Real Estate - Taiwan | Statista Market Forecast

In 2024, the Real Estate market market in Taiwan is projected to reach a value of US$4.54tn.
The Residential Real Estate segment is expected to dominate the market with a projected market volume of US$3.44tn in the same year.
Looking ahead, the market is anticipated to grow at an annual rate of 0.50% from 2024 to 2029, resulting in a market volume of US$4.65tn by the end of the forecast period.
When comparing globally, it is noteworthy that United States is expected to generate the highest value in the Real Estate market sector in 2024, reaching US$132.0tn.
Taiwan's real estate market is experiencing a surge in demand for luxury condominiums in major cities.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are 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 real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

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 Real Estate market in Taiwan has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Taiwan have shown a strong preference for real estate properties, particularly in urban areas. This is driven by several factors, including the desire for stable investments and the growing trend of urbanization. Many individuals and families are looking to invest in properties that can provide a steady income stream or serve as a long-term asset. Additionally, there is a high demand for properties in prime locations, such as those near transportation hubs and commercial centers.

Trends in the market: One of the key trends in the real estate market in Taiwan is the increasing popularity of mixed-use developments. These projects combine residential, commercial, and recreational spaces in a single complex, offering convenience and a diverse range of amenities to residents. This trend is driven by the desire for a more integrated and convenient lifestyle, as well as the limited availability of land in densely populated areas. Another notable trend is the rise of green buildings and sustainable design. With growing awareness of environmental issues, there is a demand for properties that are energy-efficient and environmentally friendly. Developers are incorporating sustainable features such as solar panels, rainwater harvesting systems, and green roofs into their projects. This trend is also supported by government policies and incentives that encourage the construction of green buildings.

Local special circumstances: Taiwan is an island nation with limited land resources, which has led to a scarcity of available land for development. This has driven up property prices, particularly in urban areas where demand is highest. The government has implemented measures to address this issue, such as promoting the development of brownfield sites and encouraging the conversion of underutilized buildings into residential or commercial spaces.

Underlying macroeconomic factors: The strong performance of the Taiwanese economy has played a significant role in the growth of the real estate market. Taiwan has a robust manufacturing sector and is known for its high-tech exports, which have contributed to economic growth and increased employment opportunities. This has led to rising incomes and greater purchasing power, driving demand for real estate properties. Additionally, low interest rates have made it more attractive for individuals and businesses to invest in real estate. With interest rates at historic lows, borrowing costs have decreased, making it easier for buyers to finance their property purchases. This has stimulated demand in the market and contributed to the overall growth of the real estate sector. In conclusion, the Real Estate market in Taiwan is experiencing growth and development due to customer preferences for stable investments and urban properties, as well as trends such as mixed-use developments and sustainable design. The limited availability of land and the strong performance of the Taiwanese economy are also contributing factors.

Data coverage:

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

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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:

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.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

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?

Real Estate - Taiwan

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