Key regions: United States, China, Japan, Germany, United Kingdom
The Real Estate market in ASEAN is experiencing significant growth and development due to a variety of factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to the overall expansion of the real estate sector in the region.
Customer preferences: Customers in ASEAN countries have shown a strong preference for investing in real estate. This is driven by several factors, including the desire for stable and secure investments, the potential for high returns, and the cultural significance of property ownership. Additionally, the growing middle class in ASEAN countries has increased demand for residential properties, as more people are able to afford their own homes.
Trends in the market: One notable trend in the ASEAN real estate market is the increasing demand for sustainable and eco-friendly properties. Customers are becoming more conscious of the environmental impact of their choices and are seeking out properties that are energy-efficient, utilize renewable resources, and have minimal carbon footprints. This trend is driven by both consumer preferences and government regulations promoting sustainable development. Another trend in the market is the rise of mixed-use developments. These developments combine residential, commercial, and recreational spaces in a single project, creating vibrant and self-contained communities. This trend is driven by the desire for convenience and accessibility, as residents can live, work, and play in the same area, reducing the need for long commutes and enhancing quality of life.
Local special circumstances: Each ASEAN country has its own unique set of circumstances that influence the real estate market. For example, in Singapore, limited land availability has led to the development of high-rise apartments and vertical communities. In Thailand, the popularity of tourism has driven the demand for vacation homes and rental properties. In Indonesia, the government's efforts to decentralize economic growth have led to the development of new cities and infrastructure projects, creating opportunities for real estate investment.
Underlying macroeconomic factors: The overall economic growth and stability in ASEAN countries are key drivers of the real estate market. Factors such as GDP growth, low inflation rates, and favorable interest rates contribute to the attractiveness of real estate investments. Additionally, government policies and regulations, such as tax incentives and foreign ownership restrictions, play a significant role in shaping the real estate market in each country. In conclusion, the Real Estate market in ASEAN is experiencing growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for sustainable properties, the rise of mixed-use developments, and the unique circumstances in each country all contribute to the expansion of the real estate sector in the region.
Data coverage:
Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.Modeling approach / Market size:
Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
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