Real Estate - Industry - Global Market, Share and Trends 2023-2028

Summary of Real Estate

The global real estate market experienced strong growth in the past decade, reaching an estimated size of $3.69 trillion in 2021. However, the outbreak of the COVID-19 pandemic disrupted economic activity and introduced new uncertainties. Remote work became widespread and e-commerce saw a massive surge– impacting the demand for various types of real estate. Based on our estimates, we can see a massive growth scale in the real-estate industry. Based on our estimates, we can say that the global real estate industry is forecasted to be a $7962.47 billion industry in 2029 from $5,470 billion in 2023 with a CAGR of 6.45%.

Office space demand declined as many white-collar workers transitioned to long-term remote work. Retail real estate struggled with store closures as consumers shifted spending online. Industrial and logistics real estate emerged as bright spots to support e-commerce fulfillment. The residential sector held up relatively well, buoyed by low interest rates which supported housing demand.

Looking ahead– the pandemic’s lasting impacts on work and retail behaviors are expected to reshape the real estate landscape in the coming years. Flexible work arrangements may reduce corporate office footprint requirements over the long run. Evolving consumer preferences will accelerate the transition from brick-and-mortar to digital commerce models. Real estate players will need to adapt properties to changing usage and tenant needs.

Recent Trends and Insights

Online searches for “virtual staging”– which were on the rise pre-pandemic– shot up in 2020, though the demand will likely decline somewhat after the pandemic. Online real estate companies like Zillow, allowed home sellers to browse listings, get in touch with real estate agents and research mortgage options during the pandemic.

The prices of real estate property continue to skyrocket– driven by the rise in homeownership and the emergence of the Millennial demographic. The housing market is shifting towards suburban and rural areas, with increasing demand for affordable housing. The supply of homes for sale is slowly starting to increase, giving buyers more options.

Remote work is reshaping housing demands and the industry is expected to remain healthy in the next few years. The outlook for the real estate industry is influenced by– economic, social and technological factors, and understanding these trends can help individuals and policymakers make informed decisions about the housing market.

The market is projected to eventually stabilize. And the pace of new construction probably will catch up with the increased demand. The housing shortage paired with rising housing prices has been an advantage for management and construction companies.

Product Insights

Housing markets across major economies showed signs of cooling in 2022 due to higher interest rates and declining affordability. The demand for more spacious homes suited to hybrid work arrangements remained robust in suburban/rural areas.

Flexible work policies led to an oversupply of office space in dense urban cores. Landlords are repositioning offices with amenities and community spaces to attract tenants. Demand held up better for smaller satellite offices and suburban campuses.

The retail apocalypse accelerated as more shopping migrated online. Landlords are backfilling vacant big box stores with uses like– industrial, residential, entertainment and experiential retail. Grocery-anchored centers showed relative strength.

E-commerce fulfilled strong demand for modern logistics facilities, especially near population centers and transportation hubs. Vacancy rates hit record lows as inventory could not keep pace with requirements for fulfillment and distribution space.

International travel restrictions hurt hotels but domestic leisure travel helped occupancy rebound in recent years. Extended stay and limited service hotels fared better than convention/group-focused properties in city centers.

Key Companies

Some major players within this vast domain of industry are

• Link REIT
• Welltower Inc
• American Tower Corporation
• SEGRO plc
• AvalonBay Communities Inc.
• Prologis
• Gecina Inc.
• sinar mas land
• Ayala Land Inc.
• Simon Property Group Inc.

Regional Analysis

North America saw strong growth across major property types in 2021 but higher interest rates slowed housing turnover. Other regions benefited from immigration-driven population increases. A few countries emerged as top-performing office markets. Latin America posted positive GDP growth and rising real estate transaction volumes in 2022.

Within the European region– office markets rebounded while southern Europe lagged. Other regions showed office sector resilience. Residential prices rose due to foreign investment. A few countries attracted strong industrial real estate demand.

Asia Pacific tightened policies affecting its property sector but other East Asian markets experienced office and industrial space absorption. Other regions saw robust housing demand growth and remained the largest real estate investment market in the region.

Middle East & Africa led office and residential recovery. Logistics real estate attracted institutional capital along major trade routes. Political and economic instability weighed on North African markets.

Market Segmentation

By Type:

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

By Sector:

• Residential
• Office
• Retail
• Industrial
• Other

By Business:

• Sales
• Rental

By Types:

• Land
• Buildings

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Our Methodology

We have offered a well-founded review of the global 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.