The Market of Real Estate Agencies
1.1 Scope and market definition
A real estate agency is a company operating in the field of real estate transactions. She acts as an intermediary between the seller and the buyer or between the owner and the tenant of a property. Its role is either to find a buyer for a property for sale or to find a lessee for a property for rent. It may be a legal entity or an enterprise. The real estate agency employs real estate negotiators/agents to carry out the intermediation.
Real estate agencies act for two types of clients:
- The majority of real estate agencies are dedicated to real estate for private individuals: houses, land or garages in urban and rural areas.
- A minority (less than 10%) of real estate agents are specialists in commercial real estate: offices, industrial land, factories and warehouses or shops.
The activities of real estate agents have been boosted by the market for the purchase and sale of housing, which has been on the rise since 2015, although this volume of activity is expected to stagnate in 2019. On the other hand, real estate agents have to face constant competition from sales and rentals of housing between private individuals.
In a highly competitive market, the role of independent real estate agents is gradually decreasing in favor of franchises, which are better distributed and more visible. Competition from Internet tools and in particular online platforms has weighed on the search for properties, although the proportion of sales of properties between individuals has remained stable over the past ten years.
Finally, new national regulations with the ALUR Law in 2014 and the ELAN Law in 2018 have had a direct impact on the profession's activities, without triggering growth or decline. However, there are some points to watch out for in the years to come.
To keep reading, buy the full research
Analysts & Methods