Real Estate - Worldwide

Worldwide

The Real Estate market market worldwide is expected to reach a staggering value of US$637.80tn by 2024.
Among the various segments, Residential Real Estate dominates the market with a projected market volume of US$518.90tn in the same year.
Looking ahead, the sector is anticipated to grow at an annual rate of 3.41% (CAGR 2024-2028), resulting in a market volume of US$729.40tn by 2028.
In a global context, it is worth noting that China is set to generate the highest value in the Real Estate market market, with an impressive US$135.70tn 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.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

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.

Methodology

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.