Real Estate Market Size, Trends, Share, Growth, and Opportunity Forecast, 2024 - 2031 Global Industry Analysis By Property Type (Residential, Commercial, Industrial, Land, and Others), By Business (Sale, Lease, Rental), By Location (Urban, Suburban, and Rural), By Mode (Online, and Offline) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

Real Estate Market Size and Forecast 2024 to 2031

The Global Real Estate Market was valued at USD 3.89 Trillion in 2023 and is anticipated to reach a value of USD 5.96 Trillion by 2031 expanding at a CAGR of 6.8% between 2024 and 2031.

Real estate is a type of real property consisting of land and any permanent structures or buildings attached to it, including natural resources such as water and minerals. It encompasses the buying, selling, leasing, or renting of land and properties for various purposes. The real estate market is segmented into three categories: rental, agency, and brokerage. Real estate can be used for residential, commercial, or industrial purposes. Real estates are a form of property that differs from the personal property, that are not related to land such as boat, car, farm equipment, and other vehicles. The real estate market has been experiencing significant growth influenced by factors such as growing population, rising cost of construction & land acquisitions, rapid urbanization, and economic growth. The global real estate industry encompasses a wide range property types and locations. As the global population continues to grow and urbanize, there is an increasing demand for housing and commercial real estate, particularly in developing markets.

Real Estate Market Major Driving Forces

·         Growing Population: The rapidly growing population globally drives the demand for infrastructures, significantly impacting the real estate market growth. With the rising global population, there is huge demand for residential, commercial and industrial projects, which fuels the growth of real estate market.  

·         Rising Cost of Construction & Land Acquisitions: The growing cost of construction and land acquisitions is the major factor for the rising demand for rental properties across globe. This has led to increase in demand for rental real estate which in turn create it an amazing investment opportunity that can generate income.

·         Rapid Urbanization: The increasing urbanization and population growth, particularly in developing nations also contributes to the real estate market growth. With the increasing densely populated areas, the demand for new infrastructures increases significantly.

·         Economic Growth: The economic growth also plays a significant role in the real estate market.  The strong economy often leads to increased demand for real estate, contributing to the market growth.

Real Estate Market Key Opportunities

·         Technological Innovations: Integrating technology provide an opportunity to streamline the real estate property management, and marketing. Major retailers are leveraging technological advancements, such as e-commerce platforms, and enhanced digital experience to meet evolving consumer expectations.

·         Trend towards Smart Homes: The growing trend towards smart homes offers numerous opportunity for real estate market growth. The growing interest in smart home technologies such as smart security systems, and lighting can attract tech-savvy buyers.

·         Focus on Sustainability: Growing investments in eco-friendly and green buildings that can reduce energy consumption and promote sustainability can significantly impact market demand. Buyers are increasingly prioritizing on modern infrastructure and sustainable living solutions.

Real Estate Market Key Trends

·         The growing demand for high-end properties is being fueled by rapid urbanization, rising disposable incomes, and changing buyer preferences

·         The increasing demand for residential property driven by rapidly growing population is a major factor boosting the market growth of real estate

·         The increasing popularity of smart homes with automated systems and energy-efficient features

·         The growing number of nuclear families across the world is driving the need for quality housing and infrastructure

·         A growing emphasis on sustainable construction practices and energy-efficient buildings that reduces environmental impact

·         With rising home prices and mortgage rates, there is growing demand for rental properties around the world

·         Ongoing technological advancements in AI and IoT are providing several services to the buyers such as maintaining documents, and records for payments

Region-wise Market Insights

North America accounted for the largest market share at 34.7% in 2023 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 7.2% between 2024 and 2031.

North America holds the largest share of global real estate market. This dominance is attributed to the robust economic conditions, strong demand in residential, commercial, and industrial projects, and technological advancements in real estate. Asia Pacific region is characterized by the presence of large economies, huge population, increasing spending on rental services and homeownerships. In addition, rapid urbanization, population growth, and significant investment in housing and commercial infrastructure also contributes to the regional market growth.  In Europe, the growing demand for green real estate with strong focus on urban development and sustainability drives market growth.

·        In October 2024, CBRE Group, Inc. has announced acquisitions of NRG Energy's renewable advisory group for enhancing their sustainability solutions capabilities significantly. This aim at providing enhanced sustainability solutions to its clients.

The Middle East and Africa has been witnessing a growing demand for real estate driven by rising number of residential and commercial projects, rapid urbanization, and ongoing infrastructure projects whereas, in Latin America, the market is influenced by economic factors, with increasing government initiatives to improve infrastructure.

Market Competition Landscape

The global real estate market is characterized by high degree of competition among a large number of established players and new entrants. These major players are increasing their focus on offering various services to consumers to gain market share. Key players in the real estate market engage in strategies aimed at gaining a competitive edge. These strategies include product innovation, design differentiation, and the incorporation of sustainable and eco-friendly materials to meet evolving consumer preferences. Established brands leverage their reputation for quality and reliability to maintain market share, while newer entrants focus on disruptive innovations and unique selling propositions.

Key players in the global real estate market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         CBRE Group, Inc.

·         Prologis, Inc.

·         Colliers International

·         Brookfield Asset Management Inc.

·         Simon Property Group, Inc.

·         Jones Lang LaSalle Incorporated

·         Keller Williams Realty

·         American Tower Corporation

·         Cushman & Wakefield

·         Mitsui Fudosan Co., Ltd.

·         Digital Realty Trust, Inc.

·         The Blackstone Group Inc.

·         Knight Frank

·         RE/MAX, LLC

·         Sotheby's International Realty Affiliates LLC