Real Estate - Lesotho | Statista Market Forecast

Lesotho's Real Estate market market is estimated to reach a value of US$22.36bn in 2025.
The market is predominantly driven by the residential segment, which is projected to have a market volume of US$18.58bn in the same year.
The sector is expected to experience a Compound Annual Growth Rate (CAGR) of 4.65% between 2025 and 2029, resulting in a market volume of US$26.82bn by 2029.
When compared on a global scale, United States is anticipated to have the highest Real Estate market value, reaching US$136.6tn in 2025.
Lesotho's real estate market is experiencing a surge in demand for luxury properties due to the country's growing tourism industry.

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

Commercial Real Estate: market data & analysis

The Real Estate market in Lesotho is experiencing a steady growth, driven by customer preferences for affordable housing and the country's unique geographical location. Lesotho, a small landlocked country in Southern Africa, is known for its beautiful landscapes and cultural heritage.

Customer preferences: Customers in Lesotho have a strong preference for affordable housing options. The majority of the population falls within the low to middle-income bracket, and affordability is a key factor when it comes to purchasing or renting property. As a result, there is a growing demand for affordable housing solutions in the country.

Trends in the market: One of the key trends in the real estate market in Lesotho is the development of housing estates and gated communities. These developments offer a range of housing options, from apartments to standalone houses, and provide residents with amenities such as security, recreational facilities, and access to basic services. This trend is driven by the desire for a safe and comfortable living environment. Another trend in the market is the increasing popularity of commercial real estate, particularly in urban areas. There is a growing demand for office spaces, retail outlets, and industrial properties as the country's economy continues to expand. This trend is fueled by the growth of various industries, including manufacturing, services, and tourism.

Local special circumstances: Lesotho's unique geographical location is a special circumstance that contributes to the development of its real estate market. The country is surrounded by South Africa, which is a major economic hub in the region. This proximity to a larger market provides opportunities for cross-border investments and trade, which in turn drives the demand for real estate.

Underlying macroeconomic factors: The growth of the real estate market in Lesotho is supported by several underlying macroeconomic factors. The country has a stable political environment and a well-regulated financial sector, which instills confidence in investors. Additionally, Lesotho has been experiencing steady economic growth, driven by sectors such as mining, textiles, and construction. This economic growth creates employment opportunities and increases disposable income, leading to an increased demand for real estate. In conclusion, the Real Estate market in Lesotho is developing in response to customer preferences for affordable housing and the country's unique geographical location. The market is characterized by the development of housing estates and gated communities, as well as the increasing popularity of commercial real estate. Lesotho's stable political environment, well-regulated financial sector, and steady economic growth are underlying macroeconomic factors that support the growth of the real estate market.

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 Finance market, in a PDF format.

The global housing market landscape has undergone dramatic challenges in recent years, including declining transactions, slowing price growth, and worsening affordability. In most OECD countries, the gap between household incomes and property values has widened notably over the last decade, while soaring mortgage rates have curbed mortgage borrowing. Established housing markets such as Hong Kong, Germany, France, and the United Kingdom saw house prices decline in the first quarter of 2024. On the other hand, Turkey, Russia, and the United Arab Emirates recorded double-digit growth.

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 - Lesotho

Value

Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

Finance

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