Global Real Estate Market Research Report: By Property (Residential, Commercial, Industrial, Land), By Type (Sales, Rental, Lease), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2023-2031.
The Global Real Estate Market was valued at USD 4.02 trillion in 2022 and is estimated to reach approximately USD 6.64 trillion by 2031, at a CAGR of 5.7% from 2023 to 2031.
A vital and active part of the world economy is the real estate sector. It includes the acquisition, disposition, and leasing of real estate for use as homes, businesses, and factories. The market's vitality is influenced by a number of variables, including population expansion, urbanization, and financial conditions. Location, supply and demand, as well as the general status of the economy, all play a role in real estate transactions that involve a wide range of properties, from modest single-family houses to enormous commercial complexes. The purchasing and selling of houses and apartments, which is what residential real estate is known for, is frequently influenced by elements like neighbourhood attractiveness, school systems, and facilities. Office buildings, retail establishments, and industrial assets are all a part of commercial real estate, which serves the demands of company operations. Real estate investment has gained popularity as a way to acquire wealth through techniques including real estate investment trusts (REITs) and property development. The 2008 financial crisis shown that the real estate market is not without its ups and downs, but it is still a resilient industry that offers chances for both investors and those looking for a place to live, a place to start a business, or both. It is a crucial subject of interest for many because of its impact on economic growth, job creation, and community development.
REAL ESTATE MARKET: REPORT SCOPE & SEGMENTATION
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Report Attribute |
Details |
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Estimated Market Value (2022) |
4.02 Tn |
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Projected Market Value (2031) |
6.64 Tn |
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Base Year |
2022 |
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Forecast Years |
2023 - 2031 |
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Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Type, By Property,& Region |
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Segments Covered |
By Type, By Property& Region |
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Forecast Units |
Value (USD Billion or Million), and Volume (Units) |
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Quantitative Units |
Revenue in USD million/billion and CAGR from 2023 to 2031 |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
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Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
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Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Global Real Estate Market Dynamics
The dynamics of the real estate market are dynamic and ever-changing, driven by a number of factors. In this market, supply and demand are the two main driving forces. Property values typically increase when demand for properties outpaces supply, and vice versa. Demand is fundamentally influenced by location, with closeness to services, employment prospects, and educational institutions having a big impact on property values. The real estate market is also significantly impacted by economic situations. The state of the market can be influenced by interest rates, job levels, and consumer confidence. While economic downturns might result in decreased demand, lower loan rates frequently encourage investment in and the purchase of homes. Government initiatives, zoning laws, and tax breaks also affect real estate dynamics. Law and regulation changes can have an impact on investment incentives and real estate development. Real estate frequently experiences booms and collapses due to market cycles. These cycles are the result of a number of variables and can have serious repercussions for homeowners and investors. The real estate market is also impacted by societal trends and technological breakthroughs. For instance, the expansion of remote work has changed housing preferences and raised interest in suburban and rural real estate. The intricate interaction of supply and demand, economic conditions, governmental regulations, market cycles, and shifting society preferences is what makes the real estate market unique. For investors as well as individuals trying to make their way through this always changing industry, understanding these dynamics is essential.
Global Real Estate Market Drivers
The real estate market is significantly influenced by technological improvements, which have a substantial impact on how properties are purchased, sold, and managed. The emergence of the internet and other digital technology has completely changed how real estate deals are done. Property information is now easily available thanks to online listing platforms and smartphone apps, enabling both buyers and sellers to easily search for houses, compare prices, and explore neighbourhoods. The market's information asymmetry has decreased as a result of the greater transparency that has given consumers more information. Technology has also changed real estate sales and marketing. A wider variety of potential purchasers are drawn to properties thanks to immersive experiences provided via virtual tours, 3D images, and drone photography. Additionally, pricing methods are aided by data analytics and artificial intelligence, which support sellers in choosing listing prices that are competitive. The procedure has been streamlined for real estate professionals thanks to technology. Transaction management systems make paperwork and contract management easier, while customer relationship management (CRM) software improves client interactions. Furthermore, by offering safe and transparent records of ownership, blockchain technology has the potential to revolutionize real estate transactions.
The real estate market is significantly influenced by the development of infrastructure. The availability and quality of infrastructure, such as utilities, public facilities, and transit systems, have a big impact on how desirable and valuable real estate properties are. An area's desirability is increased by well-designed and accessible infrastructure, which increases demand for and investment in real estate. Roads, highways, and public transport systems all play a crucial part in site appeal since they make it easier to access employment hubs, educational institutions, and recreational locations. Additionally, the usefulness and usability of houses depend heavily on the accessibility of utilities like water, power, and broadband connectivity. Additionally, infrastructure improvement can spur economic expansion, resulting in the creation of jobs and higher income levels. Employees look for nearby homes as firms and industries flourish in regions with strong infrastructure, increasing the demand for residential real estate. On the other hand, the growth of commercial and industrial infrastructure can increase the demand for commercial real estate, such as office buildings, manufacturing plants, and storage facilities.
Restraints:
The real estate market is significantly constrained by economic downturns. Numerous factors enter play during economic downturns or recessions that can have a detrimental effect on the real estate industry. First off, lowered consumer confidence and stiffer lending standards can make it harder for people to get mortgages, restricting their capacity to purchase homes. Due to the potential for dropping property values as a result of the lower demand for properties, current homeowners can see a loss of equity in their properties. Businesses can scale back expansion plans or even downsize, which has a negative impact on commercial real estate by increasing vacant office space and decreasing demand for retail and industrial locations. Rents and property prices can be under pressure due to this excess supply.
Significant restrictions on the real estate market could come from rising interest rates. Higher borrowing costs for people and businesses result from interest rate increases by central banks. This has various detrimental effects on the real estate market. First off, rising mortgage rates raise the cost of homeownership, making it more expensive for prospective purchasers to finance their home purchases. Due to a slowdown in home sales and a consequent decrease in demand for residential homes, this can lead property prices to decline. Higher financing costs for property developers and investors in commercial real estate are a result of rising interest rates. There is less money invested in new ventures since obtaining loans for building or buying property becomes more expensive. Additionally, higher rates can adversely affect property cash flows, as borrowers face increased interest expenses, potentially leading to financial strain and a higher risk of default.
Opportunities:
Significant business potential are presented by rising urbanization and population increase. There is an increase in demand for both residential and commercial buildings as more people move to urban regions in quest of work, education, and higher living standards. To fulfil the housing and infrastructure needs of expanding urban populations, this creates a significant opportunity for real estate developers and investors. In terms of residential real estate, as more people move into cities, there is a constant need for housing, which presents chances for builders, investors, and developers to build new apartment buildings, condos, and housing complexes. A further factor driving interest in mixed-use complexes, where residential and commercial areas coexist, is the tendency towards urban living. These developments offer a variety of options in the real estate industry.
A tremendous potential in the real estate industry exists with real estate investment trusts (REITs). Companies that own, manage, or finance real estate assets that generate income are known as REITs. They give institutional and individual investors an easy method to participate in the real estate market without having to directly own any properties. There are various benefits to using this investment strategy. First of all, dividend yields on REITs are frequently good, making them a desirable option for income-oriented investors. They are required by law to pay shareholders a sizable amount of their profits as dividends, which can guarantee a consistent flow of income. Additionally, REITs offer diversification. They frequently cover a wide range of property types, including commercial, industrial, residential, and retail real estate. REITs offer liquidity, as they are traded on stock exchanges. Unlike direct property ownership, which can be illiquid and require significant capital, investors can buy or sell REIT shares at market prices with ease.
Segment Overview
By Property
Based on property, the global real estate market is divided into residential, commercial, industrial, and land. The residential category dominates the market with the largest revenue share in 2022. This segment comprises properties designed for private living, including single-family homes, condominiums, apartments, and townhouses. Residential real estate is often influenced by factors like location, school districts, and amenities, making it a key focus for homeowners and investors looking to provide housing solutions. Commercial properties are used for business purposes and include office buildings, retail spaces, hotels, and warehouses. The commercial real estate sector is heavily impacted by economic conditions and the demand for office and retail spaces, reflecting the needs of the business community. Industrial properties encompass facilities used for manufacturing, distribution, and storage. This segment includes warehouses, manufacturing plants, logistics centers, and industrial parks. The demand for industrial real estate is closely linked to supply chain logistics and e-commerce trends. Land, as a distinct segment, represents undeveloped or partially developed properties. Investors often purchase land for future development, which can include residential, commercial, or industrial projects. The value of land is influenced by factors like location, zoning regulations, and potential for growth.
By Type
Based on the type, the global real estate market is categorized into sales, rental, and lease. The rental category leads the global real estate market with the largest revenue share in 2022. Rental properties offer individuals and businesses the option to occupy or use a property without owning it. In residential real estate, this typically involves leasing apartments or homes, while in the commercial sector, it includes renting office spaces, retail units, and industrial facilities. Renting provides flexibility and allows tenants to enjoy the benefits of a property without the long-term commitment of ownership. Rental income can be a stable source of revenue for property owners. The sale of real estate involves the transfer of property ownership from one party to another in exchange for a negotiated purchase price. Sales encompass both residential and commercial properties, with individuals buying homes for personal use, and investors acquiring properties as assets. The sale of real estate is influenced by factors like property value, market conditions, and financing options, making it a pivotal aspect of wealth building and investment. Leasing is a subset of the rental market, where a property is secured for a specified period through a lease agreement. Commercial leases are common in the business world, enabling companies to access spaces tailored to their operational needs, often with the option for customization. Industrial facilities, retail spaces, and office buildings are commonly leased to meet specific business requirements. Lease agreements outline terms, rent, and conditions, creating a contractual relationship between landlords and tenants.
Global Real Estate Market Overview by Region
The global real estate market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific emerged as the leading region, capturing the largest market share in 2022. In the global real estate sector, the Asia-Pacific region has emerged as the dominant and influential hub. In recent years, this region, which encompasses multiple nations including China, India, Japan, Australia, and others, has experienced significant economic growth, urbanization, and demographic changes. Its importance in the real estate industry has been influenced by these elements. The rapidly growing middle class and the concomitant spike in housing demand in the Asia-Pacific region are two major factors in the region's supremacy in the real estate market. The region's major centers have had a significant influx of residents coming there in quest of employment possibilities, educational options, and better quality of life. The construction of homes, office buildings, and infrastructural initiatives has been accelerated by this urbanization trend. Additionally, the Asia-Pacific area has drawn a sizable amount of foreign investment from investors throughout the world who want to take advantage of the region's economic potential. As a result, there has been a rise in foreign direct investment in the real estate sector, which has helped to spur further building and market expansion. Additionally, some nations in the Asia-Pacific area have implemented legislative reforms and government programmes with the goal of luring both domestic and foreign investors. These programmes have included steps to lower regulatory hurdles and promote foreign capital inflows, both of which have benefited real estate investment. The robustness of the Asia-Pacific real estate market is also shown in the creation of creative and sustainable property solutions in response to the rising demand for technologically and environmentally responsible environments.
Global Real Estate Market Competitive Landscape
In the global real estate market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.
Some of the prominent players in the global real estate market include
Global Real Estate Market Recent Developments
Scope of the Global Real Estate Market Report
Real Estate Market Report Segmentation
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ATTRIBUTE |
DETAILS |
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By Property |
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By Type |
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By Geography |
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Customization Scope |
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Pricing |
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Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
To identify and estimate the market size for the global real estate market segmented by type, by property, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of real estate between 2019 and 2031.
To identify and infer the drivers, restraints, opportunities, and challenges for the global real estate market
To find out the factors which are affecting the sales of real estate among consumers
To identify and understand the various factors involved in the global real estate market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
Intended Audience
Research Methodology
Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region. The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.
Data Collection
Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.
Primary Research
After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market.
Secondary Research
A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.
Top-Down Approach & Bottom-Up Approach
In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.
In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.
This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.
Market Analysis & size Estimation
Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.
Quality Checking & Final Review
The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.
