The work brokerage market - France (2023)

1.2 The construction market in France

In ****, the French construction market will reach *** billion euros. [***]

The housing sector represents the most important part of the market: in ****, new housing construction accounted for ** billion euros, and housing maintenance/improvement reached ** billion euros.

Breakdown of the building works market by type France, ****, in billions of euros Source: ****

Thus, the market share attributed to housing maintenance and improvement amounted to **.*%, followed bynew housing at **.*%, and maintenance and improvement of non-housing buildings at **.*%.

Breakdown of building work by type France, ****, in Source: ****

1.3 Introducing a growing market that meets a growing need

When it comes to finding a service provider to carry out work on their home, **% of French people say they "don't know which company to go to" and over **% feel they "don't have reliable information for their work projects", according to aNIL (***). There is a real need to support customers in their search for a reliable works contractor. As a result, the work brokerage market, as an intermediary between the service provider and the end customer, has strong potential and meets a real need. The business has been growing strongly since the early ****s.

This desire to use a third-party intermediary to carry out construction or renovation work also meets * needs in particular, which explain the apparent growth of the market:

Counter the risk of poor workmanship on the part of the craftsman: the works broker is expected to select the best craftsmen meticulously, thereby reducing the risk ; Counter the risk of cost overruns on the part of the contractor: the broker ensures that all administrative documents are in order, and that contracts are valid; Satisfy the need for technical and organizational support for the person/entity wishing to carry out work.

As customers seek greater simplicity, the need for an ...

1.4 The impact of the health crisis on the market

Although the building sector has collapsed by -**.*% over the year **** as a result of the health crisis and the confinements that have been put in place, not all building sectors are at the same stage: we can see that the new-build sector is falling drastically (***), while the improvement-maintenance sector is weathering the crisis rather well, with a decline of only -*.*%, with the latter sector expected to return to its **** level by ****, according to estimates.

It would seem that the construction market offers opportunities in the following areas:

Energy renovation franchises Home improvement and renovation franchises Works brokerage franchises

Franchises also appear to be the best means of security and protection against the Covid-** crisis: the franchisor's help, assistance and skills will make it easier for franchisees to cope with the economic crisis. [***]

2.1 Factors that can influence market growth

Property prices

The steady rise in property prices can be put forward as a factor in market growth. This implies that the amount of work required appears to be less important in relation to the total price. Households may also be encouraged to do more to enhance the value of their property.

House price index (***) France, ****-****, base *** at Q* **** Source: ****

The vitality of real estate transactions is also driving growth in the home improvement market, whose momentum is supporting the home improvement brokerage market. And thehe real estate market is particularly buoyant in the existing home segment. Households increasingly seem to prefer buying an existing property and renovating it, rather than building a new one. As a result, the number of transactions in existing properties has risen steadily over the years, reaching *.*** million in ****. We can see that in ****, at the height of the pandemic, sales volume fell slightly on the previous year.

However, during **** and ****, the ECB's significant interest rate hike triggered a global real estate crisis, causing a contraction in loan demand . As a result, the volume of sales of older homes dropped considerably, reaching less than ***,*** between July **** and July ****.

The decline in existing home sales is ...

2.2 Outlook for two related markets: construction and household maintenance-renovation work

Maintenance-renovation work drives the job brokerage market

In the maintenance-renovation segment, household spending has risen by **.*% to **.* billion euros by ****. [SDESsince ****, this market has grown by an average of *.**% a year .

Household spending on home maintenance and renovation France, ****-****, € million and % Source: ****

Several factors may explain this growth. On the one hand, the number of existing home transactions has risen steadily over the last five years: from ***,*** in February **** to *,***,*** at the end of May **** (***), the *.*% VAT rate for energy improvements, and the zero-rate eco-loan. [***]

We can also mention the Energy Savings Certificate (***).

A mixed outlook for construction

In June ****, housing approvals picked up to **,*** units, up *% on May. However, the number of authorized housing units remains **% below its average for the twelve months preceding the first confinement, in seasonally and working-day adjusted (***) data.

Over the period from July **** to June ****, ***,*** housing units received building permits, ***,*** fewer than in the previous twelve months (***).

In June ****, the number of housing starts stood at **,***, down *.*% on May (***).

Number of housing units authorized and started France, ****-****, in thousands of units and cumulative ** months Source: ****

New housing

In terms of new housing sales, we've seen a significant drop in the number of starts ...

2.3 Profile and expenditure of work carried out by private individuals in France

Types of work carried out by private individuals and reasons for doing so

French citizens undertake projects to beautify and maintain their homes. Of the three reasons given for carrying out such work, the emphasis placed on improving the aesthetics of their property is the main one, cited by **% of French people (***), ranked second and third respectively.

Reasons for carrying out work France, ****, in Source: ****

The chart below shows the most considered energy repairs, the most popular being roof insulation. It is interesting to note that for many of the respondents, the work that is mentioned on the graph has already been carried out.

Energy renovation work most considered by French homeowners France, ****, in Source: ****

Average budget

The proportions are evenly balanced between the highest and lowest budgets for home improvements: **% of French people spend an average of less than €*,*** on home improvements, and **% spend €*,*** or more.

Budget dedicated to renovation work on their home France, ****, in euros Source: ****

2.4 Demand driven by government incentives

Demand is stimulated both by government incentives (***) and by the imperative for many homeowners to undertake energy renovation work in response to new regulations.

In ****, MaPrimeRénov' supported the renovation of ***,*** homes in France. All of this work generated the distribution of premiums worth a total of *.* billion euros, underlining the program's significant impact on improving the energy efficiency of French homes.

Source: ****

MaPrimeRénov'

In January ****, the MaPrimeRénov' program was introduced to replace the "Habiter Mieux" programs and the energy transition tax credit (***). This program supports two types of intervention:

Work on heating and domestic hot water, with amounts of up to **,*** euros. Thermal insulation, in particular insulation of walls (***), attics, roofs, glass walls, etc. The bonus can also be applied to double-flow ventilation or the performance of an energy audit.

From *ᵉʳ October ****, MaPrimeRénov' is available to all homeowners, regardless of income, whether they live in the property or rent it out.

MaPrimeRénov', launched in ****, has met with remarkable success, characterized by a clear increase in both the premiums distributed and the number of beneficiary homes...

By ****, MaPrimeRénov' had benefited nearly ***,*** homes, with total premiums distributed reaching *.* billion euros.

MaPrimeRénov' in figures France, ****-****, Million/ ...

3.1 A market made up of small structures - franchised or independent

According to quelleenergie.fr, in ****, there were *** work brokers operating in France. They operate either independently or under franchise. to our knowledge, no more recent data on the number of players in the sector is available.

Distribution of brokers by status France, ****, in Source: ****

among the *** brokers, there are *** networks, with other broker characteristics standing out. [***]

Each broker lists an average of ** building professionals A broker qualifies an average of ** to ** prospects per month Finally, the number of deals handled per year varies from ** to **, depending on experience, with sales reaching €**,*** per year in the second year.

Among the arguments put forward to attract new brokers, we can cite the possibility of working in complete independence, to exercise this profession without having any particular qualifications, although a certain knowledge of the building sector is a plus.

The barriers to entry are low, with an investment of between €**,*** and €**, *** required to start up as a franchisee. [***]

3.2 Franchises operating in the sector

As we saw earlier, players in the job brokerage market can either be independent structures or belong to a network of franchisees. The main franchises in this sector include :

Activ Travaux : created in **** and launched as a franchise network in ****, the ActivTravaux network now has ** locations in France. [***] AximoTravo: founded in ****, the AximoTravo network was then launched as a franchise in **** and now has ** locations. [***] illiCOTravaux: the illiCo travaux network was created in **** and launched as a franchise in ****. Today, the network boasts ** locations across France. [***] La Maison des Travaux: created in ****, the franchise network now has nearly *** franchisees. [***]

IlliCO Travaux is the leading franchise network in France. In ****, sales at the group's agencies rose by **%. [***]

3.3 Competition from online and DIY (do it yourself) operators

The lack of development of national structures can be partly attributed to the large, multi-faceted competition:

Online quotation sites (***) enable private individuals to obtain simplified estimates for their projects; Consulting services provided by energy suppliers such as EDF. The company offers * types of service: an energy assessment, a work estimate, financing and access to qualified professionals; Personal services (***) have the advantage of providing a full range of services, which may also include carrying out work. They thus benefit from a certain "capture" of the clientele already using their services; matchmaking platforms : individuals or professionals can offer household, shopping or construction services on platforms such as Jemepropose or Le Bon Coin.

DIY sup erstores also offer an intervention service. Leroy Merlin is promoting its HomeGenius offer, which provides a *-stage service: an immediate online assessment, a telephone appointment, a free in-home estimate, and finally completion of the work.

Homeowners do it themselves

Do-it-yourself is a practice characterized by work carried out by the beneficiary themselves, without calling in a professional. It's enjoying great success in the field of interior design: according to Les Echosaccording to Les Echos, **% of French people do their own interior design, with the main aim of reducing ...

3.4 AMO works broker: a profession soon to be regulated

The profession of AMO works broker has existed for ** years, but has not always been regulated or professionalized . The Institut de Formation de Courtier en Travaux (***) has taken the initiative of regulating this profession, with a view to establishing standards. At present, anyone with a knowledge of construction can practice without a specific diploma, which creates difficulties, including unintentional breaches of the law, such as failure to respect the legal **-day cooling-off period. Inappropriate professional insurance is also a common problem. Despite these challenges, demand for the services of construction brokers has increased, not least due to the growing demand for home renovations and the approaching ban on energy-intensive property rentals. To remedy the situation, the IFCT is seeking to regulate this profession by filing a dossier for the creation of an RNCP (***) record. Training : Forthcoming regulations will make it compulsory to undergo training and obtain a professional title to work as an AMO works broker. These regulations are designed to lend credibility to the profession, reassure customers and enhance the reputation of competent brokers. IFCT offers a *-month distance learning course, which can be adapted to participants' schedules and validated by VAE. Costing *,*** euros incl. VAT (***), the course includes both ...

4.1 Services and prices provided by construction brokers

Among the services provided by a job broker and the benefits they offer are :

Technical and organizational support; Consulting services; Help with budgetary problems; Help with the risk of poor workmanship.

In order to meet customer expectations, the first step is to build up a network of building professionals that is sufficiently broad and diversified to satisfy the various demands and create genuine competition. In addition, they need to ensure that the craftsmen are solvent, and that they are insured.

In most cases, brokers are paid only by the companies to which they pay commission. This service includes the provision of estimates, but does not include site supervision.

According to the Maison en travauxthe broker's commission varies on average between *% and **% of the total cost of the work.

The price also depends on the type of renovation required:

Source: ****

4.2 Market price trends

Here we consider the data provided by INSEE for the product category "Fournitures pour travaux d'entretien et de réparation des logements". [***]

The consumer price index for these products rose by over **.**% between **** and ****. It is important to note that between **** and ****, the price index for home maintenance and repair supplies rose very moderately. It was in ****, due to inflation, thatprices rose sharply over one year, by almost *%.

This increase in the price of building supplies has an impact on the business of building brokerage companies, as the costs associated with fitting out or renovation work also rise in parallel with the increase in the price of supplies.

Consumer price index for building supplies France, ****-****, base *** in **** Source: ****

4.3 Rising energy and raw materials costs

The year **** will see a significant rise in the cost of raw materials and energy. This will have a major impact on the construction industry. A HelloArtisan survey of building professionals, conducted between July * and September *, ****, reports on the situation.

Have you noticed a shortage of materials? France, ****, in Source: ****

**% of market players have experienced a shortage of raw materials, including **% in joinery and second-hand goods (***), **% in heating and **% in insulation.

If you've noticed a shortage, in which sector did you feel it? France, ****, in

The graph below shows us a sad reality: the rising cost of raw materials and energy has led to an increase in quotation prices in **% of cases. This can have a direct impact on the market for construction brokers, who will have to pass on this increase in their research.

Have you increased the price of your quotes as a result of the rising cost of materials and energy? France, ****, in

5.1 General regulations for renovation work

In January ****; the VAT rate applied to renovation work increased: it is now **%. However, if the renovation work is linked to thermal renovation work, the rate is reduced to *%. In this case the dwelling must be a residential dwelling, not commercially exploited and built at least * years ago.

Since April*, ****, craftsmen have been obliged to display their rates on the internet .

In the case of condominiums, since ****, it has been compulsory to draw up an estimate : it must mention the amount to be paid, travel costs, the breakdown of each service, as well as its validity date.

For major maintenance work (***), it's compulsory to put companies out to tender, and a minimum of two estimates is required. [***]

Laws governing energy renovation in France:

POPE law (***) - April **, ****: Creates the Energy Savings Certificate (***) scheme. sets targets for reducing energy consumption. Grenelle I Law - August *, ****: Sets targets for energy efficiency and the reduction of greenhouse gas emissions. Grenelle II law - July **, ****: Reinforces the provisions of Grenelle I and introduces measures for public buildings. Requires companies to carry out energy audits. Law on Energy Transition for Green Growth - August **, ****: Sets targets for reducing energy consumption and increasing the share of renewable ...

6.1 Segmentation

• Illico Travaux
• Activ Travaux
• La Maison des Travaux (Franchiseur)
• EnChantier.com (Groupe Batiactu)
• Habitatpresto
• Izi by EDF
• Home Advisor
• Batiweb
• Générale des services (Franchiseur)
• Homly
• Quotatis
• EDF
• Homeserve
• Mon Courtier Energie