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The Residential Real Estate market size is projected to increase by USD 514.41 billion at a CAGR of 5.07% between 2022 and 2027.
The growth depends on several factors, including the growing residential sector globally, the growing population and urbanization in developing countries, and the increasing support of the government for affordable houses.
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The growing residential sector globally is notably driving the market growth, although factors such as regulatory uncertainty may impede the growth. Our researchers analyzed the data with 2022 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.
The global market is thriving, fueled by the expanding housing sector worldwide. Increasing residential property developments, including single-family homes, condos, duplexes, and multifamily residences, are driving growth. Emerging countries like India, China, Thailand, Malaysia, and Indonesia are experiencing significant growth due to rapid urbanization and rising living standards.
Integrated living concepts are gaining traction, with modern amenities such as shopping malls, schools, healthcare facilities, and parks being integrated into residential projects. This trend, along with the appeal of secure and self-sufficient township housing options, is boosting demand and contributing to the growth.
Increasing marketing initiatives are the primary trend. Several companies in the global market have adopted an integrated marketing communication strategy by selling their products and services using communication channels such as newspapers, magazines, and social media. Many companies create TV advertising campaigns followed by marketing campaigns that include Internet pre-rolls, large social media and blogging programs, and interactive websites. Creative strategies increase brand credibility and awareness, attracting consumers to the company's products.
Social media is an intrinsic part of a marketing strategy, with visual content being a key driver for customer engagement and the development of online brand communities. companies also use social media channels such as Instagram to showcase their existing and upcoming projects. They post a variety of creative content on their Instagram channel with a focus on attracting customers. Hence, increasing marketing initiatives is a growing trend which is expected to drive the market during the forecast period.
Regulatory uncertainty poses a major challenge to the global market. Real estate companies prefer operating in stable, low-compliance regulatory environments. Changes in regulations can bring added costs, delays, risks, and uncertainty to development projects and restrict existing properties. Currently, regulatory clarity and stability are lacking at various government levels.
Moreover, the real estate sector is just beginning to address ESG compliance, and few companies are ready for immediate regulatory changes. This uncertainty could hinder market shortly.
The market 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 growth strategies.
Global Market 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.
Habtoor- The company offers residential luxury houses such as luxury buildings, polo resorts and clubhouses, towers, and villages. They also offer products such as Systems and components, Propulsion and energy systems, Construction machinery, and Rental and project solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 market segmentation is classified into mode of booking, type, and geography. The mode of booking segment holds the largest market share. Based on the mode of booking, the sales segment will be significant during the forecast period. The sales segment dominates the global market and will continue to dominate during the forecast period. The sales segment includes the sale of any property that is majorly used for residential purposes, such as single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences.
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The sales segment was valued at USD 1,027.05 billion in 2017 and continued to grow by 2021. With the growing population and urbanization, the demand for homes is also increasing, which is the major factor driving the growth of the sales segment. Moreover, real estate firms work with developers to sell the buildings and units they have created. These firms earn a commission for creating all marketing material and using their sales agents to sell the inventory of completed units. These firms typically focus on new units. Thus, with the growing investments in the residential sector, the sales segment in the global market is expected to witness growth during the forecast period.
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APAC is estimated to contribute 55% 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. APAC held the largest share of the global market in 2022 and is expected to dominate the market during the forecast period. The major factors, that are driving the market in APAC, are rapid urbanization and the increasing spending capacity of people. Moreover, residential and commercial projects in countries such as India and China are growing at a rapid pace. Such factors are expected to drive the market in APAC during the forecast period.
However, the lockdown restrictions were relaxed in the second half of 2020, owing to large-scale vaccination programs globally. This has led to the resumption of business activities in the construction building and real estate sectors since the first half of 2021. This helped the real estate sector to rebound as buyers began to ramp up their search for the sale and purchase of homes. Additionally, many companies in the market are offering real estate services online through their websites and apps. Such factors are expected to drive the market and forecasting of the market in APAC during the forecast period.
The market in India showcases a diverse landscape, featuring affordable and luxury housing segments. Despite economic foundations, the market has undergone regulatory reforms, compounded by the pandemic's impact, striving to regain pre-pandemic levels. Technological transformations, including home automation, present investment opportunities, especially with Real Estate Investment Trusts (REITs) gaining traction.
Under-construction and ready-to-move-in properties are sought after, with positive consumer sentiment and government and banking industry support. Demand for larger homes persists, fueled by low interest rates and comparatively low prices, amidst challenges like financial stress and input cost fluctuations in materials like cement and steel.
The market research market forecast report forecasts market growth and forecasting by revenue at global, regional & country levels and provides a market growth analysis of the latest market growth and trends and market research and growth opportunities from 2017 to 2027.
Residential Real Estate Market Scope |
|
Report Coverage |
Details |
Page number |
145 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.07% |
Market growth 2023-2027 |
USD 514.41 billion |
Market structure |
Fragmented |
YoY growth 2022-2023 (%) |
4.3 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 55% |
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 & Volkers GmbH, Godrej & 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 forecasting, 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 the forecast period. |
Customization purview |
If our market analysis and 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 Mode of Booking
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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