Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - South America

South America

In South America, the market segment of Residential Real Estate Transactions market is expected to reach a transaction value of US$108.30bn by 2024.
This projection indicates an annual growth rate of 3.73% for the period 2024-2028.
Consequently, by 2028, the market volume is estimated to reach US$125.40bn.
Brazil: The residential real estate market in Brazil has experienced a surge in demand due to government incentives and low interest rates.

Key regions: Asia, Japan, China, Europe, Germany

Market

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Region comparison

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Analyst Opinion

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

Customer preferences: In recent years, there has been a growing demand for residential real estate in South America. This can be attributed to several factors, including increasing urbanization, population growth, and rising disposable incomes. Many people in South America are looking to invest in property as a means of securing their financial future. Additionally, there is a strong cultural preference for homeownership in the region, with many individuals aspiring to own their own homes.

Trends in the market: One major trend in the South American residential real estate market is the rise of gated communities and condominiums. These types of developments offer residents a sense of security and access to amenities such as swimming pools, gyms, and green spaces. This trend is particularly prevalent in urban areas, where land is limited and developers are looking to maximize the use of available space. Another trend in the market is the increasing popularity of sustainable and eco-friendly housing options. South America is known for its rich natural resources, and there is a growing awareness of the need to protect the environment. As a result, many developers are incorporating green building practices and technologies into their projects, such as solar panels, rainwater harvesting systems, and energy-efficient appliances.

Local special circumstances: Each country in South America has its own unique set of circumstances that influence the residential real estate market. For example, Brazil has a large middle class population and a strong economy, which has led to a high demand for housing. In contrast, countries like Bolivia and Paraguay have a smaller middle class and lower levels of economic development, resulting in a less active residential real estate market.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the residential real estate market in South America. Firstly, the region has experienced steady economic growth in recent years, which has led to an increase in disposable incomes and consumer confidence. Secondly, low interest rates have made it more affordable for individuals to borrow money and invest in property. Lastly, government policies and incentives, such as tax breaks for homebuyers, have also played a role in stimulating the market. In conclusion, the residential real estate market in South America is developing rapidly due to customer preferences for homeownership, the rise of gated communities and sustainable housing options, as well as underlying macroeconomic factors such as economic growth and low interest rates. Each country in the region has its own unique circumstances that shape the market, but overall, there is a strong demand for residential property in South America.

Methodology

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.