The property diagnostics market - France

Real estate diagnostics consist in carrying out a technical inspection of a property before it is put up for sale or rent. This inspection is formalized in a Dossier de Diagnostic Technique (DDT) and covers nine criteria: energy performance, risk of exposure to lead, presence of asbestos, condition of gas and electricity installations (if over 15 years old), natural and technological risks natural and technological risks, the possible presence of termites,exposure to airfieldnoise, and other specific obligations under current regulations. These diagnostics have become essential elements of the real estate market, directly influencing property values and buyers' purchasing decisions. In France, the need for property diagnostics has intensified with successive regulatory reforms. 40% of homes have an energy performance rating of E or below, reinforcing the need for energy audits. From January 2025, an energy audit will be mandatory for any sale of an E-rated home, extending the requirement already in force for F- and G-rated dwellings. In addition, all DPEs carried out before July 2021 will become null and void on January 1, 2025, generating a sharp rise in demand for these diagnoses. These new constraints are part of a regulatory framework designed to improve the energy performance of France's housing stock and encourage energy-saving renovations. The property diagnostics market is historically robust, with annual growth averaging +5%. However, it is highly dependent on the volume of real estate transactions and changes in legislation. However, the older property market is in crisis, with a spectacular drop in sales: from 1.17 million transactions in 2021 to just 750,000 in 2024 (-36% in three years). This contraction, due to rising interest rates and tighter credit conditions, is automatically reducing the number of mandatory diagnoses. the increase in DPE prices, which rose by +4.8% for apartments and +6.3% for houses in 2024, also reflects market tension. This is due to growing demand, a shortage of diagnosticians and more complex calculation methods. The sector is structured around several key players: diagnostics companies, equipment suppliers, analysis laboratories (particularly for asbestos) and certification and training bodies. By 2025, Dekra (16.7%) and LCC Qualixpert (21.5%) will dominate the certification market, whileITGA and Eurofins will control 62% of the MPSCA (Matériaux et Produits de Construction Amiante) analysis market. DPE and asbestos diagnosis are the most widespread certifications, with 83% and 84% of certified diagnosticians respectively, while energy audits are less common (29% of experts).

The property diagnostics sector is facing a tight labour market. The number of energy auditors has fallen from 3,575 in April 2024 to 2,995 in March 2025, due to the expiry of provisional attestations and the tightening of certification requirements. This scarcity of qualified experts is leading to longer lead times and higher rates, increasing pressure on practicing diagnosticians. At the same time, the average salary of diagnosticians has risen by 8.7% between 2023 and 2024, due to the increasing complexity of the DPE and heightened demand. Finally, the sector is subject to external pressures, notably rising energy costs. Changes in diesel and unleaded 95 prices have a direct impact on the activity of diagnosticians, who use their vehicles to travel. The price of diesel has risen from €1.36 in 2013 to a peak of €1.86 in 2022, before falling back to €1.71 in 2024, while unleaded 95 has reached €1.89 in 2022 and remains above €1.80 in 2024. These additional costs are likely to be passed on in the price of diagnostics, weighing on the affordability of these services for homeowners. Despite these challenges, the property diagnostics market remains buoyed by the boom in energy renovations and the MaPrimeRénov' scheme, which makes it compulsory to carry out DPEs before and after works. Between 2020 and 2023, the number of MaPrimeRénov' files sold soared from 52,000 to 524,000, illustrating the sector's dynamism. However, a decline of -3.8% between 2022 and 2023 suggests a possible stabilization. The future of the market will depend not only on the ability of diagnosticians to absorb demand, but also on public policies in favor of energy renovation. In this way, real estate diagnostics is establishing itself as a key lever for the energy transition and the regulation of the real estate market. However, pressures on the workforce, volatile energy prices and the contraction of real estate transactions are all challenges that will determine its development in the years to come.