The proptech market - France

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 of investment, it was ** billion ahead of the runner-up, which was short-term/holiday rentals. It's interesting to note that the "Commercial Property Search" category was second to last in terms of numbers (***), while ranking first in terms of investments. So, we can assume that companies or a company present in the commercial property research sector carry a lot of weight compared to other companies.

The global proptech market: the USA the undisputed leader in terms of number of companies

Number of proptech companies worldwide France, ****, in number of units Source: ****

American companies are over-represented in the global proptech sector. In fact, in ****, there were *** American companies out of the *,*** companies belonging to the global proptech market. American companies accounted for **.*% of the total, with the European Union in second place at *.*% and the UK in third place at *.*%. The large number of US companies also underlines a certain dynamism in ...

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 decline of -*%. Despite this, the market already appeared to be in a period of steady growth since ****, with a growth rate of over **% on between **** and ****. Furthermore, forecasts for **** point to the market's resilience to the health crisis, and thus to a strong recovery from the start of ****.

Sales trends for the real estate development sector (***) France, ****-*****, in billions of euros Source: ****

Real estate agency markets

Real estate agencies are registered under APE code: ****Z - Agences immobilières. According to INSEE, the estate agency market represented total sales of over ** billion euros in ****. [***]

Size of the French estate agency market France, ****-****, billions of euros excl. tax Source: ****

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, the number of fundraising deals increased between **** and ****, rising from ** to ** deals, and falling back to ** in ****. The average ticket in **** was *.* million euros, while in **** it stands at ** million.

Comparison of fundraising in French tech and Real Estech France, ****-****, in millions of euros and as a % Source: ****

It can be seen that between **** and ****, the share of Real Estech rose from *% to **%. The share of Real Estech should continue to grow, according to the report, as the real estate sector represents **% of national GDP in ****. The difference between Fintech and Real Estech is also tending to narrow, since fundraising in Fintech was twice that of Real Estech in ****, whereas in **** this difference was only **%.

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 this: there is obviously the slowdown in building sites due to situations of confinement, curfews, the drop in public orders, numerous postponements of projects for households most financially impacted, the **** municipal elections which saw a sharp slowdown in stances in favor of urban planning. In addition, the property loan system has been tightened, with new rules requiring a financial contribution, a maximum debt ratio of **% and a **-year term. [***]

The search for future homes

Despite the crisis, the French haven't stopped looking at housing: according to a Figaro immobilier survey, almost **% of French people continue to consult property ads, and over **% continue to request information from estate agents. However, in terms of purchase conversion rates, there was a certain setback since on signing promises to purchase fell by -**% during the first confinement compared with the same period in ****. [***]

Mortgages

Over the full year ****, mortgages grew by *.*% compared with ****. Thus, ...

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: ****

The graph above shows that, in ****, the products most favored by consumers were, first and foremost, personal protection and wellbeing products, since we had the real time alertel alert products for water, gas or fire leaks came in *st place with **%, followed by remote anti-intrusion alert products with **%, and smart meters with **%.

More recent equipment scores lower, but is already encouraging, insofar as **% of French people say they are ready to invest in connected speakers (***). The same applies to objects such as connected refrigerators, which interest almost one in ten French people.

I'm ready to invest in a real-time alert for water, gas or fire leaks France, ****, in % Source: ****

Among the connected objects and services cited in the first graph, the most popular was chosen (***), and we find that **% of French people who don't own any connected objects intend to buy them. This proportion rises to **% for those who ...

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 networks, which register +* points compared to **** and reach **% among millenials.

Means of information used to find a property France, ****, in Source: ****

Between March and May ****, i.e. before and after containment, interest in digital tools for real estate searchesthis is particularly true of interest in property presentation videos and electronic signatures. In fact, in ****, **% of those surveyed said that a *D presentation video was a valuable service, and **% found the possibility of signing a contract online interesting. These figures are on the rise, gaining +* points and +* points respectively compared to ****.

When buying a property, which of the following services is most likely to appeal to you? France, ****, in Source: ****

The use of websites for short-term rentals

Specifically in terms of accommodation, what would you prefer in ten years' time/do you think that, in ten years' time, the French will prefer...? France, ****, in Source: ****

We can see that in ** years' ...

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, it explains where and when crews should start work; Provide information on the characteristics of each material, such as quantities.

In this way, the software creates several models according to the different sectors of the building: architectural model, fluid model, etc. Then, it assembles them to form a single model. It then assembles them to form a single model. Once the final model has been created, home automation devices and other services can be added. [***]

Recovering market share in the BIM market sector

Total number of JOUE notices containing the terms BIM or IFC Europe, ****-****, in number of units Source: ****

OJEU notices are invitations to tender for public contracts that meet certain thresholds and must be distributed throughout the European Union. They are published in the Supplement to the Official Journal of the European Union (***).

It can be seen that between ****-****, French companies were the ones that had ...

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, *** more than all other countries combined (***).

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 be explained by the economic consequences of the Covid-** crisis. At the same time, we can also note that the years between **** and **** seem to be the most fruitful period in terms of proptech start-ups.

Breakdown of proptech companies in the "services" category France, ****, in Source: ****

The services sector of the Real Estech market counted *** start-ups in ****, **% of these start-ups were in the multi-product market segment, and the rest of the start-ups were evenly split between the tertiary and residential sectors (***). In ****, an estimated ** start-ups were active in the construction sector.

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 to founder Thomas Rebaud, the company was still dein ****, but he hopes that in * to * years the company will be profitable and that in * to * years, his company will have sales of * to ** billion euros.

Meero generates a very high proportion of its sales in the United States, with France accounting for just *% of sales in ****.

Meero has a number of development prospects, as it aims to launch a photo magazine and refocus on France, with photo services for events such as weddings, seminars and portrait assignments.

In ****, Meero achieved unicorn status, a start-up that has exceeded * billion in valuation.

Source: ****

ManoMano

ManoMano is a start-up founded in **** by the tandem Philippe de Chanville and Christian Raisson. ManoMano is an online sales platform specializing in interior and exterior design. After noticing a lack of digitalized solutions in the home, furnishings and gardening sector, the two entrepreneurs first created Mon Echelle, ...

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 then handle the resale of the property. To set the price of the property they wish to buy, they use computer algorithms to appraise the house and give a price. According to an article in Les Echos, margins are between *% and *%. In France, there are several players offering this kind of service, such as Homeloop. In ****, Homeloop estimated its business volume at ** million euros. In ****, it was present mainly in the Île-de-France region, but hoped to expand into other major French cities. [***]

***% online real estate agencies also on the rise

Whether it's agent networks or real estate agencies, more and more companies are turning to ***% online service, because it has several advantages: lower costs, less red tape, less time wasted on travel, easier visits for customers thanks to a *D tour. New start-ups such as Welmo and Proprioo have entered this market sector. The Proprioo start-up was founded in ...

3.5

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 is down, while that of estate agents is up by **%. The situation is balanced across the various trades, as there is no change across all professions: the rate of optimism remains unchanged.rate of optimism remains equal to **%, as in ****.

Real estate professionals' level of optimism about the future of housing France, ****-****, % (***) Source: ****

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 major platforms that put private individuals in touch with each other. The latter are taking advantage of the fact that* out of * French people are trying to sell their property without using a real estate agency.

Since the financial crisis, which has contributed to a slowdown in market activity, estate agents are often overtaken by transactions between private individuals. In fact, by ****, an estimated **% of transactions will be carried out by private individuals. [***]Although a large majority of French people start their buying or selling process on private-to-private platforms, the real estate transaction market remains largely intermediated.

New digital tools are emerging, such as digital visits and real estate speed dating

With the rise of digital tools, industry leaders have improved their online sales tools with the creation of mobile applications or websites that enable virtual visits, as well as real-time geolocation of properties and the number of people already ...

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 new generation of housing that can be described as more intelligent, since it enables finer management and control of energy, comfort and safety systems for residents. smart buildings are also designed to fit into larger intelligent ecosystems(***), which should in part enable the construction of buildings that are less polluting and more energy self-sufficient.

This type of solution, using innovative technologies often proposed by start-ups, should also enable less costly and more efficient implementations, which are gradually winning over various key players in the sector: electrical equipment manufacturers, players integrated into the sector, but also digital players (***)[***]

A case in point is Gecina's Paris headquarters, designed according to the smart-building concept: Thanks to IoT technologies, such as remote reading of fluids and metering sensors, the building's operation is more efficient, enhancing user comfort and contributing to a CSR approach. New services such as thermal control, smartphone access to the building, ...

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 regulates the sale of buildings to be constructed Thelaw of July **, ****regulating operations carried out by builders Thelaw of January *, ****which deals with liability and insurance in the construction sector. Construction defects and apparent defects must be covered by guarantees, as a presumption of liability weighs on builders.

Article ****-* of the French Civil Code defines real estate development as: "The sale of a building to be constructed is one in which the seller undertakes to build a building within a contractually determined timeframe. It may be concluded on completion or in the future state of completion. In addition, article ****-* of the French Civil Code governs the status of property developers. It defines a property development contract as a mandate for the construction of a real estate work that the client entrusts to a property developer.

The New Acoustic Regulations (***) apply to all new residential buildings for which planning ...

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
• SITECH France
• Arkance