The work brokerage market - France

The construction brokerage market in France, primarily serving as an intermediary between customers and construction service providers, has experienced significant trends in recent years, particularly influenced by the health crisis of 2020. Despite a 15.2% decline in the building sector due to COVID-19, with a drastic 22.5% fall in new constructions, the improvement-maintenance segment showed resilience with a milder decline of 8.8%. The market has been bolstered by government incentives for energy-efficient renovations, leading to MaPrimeRénov' funds increasing to €3.11 billion for 670,000 homes renovated in 2021. Demand for construction brokerage services remains high due to the difficulty of finding trustworthy contractors, with 61% of French people unsure of which company to approach.

The market is characterized by small independent or franchised entities, with significant competition coming from online platforms, energy suppliers like EDF offering consultancy services, and the DIY trend. Major franchises in the sector, like illiCO Travaux, have recorded notable growth, with sales increasing by 64% and 33% in 2021 and 2022 respectively. The market is impacted by material cost inflation, with an 8% increase in 2022, influencing the costs of fitting out or renovation work provided by brokers.

Navigating Through the Evolving Landscape of France's Construction Brokerage Market

In the realm of construction brokerage, France has observed a notable progression in market dynamics, particularly influenced by the activities surrounding the linking of customers with adept construction professionals. Since the early 2000s, a surge in demand for reliable contractors has shaped the construction brokerage market into an essential part of the Bâtiment et Travaux Publics (BTP) sector, which involves a multitude of activities related to public and private building works including renovations. Despite reaching an impressive record of approximately 166 billion euros in 2022, the market is currently experiencing a downturn due to the 2023 international real estate crisis, rising inflation, and a dip in purchasing power.

The market is composed mainly of franchises like La Maison des Travaux and Illico Travaux, as well as independent brokers and online platforms, which together give rise to competition between hundreds of companies operating within this sector. Moreover, franchises have been on a growth trajectory, with some brands experiencing substantial sales growth—Illico Travaux, for instance, saw a growth between 30% and 35% in the recent years.

Government incentives aimed at energy renovation have played a substantial role, with financial aid such as MaPrimeRénov' rising drastically from around 2 billion to more than 3 billion euros. Meanwhile, the construction and home renovation markets are undergoing their own transformations—housing approvals recently saw a four percent increase, signaling a slight recovery from prior decreases, and spending on household maintenance and renovation has risen by double digits to more than 60 billion euros. The profile of renovation projects in France reflects a focus on aesthetics as the predominant motivator followed by property maintenance and energy bill reductions. Notably, renovation budgets can be quite varied with a nearly even split between those spending under 5,000 euros and those allocating budgets of 5,000 euros and above.

Market players are generally small structures, with some operating independently and others forming part of franchise networks. Despite market competition, franchises like Activ Travaux and La Maison des Travaux offer opportunities for new brokers through relatively low barriers to entry and a promising potential for sales growth within the first few years. The rise in building supply costs indicates an upward trend in market prices, impacting the cost of brokerage services and potentially influencing customer decisions. On regulation, France has observed changes with variations in VAT rates.

Key Market Players in the French Construction Brokerage Industry

The French construction brokerage market is a vibrant landscape, inhabited by a variety of specialized firms ranging from independent brokers to established franchises and innovative online services. Among the prominent players who have marked their presence in the industry are both traditional and digital powerhouses. They have diversified the market and provided customers with multiple avenues to access renovation and construction services.

• Illico Travaux, a well-known name in the sector, is recognized for pioneering the construction brokerage franchise model in France. This brand has crafted a reputation for reliability and comprehensive service offerings, becoming a staple for customers seeking trusted construction and renovation intermediaries.
  
  
• Activ Travaux has carved out its unique identity since its inception. Entering the fray as a franchise network, the company prides itself on personalized service and has expanded its reach across the nation with a multitude of locations that offer customers a local touch with the backing of a strong brand.
  
  
• Izi by EDF is synonymous with the backing of an energy giant, providing customers with the assurance of quality and consistency. This service offers a spectrum of energy-related renovations and has established itself as a formidable presence driven by the brand's legacy in the energy sector.
  
  
• Habitatpresto stands out as a digital disruptor, offering facilitated online estimates for various projects. As a virtual marketplace that connects clients with professionals, it quickly adapted to the growing preference for online transactions and convenience in the procurement of construction services.
  
  
• EnChantier.com, part of the Batiactu Group, provides another digital platform for sourcing estimates and construction professionals. With a strong emphasis on efficiency and a user-friendly interface, they have effectively capitalized on the growing digitization of the traditional brokerage process.
  
  
• La Maison des Travaux, as a franchising leader, boasts an extensive network of franchisees and has demonstrated a strong growth trajectory. Catering to various segments of the market, they have positioned themselves as a comprehensive solution provider in the home improvement domain.
  
  
• In addition to these, Générale des services and Home Advisor have made significant strides in the industry.
  
  
• Not to be overlooked is EDF, an established entity that has expanded its services beyond energy supply to encompass construction brokerage, evidencing the diverse offerings and innovative strategies employed by companies to cater to the dynamic needs of the market.
  
  
• While independent brokers forge ahead with their localized expertise and personalized services, online platforms continue to reshape the landscape.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 17/11/2023

Summary and extracts

List of charts

• Key players in the sector
• House price index (new and old)
• Percentage of French people who consider it necessary to carry out energy renovation work
• Number of sales of older homes
• What type of work has benefited from state aid?
• Number of housing units authorized and started
• Household spending on home maintenance and renovation
• Marketing new homes (sales to individuals)
• Reasons for carrying out work
• French homeowners' most important energy renovation projects
• Budget allocated to home renovation
• Broker distribution by status
• Share of labor in self-renovation work
• How the French choose to carry out work
• Consumer price index for building supplies
• Breakdown of the building works market by type
• Breakdown of building work by type
• Have you noticed a shortage of materials
• If you have noticed a shortage, in which sector of activity have you felt it?
• Have you increased the price of your quotes due to the rising cost of materials and energy?
• Trend in the number of eco-PTZs granted
• Average amount granted per Eco-PTZ
• MaPrimeRénov' in figures
• Change in volumes of CEE issued