Summary of our market study

As of 2020, the proptech market, encompassing smart building technologies and Contech for real estate project design, has witnessed a notable evolution driven by the COVID-19 pandemic which has propelled the digital transformation within the real estate sector. France observed a slight decline in the number of proptech start-ups but maintained a maturing market, with a considerable amount raised in funding rounds, albeit at a lower frequency compared to the record investment year of 2019. Global leaders in the proptech space, such as Meero and ManoMano based in France, have continued to scale, achieving unicorn status and expanding their market presence, indicating an overall resilience and growth potential within the market.

Despite a drop in the real estate development and a fluctuation in optimism among professionals compared to previous years, digital tools for property searches and the utilization of construction software like BIM remained in demand. Whereas France saw a room for growth in BIM usage, its proptech investment landscape remained behind, signifying both challenges and opportunities for future market developments.

Real Estate Technology and Innovation: Demand Trends and Growth Trajectories in France

Demand for real estate technology in France, often referred to as proptech, has seen significant growth in recent years. This increase is largely driven by the rising interest in smart buildings as well as an expanded focus on the digitalization of the real estate market. Proptech, which encompasses the application of digital platforms and information technology to real estate, sees its demand in two key segments: smart building technology for property management and maintenance, and contech which facilitates real estate project design.

France has emerged as a European leader in the number of proptech startups, with the French market experiencing a period of maturation. Despite a slowdown in the growth rate of new proptech startups and a slight decline in the total number of fundraising deals, the average amount raised has seen a substantial increase, indicating a more consolidated and sophisticated market. The global pandemic has acted as a catalyst for the digitization of the sector, propelling larger proptechs while smaller, funding-seeking startups face challenges due to a lack of cash reserves.

The advancements in smart building technology, particularly in connected home devices, is a clear area of consumer interest. With between 60 and 70 percent of respondents believing these technologies will alter living habits, the anticipation for such innovation is significant. Nonetheless, only about 30 percent of homes claim to possess such devices, indicating a considerable market potential for growth. Additionally, the pursuit of digital tools in the housing search process has intensified. Property presentation videos, online contract signings, and increased use of digital platforms and apps for property searches have become more common, with younger demographics leading this change.

This trend towards digitalization is further reflected in the popularity of short-term rental platforms and the anticipated preference for private home rentals through websites like Airbnb over traditional professional rentals in the coming decade. Moreover, there is significant room for growth in the construction sector with the adoption of Building Information Modeling (BIM) software. With a majority of developers and half of construction companies not using BIM software as of 2021, French government initiatives such as the BIM 2022 plan aim to increase usage, suggesting that the demand for such digital construction tools will likely skyrocket. Investment in French proptech startups, while robust, has room for enhancement.

With around 75 to 80 active French investors compared to nearly double that in Germany and the highest number in the UK, French proptech ventures could benefit from increased local investment activity.

Leading Innovators in the Proptech Landscape

The proptech arena is a dynamic and burgeoning sector of the real estate market, propelled by technological advancements and the demands of modern living. As we navigate through the nuances of this industry, several companies emerge as significant players, each contributing unique solutions to shape the future of real estate. Let’s take a closer look at some of these trailblazers that are carving their names into the foundation of the proptech market.

  • Weaving a New Era with Meero

Founded in 2016, Meero has swiftly distinguished itself by revolutionizing the way photographers connect with businesses. What started with a focus on real estate agency photography, evolved into an enterprise that commands a hefty portion of its sales from the real estate market. With a robust network of 58,000 freelance photographers and a clientele of 31,000 corporate entities across 100 countries, Meero simplifies and enhances the production of high-quality images through its AI-driven photo-editing software. The company’s ambition is conspicuous, as it eyes profitability and substantial sales growth in the coming years. The reach of Meero’s operations only reinforces its position as a proptech unicorn and a significant innovator in its segment.

  • Crafting DIY Success with ManoMano

French start-up ManoMano, founded in 2013, has rapidly become a prime digital platform for DIY enthusiasts, offering an impressive range of interior and exterior design products. Circumventing traditional brick-and-mortar limitations, ManoMano provides a fertile marketplace for merchants and buyers. With the platform hosting 10 million listed products and a base of 7 million active customers, it's clear why ManoMano is making waves. Its founders harbor visions of expanding ManoMano's footprint across Europe, placing a strong emphasis on developing the BtoB segment and pushing forward with innovative logistics solutions. Considered a proptech unicorn with a valuation to match, ManoMano's success trajectory is a testament to its pivotal role in the market.

  • Other Proptech Pacesetters

While Meero and ManoMano stand out for their significant strides, the proptech sector is teeming with companies making their mark. Other notable start-ups also contributing to the dynamism of the proptech landscape include:

  • - Luko: Heralded for its innovative home insurance solutions.
  • - Finalcad: Providing digital tools for construction management, planning, and collaboration. 
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Summary and extracts

1 Market overview

1.1 Definition and scope of study

Proptech, sometimes also referred to as Real Estech, concerns the application of information technology and digital platforms to the real estate market. The proptech market can be divided into 2 segments:

  • Smart Building facilitates property management and maintenance;
  • Contech enables the design of real estate projects.

The global proptech market is dominated by the United States, with Europe a distant second. Together, these two continents account for nearly 66.3% of the global market. The number of proptechs in the United States is also much higher than in the rest of the world.

The market is rather concentrated, as it is dominated by a few companies. For example, in 2019, more than half of the total amount raised went to the 10 largest companies. France is among Europe's leaders in terms of the number of proptechs. In fact, the French market is maturing, as can be seen from the slowdown in the number of proptech start-ups and the decline in the number of fundraisings, despite an increase in the average amount raised.

The Covid-19 crisis has accelerated the digitization of the real estate sector, but there is a difference between small and large structures. While the crisis has brought the biggest proptechs to the fore, those looking for funding, which are more fragile, have had a much harder time withstanding the crisis, notably due to a lack of cash.

1.2 The global proptech market is growing, but dominated by a few countries

An overview of the global proptech market

Source: ****

This table highlights the main possible categories of the proptech market, with the number of companies in each category and its cumulative investment over the period ****-****. The leading category in terms of investment was commercial real estate search, with $**.** billion. In terms ...

1.3 The French real estate market is growing...

Indeed, after several years of instability, the market is enjoying a revival. In ****, the real estate market in France was worth around **.*** billion euros. [***]

The French property development market

According to INSEE, the real estate development market in France will amount to **.** billion euros in ****, compared with **.* billion euros in ****, a ...

1.4 ... supporting the growth of the proptech market ...

Fundraising by real estate and construction start-ups France, ****- ****, in millions of euros CAGR: +***% Source: ****

Between **** and ****, there was a very marked increase in fundraising by Real Estech companies, since in **** these companies raised €** million, whereas in **** they raised €*** million, representing a CAGR of +***% over this period. On the other hand, ...

1.5 ...especially as the global pandemic has accelerated the proptech market somewhat

A slowdown in the real estate market,

Real estate development

Construction sector figures for **** reveal the impact of the health crisis. New residential construction is down by **%, while non-residential construction is down by more than **%. The granting of building permits is also down by almost **% on ****.

There are many reasons for ...

2 Demand analysis

2.1 Smart building: growing demand for connected objects

According to a Yougov survey, **% of those questioned believe that connected objects will change the way we live, with this proportion rising to **% among **-** year-olds. However, only * out of ** homes claim to be equipped with connected products.

I'm ready to invest in the following connected object or service France, ****, in Source: ...

2.2 Growing demand for the digitalization of real estate

Digitizing the housing search

While contacts with real estate professionals or window advertisements are still a widespread means of information when looking for a property, in **** it will be advertising websites that represent the main information channel. Apps and social networks are also widely used (***). The same is true of social ...

2.3 Growing demand for construction software

What is BIM?

BIM stands for Building Information Modeling. BIM is a process that takes into account all the characteristics of a building in order to:

Create a *D model using an IT tool; Assign tasks in terms of time and dates to each sector of the building (***), in other words, ...

2.4 A limited number of French investors in the proptech market

Number of proptech investors by country outside the USA World excluding USA, ****-****, in number of people Source: ****

In ****, there were ** French investors in proptech start-ups, compared with *** in Germany. The largest number of investors was in the UK. The United States is excluded from this ranking, with an estimated *,*** investors, ...

3 Market structure

3.1 Proptech companies as a whole

growth in the number of Real Estech start-ups France, before ****-****, in number of units Source: ****

We can see that proptech start-ups have grown steadily over the period prior to ****-****. In ****, there were *** proptech start-ups. However, in ****, there is a slight drop in the total number (***). This decline seems to ...

3.2 Two very big players in proptech start-ups: Meero and ManoMano

Top ** proptech start-ups that have raised the most funds

Source: ****

3.3 Focus on the two biggest start-ups: Meero and ManoMano

Meero

Meero is a French start-up founded in ****, offering services that put photographers in touch with businesses of all kinds (***) accounted for **% of its sales. Photographers are paid an average of ** euros an hour for the shoot. The company's turnover has not yet been revealed to the general public, however, according ...

3.4 Pure players in proptech

Real estate start-ups become more democratic

New entrants have entered the real estate market with a new service: immediate sales. These companies see themselves as ibuyers, i.e. they buy properties from private individuals in a hurry to sell, in exchange for a commission on the value of the property, and ...

3.5

4 Offer analysis

4.1 French optimism about real estate innovation

According to the Crédit Foncier/CSA barometer, when it comes to innovation, real estate professionals are less optimistic in **** than they were in ****. Indeed, the rate of optimism across all professions rose from **% in **** to **% in ****, then fell back to **% in ****. For ****, there are major disparitiesmorale among developers and builders ...

4.2 Proptech start-ups, experts in the digitalization of real estate

All real estate players have been strongly impacted by the digital revolution and its effects,in particularin three areas:

Innovative services to improve sales tools; Platforms (***); Increased competition with agencies from private players and online advertisers.

Physical real estate agencies are gradually giving way to online real estate agencies and the ...

4.3 Smart building: a growing offering

The DRIEAT Île-de-France defines the concept of smart buildings as "the integration of active and passive energy management solutions, aimed at optimizing consumption, but also promoting user comfort and safety while complying with current regulations." In particular, these buildings must improve and absorb peak consumption situations.

The smart building is a ...

5 Regulations

5.1 Real estate regulations

The real estate development business didn't emerge in France until the late ****s, which is when the legal framework began to take shape. Today, this activity is closely supervised, particularly for residential real estate, to guarantee the safety of future residents.

The main laws in France are

Thelaw of January *, ****which ...

6 Positioning the players

6.1 Player segmentation

  • Meero
  • ManoMano
  • Luko
  • Finalcad
  • Colonies
  • Comet Meetings
  • Guest to Guest
  • Onepark
  • Proprioo
  • Homeloop
  • Beeldi
  • Bellman
  • Virgil
  • UKIO
  • Bricks.co
  • Idealys
  • Masteos
  • Setec
  • Ocea Smart Building Groupe
  • Deepki
  • Planon
  • Wemaintain
  • Icare City
  • Stonal
  • Hostnfly
  • Smart renting
  • Checkmyguest
  • Matera
  • Hello Syndic
  • Check & Visit
  • Vestalis
  • Hyppo Immobilier
  • MerciYanis
  • Buldi
  • Nerco Ingénierie Groupe

List of charts presented in this market study

  • Number of proptech companies worldwide
  • Size of the French real estate agency market
  • Sales trends for the real estate development sector (NAF code "4110")
  • Fundraising for real estate and construction start-ups
  • Comparison of fundraising in French tech and Real Estech
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Latest news

French Tech: Deepki continues its successful trajectory with over 60% growth in 2023 - 28/03/2024

- Deepki's annual recurring revenue (ARR) in 2023: close to 45 million euros. - ARR growth in 2023 vs. 2022: over 60%. - Amount of funds raised in 2022: 150 million euros. - Number of competitors identified: 230. - Number of employees: 400, half of whom recruited last year. - Number of customers worldwide in 2023: 500, versus 350 the previous year. - Amount raised by the main competitor, Measurabl, in the United States in 2023: $93 million. - Acquisition in 2023: Nooco, a subsidiary of Vinci Energies. - Acquisition in 2022: British competitor Fabriq.

DIY: ManoMano highlights its ManoMano Pro service in new TV campaign - 14/02/2024
  • ManoMano launched its service for construction professionals, ManoMano Pro, at the end of 2020.
  • Three years later, ManoMano has attracted around half of the craftsmen in the sector in France, i.e. some 200,000 companies.
  • ManoMano offers over 19 million product references on its site.
Faced with a depressed DIY market, ManoMano cuts its workforce by a quarter - 18/10/2023
  • ManoMano is a platform for the sale of do-it-yourself products, with 16 million references.
  • Co-founded by Christian Raisson and Philippe de Chanville.
  • The company competes with Leroy Merlin and Castorama.
  • It plans to cut a maximum of 150 jobs in France and 80 in Spain out of a total of 900 employees as part of a reorganization.
  • In 2020, ManoMano achieved sales in excess of one billion euros in five European countries (France, Spain, Italy, UK, Germany).
MerciYanis aims to become the leader in office management - 13/10/2023
  • Total amount of financing raised by MerciYanis: 2.7 million euros Financing previously obtained by the company in 2021: 1 million euros
  • Current MerciYanis workforce: 17 employees Number of new hires planned within 18 months: 20 people
  • Year of creation of MerciYanis: 2019 MerciYanis equips 3 million square meters of office space for 200 customers in France
  • MerciYanis sales in 2022: 770,000 euros
  • Sales target for 2025: 10 million euros
  • The digitization of the cleaning sector accounts for half of MerciYanis sales.
Offices: Comet relies on La Défense for growth - 30/08/2023
  • Comet Meetings is an SME with 180 employees and sales of 27 million euros by 2022.
  • In July, the company inaugurated a new space on the 37th floor of the Alto Tower, occupying 1,500 m2.
  • Comet Meetings is also present with the Comet Défense space located in the Coeur Défense tower.
  • The company plans to open a new facility in Nanterre this year, in Arboretum, Europe's first solid-wood campus, with 25,000 m2 of office and service space.
  • The campus will be located in a 9-hectare park
  • Comet will offer 2,300 m2 of office and meeting space on four levels.
Deepki met la main sur Nooco, filiale de Vinci Energies - 25/05/2023

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. :

Meero
ManoMano
Luko
Finalcad
Colonies
Comet Meetings
Guest to Guest
Onepark
Proprioo
Homeloop
Beeldi
Bellman

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