Commercial Real Estate - Papua New Guinea

Papua New Guinea

The Commercial Real Estate market market in Papua New Guinea is projected to reach US$11.40bn in 2024.
This market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 2.68%, leading to a market volume of US$13.01bn by 2029.
When compared globally, the United States is anticipated to generate the highest value in Real Estate, amounting to US$25,280.0bn in 2024.
Papua New Guinea's commercial real estate market is experiencing steady growth, driven by increasing foreign investments and infrastructure development projects.

Key regions: Europe, France, Japan, Brazil, Asia

Market

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Analyst Opinion

The Commercial Real Estate market in Papua New Guinea is experiencing significant growth and development.

Customer preferences: Customers in Papua New Guinea are increasingly looking for commercial real estate properties that offer modern amenities and infrastructure. There is a growing demand for office spaces that are equipped with advanced technology and communication systems, as well as retail spaces that provide a comfortable and convenient shopping experience. Customers also prioritize properties that are located in prime locations with easy access to transportation and other amenities.

Trends in the market: One of the key trends in the commercial real estate market in Papua New Guinea is the increasing demand for mixed-use developments. Customers are seeking properties that combine residential, commercial, and retail spaces in one location, creating a vibrant and self-contained community. These mixed-use developments not only cater to the diverse needs of customers but also offer a range of investment opportunities for developers and investors. Another trend in the market is the rise of sustainable and environmentally friendly commercial real estate properties. Customers are becoming more conscious of the impact of their choices on the environment and are actively seeking properties that are energy-efficient and use sustainable materials. Developers are responding to this trend by incorporating green building practices and technologies into their projects, such as solar panels, rainwater harvesting systems, and energy-efficient appliances.

Local special circumstances: Papua New Guinea is a developing country with a growing economy and a young population. The country's economic growth has led to an increase in foreign direct investment and a rise in urbanization. This has created a demand for commercial real estate properties to support the expanding business sector. Additionally, the young population is driving the demand for retail and entertainment spaces, as well as modern office spaces.

Underlying macroeconomic factors: The growth of the commercial real estate market in Papua New Guinea is supported by several macroeconomic factors. The country's stable political environment and favorable investment climate attract both domestic and international investors. The government has also implemented policies and initiatives to promote economic growth and attract foreign investment, which further stimulates the commercial real estate market. Furthermore, Papua New Guinea's natural resources, such as oil, gas, and minerals, contribute to the country's economic growth and create opportunities for commercial real estate development. The extraction and export of these resources require infrastructure and support services, leading to increased demand for commercial properties. In conclusion, the Commercial Real Estate market in Papua New Guinea is experiencing growth and development driven by customer preferences for modern and sustainable properties, the trend towards mixed-use developments, the country's special circumstances of economic growth and urbanization, and the underlying macroeconomic factors of political stability and natural resource wealth.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. 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 market, for example, exponential trend smoothing.

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.