Graph and download economic data for Equity Market Volatility Tracker: Macroeconomic News and Outlook: Real Estate Markets (EMVMACRORE) from Jan 1985 to Oct 2025 about volatility, uncertainty, equity, real estate, and USA.

Sea level rise will pose increased risks to U.S. coastal real estate markets in the coming decades, though the direct economic costs depend on the severity and uncertainty within climate-change scenarios.

Graph and download economic data for Equity Market Volatility Tracker: Housing And Land Management (EMVHOUSELANDMGMT) from Jan 1985 to Nov 2025 about land, management, volatility, uncertainty, equity, housing, and USA.

Snapshot img

Residential Real Estate Market Size 2025-2029

The residential real estate market size is valued to increase USD 485.2 billion, at a CAGR of 4.5% from 2024 to 2029. Growing residential sector globally will drive the residential real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 55% growth during the forecast period.
By Mode Of Booking - Sales segment was valued at USD 926.50 billion in 2023
By Type - Apartments and condominiums segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 41.01 billion
Market Future Opportunities: USD 485.20 billion
CAGR : 4.5%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and ever-evolving sector that continues to shape the global economy. With increasing marketing initiatives and the growing residential sector globally, the market presents significant opportunities for growth. However, regulatory uncertainty looms large, posing challenges for stakeholders. According to recent reports, technology adoption in residential real estate has surged, with virtual tours and digital listings becoming increasingly popular. In fact, over 40% of homebuyers in the US prefer virtual property viewings. Core technologies such as artificial intelligence and blockchain are revolutionizing the industry, offering enhanced customer experiences and streamlined processes.
Despite these advancements, regulatory compliance remains a major concern, with varying regulations across regions adding complexity to market operations. The market is a complex and intriguing space, with ongoing activities and evolving patterns shaping its future trajectory.

What will be the Size of the Residential Real Estate Market during the forecast period?

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How is the Residential Real Estate Market Segmented and what are the key trends of market segmentation?

The residential real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Sales
  Rental or lease


Type

  Apartments and condominiums
  Landed houses and villas


Location

  Urban
  Suburban
  Rural


End-user

  Mid-range housing
  Affordable housing
  Luxury housing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    Australia
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Mode Of Booking Insights

The sales segment is estimated to witness significant growth during the forecast period.

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The Sales segment was valued at USD 926.50 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 55% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How Residential Real Estate Market Demand is Rising in APAC Request Free Sample

The market in the Asia Pacific (APAC) region holds a significant share and is projected to lead the global market growth. Factors fueling this expansion include the region's rapid urbanization and increasing consumer spending power. Notably, residential and commercial projects in countries like India and China are experiencing robust development. The residential real estate sector in China plays a pivotal role in the economy and serves as a major growth driver for the market.

With these trends continuing, the APAC the market is poised for continued expansion during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

In the Residential Real Estate Market, understanding the impact property tax rates home values and effect interest rates mortgage affordability is essential for buyers and investors. Key factors affecting home price appreciation and factors influencing housing affordability shape market trends, while the importance property due diligence process and requirements environmental site assessment ensure informed decisions. Investors benefit from methods calculating rental property roi, process home equity loan application, and benefits real estate portfolio diversification. Tools like property management software efficiency and techniques effective property marketing help tackle challenges managing rental properties. Additionally, strategies successf

Based on panel error correction models for a sample of up to 21 countries this paper analyses the macroeconomic determinants of house prices and rents. In accordance with the existing literature I find significantly positive effects of per capita income and bank lending on house prices, whereas the housing stock per capita and interest rates have negative effects. For rents the results are somewhat more remarkable, indicating that both the housing stock and interest rates have a negative effect. While contradicting conventional economic theory the latter finding might be explained by real estate investors exploiting their pricing power with varying degree depending on the level of real interest rates. Moreover, the estimated impact of interest rates on both house prices and rents varies with structural housing market characteristics. For instance, while interest rates have a more pronounced effect on house prices in countries with more developed mortgage markets, the same does not hold for the effect of interest rates on rents.

The Latin American home mortgage finance market exhibits steady growth, projected to reach a market size of $XX million in 2025, with a Compound Annual Growth Rate (CAGR) of 3.00% from 2025 to 2033. This growth is fueled by several key factors. Increasing urbanization and a burgeoning middle class are driving demand for homeownership across the region. Government initiatives aimed at improving access to affordable housing, such as subsidized mortgages and reduced interest rates, further stimulate market expansion. Additionally, the development of more sophisticated financial products and improved lending practices by major players like Caixa Economica Federal, Banco do Brasil, Itaú, Bradesco, and Santander, contribute to market expansion. However, economic instability in certain Latin American countries, fluctuating interest rates, and regulatory hurdles remain significant challenges that could potentially hinder growth. The competitive landscape is dominated by established national and international banks, each vying for market share through competitive interest rates, diverse mortgage products, and enhanced digital services. Despite the presence of these major players, opportunities exist for smaller lenders and fintech companies to leverage technological advancements and target niche markets within the region. The market segmentation is diverse, reflecting varying housing costs and income levels across the countries within Latin America. Growth will likely be uneven across the region, with more stable economies experiencing higher growth rates than those facing political or economic uncertainty. Future growth will depend on macroeconomic stability, continued government support for homeownership, and the ability of financial institutions to adapt to the evolving needs of borrowers. Notable trends are: Increase in Economic Growth and GDP per capita.

Snapshot img

Commercial Real Estate Market Size 2025-2029

The commercial real estate market size is valued to increase USD 427.3 billion, at a CAGR of 4.6% from 2024 to 2029. Growing commercial sector globally will drive the commercial real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 42% growth during the forecast period.
By End-user - Offices segment was valued at USD 476.50 billion in 2023
By Channel - Rental segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 43.44 billion
Market Future Opportunities: USD 427.30 billion
CAGR : 4.6%
APAC: Largest market in 2023

Market Summary

The market is a dynamic and ever-evolving sector that continues to shape the global business landscape. Core technologies and applications, such as Building Information Modeling (BIM) and Real Estate Information Systems (REIS), are increasingly being adopted to streamline operations and enhance efficiency. According to a recent report, the BIM market in the real estate sector is projected to grow at a steady pace, reaching a market share of 30% by 2025. Service types and product categories, including property management, brokerage, and construction services, are also experiencing significant changes. For instance, the growing trend of remote work and online shopping is driving demand for flexible and adaptable commercial spaces.
Additionally, regulations and policies are evolving to accommodate these changes, with many governments investing in smart city initiatives and green building standards. Despite these opportunities, the market faces challenges such as economic uncertainty, changing demographics, and increasing competition. However, these challenges also present new opportunities for innovation and growth. For instance, the adoption of proptech solutions and the integration of artificial intelligence and machine learning are transforming the way commercial real estate is bought, sold, and managed. Overall, the market is a complex and dynamic ecosystem that requires constant monitoring and adaptation to stay ahead of the curve.

What will be the Size of the Commercial Real Estate Market during the forecast period?

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How is the Commercial Real Estate Market Segmented and what are the key trends of market segmentation?

The commercial real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Offices
  Retail
  Leisure
  Others


Channel

  Rental
  Lease
  Sales


Transaction Type

  Commercial Leasing
  Property Sales
  Property Management


Service Type

  Brokerage Services
  Property Development
  Valuation Consulting
  Facilities Management


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By End-user Insights

The offices segment is estimated to witness significant growth during the forecast period.

In the ever-evolving market, the offices segment is experiencing significant growth, driven by shifting work trends and corporate demands. Flexible work arrangements, hybrid models, and technological integration are transforming the need for office space. Businesses prioritize contemporary, adaptable, and technologically advanced workspaces to attract and retain talent. Co-working spaces like Regus and WeWork, which offer flexible office solutions, are gaining popularity. Major corporations, such as Google and Amazon, invest in innovative office designs that foster collaboration and employee satisfaction. According to recent market data, the offices end-user segment is projected to expand by 15% between 2024 and 2028, underscoring the continuous adaptation of workspaces to modern business practices.

Meanwhile, tenant occupancy rates remain a critical concern for commercial property owners. Lease agreement terms, negotiation strategies, and rent collection efficiency are essential factors in maintaining a healthy portfolio. Building lifecycle costs, code compliance, and investment return metrics are other essential considerations for property managers. Environmental impact assessments, construction cost estimating, and property tax appeals are also crucial elements in the market. Property value depreciation, commercial property insurance, and portfolio risk management are essential aspects of property management. Property management software, energy efficiency upgrades, and property tax assessments are key tools for optimizing o

The Spanish residential real estate market, valued at €166.01 million in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 6.90% from 2025 to 2033. This growth is fueled by several key drivers. Increased tourism and immigration are boosting demand, particularly in major cities like Madrid, Barcelona, and Valencia. A growing younger population and a shift towards urban living further contribute to the market's dynamism. Government initiatives aimed at improving housing affordability and infrastructure development also play a significant role. However, challenges remain. Rising construction costs and limited land availability in prime locations could constrain supply. Furthermore, fluctuations in mortgage interest rates and broader economic uncertainty pose potential risks to market stability. The market is segmented by property type (apartments and condominiums, villas and landed houses) and key cities. Major players like MetroVacesa, Neinor Homes, AEDAS Homes, and Via Celere are shaping the competitive landscape, demonstrating both the consolidation and dynamism within the sector. The forecast for the Spanish residential real estate sector indicates continued growth, albeit potentially at a moderated pace in the later years of the forecast period. While the strong growth drivers are expected to remain, the influence of external factors like global economic conditions and potential regulatory changes should be considered. The segmentation analysis highlights the differing dynamics across property types and geographic locations. Areas like Madrid and Barcelona, with their strong economies and established infrastructure, are likely to continue attracting significant investment and showing higher growth rates compared to other regions. Analyzing these trends allows for a deeper understanding of investment opportunities and potential risks within specific segments of the market. Continuous monitoring of economic indicators, government policies, and consumer preferences is crucial for navigating this evolving landscape. Recent developments include: October 2022: A build-to-rent (BTR) cooperation between Layetana Living and Aviva Investors was established in Spain. According to the statement, the collaboration between Aviva and the Spanish developer Layetana will construct a more than EUR 500 million (USD 531.20 Million) residential portfolio, already securing its first development project. Based on the recommendation of international real estate consultancy Knight Frank, the partnership purchased a 71-unit residential building in Barcelona's Sants neighborhood. Construction is scheduled to begin at the end of 2023., September 2022: Berkshire Hathaway HomeServices, a global residential real estate brokerage franchise network, expanded its services in the Valencian Community. It is now running with Maryana Kim directing a new office in Denia, in the northern section of the Costa Blanca. It is the fourth facility that Berkshire Hathaway HomeServices Spain opened in 2022.. Notable trends are: Rise in International Property Buyers in Spain.

The United States real estate brokerage market, valued at $197.33 billion in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 2.10% from 2025 to 2033. This growth is driven by several key factors. A robust housing market, fueled by increasing population and urbanization, continues to generate significant demand for brokerage services. Technological advancements, such as improved online platforms and data analytics, are streamlining operations and enhancing efficiency for both brokers and consumers. The rise of iBuyers and proptech companies, while posing some competition, also contribute to market expansion by creating innovative solutions and attracting a broader customer base. Furthermore, a shift toward specialized services, catering to niche markets like luxury properties or commercial real estate, is expected to contribute to market diversification and growth. The market is segmented into residential and non-residential sectors, with sales and rental services further dividing each segment. Major players such as Keller Williams, RE/MAX, Coldwell Banker, and Berkshire Hathaway Home Services maintain significant market shares, competing through brand recognition, extensive networks, and technological capabilities. However, certain restraints are present. Interest rate fluctuations and economic uncertainty can impact buyer confidence and consequently, transaction volume. Increasing regulatory scrutiny and compliance costs also add operational challenges for brokerage firms. Competition from independent agents and disruptive technologies demands continuous adaptation and innovation to maintain market competitiveness. The residential segment is expected to remain the largest, driven by consistent demand, while the non-residential sector may show slightly slower growth given fluctuations in commercial investment and development cycles. The sales segment will likely maintain its predominance, although the rental market is anticipated to see growth, reflecting evolving consumer preferences and rental market trends. The ongoing evolution of the market will likely see greater consolidation among larger firms and an increased focus on technological solutions, enhancing transparency, customer experience, and overall market efficiency. This comprehensive report provides an in-depth analysis of the United States real estate brokerage market, covering the period from 2019 to 2033. It leverages extensive market research and data analysis to offer valuable insights into market trends, growth drivers, challenges, and key players. The report is essential for investors, industry professionals, and anyone seeking a comprehensive understanding of this dynamic sector. The base year for this analysis is 2025, with estimations for 2025 and forecasts extending to 2033, utilizing historical data from 2019-2024. Search terms optimized for maximum visibility include: real estate brokerage, US real estate market, real estate trends, residential real estate, commercial real estate, real estate agents, real estate investment, real estate technology, M&A real estate, and real estate market analysis. Recent developments include: May 2024: Compass Inc., the leading residential real estate brokerage by sales volume in the United States, acquired Parks Real Estate, Tennessee's top residential real estate firm that boasts over 1,500 agents. Known for its strategic acquisitions and organic growth, Compass's collaboration with Parks Real Estate not only enriches its agent pool but also grants these agents access to Compass's cutting-edge technology and a vast national referral network., April 2024: Compass has finalized its acquisition of Latter & Blum, a prominent brokerage firm based in New Orleans. Latter & Blum, known for its strong foothold in Louisiana and other Gulf Coast metros, has now become a part of Compass. This strategic move not only solidifies Compass' presence in the region but also propels it to a significant market share, estimated at around 15% in New Orleans.. Key drivers for this market are: 4., Increasing Urbanization Driving the Market4.; Regulatory Environment Driving the market. Potential restraints include: 4., Increasing Urbanization Driving the Market4.; Regulatory Environment Driving the market. Notable trends are: Industrial Sector Leads Real Estate Absorption, Retail Tightens Vacancy Rates.

The UK residential real estate market, valued at £360.27 million in 2025, is projected to experience robust growth, driven by several key factors. A consistently strong CAGR of 5.75% indicates a healthy and expanding market over the forecast period (2025-2033). This growth is fueled by increasing urbanization, a growing population, and a persistent demand for housing, particularly in major cities like London. Furthermore, government initiatives aimed at boosting homeownership and infrastructure development contribute positively to market expansion. The market is segmented by property type, with apartments and condominiums, and landed houses and villas representing significant segments. Key players such as Bellway PLC, Barratt Developments PLC, and Berkeley Group dominate the market, while a competitive landscape also includes numerous smaller developers and housing associations. While rising interest rates and construction costs present challenges, the overall outlook remains positive due to the enduring demand and limited housing supply, particularly in desirable areas. However, several factors could influence the market's trajectory. Fluctuations in the national economy, changes in government regulations concerning mortgages and property taxation, and global economic uncertainty could impact buyer confidence and investment. Regional variations also exist, with market dynamics differing across England, Scotland, Wales, and Northern Ireland. Understanding these regional nuances is crucial for targeted investment strategies. The market's resilience will depend on the ability of developers to adapt to changing market conditions and meet evolving consumer preferences for sustainable and energy-efficient housing. The continuous evolution of consumer preferences towards specific types of housing and location preferences will further shape the market's future growth. Recent developments include: May 2023: A UAE-based investment manager, Rasmala Investment Bank, has launched a USD 2bn ( €1.8bn) UK multifamily strategy for a five-year period to build a USD 2bn portfolio of UK residential properties. The strategy is focused on the UK market for multifamily properties through a Shariah-compliant investment vehicle, initially targeting the serviced apartment (SAP) and BTR (build-to-rent) subsectors within and around London. Seeded by Rasmala Group, the strategy is backed by an active investment pipeline for the next 12 – 18 months., November 2022: ValuStrat, a Middle East consulting company, increased its foothold in the UK by acquiring an interest in Capital Value Surveyors, a real estate advisory services company with offices in London. The UK continues to be one of the most established real estate markets worldwide and attracts foreign investors regularly. They are excited to expand their presence there to better serve all of their clients, both in the UK and the Middle East.. Key drivers for this market are: Demand for New Dwellings Units, Government Initiatives are driving the market. Potential restraints include: Demand for New Dwellings Units, Government Initiatives are driving the market. Notable trends are: Increasing in the United Kingdom House Prices.

During the COVID-19 pandemic, the number of house sales in the UK spiked, followed by a period of decline. In 2023 and 2024, the housing market slowed notably, and in January 2025, transaction volumes fell to 46,774. House sales volumes are impacted by a number of factors, including mortgage rates, house prices, supply, demand, as well as the overall health of the market. The economic uncertainty and rising unemployment rates has also affected the homebuyer sentiment of Brits. How have UK house prices developed over the past 10 years? House prices in the UK have increased year-on-year since 2015, except for a brief period of decline in the second half of 2023 and the beginning of 2024. That is based on the 12-month percentage change of the UK house price index. At the peak of the housing boom in 2022, prices soared by nearly 14 percent. The decline that followed was mild, at under three percent. The cooling in the market was more pronounced in England and Wales, where the average house price declined in 2023. Conversely, growth in Scotland and Northern Ireland continued. What is the impact of mortgage rates on house sales? For a long period, mortgage rates were at record-low, allowing prospective homebuyers to take out a 10-year loan at a mortgage rate of less than three percent. In the last quarter of 2021, this period came to an end as the Bank of England rose the bank lending rate to contain the spike in inflation. Naturally, the higher borrowing costs affected consumer sentiment, urging many homebuyers to place their plans on hold and leading to a decline in sales.

• USA house price index and multiple associated macro-economic data from FRED.

• Contains monthly data from 1990-01-01 to 2025-01-01.

• The added column names are the series names on FRED : https://fred.stlouisfed.org/

• To create custom aggregates on any available FRED data you can follow : https://github.com/OfficialBhattacharya/Geographical-Home-Price-Ranker

1. Average Sales Price for New Houses Sold in the United States: https://fred.stlouisfed.org/series/ASPNHSUS

2. Average Sales Price of Houses Sold for the United States: https://fred.stlouisfed.org/series/ASPUS

3. New One Family Houses Sold: https://fred.stlouisfed.org/series/HSN1F

4. Monthly Supply of New Houses in the United States: https://fred.stlouisfed.org/series/MSACSR

5. Median Sales Price of Houses Sold for the United States: https://fred.stlouisfed.org/series/MSPUS

6. Homeownership Rate in the United States: https://fred.stlouisfed.org/series/RHORUSQ156N

7. Total Shipments of New Manufactured Homes: https://fred.stlouisfed.org/series/SHTSAUS

8. Unemployment Rate: https://fred.stlouisfed.org/series/UNRATE

9. Economic Policy Uncertainty Index for United States: https://fred.stlouisfed.org/series/USEPUINDXD

10. S&P CoreLogic Case-Shiller U.S. National Home Price Index: https://fred.stlouisfed.org/series/CSUSHPINSA

11. Vacant Housing Units Held Off the Market in the United States : https://fred.stlouisfed.org/series/EOCCUSEUSQ176N

12. Occupied Housing Units in the United States: https://fred.stlouisfed.org/series/EOCCUSQ176N

13. Vacant Housing Units Held Off the Market in the United States: https://fred.stlouisfed.org/series/EOFFMARUSQ176N

14. Vacant for Other Reasons in the United States: https://fred.stlouisfed.org/series/EOTHUSQ176N

15. Renter Occupied Housing Units in the United States: https://fred.stlouisfed.org/series/ERNTOCCUSQ176N

16. Vacant Housing Units Not Yet Occupied in the United States: https://fred.stlouisfed.org/series/ERNTSLDUSQ176N

17. Vacant Housing Units for Sale in the United States: https://fred.stlouisfed.org/series/ESALEUSQ176N

18. Total Housing Units in the United States: https://fred.stlouisfed.org/series/ETOTALUSQ176N

19. Median Days on Market in the United States: https://fred.stlouisfed.org/series/MEDDAYONMARUS

20. Median Listing Price per Square Feet in the United States: https://fred.stlouisfed.org/series/MEDLISPRIPERSQUFEEUS

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, notably rising interest rates, spiralling inflation and muted economic growth. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated jump of 1.2% in 2025 to €207.6 billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing over the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated (2021-2023), being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent prices to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this has started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, PropTech—technology-driven innovations designed to improve and streamline the real estate industry—will force estate agents to adapt, shaking up the traditional real estate sector. A notable application of PropTech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.

The global Mortgage-Backed Security market is poised for robust growth, with its market size projected to reach XX million in 2033, driven by a CAGR of XX% during the forecast period 2025-2033. Key drivers fueling this growth include increasing demand for residential and commercial mortgages, government support for housing markets, and the ongoing trend of securitization. However, factors such as rising interest rates, economic uncertainties, and regulatory challenges may pose restraints to market expansion. The market is segmented into types (commercial MBS, residential MBS) and applications (commercial banks, real estate enterprises, trust plans). Residential MBS dominate the market due to the high demand for home loans. Prominent players in the market include Construction Bank, ICBC, and Bank of China, among others. North America and Asia Pacific are expected to be key regional markets, with the US, China, and India driving growth. The study period for this analysis is 2019-2033, with the base year being 2025 and the forecast period extending from 2025 to 2033. Mortgage-backed securities (MBS) are financial instruments that are backed by a pool of mortgages. They are typically issued by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac, but can also be issued by private banks and investment firms. MBS offer investors a way to invest in the housing market without having to purchase a physical property.

Snapshot img

Real Estate Market Size 2025-2029

The real estate market size is valued to increase USD 1258.6 billion, at a CAGR of 5.6% from 2024 to 2029. Growing aggregate private investment will drive the real estate market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 64% growth during the forecast period.
By Type - Residential segment was valued at USD 1440.30 billion in 2023
By Business Segment - Rental segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 48.03 billion
Market Future Opportunities: USD 1258.60 billion
CAGR from 2024 to 2029 : 5.6%

Market Summary

In the dynamic realm of global real estate, private investment continues to surge, reaching an impressive USD 2.6 trillion in 2020. This significant influx of capital underscores the sector's enduring appeal to investors, driven by factors such as stable returns, inflation hedging, and the ongoing demand for shelter and commercial real estate space. Simultaneously, marketing initiatives have gained momentum, with digital platforms and virtual tours becoming increasingly popular.
However, regulatory uncertainty looms, posing challenges for market participants. Amidst this complex landscape, real estate remains a vital component of the global economy, continually evolving to meet the shifting needs of businesses and individuals alike.

What will be the Size of the Real Estate Market during the forecast period?

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How is the Real Estate Market Segmented ?

The real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Residential
  Commercial
  Industrial


Business Segment

  Rental
  Sales


Manufacturing Type

  New construction
  Renovation and redevelopment
  Land development


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The residential segment is estimated to witness significant growth during the forecast period.

Amidst the dynamic real estate landscape, the residential sector encompasses the buying and selling of various dwelling types, including single-family homes, apartments, townhouses, and more. This segment experiences continuous growth, fueled by increasing millennial homeownership rates and urbanization trends. Notably, the APAC region, specifically China, dominates the market share, driven by escalating homeownership numbers. Concurrently, the Indian real estate sector thrives due to the demand for affordable housing, with initiatives like Pradhan Mantri Awas Yojana (PMAY) spurring the development of affordable housing projects. In this evolving market, various aspects such as environmental impact studies, capital appreciation potential, title insurance coverage, building lifecycle costs, mortgage interest rates, and structural engineering analysis play crucial roles.

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The Residential segment was valued at USD 1440.30 billion in 2019 and showed a gradual increase during the forecast period.

Property tax appeals, property insurance premiums, property tax assessments, property marketing strategies, building material pricing, property management software, land surveying techniques, zoning regulations compliance, architectural design features, building code compliance, multifamily property management, rental yield calculations, construction cost estimation, energy efficiency ratings, green building certifications, tenant screening processes, investment property returns, property development plans, geotechnical site investigations, sustainable building practices, due diligence procedures, HVAC system efficiency, property renovation costs, market value appraisals, building permit acquisition, and property valuation models significantly impact the sector's progression. As of 2021, the market is projected to reach a value of USD 33.3 trillion, underscoring its substantial influence on the global economy.

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Regional Analysis

APAC is estimated to contribute 64% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The APAC region held the largest share of the market in 2024, driven by factors such as rapid urbanization and increasing spending capacity. This trend is expected to continue during the forecast period. The overall health of the economy signi

The European office real estate market is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 4.00% from 2025 to 2033. While the precise market size in 2025 is unavailable, considering a typical market size for a mature region like Europe and a CAGR of over 4%, a reasonable estimate for the 2025 market value would be in the range of €500-700 billion. This growth is fueled by several key drivers. The increasing adoption of hybrid work models, while initially posing a challenge, is leading to a shift in demand towards high-quality, amenity-rich office spaces that facilitate collaboration and employee well-being. Furthermore, the ongoing expansion of technology companies and the sustained growth of major European cities are driving demand for modern office spaces in prime locations. However, the market also faces challenges. Economic uncertainty, inflation, and potential interest rate hikes could impact investment and development activity, potentially moderating growth in certain segments. The evolving needs of businesses and the increasing focus on sustainability also present opportunities for innovative office developers to cater to a more discerning clientele. The market is segmented based on property type (Class A, B, and C), location (major cities versus secondary markets), and tenant type (technology, finance, etc.), each presenting unique investment opportunities and risks. Key players like Cushman & Wakefield, JLL, Savills, and CBRE are shaping the market through acquisitions, development projects, and strategic partnerships. The forecast period from 2025 to 2033 presents both significant opportunities and potential risks for investors in the European office real estate market. The anticipated growth, driven by technological advancements and evolving workplace dynamics, coupled with an increasing focus on sustainability and efficient building design, will reward adaptable companies that are well-positioned to cater to these market shifts. However, navigating macroeconomic factors and evolving tenant demands will be crucial for success. Careful analysis of regional variations, specific sub-markets, and emerging trends will be instrumental for investors to capitalize on this dynamic market and mitigate potential risks. Proactive strategies incorporating ESG (environmental, social, and governance) considerations are becoming increasingly vital for long-term sustainability and attracting both tenants and investors. Key drivers for this market are: Economic Growth, Urbanization and Urban Renewal; Foreign Investments in the Sector. Potential restraints include: The Uncertainty Surrounding Brexit. Notable trends are: Offices Remain a Core Sector.

In 2022, housing prices in Belgium rose. According to the forecast, 2023 and 2024 will follow with a slight increase of two percent. Consumers signal much uncertainty on, for example, development of unemployment, which can hamper the housing market.

Belgium’s housing prices development

For years, house prices in Belgium followed a similar growth pattern to the country’s economy. Residential property prices grew when Belgium's economy performed well but stagnated when the economy slowed down. Since 2020, however, growth has accelerated. In 2022, the average house price exceeded 319,000 euros, up from 298,000 euros the year before.

The Belgian economy faces an uncertain future

Belgium’s real estate market is closely connected to the economic performance of the country. According to a 2022 forecast, the Belgian economy was predicted to grow by 2.1 percent in 2023. This prediction reflected inflation, supply chain disruptions impacting domestic demand, as well as (a lack of) international trade impacting Belgian growth.

The Asia Pacific office real estate market, encompassing major economies like China, Japan, South Korea, India, and Australia, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 10% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the burgeoning technology sector and increasing foreign direct investment in many APAC nations fuel demand for modern, high-quality office spaces. Secondly, urbanization and a growing middle class are contributing to increased business activity and a need for larger and more sophisticated office infrastructure, particularly in rapidly developing cities across the region. Thirdly, evolving work styles, although potentially impacting short-term trends, are likely to lead to long-term demand for flexible and adaptable office spaces, triggering renovations and new construction projects. However, the market is not without challenges. Economic uncertainty in some regions and rising interest rates could potentially dampen investment and slow down growth in certain segments. Furthermore, the availability of skilled labor and the ongoing impact of geopolitical events could influence the market's trajectory. The market is segmented by country, with China and India expected to remain dominant drivers of growth given their vast populations and economic expansion. Japan and South Korea, despite experiencing slower growth comparatively, represent significant markets with established infrastructure and robust corporate sectors. Australia and Southeast Asian nations (Singapore, Malaysia, etc.) also contribute substantially, driven by their attractiveness to foreign investment and regional economic strength. The analysis considers production, consumption, import, and export dynamics within the Asia Pacific region, providing a comprehensive understanding of market flows. Key players like Colliers, Cushman & Wakefield, JLL, CBRE, CDL, Frasers Property, and others are competing fiercely for market share, driving innovation and shaping market trends. Price trends will fluctuate based on location, demand, and market conditions, necessitating continuous monitoring to assess the long-term market value. Recent developments include: February 2022 - Real estate firm Hulic and Japan Excellent executed a purchase agreement to exchange trust beneficiary rights in the Shintomicho Building for JPY 3.1 billion (USD 25.4 million). Japan Excellent mostly invests in office buildings in Tokyo. Two phases will be involved in the transfer of the Trust Beneficiary Rights in the Shintomicho Building: the first phase will involve the transfer of 40% ownership for JPY 1,24 billion (USD 10.1 million), and the second phase will involve the transfer of the remaining 60% ownership for JPY 1.86 billion (USD 15.3 million)., July 2022 - Tech giant Google leased 1.3 million sq. ft of office space in Bengaluru, India, marking one of the largest office lease transactions in the country since the pandemic began.. Notable trends are: Rise in Demand for Coworking Spaces.

Abstract Purpose: To determine the optimal investment strategy in Nash equilibrium for the residential real estate market of Rio de Janeiro, considering the uncertainty in the demand for real estate and the number of active competitors in the market. Design/methodology/approach: A Real Options Game model was developed. The parameters of the model were estimated with econometric tools using data from the Rio de Janeiro real estate market. Findings: The quantitative results obtained are intuitive in the sense that the larger the number of competitors, the lower the level of demand required for investment in new units, whereas the greater the volatility of demand, the greater the demand threshold for the investment to be optimal. Originality/value: This study modified the methodology of Grenadier (2002), providing a more adequate and robust specification of the uncertainty for the demand function, thus allowing more intuitive economic interpretations.

Mexico's housing market demonstrates significant regional price variations, with Mexico City emerging as the most expensive area for residential property in the third quarter of 2025. The capital city's average house price of 3.93 million Mexican pesos far exceeds the national average of 1.86 million pesos, highlighting the stark contrast in property values across the country. This disparity reflects broader economic and demographic trends shaping Mexico's real estate landscape. Sustained growth in housing prices The Mexican housing market has experienced substantial growth over the past decade, with home prices more than doubling since 2010. By the second quarter of 2025, the nominal house price index reached 287 points, representing a 187 percent increase from the baseline year. Even when adjusted for inflation, the real house price index showed a notable 50 percent growth, underscoring the market's resilience and attractiveness to investors. The mortgage market is dominated by three main player types: Infonavit, Fovissste, and commercial banks including Sofomes. In 2023, Infonavit, a scheme by Mexico's National Housing Fund Institute which provides lending to workers in the formal sector, was responsible for the majority of mortgages granted to individuals. Challenges in mortgage lending Despite the overall growth in housing prices, Mexico's mortgage market has faced challenges in recent years. The number of new mortgage loans granted has declined over the past decade, falling by approximately 200,000 loans between 2008 and 2023. This decrease in lending activity may be attributed to various factors, including economic uncertainties and changing consumer preferences. The state of Mexico, which is home to 13 percent of the country's population, likely plays a significant role in shaping these trends given its large demographic influence on the national housing market.