Real Estate - Worldwide | Statista Market Forecast

The Real Estate market market worldwide is expected to reach a staggering value of US$634.90tn by 2024.
Among the various segments, Residential Real Estate dominates the market with a projected market volume of US$516.80tn in the same year.
Looking ahead, the sector is anticipated to grow at an annual rate of 2.77% (CAGR 2024-2029), resulting in a market volume of US$727.80tn by 2029.
In a global context, it is worth noting that United States is set to generate the highest value in the Real Estate market market, with an impressive US$132.0tn projected for 2024.
In the United States, the real estate market is experiencing a surge in demand for suburban properties due to the increasing number of people working remotely.

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 Worldwide 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: Customer preferences play a crucial role in shaping the Real Estate market in Worldwide. Customers are increasingly looking for properties that offer a combination of convenience, amenities, and affordability. They prefer properties that are located in close proximity to essential services such as schools, hospitals, and shopping centers. Additionally, customers are also showing a preference for properties that offer sustainable and eco-friendly features.

Trends in the market: Trends in the market also contribute to the development of the Real Estate market in Worldwide. One notable trend is the increasing demand for rental properties. This trend can be attributed to various factors such as changing demographics, lifestyle preferences, and the flexibility that renting offers. Another trend is the rise of smart homes, with customers increasingly seeking properties that are equipped with advanced technology and automation systems.

Local special circumstances: Local special circumstances also play a role in shaping the Real Estate market in Worldwide. For example, in some countries, there may be government policies and regulations that incentivize property ownership or investment. These policies can attract both local and foreign investors, leading to increased demand and development in the Real Estate market. Additionally, factors such as population growth, urbanization, and infrastructure development can also contribute to the growth of the market in specific regions.

Underlying macroeconomic factors: Underlying macroeconomic factors also have a significant impact on the Real Estate market in Worldwide. Factors such as economic growth, interest rates, inflation, and employment levels can influence the demand and supply dynamics of the market. For example, during periods of economic growth, there is typically increased demand for real estate as people have more disposable income and confidence in the market. Similarly, low-interest rates can make borrowing more affordable, leading to increased demand for properties. In conclusion, the Real Estate market in Worldwide is experiencing growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The market is driven by factors such as convenience, affordability, sustainability, and technology. Additionally, government policies, population growth, and economic factors also contribute to the positive trend in the market. Overall, the Real Estate market in Worldwide is poised for continued growth and development in the coming years.

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 - Worldwide

Value

Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

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