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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