PUBLISHER: The Business Research Company | PRODUCT CODE: 1888370
PUBLISHER: The Business Research Company | PRODUCT CODE: 1888370
Opportunity zone real estate refers to property investments situated within designated economically distressed areas, called Opportunity Zones, where investors can receive tax incentives for funding development or business projects. These zones aim to promote long-term private investment and stimulate economic growth in underdeveloped communities.
The key property types of opportunity zone real estate include residential, commercial, mixed-use, industrial, and others. Residential properties are designed for living purposes and include houses, apartments, and condominiums. Investment options include direct investment, fund investment, real estate investment trusts, and others, catering to end users such as individual investors, institutional investors, developers, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.
The opportunity zone real estate market research report is one of a series of new reports from The Business Research Company that provides opportunity zone real estate market statistics, including opportunity zone real estate industry global market size, regional shares, competitors with an opportunity zone real estate market share, detailed opportunity zone real estate market segments, market trends and opportunities, and any further data you may need to thrive in the opportunity zone real estate industry. This opportunity zone real estate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The opportunity zone real-estate market size has grown rapidly in recent years. It will grow from $88.09 billion in 2024 to $97.51 billion in 2025 at a compound annual growth rate (CAGR) of 10.7%. The growth during the historic period can be attributed to the increasing public-private partnerships in real estate, the rising infrastructure development in designated zones, the growing interest in long-term capital gains deferral, the expanding awareness of social impact investing, and the increasing corporate investment in community projects.
The opportunity zone real-estate market size is expected to see rapid growth in the next few years. It will grow to $144.55 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth during the forecast period can be attributed to the increasing federal tax incentives for investors, the rising private equity interest in underserved areas, the growing demand for affordable housing, the expansion of urban redevelopment initiatives, and the increasing participation of institutional investors. Key trends in the forecast period include technology-driven property management solutions improving efficiency, the integration of data analytics for investment decision-making, technology-enabled virtual property tours and leasing, the incorporation of sustainable energy solutions in real estate projects, and advancements in modular and prefabricated construction methods.
The increasing infrastructure development is expected to drive the growth of the opportunity zone real estate market in the coming years. Infrastructure development refers to the planning, construction, and maintenance of essential physical and organizational structures that support economic growth and societal functioning. Expanding infrastructure networks enhance the attractiveness and feasibility of opportunity zone investments by improving transportation access, public utilities, and overall livability in underdeveloped areas. Consequently, opportunity zone real estate projects channel private capital into these regions, complementing public infrastructure efforts and stimulating local economic growth. For example, according to the Australian Bureau of Statistics (July 2023), the number of dwellings under construction rose to 240,813 in early 2023, up from 240,065 in 2022, reflecting robust development activity that supports real estate expansion. Therefore, rising infrastructure development is contributing to the growth of the opportunity zone real estate market by improving investment potential and fostering regional revitalization.
Key companies operating in the opportunity zone real estate market are focusing on capital deployment optimization to maximize investment efficiency and accelerate returns for investors. Capital deployment optimization refers to the strategic allocation and management of investment funds to maximize returns, minimize risk, and ensure effective utilization of capital across projects or assets. For instance, in October 2024, CaliberCos Inc., a United States-based capital market company, launched an innovative Qualified Opportunity Zone Fund Roll-Up Program aimed at improving capital deployment efficiency in opportunity zone projects. The program allows investors to defer capital gains taxes by reinvesting in designated opportunity zones, offering advantages such as a step-up in basis after five to seven years and tax-free gains after ten years. By consolidating and managing multiple distressed assets under a single fund, the program streamlines investment management, accelerates redevelopment timelines, and enhances portfolio returns. This approach not only optimizes capital utilization but also supports economic revitalization in underserved communities.
In September 2025, Trilogy Investment Company, a Georgia-based investment firm, partnered with Pinnacle Partners Inc. to expand its portfolio in high-growth real estate ventures. This partnership aims to direct significant investments into underserved communities to rejuvenate housing, promote sustainable community development, and provide attractive, tax-advantaged returns to investors. Pinnacle Partners Inc. is a United States-based investment company specializing in opportunity zone real estate solutions.
Major players in the opportunity zone real-estate market are Cushman & Wakefield Inc., Brookfield Property Partners L.P., Starwood Capital Group L.P., Virtua Partners LLC, CIM Group LLC, RXR Realty LLC, Bridge Investment Group LLC, GTIS Partners, Fundrise Inc., Grubb Properties Inc., CrowdStreet Inc., Griffin Capital Company LLC, Origin Investments LLC, EJF Capital LLC, Avanath Capital Management LLC, Belpointe Opportunity Zone Fund LLC, Caliber Companies Inc., Peakline Partners, Urban Catalyst LLC, Cantor Asset Management.
North America was the largest region in the opportunity zone real-estate market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in opportunity zone real-estate report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the opportunity zone real-estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The opportunity zone real-estate market includes revenues earned by entities through property development, investment advisory, and financing and funding support. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Opportunity Zone Real-Estate Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on opportunity zone real-estate market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for opportunity zone real-estate ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The opportunity zone real-estate market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.