Residential Real Estate - Asia | Statista Market Forecast

The Residential Real Estate market market in Asia is anticipated to achieve a staggering value of US$222.01tn by the year 2025.
This market segment is projected to experience a steady annual growth rate of 2.27% from 2025 to 2029, leading to a market volume of US$242.86tn by 2029.
In terms of global comparison, China is expected to generate the highest value in the Real Estate sector, with a projected worth of US$115.4tn by 2025.
In Japan, the residential real estate market is experiencing a surge in demand due to the rise of remote work and the desire for more spacious homes.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is 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 for real estate renters as well.

Residential real estate transactions
Residential real estate leases

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

Residential Real Estate: market data & analysis

The Residential Real Estate market in Asia is experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trend. Customer preferences in the Asian Residential Real Estate market are shifting towards modern and luxurious properties. Buyers are increasingly seeking properties with high-end amenities and advanced technology features. This preference for luxury is driven by the increasing affluence and aspirations of the growing middle class in many Asian countries. Additionally, there is a growing demand for properties that offer a sense of community and a range of recreational facilities, such as swimming pools, gyms, and parks. Trends in the market show a strong focus on urbanization and the development of smart cities. Asian countries are investing heavily in infrastructure and urban development projects to accommodate the growing population and meet the demands of a modern lifestyle. This trend is driving the construction of high-rise residential buildings and mixed-use developments in major cities across the region. The market is also witnessing a rise in the popularity of sustainable and eco-friendly properties, as environmental consciousness becomes increasingly important to buyers. Local special circumstances play a significant role in shaping the Residential Real Estate market in different Asian countries. For example, in China, the government's policies and regulations have a direct impact on the market. The implementation of restrictions on property purchases and the promotion of affordable housing have influenced the demand and supply dynamics in the Chinese market. In India, the market is driven by factors such as rapid urbanization, a young population, and government initiatives to promote affordable housing. Underlying macroeconomic factors also contribute to the development of the Residential Real Estate market in Asia. Economic growth, low interest rates, and favorable mortgage conditions are creating a conducive environment for property investment. In addition, foreign investment and an influx of expatriates are driving the demand for high-end residential properties in major Asian cities. The stability of the political and legal systems in many Asian countries also attracts foreign investors and contributes to the growth of the market. In conclusion, the Residential Real Estate market in Asia is experiencing growth and development due to evolving customer preferences, urbanization trends, local special circumstances, and underlying macroeconomic factors. Luxury, modern amenities, and sustainability are key factors driving customer preferences. The focus on urbanization and the development of smart cities is a prominent trend in the market. Local special circumstances such as government policies and regulations also shape the market dynamics. Underlying macroeconomic factors such as economic growth and foreign investment contribute to the positive development of the market.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.

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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.

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?

Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.