Residential Real Estate Transactions - Worldwide

The market segment for Residential Real Estate Transactions market worldwide is projected to reach a transaction value of US$6.36tn in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 2.45%, leading to a market volume of US$7.17tn by 2029.

Definition:

Residential real estate transactions refer to the buying, selling, or transfer of ownership of residential properties such as single-family homes, condominiums, townhouses, and apartments. These transactions involve a number of steps and parties, including buyers, sellers, real estate agents, attorneys, lenders, and title companies.

Additional information:

The KPIs covered in this market are the real estate transactions revenue and the average revenue transaction value.

Overall revenue generated by residential real estate transactions

Commercial real estate transactions
Revenue of real estate agencies
Revenue of construction companies

The Residential Real Estate Transactions market in Worldwide is experiencing significant growth and development.

Customer preferences: In the Residential Real Estate Transactions market, customers are increasingly looking for properties that offer both comfort and convenience. They are seeking homes that are equipped with modern amenities and are located in close proximity to key amenities such as schools, hospitals, and shopping centers. Additionally, customers are also placing a high value on properties that offer a sense of security, such as gated communities or properties with advanced security systems.

Trends in the market: One of the key trends in the Residential Real Estate Transactions market is the increasing demand for sustainable and eco-friendly properties. Customers are becoming more conscious of their environmental impact and are seeking homes that are energy-efficient and incorporate sustainable materials. This trend is driven by both environmental concerns and cost-saving benefits, as energy-efficient homes can result in lower utility bills. Another trend in the market is the rise of smart homes. With advancements in technology, customers are increasingly interested in properties that are equipped with smart home features such as automated lighting, temperature control, and security systems. These features not only enhance the convenience and comfort of the property but also appeal to tech-savvy customers.

Local special circumstances: In certain regions, there are specific factors that contribute to the development of the Residential Real Estate Transactions market. For example, in densely populated urban areas, there is a high demand for compact and affordable housing options. This has led to the development of micro-apartments and co-living spaces, which cater to the needs of young professionals and students. In tourist destinations, there is a growing trend of investing in vacation homes or properties that can be rented out as short-term accommodations. This trend is driven by the increasing popularity of vacation rentals and the potential for generating rental income.

Underlying macroeconomic factors: The development of the Residential Real Estate Transactions market is influenced by various macroeconomic factors. Low-interest rates and favorable mortgage conditions make it more affordable for customers to purchase properties, thus driving demand in the market. Additionally, economic growth and stability contribute to increased consumer confidence and willingness to invest in real estate. In conclusion, the Residential Real Estate Transactions market in Worldwide is experiencing growth and development driven by customer preferences for comfort, convenience, sustainability, and technology. Local special circumstances, such as population density and tourism, also contribute to the trends in the market. Furthermore, underlying macroeconomic factors, including low-interest rates and economic stability, play a significant role in driving demand in the market.

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

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 Transactions - Worldwide

Volume

Analyst Opinion

Transaction Value

Methodology

Financial

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Residential Real Estate Transactions - Worldwide

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Real Estate

Related markets:

Residential Real Estate: market data & analysis

Volume

Analyst Opinion

Transaction Value

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