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The real estate market size is estimated to grow by USD 1,133 billion at a CAGR of 5.27% between 2023 and 2028. The growth of the market share depends on several factors, growing aggregate private investment, growing demand for industrial infrastructure, and increasing support of governments for affordable houses. The market growth is significantly driven by several key factors. The growth in aggregate private investment is crucial, as increased funding from investors accelerates the development of new projects and infrastructure. Rising demand for commercial real estate further propels market growth, as businesses seek modern facilities to expand their operations. Additionally, government support for affordable housing plays a critical role; initiatives and subsidies aimed at increasing the availability of affordable homes boost market dynamics and stimulate demand. These factors collectively contribute to a dynamic and expanding market, addressing the needs of both commercial and residential real estate.
Market Forecast 2024-2028
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The global real estate market is experiencing a period of rapid evolution, driven by a combination of factors, including changing demographics, economic growth, and technological advancements. Key trends shaping the industry include a shift towards urbanization, the increasing popularity of co-living and shared spaces, and a growing focus on sustainability. As the global population continues to grow and urbanize, there is a rising demand for housing and commercial real estate, particularly in emerging markets. Additionally, the rise of remote work and flexible work arrangements has led to a surge in demand for co-working spaces and flexible office leases. The real estate industry is also adapting to technological advancements, such as proptech solutions and digital platforms, to improve efficiency and enhance the customer experience. Overall, the global real estate market presents both challenges and opportunities for businesses, as they navigate the evolving landscape and strive to meet the changing needs of consumers.
The real estate market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The residential segment is estimated to witness significant growth during the forecast period. The rising urbanization and growing demand for homes are significantly driving the growth of the residential sector. Residential real estate mainly comprises the buying and selling of living arrangements that are generally used for residential purposes, such as buildings, single-family homes, apartments, townhouses, and other types. The market forecast report includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
The residential segment was the largest segment and was valued at USD 1,382.40 billion in 2018. Some of the main sub-segments which have the highest market share in residential real estate are apartments and condominiums. One of the key factors that will fuel the growth of this segment is the need for an upgraded lifestyle and low-interest rates. Additionally, the increasing use of virtual reality for property viewing and design is expected to enhance customer engagement and drive demand. Hence, such factors are expected to drive the segment, which in turn will drive the growth of the global market during the forecast period.
APAC is estimated to contribute 63% to the growth by 2028. Technavio's analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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One of the main factors for the significant growth of the global market in APAC is factors such as rapid urbanization and the increasing spending capacity of people. Additionally, there is a rapid increase in residential and commercial projects in several APAC countries, such as India and China, which is expected to drive the global market in the region. Also, factors such as legislation and interest rates can significantly affect the market such that lower interest rate creates a higher demand for real estate as loans become more viable. Furthermore, the increase in growth in the corporate environment and the growing demand for office space, along with semi-urban accommodation have significantly contributed to the market. Hence such factors are expected to fuel the growth of the market in the region during the forecast period. The market size continues to expand, driven by trends outlined in the real estate industry report and real estate industry research reports, reflecting significant real estate industry growth.
The real estate market is experiencing a significant shift due to various factors. Rising population growth and the increasing need for personal household space are driving the demand for both residential and commercial properties. The economic conditions and local market conditions continue to influence the market, with interest rates playing a crucial role in determining investment options for buyers. Commercial real estate, including office spaces and retail buildings, is seeing a home sales rebound, while the demand for housing remains strong. Fully furnished, semi-furnished, and unfurnished properties, as well as rental properties, are popular choices for buyers. Land, improvements, buildings, fixtures, roads, structures, and utility systems are essential components of the real estate market. Undeveloped property and vacant land are also in demand, with developers looking to build new housing and commercial projects. Offline transactions continue to dominate the market, but online transactions are gaining popularity due to the convenience they offer.
The global real estate market is undergoing a period of significant transformation, driven by a confluence of factors, including changing demographics, economic growth, and technological advancements. Key trends shaping the industry include a shift towards urbanization, the increasing popularity of co-living and shared spaces, and a growing focus on sustainability. As the global population continues to grow and urbanize, there is a rising demand for housing and commercial real estate, particularly in emerging markets. Additionally, the rise of remote work and flexible work arrangements has led to a surge in demand for co-working spaces and flexible office leases. The real estate industry is also adapting to technological advancements, such as proptech solutions and digital platforms, to improve efficiency and enhance the customer experience. Overall, the global real estate market presents both challenges and opportunities for businesses, as they navigate the evolving landscape and strive to meet the changing needs of consumers.
One of the key factors driving the global market is the growing aggregate private investment. The investments by individuals or businesses in real or physical assets such as land, commercial buildings, and commercial offices are known as aggregate private investments. The remaining business investments, including wellness real estate, after investing in physical structures used for commercial and residential purposes such as buildings, land, and commercial offices but most investments are on equipment and software.
Hence, this rise in investment by industries tends to fuel the demand for real estate services such as real estate software, which helps them strategize and plan their investments. One of the main advantages of these kinds of services is that it guides the investors to understand what aspects of their business are most profitable and where investment should be focused. Hence, such factors are expected to drive the global market during the forecast period.
A key factor shaping real estate market growth is the increasing marketing initiatives. Several companies in the global market are scaling up their services by deploying the integrated marketing communication strategy by leveraging communication channels such as newspapers, magazines, and social media to sell their products and services.
Some of these companies are promoting marketing initiatives such as creating TV advertisement campaigns, followed by a marketing campaign that includes Internet pre-roll, a wide-reaching social media and blogging program, and an interactive website. As a result, these marketing initiatives improve brand authenticity and recognition and generate consumer interest in the company's products. Hence. such marketing initiatives are e expected to drive the global market during the forecast period.
Regulatory uncertainty in the market is one of the key challenges hindering the global market. One of the major threats for real estate companies is changing regulatory norms, which can add high cost, time, risk, and uncertainty for completing development projects. The conventional regulatory environment at various levels of government, such as federal, state, and local, doesn't have the desired clarity, durability, predictability, and stability, which are essential to real estate owners and operators.
As a result, these rules are enforcing several real estate companies to comply with several government rules and regulations as well as other environmental, social, and governance (ESG) criteria. Due to these rules, real estate investors need to measure and report their asset's water, energy use, waste, carbon emissions, and climate change risks. Hence, such rules and regulations are expected to hinder real estate market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Boston Commercial Properties Inc: The company offers real estate solutions such as tenant services, relocation services, and corporate real estate consulting services.
We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:
Technavio's real estate market report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. Real estate industry growth is strong, supported by comprehensive real estate industry research reports and real estate industry report insights, showcasing the increasing market size and its potential.
The real estate market is experiencing a demand for both residential and commercial properties, driven by various factors including the housing market, homeownership rate, and the growth of industries such as e-commerce, manufacturing, and healthcare. This demand is reflected in rising home prices and median rents for fully furnished and semifurnished properties. The real estate market is experiencing a surge in demand, particularly in residential property, driven by millennials seeking personal household space. This demographic is not only fueling the demand for affordable housing but also for luxury homes as disposable incomes rise. Commercial property, including office spaces and retail outlets, continues to be an investment option for businesses looking to expand.
Real estate development is integrating technology to meet the needs of modern consumers, with fully furnished properties and infrastructure development becoming the norm. The construction sector is booming, with employment generators such as warehousing facilities being built to cater to the ecommerce sector's growing demands. Urban lodging and infrastructure development are also areas of focus, with tax exemptions and incentives offered by governments to attract investors. The rising population is leading to an increased demand for housing, with infrastructure development playing a crucial role in meeting this need. The integration of technology in property management and the growth of the ecommerce sector are also driving the demand for warehousing facilities. Overall, real estate remains a lucrative investment option, with opportunities in both residential and commercial properties.
Furthermore, investors are also turning to real estate as an attractive asset class for property investment, with opportunities in commercial properties like shopping malls, office buildings, medical centers, hotels, industrial buildings, and logistics warehouses. Real estate financing options are available for those looking to invest, with tax benefits, employment generation, advertising services, and livestreaming rooms being some of the key attractions. The agriculture sector, transportation, and telecommunication services are also contributing to the growth of the real estate market, with the development of smart city projects, tax exemptions, and data localization driving demand for data storage facilities, data center infrastructure, and online real estate services.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.27% |
Market growth 2024-2028 |
USD 1,133 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.77 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 63% |
Key countries |
China, US, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Boston Commercial Properties Inc., Brigade Enterprises, Brookfield Business Partners LP, CBRE Group Inc., Christies International Real Estate, Dalian Wanda Group, DLF Ltd., Keller Williams Realty Inc., Lee and Associates Licensing and Administration Co. LP, Link Asset Management Ltd., Marcus and Millichap Real Estate Investment Services, Inc., MaxWell Realty Canada, NAI Global, Nakheel PJSC, Prologis Inc., RAK PROPERTIES, Segro Plc, Shannon Waltchack, TCN Worldwide, and WeWork Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecasting period. |
Customization purview |
If our real estate market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Business Segment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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