Real Estate - EAEU | Statista Market Forecast

The Real Estate market market in the EAEU is expected to reach a value of US$10.10tn in 2024.
Among the different segments, Residential Real Estate dominates the market with a projected market volume of US$7.72tn in the same year.
Looking ahead, the market is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 5.41%, resulting in a market volume of US$13.15tn by 2029.
When compared globally, it is noteworthy that United States is expected to generate the highest value in the Real Estate market market, reaching US$132.0tn in 2024.
In the real estate market in EAEU, Kazakhstan's urban areas are experiencing a surge in demand for luxury apartments.

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 EAEU is experiencing significant growth and development, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the EAEU region have shown a strong preference for investing in real estate as a means of wealth preservation and long-term investment. This is due to the stability and potential for appreciation that real estate offers, especially in comparison to other investment options. Additionally, many customers in the region have a cultural preference for owning property, which further fuels the demand for real estate.

Trends in the market: One of the key trends in the EAEU real estate market is the increasing demand for residential properties. This is driven by several factors, including population growth, urbanization, and changing lifestyles. As more people move to urban areas and seek better living conditions, the demand for residential properties, such as apartments and houses, has been on the rise. Additionally, the trend of remote work and flexible working arrangements has also contributed to the demand for larger and more comfortable homes. Another trend in the market is the growing interest in commercial real estate, particularly in major cities. With the expansion of businesses and the increasing number of foreign investors in the region, there is a growing need for office spaces, retail outlets, and industrial properties. This trend is expected to continue as the EAEU region further integrates into the global economy and attracts more foreign investment.

Local special circumstances: The EAEU region is characterized by a diverse range of real estate markets, with each country having its own unique dynamics and characteristics. For example, some countries in the region have experienced rapid urbanization and infrastructure development, leading to increased demand for real estate in major cities. On the other hand, other countries may have a more rural and agricultural focus, with demand for properties in rural areas. Additionally, the EAEU region is also influenced by geopolitical factors, such as trade agreements and political stability. These factors can impact the attractiveness of the real estate market in each country, as they affect foreign investment and economic growth. Therefore, it is important to consider the local special circumstances when analyzing the real estate market in the EAEU region.

Underlying macroeconomic factors: The growth and development of the real estate market in the EAEU region are also supported by underlying macroeconomic factors. These include factors such as economic growth, low interest rates, and government policies. As the economies in the region continue to grow, there is an increase in disposable income and purchasing power, which drives the demand for real estate. Additionally, low interest rates make it more affordable for individuals and businesses to borrow money for real estate investments. Furthermore, government policies and initiatives, such as tax incentives and infrastructure development, play a crucial role in shaping the real estate market in the EAEU region. These policies can attract both domestic and foreign investors, stimulate economic growth, and create a favorable environment for real estate development. In conclusion, the Real Estate market in EAEU is experiencing growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for residential and commercial properties, along with the unique dynamics of each country in the region, contribute to the overall growth of the market. Additionally, underlying macroeconomic factors such as economic growth, low interest rates, and government policies further support the development of the real estate market in the EAEU 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.

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 - EAEU

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