Residential Real Estate Leases - EAEU

The Residential Real Estate Leases market market in the EAEU is expected to witness significant growth in the coming years.
By 2024, the market revenue is projected to reach US$26.85bn.
Among the various segments in the market, Apartment Leases is expected to dominate with a projected market volume of US$19.79bn in 2024.
Furthermore, the market is anticipated to exhibit a steady annual growth rate of 1.78% from 2024 to 2029.
This growth is expected to result in a market volume of US$29.34bn by 2029.
The EAEU residential real estate leasing sector is poised for substantial expansion in the foreseeable future.
The residential real estate leasing market in EAEU is experiencing a surge in demand due to the growing urbanization and increasing disposable income of the population.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

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

Customer preferences: Customers in the EAEU region have shown a strong preference for residential real estate leases due to several reasons. Firstly, leasing provides flexibility for individuals who may not want to commit to a long-term property ownership. It allows them to have a place to live without the financial burden of purchasing a property. Secondly, leasing offers a more affordable option for individuals who may not have the means to buy a property outright. This is particularly appealing to younger generations who are just starting their careers and may not have accumulated enough savings for a down payment. Lastly, leasing provides a sense of stability and security for individuals who may not want to deal with the responsibilities of property maintenance and repairs.

Trends in the market: One of the key trends in the residential real estate leases market in the EAEU is the increasing demand for rental properties in urban areas. As cities continue to grow and attract more people, the demand for housing also increases. This trend is driven by factors such as urbanization, migration, and the concentration of job opportunities in urban centers. As a result, property owners are capitalizing on this demand by converting their properties into rental units or investing in new residential developments specifically designed for leasing purposes. Another trend in the market is the rise of co-living spaces. Co-living is a concept where individuals or groups of people share living spaces, often with shared common areas and amenities. This trend is particularly popular among young professionals and students who are looking for more affordable housing options and a sense of community. Co-living spaces not only provide affordable accommodation but also foster a sense of belonging and social interaction.

Local special circumstances: The residential real estate leases market in the EAEU is influenced by several local special circumstances. One of these is the availability of affordable housing options. In some countries within the EAEU, such as Kazakhstan and Belarus, the government has implemented policies to promote affordable housing for its citizens. This has led to an increase in the supply of rental properties, making leasing an attractive option for individuals. Another local special circumstance is the presence of a growing middle class in the EAEU region. As the economy continues to develop and incomes rise, more individuals are able to afford housing and are looking to lease properties. This has created a demand for higher-quality rental units with modern amenities and convenient locations.

Underlying macroeconomic factors: The development of the residential real estate leases market in the EAEU is also influenced by underlying macroeconomic factors. Economic growth and stability play a crucial role in driving demand for housing. As the economies in the EAEU region continue to grow, more individuals have the means to enter the housing market, either through purchasing or leasing properties. Additionally, favorable interest rates and mortgage lending conditions can also impact the residential real estate leases market. If mortgage rates are high or lending conditions are strict, individuals may opt for leasing as a more accessible and affordable housing option. In conclusion, the residential real estate leases market in the EAEU is experiencing growth and development due to customer preferences for flexibility, affordability, and stability. The market is characterized by trends such as the increasing demand for rental properties in urban areas and the rise of co-living spaces. Local special circumstances, such as the availability of affordable housing options and the presence of a growing middle class, further contribute to the market's development. Underlying macroeconomic factors, including economic growth and favorable lending conditions, also play a significant role in shaping the market.

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.

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 Leases - EAEU

Volume

Analyst Opinion

Revenue

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts

Contact

Get in touch with us. We are happy to help.

Residential Real Estate Leases - EAEU

In-Scope

Out-Of-Scope

Real Estate

Related markets:

Residential Real Estate: market data & analysis

Volume

Analyst Opinion

Revenue

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Explore more high-quality data on related topic

Residential real estate in India - statistics and facts