

  • CAPIFRANCE is yet another well-established player known for offering agents particularly attractive commission rates. By creating a supportive environment for its agents through training and professional development, CAPIFRANCE ensures that its representatives are well-equipped to serve their clients' needs effectively.

  • OPTIMHOME follows a similar model to CAPIFRANCE, operating an extensive network of agents that work largely independently, supported by a strong online backbone. This network offers a range of services, from home valuation to assistance with legal formalities.

  • Propriétés-privées.com positions itself as a leader in the online real estate market, providing comprehensive support and services to both agents and clients. The company has a diverse range of listings that covers various segments of the market, including luxury properties, which allows them to cater to a wide audience.

  • 3G Immo-consultant distinguishes itself with high agent commission rates and a strong emphasis on the use of modern technologies to improve the efficiency and effectiveness of real estate transactions; a key selling point in this increasingly digital age.

  • Smaller networks like La Fourmi Immo, Dr House Immo, and BSK Immobilier are also part of the vibrant mix of the real estate network market in France. They may have a more regional focus, but their business models and streamlined processes enable them to compete effectively against the bigger players, each carving out their own niche in the industry.
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  • Number of pages : 30 pages
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  • Last update : 01/07/2021
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Summary and extracts

1 Market overview

1.1 Definition and scope of the study

The real estate agent also known as real estate agent is a natural person with the auto-entrepreneur status and working on behalf of a real estate agent - the head of the network - (legal person) who entrusts it with a mandate to buy, sell, rent or provide services in relation to real estate. This legal entity may be a traditional real estate agency or a network of agents The focus here is on agents attached to agent networks

These networks of agents develop their activities online, thanks to a 100% digital model . With reduced structure costs The latter may propose lower average commissions than traditional real estate agencies

The networks of agents were first developed in the United States and are now experiencing a significant boom in Europe. Although they first appeared in France in the early 2000s, they have been growing rapidly since 2010

In France, the main networks are IAD , Safti , Capifrance or even Propriétés-Privées.com and Optimhome . We count approximately 90 networks in 2020 for just under 40,000 agents . Between 2014 and 2020, the turnover of agent networks in France grew at a CAGR of 29%, outpacing the growth of the estate agency market as a whole

The Covid-19 crisis has of course affected all the players, but the end of the crisis will undoubtedly be marked by a increased competition between all the actors

List of charts

  • Size of the French real estate agency market
  • Number of sales of older homes
  • Personal mortgage rates (nominal rates, excluding insurance and cost of collateral)
  • Residential mobility of tenants
  • Parts de marché dans les transactions immobilières intermédiées
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Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

IAD France
CAPIFRANCE
OPTIMHOME
SAFTI
Propriétés-privées.com
3G Immo-consultant
Efficity
megAgence
A la Lucarne de l’Immobilier
BSK Immobilier
Dr House Immo
Les Porteclés

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