Global Real Estate Market - 2023-2030

Market Overview

Global Real Estate Market reached US$ 0.51 billion in 2022 and is expected to reach US$ 0.72 billion by 2030, growing with a CAGR of 10.1% during the forecast period 2023-2030. One of the primary drivers driving market expansion is the increasing demand for residential properties as a result of rapid urbanization and rising disposable incomes.

Another growth-inducing component is the changing demographics of the population and the growing number of nuclear households. Furthermore, changing customer preferences for high-quality housing in a safe and secure environment are driving market expansion. In 2022, Asia-Pacific real estate market will account for more than 25% of the worldwide market share.

The real estate sector in India is seeing a surge in demand. According to IBEF, the real estate business in India was worth roughly US$ 120 billion in 2017. It is expected to reach US$ 650 billion by 2025. Over US$ 2.5 billion in investment is expected in this area across the country by 2022.

Market Dynamics

The Digitalization in Real Estate Sector

Digital transformation has increased demand for connectivity, which is expected to have an impact on market growth. The explosion of Big Data with the Internet of Things, as well as continual technical advances, demand simple connected IT solutions to properly manage the complicated real estate portfolio. Thus, facilities managers and lease administrators can handle real estate lease agreements using a cloud-based system such as SAP Cloud for Real Estate.

Sage, a provider of accounting, financial, human resources and payroll software for small and medium-sized enterprises, announced the release of Sage Intacct Real Estate, a new module which adds property management capability to the Sage Intacct cloud financial management system, in May 2022. Sage 300 Construction and Real Estate Property Management is combined with Sage Intacct's multi-tenant cloud platform in this solution.

The Rising Government Investments

Investments by the government in urban development and regeneration projects have the potential to revitalize neighborhoods and cities. Modern amenities, parks, cultural centers and enhanced transportation links can attract people and businesses, increasing demand for real estate in those locations. Transportation infrastructure investments, such as new motorways, railways and airports, can improve connection and accessibility to certain locations.

Property values in places that become more handy and desirable for commuters and businesses might rise as transit linkages improve. Foreign investors in the real estate industry may increase as a result of government policies and incentives targeted at attracting foreign direct investment. Property prices and market activity will benefit from the investments.

Price Rise and Regulations

Rapidly growing property costs, particularly in metropolitan regions and prominent areas, can make housing affordable for many prospective buyers and tenants. High residence costs in relation to income levels might limit the number of qualified buyers, hence influencing demand. Excessive building and development might result in an oversupply of properties. When supply exceeds demand, property prices decrease, leaving real estate developers and investors at a financial disadvantage.

Stringent lending laws and greater down payment requirements might make it difficult for potential homebuyers to obtain mortgage financing. It has the potential to narrow the pool of qualified purchasers and lower overall demand in the real estate market. Governments implement numerous controls and policies on real estate markets, such as zoning rules, tax regulations and rent control measures. Unexpected regulatory changes can have a big influence on property values and investment plans.

COVID-19 Impact Analysis

The global COVID-19 outbreak has a wide-ranging impact on the real estate industry. Managers and owners are concerned about how to protect the value from declining while meeting growing regulatory regulations to keep the premises safe and hygienic including the tenants that live there. Pandemics have also hampered tourism in many nations by restricting movement and tourists, lowering buyer/seller interest in future transactions in resorts and related real estate.

The pandemic had a profound impact on the commercial real estate industry. As businesses adapted to remote work and social distance requirements, office spaces, retail establishments and hotel venues faced issues. Some companies have reduced the size of their office spaces or chosen for more flexible work arrangements.

Russia- Ukraine War Impact

The conflict has the potential to have a larger impact on regional real estate markets, particularly in Europe. Companies reevluate their supply networks and sourcing strategies in response to geopolitical issues. The war additionally contributed to an already-existing labor shortage in Eastern European countries. It led to changes in supplier relationships and a demand for alternative suppliers of the required commodities.

Steel prices in Europe increased by 22% in the week following Russia's invasion of Ukraine in March 2022, reaching €1160 per ton, according to Kallanish Commodities data. Rising input prices add to an already limited market, since Europe's construction rebound in 2021 has already made buying essential construction materials difficult.

Segment Analysis

The global real estate market is segmented based on property, type, business, mode and region.

The Rise in Price of Properties Favors the Growth of Rental Business

Rental business is expected to hold more than 39.5% of the global real estate market during the forecast period 2023-2030. Many people are finding it difficult to finance homeownership as house prices rise. It raises demand for rental properties since people prefer to rent rather than buy. For people who cannot afford to buy a property in costly markets, rental apartments provide a more flexible and cheap housing option.

Rising property values encourage additional investors to enter the real estate industry. Investors like to purchase properties and rent them out in order to receive rental income while maintaining the property as a long-term investment, hence supporting sector expansion. According to Mansion Global, Germany is the country of renters, with almost 60% of property rented in 2021.

Geographical Analysis

The Continuous Residential Investments in North America

North America is anticipated to have to hold around 40% of the global real estate market in 2022. North America real estate market appears to be on an increased disruption curve, as seen by rapid changes in tenant dynamics, consumer demographic shifts and ever-increasing demands for better and faster data access to provide better service and amenities. As per the National Association of Realtors, 38% of millennials own homes in U.S.

In U.S., investor sentiment toward real estate remains strong, but has decreased over the past year as a result of economic policy uncertainties and rising interest rates. According to U.S. Census Bureau, real estate and rental and leasing revenue in U.S. is expected to reach US$ 786.4 billion by 2024. Initially the residential sector has been regarded as the most rapid adoption of IT.

Competitive Landscape

The major global players include: American Tower Corporation, Aston Pearl Real Estate Broker, Ayala Land Inc. (Ayala Corporation), Cbre Group Inc., Colliers International, Gecina Inc., Jones Lang Lasalle Incorporated, Prologis Inc., Reliance Relocation Services and Simon Property Group Inc.

Why Purchase the Report?

• To visualize the global real estate market segmentation based on property, type, business, mode and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of real estate market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global real estate market report would provide approximately 69 tables, 65 figures and 201 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies