Residential Real Estate Leases - Eastern Asia

In Eastern Asia, the Residential Real Estate Leases market market is anticipated to witness a significant rise in revenue.
By 2024, the projected revenue is estimated to reach US$825.40bn.
Apartment Leases, in particular, is expected to dominate the market with a projected market volume of US$450.10bn in the same year.
Looking ahead, the market is predicted to exhibit a steady annual growth rate (CAGR 2024-2029) of 1.32%.
This growth trajectory is anticipated to result in a market volume of US$881.10bn by 2029.
In Japan, the demand for luxury residential real estate leases in Tokyo is steadily increasing due to the influx of wealthy expatriates.

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 Eastern Asia has been experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to this positive trajectory. Customer preferences in Eastern Asia have played a crucial role in shaping the Residential Real Estate Leases market. Demand for rental properties has been steadily increasing, driven by factors such as urbanization, changing lifestyles, and a preference for flexibility. Many individuals and families are opting to rent rather than buy properties, as it provides them with the freedom to move easily and avoid the financial burden of homeownership. Additionally, the younger generation, known for their preference for experiences over possessions, are more inclined to rent rather than commit to long-term property ownership. Several trends have emerged in the Residential Real Estate Leases market in Eastern Asia. One prominent trend is the rise of co-living spaces and serviced apartments. These options cater to the growing demand for flexible and convenient living arrangements, particularly among young professionals and expatriates. Co-living spaces offer shared amenities and a sense of community, while serviced apartments provide the comforts of home with added services such as housekeeping and maintenance. Another trend in the market is the increasing popularity of smart homes and technology-driven features. Landlords and property developers are incorporating smart home systems, such as automated lighting and temperature control, into their rental properties to attract tech-savvy tenants. These features not only enhance the living experience but also offer energy efficiency and cost savings. Local special circumstances also contribute to the development of the Residential Real Estate Leases market in Eastern Asia. In densely populated cities like Tokyo, Hong Kong, and Seoul, where space is limited, renting becomes a more practical option. Additionally, strict regulations on property ownership and high property prices in some countries make renting a more affordable and accessible choice for many individuals and families. Underlying macroeconomic factors have also played a role in the growth of the Residential Real Estate Leases market in Eastern Asia. Economic growth, urbanization, and an increasing middle class have led to higher disposable incomes and a greater demand for housing. Additionally, foreign investment and international companies setting up offices in the region have contributed to the demand for rental properties, particularly in major business hubs. In conclusion, the Residential Real Estate Leases market in Eastern Asia is developing rapidly due to customer preferences for flexibility and convenience, emerging trends in co-living and smart homes, local special circumstances such as limited space and high property prices, and underlying macroeconomic factors such as economic growth and urbanization. This market is expected to continue its positive trajectory in the coming years as more individuals and families opt for rental properties as their preferred housing solution.

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.

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Residential Real Estate Leases - Eastern Asia

Volume

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Revenue

Methodology

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Residential Real Estate Leases - Eastern Asia

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Residential Real Estate: market data & analysis

Volume

Analyst Opinion

Revenue

Methodology

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