Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Benelux

Benelux

In Benelux, the Residential Real Estate Leases market market is anticipated to witness significant growth.
By 2024, the projected revenue for this market segment is expected to reach US$79.07bn.
Among the various subcategories, House Leases hold the largest market share with a projected volume of US$51.88bn in 2024.
Looking ahead, this market is forecasted to exhibit a Compound Annual Growth Rate (CAGR) of 2.63% during the period from 2024 to 2029.
As a result, the market volume is estimated to reach US$90.05bn by 2029.
In the Benelux region, the residential real estate lease market is experiencing a surge in demand due to the growing popularity of urban living.

Key regions: Japan, China, Australia, Germany, United States

Market

Region

Region comparison

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Analyst Opinion

The Residential Real Estate Leases market in Benelux is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in customer preferences towards renting rather than buying residential properties in Benelux. This can be attributed to several factors, including changing lifestyles, increased mobility, and the desire for flexibility. Renting provides individuals with the freedom to move more easily and without the financial burden of owning a property. Additionally, renting allows individuals to live in desirable locations that may be unaffordable for them to purchase a property in.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Benelux is the increasing demand for rental properties in urban areas. Cities such as Amsterdam, Brussels, and Luxembourg City are experiencing a surge in population growth and urbanization, leading to a higher demand for rental housing. This trend is driven by factors such as employment opportunities, cultural attractions, and convenient access to amenities. As a result, property developers and investors are focusing on developing rental properties in these urban areas to cater to the growing demand. Another trend in the market is the rise of co-living spaces and shared accommodation. This trend is particularly popular among young professionals and students who are looking for affordable housing options and a sense of community. Co-living spaces offer shared amenities and common areas, allowing residents to socialize and network with like-minded individuals. This trend is driven by the desire for a more social and connected living experience, as well as the need for affordable housing in expensive urban areas.

Local special circumstances: One of the special circumstances in the Benelux market is the high population density in urban areas. The Benelux region is known for its compact cities and limited land availability, which creates a high demand for rental properties. This has led to an increase in rental prices in urban areas, making it more challenging for individuals to afford buying a property. As a result, renting has become a more viable option for many residents in Benelux.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the development of the Residential Real Estate Leases market in Benelux. Firstly, low interest rates have made it more affordable for individuals to borrow money and invest in rental properties. This has encouraged property developers and investors to enter the market and develop new rental properties. Secondly, the strong economic growth in the Benelux region has led to an increase in job opportunities and income levels. This has resulted in a higher demand for rental properties, as individuals are able to afford the rental prices. Lastly, the increasing number of international students and expatriates in Benelux has also contributed to the growth of the Residential Real Estate Leases market. These individuals often prefer renting over buying a property, as they may only be staying in the country for a limited period of time. Overall, the Residential Real Estate Leases market in Benelux is experiencing growth and development due to changing customer preferences, urbanization trends, local special circumstances, and underlying macroeconomic factors. The market is expected to continue to expand as the demand for rental properties in urban areas remains strong.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.