Residential Real Estate - Europe | Statista Market Forecast

The Residential Real Estate market market in Europe is projected to reach a value of US$143.70tn by 2024.
It is expected to exhibit an annual growth rate of 3.40% from 2024 to 2029, resulting in a market volume of US$169.80tn by 2029.
In comparison to other countries, China is predicted to generate the highest value in the Real Estate market, with US$112.9tn in 2024.
In France, the residential real estate market is experiencing a surge in demand due to low interest rates and an influx of international buyers.

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

The Residential Real Estate market in Europe is experiencing significant developments and trends. Customer preferences, local special circumstances, and underlying macroeconomic factors are all contributing to these changes. Customer preferences in the European Residential Real Estate market are being shaped by several factors. Firstly, there is a growing demand for sustainable and energy-efficient homes. Customers are increasingly concerned about the environmental impact of their living spaces and are willing to pay a premium for properties that are eco-friendly. Additionally, there is a shift towards smaller, more compact homes that are easier to maintain and require less energy to heat and cool. This trend is driven by changing demographics, with an increasing number of single-person households and a desire for more affordable housing options. Trends in the European Residential Real Estate market are also influenced by global and regional market dynamics. One notable trend is the rise of co-living and co-working spaces. These shared living and working arrangements cater to the growing number of freelancers, digital nomads, and young professionals who value flexibility and community. This trend is particularly prominent in major cities where housing costs are high, and individuals are seeking more affordable and social living arrangements. Local special circumstances play a significant role in shaping the Residential Real Estate market in Europe. For example, in countries with a high population density like the Netherlands, there is a scarcity of land for new housing developments. This has led to an emphasis on vertical expansion, with the construction of high-rise buildings and the conversion of existing structures into residential units. In contrast, countries with vast rural areas, such as Sweden and Finland, are experiencing a trend towards countryside living. People are seeking a quieter and more nature-oriented lifestyle, leading to an increase in demand for properties in rural areas. Underlying macroeconomic factors also contribute to the developments in the European Residential Real Estate market. Low interest rates across the region have made borrowing more affordable, encouraging individuals to invest in property. Additionally, economic growth and increasing employment rates have boosted consumer confidence and purchasing power, driving up demand for residential real estate. However, it is important to note that the market is not homogeneous across Europe, and factors such as political stability, immigration patterns, and local regulations can vary significantly from country to country. In conclusion, the Residential Real Estate market in Europe is experiencing various trends and developments driven by customer preferences, local special circumstances, and underlying macroeconomic factors. The demand for sustainable and compact homes, the rise of co-living and co-working spaces, and the scarcity of land in certain countries are all shaping the market. Low interest rates and economic growth are also contributing to the increased demand for residential real estate. It is crucial for market participants to stay informed about these trends and factors to make informed decisions in this dynamic 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.

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.

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.

Residential Real Estate - Europe

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Methodology

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