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The Real Estate Market size is estimated to grow by USD 1,031.81 billion at a CAGR of 5.04% between 2022 and 2027. 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.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
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 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, 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 the global 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 the global market size during the forecast period.
The rental segment is estimated to witness significant growth during the forecast period. This segment in the global market mainly comprises those properties that are used as dwellings or provided on rent by the property owners for the tenants temporarily. residential and non-residential buildings and dwelling rental services, self-storage unit rental services, mini-warehouses, and other rental services are some of the key types of rental real estate.
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The rental segment was the largest segment and was valued at USD 1,760.84 million in 2017. One of the main features of these real estate properties is that they are purchased by an investor or occupied by tenants under a lease or other sort of rental arrangement; the property types may differ as fully furnished, semi-furnished, and unfurnished. There is significant growth in the global market as real estate rental agents are increasingly employing new technologies, such as online listing and virtual reality, to offer better services to clients and to build a strong buyer-agent relationship. Furthermore, new technologies such as virtual reality tours and e-signing services are fuelling the growth of this segment which in turn will drive the global market during the forecast period.
Based on type, the segment is classified into residential, commercial, and industrial. The rising urbanization and growing demand for homes are significantly driving the growth of the residential sector. Residential real estate mainly comprises buying and selling of living arrangements that are generally used for residential purposes such as buildings, single-family homes, apartments, townhouses, and other types. 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. 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 59% to the growth by 2027. 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 the 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.
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 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.
Commercial Real Estate Market- The commercial market is estimated to grow at a CAGR of 3.3% between 2022 and 2027. The size of the market is forecast to increase by USD 260.37 billion.
The market forecast report covers market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The Market is a dynamic sector influenced by various factors such as Affordable Housing demands, Asia Pacific trends, and the BFSI industry's impact. CBDs like Durrat Marina attract High-net-worth individuals (HNI) and PE investors. Commercial property and office real estate spaces cater to E-commerce and manufacturing needs. The Luxury homes segment attracts Millennials and investors, while Rental types and Residential properties address housing affordability.
Market reports provide insights into Compound Annual Growth Rates (CAGR) and Oversupply concerns. Regulatory bodies like the Government of India and Real Estate Regulatory Authority (RERA) oversee Real Estate Investment Trusts (REITs). Engineering and Tourism sectors also impact real estate dynamics, with research from Mansion Global and the National Association of Realtors guiding market strategies. The Smart City Project and Rising population further drive the Global real estate market.
Real Estate Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.04% |
Market growth 2023-2027 |
USD 1,031.81 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.56 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 59% |
Key countries |
US, China, 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 Inc., MaxWell Realty Canada, NAI Global, Nakheel PJSC, Prologis Inc., RAK Properties PJSC, Segro Plc, Shannon Waltchack, TCN Worldwide, and WeWork Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Business Segment
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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