Why do real estate agencies want to raise their fees?

The National Real Estate Federation (FNAIM) has filed a petition with the Council of State to request an increase in its fees for rental transactions.
 

Real estate agency fees are often considered high by homeowners. These fees, which are generally paid by buyers, amount to about 5% of the sale price—more than 12,000 euros for a home valued at 250,000 euros. This time, however, tenants may be the ones to suffer, as real estate professionals are calling for an increase in their rental fees, arguing that they haven’t gone up in 10 years.
 

The law provides that the caps may be “revised” annually as of January 1, based on changes in the Rent Reference Index (Article 2 of the Law of August 1, 2014), by ministerial order. However, the government is under no obligation to modify them. 

To make their voices heard, the FNAIM, the Union of Real Estate Unions, and the National Union of Real Estate Professionals have filed an appeal with the Council of State. Loïc Cantin, president of the FNAIM, criticizes the government’s lack of regard for their profession and the lack of response from the housing ministers contacted on this matter.
 

Fee caps are currently set between 8 and 12 euros per square meter, depending on the property’s location and rental market conditions, plus 3 euros per square meter for the move-in inspection. If the real estate agents win their case, agency fees could rise significantly. They are seeking a 13.75% increase in their fees to compensate for the lack of an increase over the past decade.
 

In Paris, where real estate agent fees are capped at 15 (12+3) euros per square meter, agency fees could rise from 750 to 853 euros for a 50-square-meter apartment—an increase of more than 100 euros. In Lyon, the current cap is 13 (10+3) euros per square meter, which would result in an increase of 89 euros (from 650 to 739 euros) for a 50-square-meter apartment. Finally, in Reims, where fees cannot exceed 11 (8+3) euros per square meter, tenants would have to pay approximately 626 euros instead of 550 euros—an increase of 76 euros.
 

The FNAIM acknowledges the difficulties faced by tenants, but also highlights the challenges faced by real estate agencies, with approximately 1,400 bankruptcies expected in 2024, according to the federation. This is the highest number since July 2009, according to the consulting firm Altares. In three years, the number of bankruptcies has more than quadrupled.