Commercial Real Estate Market Size to grow by USD 384.46 billion between 2024-2028
According to a research report “ Commercial Real Estate Market” by End-user (Offices, Retail, Leisure, Industrial and others) Channel (Rental, Lease, Sales) Geography (APAC, North America, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 384.46 billion, at a CAGR of 4.36% during the forecast period. The global commercial real estate market is experiencing a surge in growth due to the increasing construction of commercial structures, including offices, warehouses, and malls. This trend is driven by the rapid industrialization and urbanization in emerging economies, such as China, Thailand, Malaysia, and Indonesia. The Middle East is also investing heavily in the construction of commercial spaces, institutional buildings, manufacturing plants, and public works. Furthermore, foreign investment in the commercial construction sector has significantly increased in India, with major US, European, and Japanese companies recognizing its potential as a lucrative market. The commercial construction industry is expected to exhibit robust growth during the forecast period, making it an attractive investment opportunity for businesses.
Browse market data tables, figures, and in-depth TOC on “Commercial Real Estate Market” by End-user (Offices, Retail, Leisure, Industrial and others) Channel (Rental, Lease, Sales) Geography (APAC, North America, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By End-user, the Offices segment is projected to dominate the market size in 2024
In the commercial real estate market, the rental segment caters to businesses seeking flexibility and cost-efficiency by leasing spaces instead of purchasing them. This segment encompasses various types of leased spaces, such as office buildings, retail outlets, and industrial facilities. Companies benefit from the flexibility to adapt to evolving business requirements and market conditions without the burden of property ownership. The rental channel is increasingly popular among startups, small businesses, and those undergoing significant changes. For instance, flexible office solutions, like those offered by WeWork, enable businesses to lease office spaces for brief durations without the obligation of long-term leases.
By Channel, Rental segment is expected to hold the largest market size for the year 2024
The global commercial real estate market is experiencing a significant surge in demand for office space, driven by evolving business practices and corporate needs. Flexible work arrangements, hybrid models, and increasing technological integration are influencing the office end-user segment's growth. To attract and retain top talent, companies prioritize contemporary, versatile, and technologically advanced work environments. Co-working spaces like Regus and WeWork, which provide flexible office solutions, are prominent examples. Leading corporations, such as Google and Amazon, are investing in innovative office designs that foster collaboration and employee satisfaction. The office segment is projected to expand substantially between 2024 and 2028, reflecting the ongoing transformation of workspaces to accommodate modern business trends.
APAC is forecasted to hold the largest market size by region in 2024
The commercial real estate market in Asia Pacific (APAC) is experiencing robust growth, primarily driven by the expansion of the industrial sector. Key contributors to this growth include China, Japan, India, South Korea, and Singapore. Notably, India is undergoing substantial development in its commercial construction sector, with China, Vietnam, and other emerging Asian economies following suit. Furthermore, international real estate development is poised to generate additional growth prospects for countries like India. For instance, in October 2021, the Jammu and Kashmir administrations entered into a Memorandum of Understanding (MoU) with the Dubai government to develop real estate projects, encompassing industrial parks, IT towers, and super-specialty hospitals.
The Commercial Real Estate Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The commercial real estate market encompasses various sectors, including multifamily, industrial, and offices. In the multifamily segment, there is a growing demand for affordable housing and modern amenities. Industrial and logistics spaces are in high demand due to the e-commerce boom and the Smart Cities Mission. Business owners are increasingly opting for flexible lease options, driving the popularity of coworking spaces and conventional offices. Real estate consultancy firms play a crucial role in guiding businesses through the complexities of the commercial real estate market. Technology development, such as Artificial Intelligence and Virtual property tours, is transforming the industry. The IT sector is a significant consumer of office spaces, with a preference for smart city locations. The retail and hospitality sectors are also adapting to changing consumer behavior, with a focus on omnichannel sales and experiential retail. The implementation of GST has brought about new challenges and opportunities for businesses. Overall, the commercial real estate market is dynamic and evolving, requiring constant adaptation to stay competitive.
Market Research Overview
The commercial real estate market is experiencing a significant shift with the evolving business landscape. Multifamily and residential properties continue to be in high demand due to the growing population and the need for affordable housing. Industrial and logistics spaces are thriving with the rise of E-commerce and manufacturing sectors. Office spaces, whether conventional or flexible like co-working spaces, are adapting to the new normal with the integration of technology such as virtual property tours, data analytics, virtual reality, and artificial intelligence. Business owners in sectors like IT, engineering, and information technology are leading the way in this digital transformation. The retail segment is undergoing a metamorphosis with the emergence of smart cities and the Smart Cities Mission. Retail and hospitality businesses are embracing technology to provide contactless services and enhance customer experience. The lease market remains stable in a stable economic environment. Start-ups are driving demand for flexible workspaces, while the hospitality sector is gradually recovering with the ongoing vaccine campaign. Developers are focusing on creating sustainable and technologically advanced properties to cater to future workplaces. The GST regime has brought transparency and ease of doing business, making India an attractive destination for commercial real estate investment.
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