Greater Mexico City, Tijuana, and Guadalajara had the highest annual rent per square foot of industrial real estate among select cities in Mexico in 2024. In the second half of the year, the annual rent for a square foot of industrial space in Monterrey, the second-largest market in the country, stood at **** U.S. dollars per square foot.

The Real Estate Rental industry in Mexico includes companies that rent and lease real estate without using a broker or other form of intermediation. Establishments rent a variety of properties, including furnished and unfurnished homes; rooms for parties and conventions; offices and commercial properties; theaters; stadiums; auditoriums; land and industrial buildings. The market is largely segmented between residential and commercial leasing; revenue from residential rentals is expected to account for 47.7% of industry revenue in 2019, followed by commercial leasing at 42.0% of industry revenue. In 2019, revenue from storage and warehouse leasing is expected to account for 7.3% of industry revenue, with land leasing accounting for the remaining 3.0%.

The average asking rent for a square meter of industrial real estate varied among Latin American cities. Mexico City, was the most expensive city in the second half of 2024, with a monthly asking rate of ***** U.S. dollars per square meter. Additionally, Mexico City was one of the LATAM markets with the lowest vacancy rate.

Booming North American industrial real estate market analysis reveals a CAGR exceeding 4.50%, driven by e-commerce, nearshoring, and manufacturing growth. Discover key trends, market size projections to 2033, top players, and regional insights. Invest wisely in this lucrative sector. Recent developments include: December 2021: Boston Properties Inc. (the largest publicly traded developer, owner, and manager of Class A office properties) announced that it completed the acquisition of 360 Park Avenue South, a 450,000 square-foot, 20-story office property located in the Midtown South submarket of Manhattan, New York, from Enterprise Asset Management Inc. (an investment management firm). Furthermore, the gross purchase value accounted for approximately USD 300 million., December 2021: Boston Properties Inc. announced a joint venture in which the company has a 49% ownership and executed a 229,000 square foot lease with a leading biotech company at the venture's 751 Gateway project in South San Francisco, California. The lease covers the entire building, which is currently under construction, with initial occupancy expected in early 2024.. Notable trends are: Increasing Rental Prices of Office Spaces.

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?

Get Key Insights on Market Forecast (PDF) Request Free Sample

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.

Request Free Sample

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

Request Free Sample

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

The Latin American residential construction market, currently valued at approximately $XX million (estimated based on available data and market trends), is projected to experience steady growth with a Compound Annual Growth Rate (CAGR) of 4.50% from 2025 to 2033. This expansion is driven by several key factors. Firstly, increasing urbanization across the region is fueling demand for new housing, particularly in major metropolitan areas like Sao Paulo, Mexico City, and Buenos Aires. Secondly, a growing middle class with increased disposable income is creating a larger pool of potential homebuyers. Furthermore, government initiatives promoting affordable housing and infrastructure development in several Latin American countries are contributing positively to market growth. The market is segmented by housing type, including villas/landed houses, condominiums/apartments, and prefabricated homes, each catering to different consumer preferences and income levels. While prefabricated homes are gaining traction due to cost-effectiveness and faster construction times, the traditional villa and apartment segments continue to dominate the market. Growth, however, faces challenges like economic instability in certain regions, fluctuating material costs, and regulatory hurdles in obtaining construction permits. Competition amongst major players such as Hogares Eden S A de C V, Constructora VDZ SpA, and others, drives innovation and efficiency within the sector. The forecast period from 2025 to 2033 anticipates continued market expansion, despite potential headwinds. The consistent CAGR of 4.50% suggests a significant increase in market value by 2033. However, the market’s trajectory will depend significantly on macroeconomic stability, consistent government support, and the successful mitigation of construction challenges. Further segmentation analysis considering factors like building material type and technological advancements in construction methods will provide a more granular understanding of this dynamic market. Specific regional variations are expected, with countries experiencing robust economic growth exhibiting faster market expansion compared to those facing economic challenges. Continuous monitoring of these factors will be critical for accurately projecting future market performance. Recent developments include: January 2023: Modularis is set to break ground in May of 2023 for new residential development in Sao Paulo, Brazil, made possible by modular construction and will be comprised of two concrete floors with commercial spaces and 11 floors of modular apartments and is set to be complete by the end of the 2023., September 2022: A new Las Colinas housing community planned to bring about six dozen high-end homes next to the headquarters building for Fluor Corp. The more than 22-acre single-family home neighborhood is estimated to have a value of USD 140 million and will be constructed at Las Colinas and La Villita boulevards in Irving.. Notable trends are: Social Rental Drive.

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.