Residential Real Estate Leases - Central America

Central America

Highlights

Market definition

In-Scope/Out-of-scope

Market structure

Reports

Methodology

The Residential Real Estate Leases market market in Central America is expected to witness significant growth in the coming years.
By 2025, the revenue of this market segment is projected to reach a staggering US$34.15bn.
This growth can be attributed to the dominance of House Leases, which is expected to contribute a market volume of US$26.52bn in 2025.
Looking ahead, the market is anticipated to maintain a steady growth rate.
With an annual growth rate (CAGR 2025-2029) of 6.31%, the revenue is predicted to reach US$43.62bn by 2029.
This positive trajectory reflects the increasing demand for Residential Real Estate Leases market in Central America.
In Costa Rica's residential real estate lease market, demand for beachfront properties has surged due to an influx of international tourists seeking vacation rentals.

Overview

Volume

Real Estate Volume

Most recent update: Jul 2024

Source: Statista Market Insights

The Residential Real Estate Leases market in Central America has been experiencing significant growth in recent years.

Customer preferences: One of the key customer preferences driving the growth of the residential real estate leases market in Central America is the increasing demand for affordable housing. With a growing population and urbanization, there is a higher need for rental properties that are affordable for the middle and lower-income segments of the population. Additionally, customers are also looking for properties that offer amenities such as security, proximity to transportation, and access to basic services.

Trends in the market: One of the trends in the residential real estate leases market in Central America is the rise of co-living spaces. Co-living spaces are becoming popular among young professionals and students who are looking for affordable and communal living arrangements. These spaces often offer shared amenities and common areas, creating a sense of community among the residents. This trend is driven by the increasing cost of living and the desire for social connections. Another trend in the market is the development of mixed-use properties. Developers are incorporating residential units into commercial buildings, creating a more integrated and convenient living experience. This trend is driven by the desire for convenience and the need to optimize land use in urban areas.

Local special circumstances: One of the special circumstances in the residential real estate leases market in Central America is the presence of a large informal rental market. Many individuals in the region rent out properties without formal contracts or legal protections. This informal market poses challenges in terms of regulation and consumer protection. However, efforts are being made to formalize the market and provide legal frameworks to protect both landlords and tenants.

Underlying macroeconomic factors: The growth of the residential real estate leases market in Central America is also influenced by underlying macroeconomic factors. Economic stability and growth contribute to increased demand for rental properties as individuals and families seek housing options. Additionally, favorable interest rates and access to financing options make it easier for individuals to invest in rental properties and meet the growing demand. In conclusion, the residential real estate leases market in Central America is experiencing growth due to customer preferences for affordable housing, the rise of co-living spaces, and the development of mixed-use properties. The presence of a large informal rental market and underlying macroeconomic factors also play a role in shaping the market. As the region continues to urbanize and the population grows, the demand for rental properties is expected to further increase.

Revenue

Lease Income

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Jul 2024

Source: Statista Market Insights

Average Revenue per Lease

Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Jul 2024

Source: Statista Market Insights

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.

Finance

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Key Market Indicators

Population

Households

Gross Domestic Product (GDP)

Finance

Exchange Rates

Notes: Based on data from IMF, World Bank, UN and Eurostat

Most recent update: Jan 2025

Source: Statista Market Insights

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