Real Estate - Papua New Guinea | Statista Market Forecast

The Real Estate market market in Papua New Guinea is expected to reach a value of US$80.33bn in 2024.
Within the market, Residential Real Estate holds the dominant position, with a projected market volume of US$68.93bn in the same year.
This segment is anticipated to grow at an annual rate of 5.45% between 2024 and 2029, resulting in a market volume of US$104.70bn by the end of that period.
When compared globally, United States is projected to generate the highest value in the Real Estate market market, with an estimated worth of US$132.0tn in 2024.
Papua New Guinea's real estate market is experiencing a surge in demand for luxury beachfront properties, driven by a growing interest from international investors.

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 Papua New Guinea is experiencing significant development and growth.

Customer preferences: Customers in Papua New Guinea are increasingly interested in investing in the Real Estate market due to its potential for high returns. The demand for residential properties is particularly strong, driven by a growing population and urbanization. Additionally, there is a rising demand for commercial properties as businesses expand and foreign investment increases.

Trends in the market: One of the key trends in the Real Estate market in Papua New Guinea is the development of gated communities and luxury properties. This trend is driven by the desire for security and exclusivity among high-net-worth individuals. Another trend is the development of mixed-use properties, which combine residential, commercial, and retail spaces in a single complex. This trend is driven by the need for convenience and accessibility in urban areas.

Local special circumstances: Papua New Guinea is a country rich in natural resources, including oil, gas, and minerals. The development of these resources has led to an influx of foreign workers and increased investment in infrastructure projects. As a result, there is a growing demand for housing and commercial properties to accommodate the needs of these workers and support the development of the resource sector.

Underlying macroeconomic factors: The Real Estate market in Papua New Guinea is influenced by several macroeconomic factors. One of the key factors is economic growth, which drives demand for properties as businesses expand and individuals have more disposable income. Another factor is inflation, which affects the affordability of properties and the cost of construction materials. Additionally, interest rates play a role in the Real Estate market, as they impact the cost of borrowing for property purchases and development projects. In conclusion, the Real Estate market in Papua New Guinea is experiencing growth and development due to customer preferences for residential and commercial properties, the trends of gated communities and mixed-use properties, the local special circumstances of resource development, and the underlying macroeconomic factors of economic growth, inflation, and interest rates.

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.

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Real Estate - Papua New Guinea

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