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Residential Real Estate Leases - Northern Europe

Northern Europe

In Northern Europe, the Residential Real Estate Leases market market is expected to witness significant growth in the coming years.
By 2024, the revenue of this market segment is projected to reach a staggering US$67.05bn.
Among the various types of leases, Apartment Leases dominate the market with a projected market volume of US$48.87bn by 2024.
Looking ahead, the market is anticipated to display a steady annual growth rate (CAGR 2024-2029) of 3.29%.
This growth trajectory is expected to result in a market volume of US$78.82bn by 2029.
The Residential Real Estate Leases market market in Northern Europe is poised for continued expansion, driven by factors such as increasing demand for housing and favorable economic conditions.
In Northern Europe, Sweden's residential real estate lease market is experiencing a surge in demand due to its stable economy and attractive rental laws.

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 Northern Europe is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trend. Customer preferences in Northern Europe are shifting towards renting rather than buying properties. This is due to several factors, including the flexibility and convenience that renting provides. Many individuals in this region value the ability to easily relocate for work or personal reasons, and renting allows them to do so without the financial commitment of owning a property. Additionally, renting often provides access to desirable locations and amenities that may be unaffordable or unavailable for purchase. As a result, there is a growing demand for residential real estate leases in Northern Europe. Trends in the market further support the growth of the Residential Real Estate Leases market in Northern Europe. One notable trend is the increasing popularity of co-living spaces. These shared living arrangements offer affordable housing options for young professionals and students, while also fostering a sense of community. Co-living spaces often provide shared amenities and services, such as communal kitchens, laundry facilities, and social events, which attract individuals seeking a more social and connected living experience. This trend is particularly prevalent in urban areas where housing costs are high and space is limited. Local special circumstances also contribute to the development of the Residential Real Estate Leases market in Northern Europe. In many countries in this region, there is a shortage of affordable housing, particularly in major cities. This scarcity of housing options drives up prices and makes it difficult for individuals to enter the property market. As a result, renting becomes the more viable and accessible option for many people. Additionally, strict regulations and high transaction costs associated with buying property in Northern Europe can deter individuals from pursuing homeownership, further fueling the demand for rental properties. Underlying macroeconomic factors also play a role in the growth of the Residential Real Estate Leases market in Northern Europe. Low interest rates and favorable lending conditions make it easier for individuals to secure financing for investment properties, leading to an increase in rental supply. Economic stability and strong job markets in Northern Europe also attract individuals from other regions, further driving the demand for rental properties. Additionally, the rise of the sharing economy and the increasing number of international students and expatriates in the region contribute to the growth of the rental market. In conclusion, the Residential Real Estate Leases market in Northern Europe is experiencing significant growth and development due to shifting customer preferences, emerging market trends, local special circumstances, and underlying macroeconomic factors. The demand for rental properties is expected to continue to rise in this region, making it an attractive market for investors and developers.

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.