Real Estate Market to Grow by USD 1.13 Trillion from 2024-2028, Driven by Rising Private Investment, Report on How AI is Driving Market Transformation - Technavio

NEW YORK, Feb. 14, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global real estate market size is estimated to grow by USD 1.13 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 5.27% during the forecast period. Growing aggregate private investment is driving market growth, with a trend towards increasing marketing initiatives. However, regulatory uncertainty in real estate market poses a challenge. Key market players include Boston Commercial Properties Inc., Brigade Enterprises, Brookfield Business Partners LP, CBRE Group Inc., Christies International Real Estate, Dalian Wanda Group, DLF Ltd., Keller Williams Realty Inc., Lee and Associates Licensing and Administration Co. LP, Link Asset Management Ltd., Marcus and Millichap Real Estate Investment Services, Inc., MaxWell Realty Canada, NAI , Nakheel PJSC, Prologis Inc., RAK PROPERTIES, Segro Plc, Shannon Waltchack, TCN Worldwide, and WeWork Inc..

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              Real Estate Market Scope



     Report Coverage                               
      Details



     Base year                                                                                                                                             2023



     Historic period                               
      2018 - 2022



     Forecast period                               
      2024-2028



     Growth momentum & CAGR                                                                                                       Accelerate at a CAGR of 5.27%



     Market growth 2024-2028                       
      USD 1133 billion



     Market structure                              
      Fragmented



     YoY growth 2022-2023 (%)                                                                                                                             4.77



     Regional analysis                             
      APAC, North America, Europe, South America, and Middle East and Africa



     Performing market contribution                                                                                                                 APAC at 63%



     Key countries                                 
      China, US, India, Japan, and Germany


                                                      Boston Commercial Properties Inc., Brigade Enterprises, Brookfield Business Partners LP, CBRE Group Inc.,
                                                        Christies International Real Estate, Dalian Wanda Group, DLF Ltd., Keller Williams Realty Inc., Lee and
                                                        Associates Licensing and Administration Co. LP, Link Asset Management Ltd., Marcus and Millichap Real
                                                        Estate Investment Services, Inc., MaxWell Realty Canada, NAI Global, Nakheel PJSC, Prologis Inc., RAK

     Key companies profiled                            PROPERTIES, Segro Plc, Shannon Waltchack, TCN Worldwide, and WeWork Inc.

Market Driver

The real estate market is experiencing due to rising population and increasing demand for personal household space. Home sales have rebounded, with millennials leading the charge in homeownership. Commercial real estate, including offices, shopping malls, and industrial buildings, is also thriving. Economic and local market conditions influence housing demand, while interest rates impact investment options. Fully furnished, semi-furnished, and unfurnished properties are available for purchase or rent. Online transactions are gaining popularity, but offline transactions still dominate. Home prices and median rent continue to rise, making property investment an attractive option. Real estate development, property management, financing, and technological integration are key areas of focus. Infrastructure development, including construction of roads, utility systems, and buildings, is essential for growth. Undeveloped land and vacant properties offer opportunities for investment. Agriculture, employment generators like manufacturing and logistics, and sectors like e-commerce and telecommunications drive demand for residential and commercial properties. Tax benefits and tax exemptions make real estate an attractive investment.

In the real estate industry, vendors employ an integrated marketing communication strategy to sell their properties and services. This approach utilizes various channels like newspapers, magazines, and social media. Vendors create TV advertisements followed by digital marketing campaigns, including Internet pre-roll, social media, and blogging. The strategy enhances brand authenticity and recognition, generating consumer interest. Social media, particularly visual content, drives customer engagement and fosters online brand communities. Vendors also utilize Instagram to showcase projects.

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Market Challenges

    --  The real estate market is experiencing significant challenges due to
        rising population and increasing demand for personal household space.
        This demand is driving up home sales and rebounding the housing market.
        Commercial real estate, including office spaces and retail properties,
        is also in high demand, especially with the growth of the e-commerce
        sector and the need for warehousing facilities. Millennials are a key
        demographic in the residential property market, with many preferring to
        rent rather than buy due to economic conditions. This has led to a
        decrease in homeownership rates and an increase in rental properties.
        Interest rates and local market conditions also play a crucial role in
        the real estate market. Fully furnished, semi-furnished, and unfurnished
        properties are popular options for both homebuyers and renters. Real
        estate development, property management, and financing are essential
        components of the industry. Technological integration, infrastructure
        development, and construction are also key areas of focus, with
        improvements to buildings, roads, utility systems, and other structures.
        Undeveloped property and vacant land are valuable investment options,
        especially in areas with potential for future growth. Tax benefits,
        employment generation, and the agriculture sector are also important
        factors in the real estate market. Real estate can be a lucrative
        investment option, with potential returns from both residential and
        commercial properties. Property prices, median rent, and property
        investment strategies are important considerations for investors. Real
        estate development projects, including smart city initiatives and data
        center infrastructure, offer significant opportunities for growth. Tax
        exemptions and the role of transportation, logistics, and manufacturing
        in the industry are also key areas of interest.
    --  Real estate companies aim to carry out their operations and construct
        real estate infrastructure in a regulatory landscape that is
        predominantly consistent. Fluctuating regulatory compliance requirements
        and development standards can introduce significant costs, delays,
        risks, and uncertainties to completing development projects and managing
        existing properties. The current regulatory environment at various
        levels of government - federal, state, and local - lacks the necessary
        clarity, durability, predictability, and stability that real estate
        owners and operators require. Additionally, regulators worldwide are
        enacting rules and laws concerning the reporting and evaluation of real
        estate assets based on Environmental, Social, and Governance (ESG)
        criteria.

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Segment Overview

This real estate market report extensively covers market segmentation by

    --  Type
        --  Residential
        --  Commercial
        --  Industrial
    --  Business Segment
        --  Rental
        --  Sales
    --  Geography
        --  APAC
        --  North America
        --  Europe
        --  South America
        --  Middle East And Africa

1.1 Residential- The residential real estate market involves the buying and selling of properties used primarily for living, including houses, apartments, townhouses, and more. This sector is experiencing growth due to increasing millennial homeownership and urbanization. The APAC region, specifically China, dominates the market due to rising homeownership rates. In India, affordable housing demand and government initiatives like Pradhan Mantri Awas Yojana (PMAY) fuel growth. The segment offers various options: affordable housing, luxury homes, mid-segment housing, and integrated townships, catering to diverse income groups and preferences. Homeownership rate increases have led to increased real estate investments, with REITs managing residential properties being popular choices. The residential segment remains an appealing investment opportunity for individuals and institutions due to continuous housing demand and the segment's diverse offerings. These factors will contribute to the market's expansion during the forecast period.

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Research Analysis

The real estate market is experiencing due to the rising population and increasing demand for personal household space. Both residential and commercial real estate sectors are showing signs of a home sales rebound. Innovative trends like live-streaming rooms are gaining popularity, offering buyers a virtual tour of properties. Economic conditions and local market trends play a significant role in shaping the real estate landscape. Interest rates and investment options also influence buyers' decisions. Fully furnished, semi-furnished, and unfurnished properties, as well as rental properties, cater to various needs and budgets. Offline and online transactions are transforming the way real estate is bought and sold. Land, improvements, buildings, fixtures, roads, structures, utility systems, and vacant land are all essential components of the real estate market. Undeveloped property offers immense potential for investors and developers.

Market Research Overview

The real estate market is experiencing due to rising population growth and increasing demand for personal household space. Both residential and commercial properties are in high demand, with home sales rebounding strongly. The millennial generation is driving the market, with a growing preference for homeownership. Economic and local market conditions, interest rates, and investment options are key factors influencing the market. Fully furnished, semi-furnished, and unfurnished properties, as well as rental properties, are popular choices for buyers and tenants. Technological integration is transforming the industry, with online transactions becoming increasingly common. Real estate development, property management, financing, and infrastructure development are all active areas, with construction of buildings, roads, utility systems, and improvements ongoing. Undeveloped land and vacant properties are also in demand, with potential for housing, commercial, and industrial development. Tax benefits, employment generators, and the agriculture sector are also contributing to the market's growth. The e-commerce sector, office spaces, urban lodging, and logistics are also driving demand for commercial properties. Smart city projects, tax exemptions, and the employment of telecommunication services, data localization, data storage facilities, and data center infrastructure are also shaping the future of the real estate market.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

    --  Type
        --  Residential
        --  Commercial
        --  Industrial
    --  Business Segment
        --  Rental
        --  Sales
    --  Geography
        --  APAC
        --  North America
        --  Europe
        --  South America
        --  Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Email: media@technavio.com
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