Real Estate - Industry - North America Market, Share and Trends 2023-2028

Summary of Real Estate

The North American real estate industry has seen robust growth over the past decade, driven by low interest rates, strong economic fundamentals, and increased investment activity. The US accounts for over 50% of global real estate investment, while Canada also sees significant capital flows into areas like commercial office, multifamily, and industrial assets.

Key trends in North American real estate include the rise of alternative property types like data centers, life sciences facilities, and single-family rentals. There is also increasing adoption of technology from blockchain to Internet-of-Things sensors to optimize building operations. Most investment activity is still concentrated in major gateway cities like New York, Los Angeles, Toronto, and Vancouver, but secondary markets are gaining more interest.

Based on our estimates, we can say that the North American real estate industry is forecasted to be a $2164.93 billion industry in 2029 from $1504.25 billion in 2023 with a CAGR of 6.22 %.

From an investment perspective, private equity real estate funds have record levels of dry powder, while cross-border capital flows continue rising as Asian and European investors partner with local operators. However— the sector faces strong headwinds in 2023 amidst rising rates, inflation, and recession fears which could slow transaction volumes.

Recent Trends and Insights

Rise of niche property types like cold storage warehouses, medical offices, data centers, and life sciences facilities among institutional investors looking for higher yields.

Increasing adoption of technology like energy management systems, coworking space apps, building sensors, and tenant experience platforms to allow asset optimization and differentiated offerings.

More overseas capital flows into top North American markets from Asian and European funds looking to globalize and tap into the stability. Accelerating sustainability initiatives around energy efficiency retrofits, renewable energy procurement, water conservation and waste reduction amidst ESG prioritization.

Demand spike for industrial & logistics assets driven by expansion of e-commerce and supply chain infrastructure across North America. Overall— North American real estate remains a core holding for institutional investors given its stability and yield profile.

Product Insights

Focus on relatively safe, income-generating commercial real estate in major gateway cities while still providing some value-add upside. Target assets needing repositioning or renovation, across property types from office to retail which is based on specific value creation strategies.

Pursue more risk-oriented, high return real estate investments like land development, distressed assets or niche property types. Specialized funds providing growth equity for new developments or acquisitions across lab space, research facilities, medical offices and contract research organizations.

Finance development or acquire existing mission-critical data center assets across North America, tapping into – hyperscale cloud demand. Invest into warehouses, fulfillment centers and distribution facilities benefitting from the rapid growth in e-commerce and supply chain networks.

Key Companies

Some major players within this vast domain of industry are

• CBRE Group, Inc.
• Keller Williams
• Realogy Holdings
• HomeServices of America
• Sotheby’s International Realty
• Compass
• eXp Realty
• Berkshire Hathaway HomeServices
• Coldwell Banker
• Century 21

Regional Analysis

The US accounts for over 50% of global real estate investment activity, predominantly across office, rental apartment, industrial, retail and hotel assets. Canada also sees significant investment, while Mexico is emerging as an attractive market for manufacturing facilities and tourism.

Most PE real estate funds target major cities like New York, Los Angeles, Chicago, Boston, San Francisco and Washington DC given their robust economic fundamentals. However— Sunbelt regions like Texas, Arizona, Florida and Atlanta are growing in popularity.

Toronto and Vancouver are the primary markets given their stability, talent pools and gateway status. However— Montreal, Calgary and Edmonton have also seen rising investment amidst strong population and job growth. Logistics, multifamily, office and healthcare are key sectors.

While smaller than the US and Canada, Mexico real estate draws interest from industrial and private equity investors tapping into its manufacturing base and expanding consumer class. Tourism projects are also attractive.

Market Segmentation

By Type:

• Residential
• Commercial
• Office
• Retail
• Industrial
• Other

By End User:

• Residential
• Office
• Retail
• Industrial
• Other

By Enterprise Size:

• Land
• Buildings

By Country:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of North America’s regional real estate market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.