Real Estate - Asia | Statista Market Forecast

The Real Estate market market in Asia is expected to reach a staggering value of €246.80tn in 2024.
Among the various segments, Residential Real Estate dominates the market with a projected market volume of €201.00tn in the same year.
Looking ahead, the market is anticipated to exhibit a steady annual growth rate (CAGR 2024-2029) of 2.05%, resulting in a market volume of €276.00tn by 2029.
When comparing the global Real Estate market market, it is noteworthy that United States is poised to generate the highest value, with an estimated €122.4tn in 2024.
In Japan, the real estate market is experiencing a boom due to the increasing demand for luxury properties in Tokyo.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Asia has been experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory. Customer preferences in the Asian Real Estate market have shifted towards urban living and modern amenities. With the rapid urbanization and population growth in many Asian countries, there is a growing demand for housing in cities. Customers are increasingly looking for properties that are located in convenient and accessible areas, close to transportation hubs, shopping centers, and other essential amenities. Additionally, there is a rising interest in properties that offer modern features and facilities, such as smart home technology, energy efficiency, and recreational spaces. Trends in the Asian Real Estate market reflect the changing customer preferences. Developers and investors are focusing on creating mixed-use developments that combine residential, commercial, and retail spaces in a single project. This trend is driven by the desire for convenience and the need to optimize land use in densely populated areas. Furthermore, there is an increasing emphasis on sustainable and green building practices, with developers incorporating eco-friendly features into their projects to attract environmentally conscious buyers. Local special circumstances also play a role in the development of the Real Estate market in Asia. Government policies and regulations have a significant impact on the market dynamics. In some countries, there are restrictions on foreign ownership of properties, which can affect the demand from international buyers. Additionally, urban planning and zoning regulations can influence the availability and pricing of land for development. In certain cities, there may be limited land supply, leading to higher property prices and increased competition among developers. Underlying macroeconomic factors contribute to the growth of the Real Estate market in Asia. Economic growth, rising incomes, and urbanization are driving the demand for housing and commercial properties. As economies expand, more people are able to afford homeownership and invest in real estate. Furthermore, low-interest rates and favorable financing options make it easier for buyers to enter the market and secure loans for property purchases. Foreign investment also plays a significant role, as international buyers see the potential for high returns in the Asian Real Estate market. In conclusion, the Real Estate market in Asia is experiencing growth and development due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for urban living, modern amenities, and sustainable properties is driving the market forward. Government policies, land availability, and economic factors also contribute to the positive trajectory of the market. As the Asian economies continue to grow, the Real Estate market is expected to thrive in the coming years.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Asia

Value

Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

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