Real Estate - Eastern Asia | Statista Market Forecast

The Real Estate market market in Eastern Asia is anticipated to reach a staggering value of US$172.70tn in 2024.
Within this market, the Residential Real Estate segment holds a dominant position, projected to have a market volume of US$138.80tn in the same year.
Looking ahead, it is estimated that the market will experience a steady annual growth rate (CAGR 2024-2029) of 1.64%, resulting in a market volume of US$187.40tn by 2029.
In terms of global comparison, it is noteworthy that United States is set to generate the highest value in the Real Estate market sector, with an anticipated market value of US$132.0tn in 2024.
The Eastern Asian country is poised to make a significant contribution to the overall Real Estate market market.
In Japan, the real estate market is experiencing a surge in demand for smart homes with advanced technology features.

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 Eastern Asia is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this positive trend. Customer preferences in Eastern Asia are driving the growth of the Real Estate market. With a rapidly growing middle class and increasing disposable incomes, there is a strong demand for residential properties. Customers are looking for modern and well-designed homes with amenities such as swimming pools, gyms, and green spaces. Additionally, there is a rising interest in sustainable and eco-friendly properties, as customers are becoming more conscious of their environmental impact. Trends in the market are also playing a key role in the development of the Real Estate sector in Eastern Asia. One notable trend is the increasing focus on urbanization. As cities become more crowded, there is a growing demand for compact and efficient living spaces. This has led to the rise of high-rise apartment buildings and mixed-use developments that combine residential, commercial, and retail spaces. Another trend is the emergence of smart homes, with integrated technology systems that allow residents to control various aspects of their homes through their smartphones. Local special circumstances in Eastern Asia are further contributing to the growth of the Real Estate market. One such circumstance is the limited availability of land in densely populated cities. This scarcity of land has driven up property prices and created a competitive market. Developers are now looking for innovative ways to maximize land use, such as building vertically or converting existing buildings into residential spaces. Additionally, government policies and regulations play a significant role in shaping the Real Estate market. In some countries, foreign investors face restrictions on property ownership, while in others, there are incentives and subsidies to encourage real estate development. Underlying macroeconomic factors are also fueling the growth of the Real Estate market in Eastern Asia. The region has experienced strong economic growth in recent years, leading to increased wealth and purchasing power. Low interest rates and favorable mortgage conditions have made it easier for individuals to invest in real estate. Additionally, foreign direct investment has played a significant role in the development of the market, with international investors recognizing the potential for high returns in Eastern Asia. In conclusion, the Real Estate market in Eastern Asia is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As the region continues to urbanize and the middle class expands, the demand for modern and well-designed properties is expected to remain strong.

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 - Eastern Asia

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