As of the third quarter of 2024, the housing affordability index in South Korea stood at around ** points. The third quarter of 2022 saw the first drop in figures since 2020. The lower the index value, the more affordable a home is for a median-income household. Apartments in South Korea Average apartment prices in South Korea had risen for almost a decade before 2022. The country's popularity worldwide helped it become an economic powerhouse, attracting young workers from the countryside to large cities in hopes of taking part in or benefiting from this growth. As such, apartments are an attractive option for cities, optimizing space as they become more crowded. In terms of financing a new home, the leasehold deposit system exists as an alternative to traditional monthly rentals in Korea. Jeonse and leasehold deposits Jeonse is a leasehold deposit system in Korea where, instead of paying rent monthly, people pay a large deposit equivalent to a share of a property's value. In exchange, the person receives the right to reside in the property as a tenant for a limited amount of time. Granted, the up-front cost is high, and it is common to receive loans from banks to pay for the leasehold deposit. It had traditionally been a popular method as you could live in a housing unit without worrying about rent for *** or two years. However, this system is slowly being phased out as interest rates, the large up-front cost, and cases of jeonse fraud have turned people away.

South Korea Residential Real Estate Market is Segmented by Property Type (Apartments & Condominiums and Villas & Landed Houses), Price Band (Affordable, Mid-Market and Luxury), Mode of Sale (Primary and Secondary), Business Model (Sales and Rental) and Region (Seoul, Gyeonggi Province, Incheon, Busan, Other Metropolitan & Provincial Cities). The Market Forecasts are Provided in Terms of Value (USD).

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Real Estate Market Size 2025-2029

The real estate market size is forecast to increase by USD 1,258.6 billion at a CAGR of 5.6% between 2024 and 2029.

The market is experiencing significant shifts and innovations, with both residential and commercial sectors adapting to new trends and challenges. In the commercial realm, e-commerce growth is driving the demand for logistics and distribution centers, while virtual reality technology is revolutionizing property viewings. Europe's commercial real estate sector is witnessing a rise in smart city development, incorporating LED lighting and data centers to enhance sustainability and efficiency. In the residential sector, wellness real estate is gaining popularity, focusing on health and well-being. Real estate software and advertising services are essential tools for asset management, streamlining operations, and reaching potential buyers. Regulatory uncertainty remains a challenge, but innovation in construction technologies, such as generators and renewable energy solutions, is helping mitigate risks.

What will be the Size of the Real Estate Market During the Forecast Period?

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The market continues to exhibit strong activity, driven by rising population growth and increasing demand for personal household space. Both residential and commercial sectors have experienced a rebound in home sales and leasing activity. The trend towards live-streaming rooms and remote work has further fueled demand for housing and commercial real estate. Economic conditions and local market dynamics influence the direction of the market, with interest rates playing a significant role in investment decisions. Fully furnished, semi-furnished, and unfurnished properties, as well as rental properties, remain popular options for buyers and tenants. Offline transactions continue to dominate, but online transactions are gaining traction.
The market encompasses a diverse range of assets, including land, improvements, buildings, fixtures, roads, structures, utility systems, and undeveloped property. Vacant land and undeveloped property present opportunities for investors, while the construction and development of new housing and commercial projects contribute to the market's overall growth.

How is this Real Estate Industry segmented and which is the largest segment?

The 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

  APAC

    China
    India
    Japan
    South Korea


  North America

    Canada
    US


  Europe

    Germany
    UK


  South America

    Brazil


  Middle East and Africa

By Type Insights

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

The market encompasses the buying and selling of properties designed for dwelling purposes, including buildings, single-family homes, apartments, townhouses, and more. Factors fueling growth in this sector include the increasing homeownership rate among millennials and urbanization trends. The Asia Pacific region, specifically China, dominates the market due to escalating homeownership rates. In India, the demand for affordable housing is a major driver, with initiatives like Pradhan Mantri Awas Yojana (PMAY) spurring the development of affordable housing projects catering to the needs of lower and middle-income groups. The commercial real estate segment, consisting of office buildings, shopping malls, hotels, and other commercial properties, is also experiencing growth.

Furthermore, economic and local market conditions, interest rates, and investment opportunities in fully furnished, semi-furnished, unfurnished properties, and rental properties influence the market dynamics. Technological integration, infrastructure development, and construction projects further shape the real estate landscape. Key sectors like transportation, logistics, agriculture, and the e-commerce sector also impact the market.

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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.

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 Asia Pacific region holds the largest share of The market, dr

In February 2021, the average monthly rent for one-bedroom flats in Seoul, South Korea, amounted to around ******* South Korean won, up from about ******* South Korean won in the previous month. The average monthly rent for one-bedroom apartments in Seoul has shown an upward trend recently.

Living in Seoul In a metropolitan area like Seoul, housing is a scarce commodity, and prices are constantly rising as a result. The high population density of the capital, and the increasing trend to move towards the city to enjoy urban life is reflected in the housing situation. This can also be seen in the most common type of housing in Seoul, which is apartments. This is a general trend nationwide, with high-rise apartments over **** stories being the most frequent type of housing in South Korea.

Single-households are most prominent The most prominent type of household in South Korea is single households, as they make up more than ** percent of all domestic households. To aid this portion of the public, there are housing support programs single households can participate in. The share of participants for such programs was the highest in loans for housing leases. Other offered programs are subsidies for monthly rent or the supply of long-term public rental housing.

To investigate the issue of inflation-hedging to find appropriate hedging assets against inflation by using the VAR or VECM model. We have collected data encompassing housing price indices, stock indices, price indexes, and money supply from five countries: the United States, Hong Kong, South Korea, Singapore, and Taiwan. The housing price index focuses on the transaction prices of listed residential houses in the metropolitan area as the benchmark, the stock price index is the ordinary stock market index of various countries, the price index is the consumer price index (CPI), and the money supply is M2 aggregate. The time period for obtaining data on the housing price index and stock price index is not the same.

The Asia Pacific architectural services market, valued at $145.03 million in 2025, is poised for robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 4.20% from 2025 to 2033. This expansion is fueled by several key drivers. Rapid urbanization across the region, particularly in countries like China, India, and Indonesia, is creating a surge in demand for new residential, commercial, and infrastructure projects. Furthermore, government initiatives promoting sustainable building practices and investments in healthcare and education infrastructure are contributing significantly to market growth. The increasing adoption of Building Information Modeling (BIM) and other advanced technologies is enhancing design efficiency and project delivery, further stimulating market expansion. While the market faces challenges like fluctuating construction material costs and potential economic slowdowns, the overall growth trajectory remains positive, driven by strong underlying demand and technological advancements. The diverse end-user verticals, including residential, education, healthcare and life sciences, and corporate sectors, contribute to the market's resilience and diversification. Key players like B+H Architects, Aedas Architects, and AECOM are strategically positioned to capitalize on these growth opportunities. The Asia Pacific region's dynamic economic landscape and focus on infrastructure development ensure the continued expansion of this thriving architectural services sector. The regional breakdown within Asia Pacific shows significant variations in market contribution. China and India, given their large populations and rapid economic growth, are expected to dominate the market. Japan and South Korea, with their established economies and focus on infrastructure modernization, also contribute substantially. Countries like Singapore, Australia, and other Southeast Asian nations demonstrate considerable potential for growth, driven by increasing foreign investment and rising disposable incomes. Competitive landscape analysis reveals a mix of large multinational firms and regional players, highlighting opportunities for both established and emerging companies. The market's segmentation by end-user vertical presents strategic opportunities for specialized firms catering to specific needs within residential, commercial, and public sectors. Continued technological innovation and government support will be crucial factors in shaping the future landscape of the Asia Pacific architectural services market. This in-depth report provides a comprehensive analysis of the Asia Pacific architectural services industry, covering the period from 2019 to 2033. It delves into market size, growth drivers, challenges, and future trends, offering valuable insights for investors, industry professionals, and anyone seeking to understand this dynamic sector. The report utilizes data from the base year 2025 and leverages historical data (2019-2024) to forecast market performance from 2025 to 2033. Recent developments include: August 2022: Dewan Architects + Engineers, a multidisciplinary architectural design firm, opened its first office in Vietnam to support its growth and expand its footprint in Southeast Asia. Located in the Bitexco Financial Tower in Ho Chi Minh City, the office will be staffed by the company's growing team of engineers and architects., March 202: British architecture practice Foster + Partners unveiled its masterplan design for a new 117.4-hectare city in Ho Chi Minh City, Vietnam, including residential neighborhoods, medical, education, and medical and leisure facilities. Foster + Partners was selected by developers Masterise Homes to design the masterplan for the city, which will feature high- and low-rise apartments, villas, social housing, and education facilities, as well as a large shopping mall and medical and administration facilities.. Key drivers for this market are: Increasing Demand for Green Building, Adoption of 3D Printing. Potential restraints include: Lack of New Skills and Knowledge in Designing. Notable trends are: Residential Sector to Hold Significant Market Share.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.