Residential Real Estate Market to Grow with a CAGR of 6.85% through 2028
Policies implemented for affordable houses by
governments are likely to drive the market in the forecast period.
According to TechSci Research report, “Residential
Real Estate Market – Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2028”, the Global Residential Real Estate
Market stood at USD 2.70 Trillion in 2022 and is anticipated to grow with a
CAGR of 6.85% in the forecast period.
In addition, policies implemented for affordable
houses by governments also drive the market growth. For instance, governments
of several countries such as Australia, the U.S., and Canada have planned
strategies such as concession for first time buyers, subsidies for veterans,
golden visa, low-cost affordable housing schemes, and cut in transactional
taxes, which is anticipated to boost growth of the residential real estate
market during the forecast period. Moreover, rise in tourism in nations such as
Egypt, France, and Dubai is also anticipated to propel growth of the market.
However, there has been a saturation of the
residential real estate market in major cities of developed nations. For
instance, the market of residential real estate in cities such as Chicago,
Washington, and Boston in the U.S. have low rate of growth. Similarly, cities
such Berlin in Germany, Paris in France, and London in the UK have also reached
saturation in expanding their boundaries and thus, have lower growth rate. Such
factors restraint the residential real estate market growth. In addition, during
the outbreak of COVID-19, construction, manufacturing, hotel, and tourism
industries were majorly affected. Construction activities were also stopped or
restricted to a huge extent. Manufacturing and transportation activities, along
with their supply chains were hampered on a global level. This had led to
decline in number of transaction of deals occurring in residential real estate
market.
However, builders, contractors, and real estate agents
have approached governments to waive off or reduce taxes that are charged on
registrations and documentations while buying and selling properties. Even
governments have started taking measures to bring the residential real estate
market back on track. This is expected to aid in reviving losses that occurred
to the market due to COVID-19. Further, governments in several developing
nations such as India have planned new cities such as Dream City in Gujarat and
New Kanpur, which would have commercial, industrial, and residential zones.
Thus, acting as an opportunity for growth of the market during the forecast
period.
Browse over XX market data Figures spread
through 180 Pages and an in-depth TOC on "Global Residential Real Estate Market.”
The Global Residential Real Estate Market is segmented
into types, and region.
Based on type, The Apartments and Condominiums segment
had the largest market share in 2022 & expected to maintain in the forecast
period. As population is increasing, using less land to make more houses is
essential.
Major companies operating in the Global Residential
Real Estate Market are:
• Christie
International Real Estate
• ColdWell
Banker Real Estate Company
• Al
Habtoor Group
• DLF
Ltd
• Hochtief
Corporation
• IJM
Corporation Berhad
• Engel
& Volkers AG
• Lennar
Corporation
• Raubex
Group Ltd
• Pultegroup
Inc
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Today, around 55% of the world’s
population, i.e., 4.2 billion inhabitants, live in cities. This trend is
expected to continue. By 2050, with the urban population more than doubling its
current size, nearly 7 of 10 people in the world will live in cities. Most of
this urbanization occurs in the developing world in cities such as Lagos,
Bangalore, Beijing, and many other Asian, African, and Latin American cities.
India, China, and Nigeria are expected to account for 35% of the global urban
population during this projected growth. With more than 80% of the global GDP
generated in cities, urbanization can contribute to sustainable growth if managed
well by increasing productivity and allowing innovation and new ideas to
emerge. However, the speed and scale of urbanization accelerate the demand for
affordable housing. In recent years in Australia, there has been substantially
more land released for low-density in growth corridors of major cities. As a
result, there has been an uptick in first-home buyers. There is a shift to a
shared urban lifestyle in apartments, with 30% of Sydney homes being
apartments.
“The global residential real estate market is
influenced by several key drivers. Interest rates set by central banks play a
pivotal role, as lower rates make mortgages more affordable, boosting demand.
Economic conditions, including GDP growth and employment rates, affect
consumers' purchasing power and confidence in buying homes. Demographics shape
housing demand, with factors like population growth, urbanization, and
generational shifts impacting housing preferences. Government policies, such as
tax incentives, zoning regulations, and housing finance measures, significantly
influence the market's direction. Supply and demand dynamics are fundamental,
with shortages leading to price increases, while oversupply can result in
stagnation. Consumer sentiment and confidence also play a role, affecting
willingness to make long-term commitments like homeownership. Technology,
including online real estate platforms and smart home innovations, continues to
reshape the market. Additionally, environmental concerns and sustainability are
increasingly critical, influencing property values and buyer preferences.
Overall, these drivers interact in complex ways, shaping the global residential
real estate market's trends and performance.,” said Mr. Karan Chechi, Research
Director with TechSci Research, a research-based management consulting firm.
“Residential Real Estate Market–
Global Industry Size, Share, Trends, Opportunity, and Forecast
By Type
(Apartments & Condominiums, Landed Houses & Villas)), By Region, By Competition Forecast & Opportunities,
2018-2028F”, has evaluated the future growth potential of Global Residential Real
Estate Market and provides statistics & information on market size,
structure and future market growth. The report intends to provide cutting-edge
market intelligence and help decision-makers take sound investment decisions.,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the Global Residential Real
Estate Market.
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