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Residential Real Estate Leases - Papua New Guinea

Papua New Guinea

In Papua New Guinea, the Residential Real Estate Leases market market is anticipated to witness substantial growth.
By 2024, the revenue of this market segment is projected to reach US$3.80bn.
House Leases, in particular, dominate this market with a projected market volume of US$2.85bn in the same year.
Looking ahead, an annual growth rate of 7.91% is expected between 2024 and 2029 (CAGR 2024-2029), resulting in a market volume of US$5.56bn by the end of 2029.
Despite its rich natural resources, Papua New Guinea's residential real estate lease market remains underdeveloped due to limited infrastructure and high levels of poverty.

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

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Analyst Opinion

The Residential Real Estate Leases market in Papua New Guinea is experiencing significant growth and development in recent years.

Customer preferences: Customers in Papua New Guinea are increasingly opting for residential real estate leases due to several factors. Firstly, leasing provides flexibility for individuals and families who may not be ready or able to commit to purchasing a property. This allows them to have a place to live without the financial burden of a mortgage. Additionally, leasing provides an opportunity for individuals to live in desirable locations or properties that they may not be able to afford to purchase.

Trends in the market: One of the key trends in the residential real estate leases market in Papua New Guinea is the increasing demand for urban living. As the country experiences rapid urbanization, more people are moving to cities in search of better job opportunities and a higher standard of living. This has led to a surge in demand for rental properties in urban areas, driving up prices and creating a favorable market for landlords and property owners. Another trend in the market is the rise of serviced apartments and condominiums. These types of properties offer convenience and amenities that are attractive to both local residents and expatriates. They often come fully furnished and include services such as cleaning and maintenance, catering to the needs of busy professionals and individuals looking for a hassle-free living experience.

Local special circumstances: Papua New Guinea has a unique cultural and geographical landscape that influences the residential real estate leases market. The country is home to diverse ethnic groups, each with their own customs and traditions. This diversity is reflected in the different types of housing preferences and requirements across the country. For example, in rural areas, traditional housing styles and communal living arrangements may still be prevalent, while in urban areas, modern apartment buildings and gated communities are becoming more common.

Underlying macroeconomic factors: The growth and development of the residential real estate leases market in Papua New Guinea can be attributed to several macroeconomic factors. The country has experienced steady economic growth in recent years, driven by industries such as mining, agriculture, and construction. This has led to an increase in disposable income and a growing middle class, who are more likely to opt for residential leases. Additionally, the government has implemented policies and initiatives to promote investment in the real estate sector, including tax incentives and streamlined regulations. This has attracted both local and foreign investors, leading to an increase in the supply of rental properties. In conclusion, the residential real estate leases market in Papua New Guinea is experiencing growth and development due to customer preferences for flexibility and desirable locations, as well as the trends of urbanization and the rise of serviced apartments. The unique cultural and geographical landscape of the country, along with underlying macroeconomic factors such as economic growth and government policies, contribute to the overall development of the market.

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.