Real Estate Market By Property (Residential, Commercial, Industrial), Revenue (Sales, Rental and Lease), Type (Land and Buildings), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Real Estate Market size was valued at USD 4.06 trillion in 2022 and is estimated to surpass a valuation of USD 6.19 trillion by 2032 at a CAGR of 5.4% during the forecast period 2023-2032.

The process of constructing, renting, purchasing, and selling properties, including both residential and commercial buildings, is referred to as a real estate. A profit can be made by developers by increasing the value of the land through the construction of buildings or other improvements and through rezoning. It is the responsibility of the real estate agencies to walk the buyer through all of the documentation that is included with the transaction.

With moderating even above near-term rent growth and the potential for the level to slightly higher cap rates in some regions and industries, the fundamentals of the real estate market will reduce along with growth expectations. The structural repercussions might still continue to influence the amount and type of real estate sought out by occupiers. 

In addition, the governments of a number of other countries, including Poland, the United States of America, and Canada, give incentives to purchasers through programs like the Golden Visa and affordable housing programs. In addition, a significant number of real estate buyers are drawn to countries like France, the Netherlands, Dubai, Singapore, and Malaysia due to the abundance of popular tourist spots there.

In addition, over the course of the last ten years, the market has seen substantial expansion thanks to a surge in the number of land-related real estate transactions taking place in the commercial, industrial, and residential developments all over the world.

Further, an imbalance in supply and demand for residential properties further accelerated the property values quickly owing to growth in rent and compression in cap rates. the commercial properties are likely to experience a substantial growth rate during the forecast period 2023-2032 owing to a strong rebound in the tourism sector, which compelled improved growth in hotels, resorts, and other properties.

Key Insights

• Based on property type, the residential property segment held the lion’s share

• Based on purpose, the rental segment dominated the global real estate market in 2022

• Based on region, Asia Pacific held the largest market share in 2022

Limited Availability of Land Becoming a Saturation Point for Real Estate Market

Even though the real estate market is recovering and projecting a substantial boost in the coming years. Our study suggests that the residential market, especially in developed countries, has started witnessing sluggish growth as the majority of their key cities are reaching the saturation point considering the infrastructural expansion of the cities.

In addition, other factors impacting the real estate market growth are demographical reasons, struggling economies, and uncertain government policies. The major drop in the growth of the real estate market was due to the pandemic that strongly impacted every activity of the construction, tourism, and manufacturing sectors.

Segmentation Analysis

Based on property type, the market is segmented into residential properties, commercial properties, industrial properties, and other lands. In 2022, residential property held a 36.24% share of the global real estate market and is likely to continue leading the market in the years to come. This can be attributed to the growing trend of millennials favoring homeownership to adopt a new lifestyle of remote contact and spaces that provide them with an appropriate atmosphere, facilities, and locale.

Based on revenue, the market is segmented into sales, rental, and lease; in terms of revenue, the rental segment generated over 53.86% of market revenue. This domination was observed due to the rise in prices of properties, especially in the developed regions. The high costs of properties are owing to a substantial increase in renters, favoring segmental growth.

Recent Developments

• In August 2022: QuantumRE announced its partnership with Texture Capital. By partnering with Texture Capital, QuantumRE broadened its compliance calibers via Texture’s broker-dealer Alternative Trading System. Together they launched a blockchain-based Home Equity Marketplace, which allows investors (individuals, family offices, and institutions) to purchase, sell and trade various tokenized interests in equity across residential properties, thereby enabling online access to this asset class.

• In June 2022: U.S.-based World Property Media Group (WPMG) acquired a new start-up, WPC TV, a real estate streaming company, as a new business subsidiary.

• In March 2021: JLL revealed with Roofstock a multi-faceted transaction. A productive proptech and leading marketplace in the dynamic single-family rental sector.

Asia Pacific to Continue Leading Real Estate Market Due to Rapid Increase in Homeownership Rates in Developing Countries

Asia Pacific dominated the market share in 2022, owing to a rapid increase in homeownership rates. This is in line with growing tourism and rapid urbanization within the countries. Additionally, India has been witnessing favorable growth in the residential sector due to positive support and favorable government policies to buy new homes. An increasing number of salaried professionals in the country further supports this growth. The market growth is being strengthened by the growing number of data centers across China and India.

Competitive Landscape

Brookfield Asset Management, China Poly Group Corporation, China Vanke Co. Ltd, ATC IP LLC, Prologis, Inc., Crown Castle, Mitsui Fudosan Co., Ltd., CK Asset Holdings Limited, Sun Hung Kai Properties Limited, Vonovia SE, Emaar Properties amongst others.

The global real estate market is segmented as follows:

By Property

• Residential

• Commercial

• Industrial

By Revenue

• Sales

• Rental

• Lease

By Type

• Land

• Buildings

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • France

  • The UK

  • Spain

  • Germany

  • Italy

  • Nordic countries

    • Denmark

    • Finland

    • Iceland

    • Sweden

    • Norway

  • Benelux Reunion

    • Belgium

    • The Netherlands

    • Luxembourg

  • Rest of Europe

• Asia Pacific

  • China

  • Japan

  • India

  • New Zealand

  • Australia

  • South Korea

  • Southeast Asia

    • Indonesia

    • Thailand

    • Malaysia

    • Singapore

    • Rest of Southeast Asia

  • Rest of Asia Pacific

• The Middle East & Africa

  • Saudi Arabia

  • UAE

  • Egypt

  • Kuwait

  • South Africa

  • Rest of the Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America