Residential Real Estate - Worldwide

The Residential Real Estate market market worldwide is projected to reach a value of US$516.80tn by 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.07%, leading to a market volume of US$601.20tn by 2029.
When compared globally, China is anticipated to generate the highest value in the Real Estate sector, with US$112.9tn in 2024.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Worldwide is experiencing significant growth and development. Customer preferences have shifted towards larger homes with more outdoor space and flexible workspaces. This trend is driven by the increasing importance of remote work and the desire for more living space. Additionally, low interest rates and government incentives have fueled demand for residential properties.

Customer preferences: Customers are increasingly prioritizing larger homes with more outdoor space. With remote work becoming more prevalent, individuals are seeking homes that can accommodate a home office or flexible workspace. Additionally, the desire for outdoor amenities such as gardens, balconies, and terraces has increased, as people look for ways to enjoy outdoor activities without leaving their homes.

Trends in the market: The Residential Real Estate market in Worldwide is experiencing a surge in demand for properties in suburban and rural areas. As people have more flexibility to work remotely, many are opting to move away from crowded cities in search of larger homes and a better quality of life. This trend is also driven by the desire for more space and privacy, as well as the lower cost of living in suburban and rural areas.

Local special circumstances: In certain countries, there are special circumstances that are influencing the Residential Real Estate market. For example, in some European countries, there is a growing trend of individuals moving from urban areas to rural regions in search of a slower pace of life and more affordable housing. In contrast, in some Asian countries, such as China, there is a high demand for luxury properties in major cities like Shanghai and Beijing.

Underlying macroeconomic factors: Low interest rates and government incentives are playing a significant role in driving the growth of the Residential Real Estate market in Worldwide. Low interest rates make borrowing more affordable, encouraging individuals to invest in real estate. Additionally, governments around the world have implemented various incentives, such as tax breaks and subsidies, to stimulate the housing market. These factors have increased affordability and incentivized individuals to enter the market. In conclusion, the Residential Real Estate market in Worldwide is experiencing a surge in demand for larger homes with more outdoor space and flexible workspaces. This trend is driven by the increasing importance of remote work and the desire for more living space. Low interest rates and government incentives have also played a significant role in fueling demand for residential properties.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and 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 are 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 - Worldwide

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Methodology

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