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The residential real estate market size is forecast to increase by USD 482.1 billion and is estimated to grow at a CAGR of 4.6% between 2023 and 2028. The global residential sector is experiencing significant growth, driven by a growing population and urbanization, particularly in developing countries. This trend is further fueled by increasing government support for affordable housing initiatives. Governments worldwide are recognizing the importance of providing affordable housing options to meet the needs of their citizens. This has led to the implementation of various policies and programs aimed at increasing the supply of affordable housing units. These efforts are expected to continue, as the demand for housing in urban areas is projected to increase in the coming years. The residential sector's growth presents opportunities for investors and businesses involved in housing construction, financing, and related services. Additionally, the focus on affordable housing is expected to have a positive impact on economic development and social stability in many countries.
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The market has experienced significant activity in the fiscal year, with sales of both regular and premium properties showing positive growth. CBRE's latest report indicates that the housing market remains resilient despite macroeconomic headwinds. Economic factors, such as inflation in nominal terms and population growth, continue to influence the market. The RBI's monetary policy and the IMF's economic outlook are essential support for the housing sector. Luxury residential properties have seen a steady demand from discerning buyers, with spacious accommodations being a key preference. Property launches have been on the rise, offering a wide range of options for potential homebuyers. The currency's value has also played a role in the market, with some buyers taking advantage of favorable exchange rates to invest in real estate. Despite these positive signs, the housing market faces challenges, including inflation in real terms and rising interest rates. The construction of new housing units is expected to increase, providing more options for buyers. The economic fundamentals, including GDP per capita and purchasing power, will continue to shape the market in the coming months. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing residential sector globally is notably driving market growth. The market is experiencing significant growth, with an increase in the construction of various types of residential properties such as single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences. This trend is driven by macroeconomic factors, including population growth, urbanization, and improving economic fundamentals in emerging economies like India, China, Thailand, Malaysia, and Indonesia.
Moreover, these countries' rising GDP per capita and expanding domestic demand have attracted discerning buyers seeking spacious accommodations. Moreover, the luxury residential segment, which includes big housing spaces, is experiencing a surge in demand from both domestic and foreign buyers. Thus, such factors are driving the growth of the market during the forecast period.
Increasing marketing initiatives is the key trend in the market. The market, as per CBRE's fiscal year report, has been impacted by macroeconomic headwinds, with economic factors such as inflation, population growth, and changing consumer preferences influencing sales and property launches. Premium and luxury residential segments have seen essential support from discerning buyers seeking spacious accommodations, despite the unsold inventory overhang.
Moreover, currency fluctuations and regulatory reforms have also played a role in managing expectations for both domestic and foreign homebuyers. The housing market's economic foundations remain strong, with housing market recovery expected due to improving economic fundamentals, including GDP per capita growth and increasing domestic demand. Hence, such factors are driving the market during the forecast period.
Regulatory uncertainty is the major challenge that affects the growth of the market. The market, as monitored by CBRE, has faced challenges from various macroeconomic headwinds in the fiscal year. Economic factors, such as inflation in nominal and real terms, population growth, and changing consumer purchasing power, have influenced home sales and property launches.
Moreover, premium and luxury residential sectors have been particularly affected by these trends, with discerning buyers seeking spacious accommodations and essential support from the housing market's economic foundations. The Reserve Bank of India (RBI) has played a role in managing these economic factors through monetary policy, but uncertainty surrounding regulatory reforms and unsold inventory overhangs have posed challenges. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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.
Al Habtoor Group LLC: The company offers residential luxury houses such as luxury buildings, polo resort and clubs houses, towers and villages.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The sales segment is estimated to witness significant growth during the forecast period. The market, as tracked by CBRE, experienced significant activity during the fiscal year, with the sales segment leading the way. This segment encompasses the purchase of properties primarily used for residential purposes, including single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences.
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The sales segment was the largest segment and valued at USD 896.60 billion in 2018. Macroeconomic headwinds, such as economic factors, currency fluctuations, and inflation, have impacted the housing market in nominal terms. However, in real terms, the economic fundamentals, including population growth, purchasing power, and GDP per capita, have continued to support the demand for housing. Real estate firms play an essential role in the sales process by collaborating with developers to market and sell their newly launched properties. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is undergoing a technological transformation, with developers adopting cutting-edge strategies to cater to the evolving needs of homebuyers. Home automation systems, energy-efficient appliances, and virtual tours are becoming standard features in new properties. Underconstruction properties present investment opportunities for those seeking a low-risk method to diversify their investment portfolio. REITs (Real Estate Investment Trusts) offer an alternative investment option to traditional property ownership, providing rental cash flow and potential price increases. Interest rates and supply metrics play a critical role in the residential properties market. Hence, such factors are driving the market in APAC during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is a significant sector in India's economy, with CBRE reporting steady sales and property launches in the fiscal year 2021. However, the market faces macroeconomic headwinds, including economic factor, IMF , economic factors such as inflation and interest rates set by the RBI in nominal and real terms. These factors impact discerning buyers' purchasing power and their preference for spacious accommodations in the premium and luxury residential segments. Currency fluctuations also play a role, particularly for foreign homebuyers. Population growth and GDP per capita are essential support for the housing market's economic foundations. Rapid urbanization and regulatory reforms contribute to the recovery of the residential construction sector, leading to the launch of new housing units. Educating customers and managing their expectations are crucial in the current market conditions. Affordable housing remains a priority, with the government's focus on addressing the inventory overhang. The changing consumer landscape and the demand for big housing spaces in luxury housing segments continue to shape the real estate market. Overall, the market's future depends on the economy's domestic demand and the government's ability to balance the needs of various housing segments.
Market Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market growth 2024-2028 |
USD 482.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.18 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Al Habtoor Group LLC, Brigade Enterprises, Christies International Real Estate, Collabra Technology Inc., D. R. Hortons Inc., DLF Ltd., Engel and Volkers GmbH, Godrej and Boyce Manufacturing Co. Ltd., IJM Corp. Berhad, L and T Realty Ltd., Lennar Corp., OBEROI REALTY Ltd., Pultegroup Inc., Puravankara Ltd., Raubex Group Ltd., Savills Property Services (India) Pvt. Ltd., SOBHA Ltd., Sotheby International Realty Affiliates LLC, Sun Hung kai Properties Ltd., and Tata Sons Pvt. Ltd. |
Market dynamics |
Parent market analysis, market trends and analysis, market report, market forecast, market analysis and report, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Booking
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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