Agent networks are still gaining ground in a changing real estate market

By fashionlifeshopping 16/05/2022 1317 Views

The volume of sales in the old little impacted by the Covid-19 crisis

The real estate market showed strong resilience in the face of the crisis in 2020 with, according to figures from the High Council of Notaries (CSN)*, a drop in sales volumes in the old sector limited to 4% overall of the year to reach 1,024,000 transactions. After suffering an almost complete shutdown during the first confinement, the market regained strong momentum which was confirmed at the end of 2020 and the beginning of 2021. The health crisis was not however without consequence on the orientation of real estate purchases.

The CSN notes in particular a 12% drop in sales of old housing in Ile-de-France to the benefit of the Province. This change in real estate behavior would not, however, be exclusively the result of confinements and health restrictions exacerbating a desire for greenery and space. It would also be linked to the natural evolution of the market and the growing price pressure in the large cities. According to the CSN, the crisis would thus only have reinforced and accelerated an inexorable phenomenon of deportation outside the major cities.

Agent networks continue to grow

The existing property market has therefore been able to cope with the crisis while displaying a reoriented dynamic. Beyond the reorientation of purchases away from large cities, a consequence of the crisis but also of the constant increase in prices in large cities, the market is also continuing its structural change initiated ten years ago with the advent of networks of real estate agents. The latter confirm their rise to power.

Vincent Desruelles, director of Xerfi Precepta studies and author of the study "Growth scenario for networks of real estate agents by 2022"*, confirms that "the 2020 financial year turned out to be an excellent year for real estate agents ". According to Xerfi figures, based on a panel, agent networks recorded 16% growth in turnover in 2020 and continue to gain market share at the expense of traditional real estate agencies. In 2020, real estate agents thus achieved 14% of sales compared to 10% in 2016. “And the growth of agent networks should persist in the medium term, forecasts Vincent Desruelles. The latter should thus weigh 18% to 19% of sales of existing homes in 2022, according to our forecasts. »

More and more experienced agents

This increase is explained by the favorable market context but also by the massive and continuous recruitment of new independent real estate negotiators who, moreover, are increasingly experienced. “With nearly 38,000 independent negotiators, the number of agents has quadrupled since 2015, specifies Vincent Desruelles. This growth in staff, combined with the growing experience of advisers, has in fact made it possible to increase the number of network sales. And the networks should grow even more in the years to come and take advantage of the current disruptions in the job market, which favor professional retraining projects. Xerfi thus estimates that the turnover of agent networks should increase by “22% per year on average over the next two years”.

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>> Read also: Professional retraining: how to start in real estate?

The profession of real estate agent offers great prospects

The real estate transaction market therefore offers great opportunities for business creation and the status of agent makes it easy to get started, without constraint of experience or diploma and with a much lower investment than opening an agency. Obviously, however, success is not guaranteed since the remuneration of the real estate agent is directly linked to his ability to make sales. In this sense, before engaging with a network to become a real estate agent, it is necessary to ensure that you have the profile to exercise the profession of real estate negotiator, in particular to have commercial skills but also to have managerial skills.

Of course, the other fundamental point is the choice of the network with which to engage. As the number of agent networks is constantly increasing, the project leader is spoiled for choice, an advantageous situation which is not, however, free of disadvantages. Before signing with a network, it is advisable to carefully study its support and training offer, its business tools, its partnerships or its communication strategy. This last point, if it may seem subsidiary, is nevertheless essential in a market subject to fierce competition.

>> Read also: How to choose your franchise to become a real estate agent?

A market subject to fierce competition

The real estate transaction market is subject to strong competition intensified by the rise of agent networks. "Because of the launch of around ten brands each year, the number of players has increased considerably in the space of ten years to reach 137 networks at the end of 2020", indicates Vincent Desruelles who specifies that "the three leaders (IAD , New Immo Group with Safti and MegAgence, Digit RE Group with CapiFrance and Optimhome) account for more than half of the commercial agents”. Thus, if the agent network sector remains fragmented, it tends to concentrate thanks to network consolidations.

With their territorial network and their experience, a guarantee of visibility and trust, traditional agencies retain a solid hold on this market, which is also seeing the arrival of new players. Among these new players are the iBuyers who are just beginning their development on the French market and could well seduce a certain target clientele with their express sale concept. Hybrid models, combining the agent network model with physical locations, are also booming, such as Déclic-Immo with these departmental real estate centers.

Digitalization and hybridization thus seem to be the path taken by the real estate transaction market for the years to come. As for the agent networks, they should continue to recruit new entrepreneurs wishing to get into real estate. To attract and retain candidates in a market subject to strong competition, they should further strengthen their support and training offer.

Are you interested in opportunities to become a real estate agent? Discover below a selection of brands to undertake on the market.

*Read "Real estate market: trend and evolution of real estate prices" on the website of the Notaires de France

*Access the study "Growth scenario of networks of real estate agents by 2022" on the Xerfi Precepta website

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