Residential Real Estate Market Size to grow by USD 482.1 billion between 2024-2028
According to a research report “ Residential Real Estate Market” by Mode Of Booking (Sales, Rental/Lease) Type (Apartments and condominiums, Landed houses and villas) 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 482.1 billion, at a CAGR of 4.6% during the forecast period. The global residential real estate market is experiencing significant growth due to an increasing construction of various residential structures, including single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences. This trend is driven by urbanization and rising standards of living in emerging economies such as India, China, Thailand, Malaysia, and Indonesia. Furthermore, the concept of integrated living is gaining popularity, with home buyers investing in modern residential projects offering amenities like shopping malls with cinemas, schools, hospitals, leisure clubs, office blocks, and parks, as they seek a more self-sufficient and secure living environment. The residential construction industry is poised for robust growth during the forecast period.
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By Mode Of Booking, the Sales segment is projected to dominate the market size in 2024
The global residential real estate market in 2023 was predominantly driven by the sectors of apartments and condominiums, collectively holding the largest market share. Condominiums, characterized by individual unit ownership, accounted for a significant portion of this market. Notably, condominiums are typically large property complexes, with each unit owned by its respective resident. This ownership extends to a nonexclusive interest in common property managed by the condominium association. In contrast, apartments are rented properties. Condominiums, particularly residential high-rises, offer housing solutions for numerous families and will continue to dominate the residential real estate landscape throughout the forecast period.
By Type, Apartments and condominiums segment is expected to hold the largest market size for the year 2024
The residential real estate market's sales segment holds a significant market share and is projected to remain dominant throughout the forecast period. This segment encompasses the sale of properties primarily used for residential purposes, including single-family homes, condominiums, cooperatives, duplexes, townhouses, and multifamily residences. The escalating population and urbanization trends fuel the demand for housing, thereby driving the growth of the sales segment. Real estate firms play a pivotal role in this market by collaborating with developers to sell completed buildings and units. These firms generate revenue by producing marketing materials and leveraging their sales agents to market and sell the inventory of finished properties.
APAC is forecasted to hold the largest market size by region in 2024
As a seasoned virtual assistant, I'm pleased to provide insights into the current state of the residential real estate market. Home sales have shown a steady uptick, with significant growth in certain regions. Mortgage rates remain historically low, bolstering buyer demand. Investors are actively seeking opportunities, particularly in the affordable housing sector. Overall, the market presents a promising landscape for both buyers and sellers.
The Residential 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 residential real estate market in India has witnessed significant developments in the past fiscal year, with new housing units and residential construction playing a pivotal role. The IMF has projected India's GDP growth rate to rebound to 11.5% in 2022, driven by a recovering economy and population growth. This economic expansion is essential support for the housing market, as discerning buyers seek spacious accommodations in real terms. However, macroeconomic headwinds such as inflation and fiscal pressures remain key challenges. The RBI's efforts to curb inflation through monetary policy have kept inflation in check, but nominal home sales have been impacted. The purchasing power of the Indian population, influenced by the currency's value and economic fundamentals, also affects the market. The luxury residential segment, with its premium property launches, has shown resilience despite these challenges. The CBRE India Real Estate Market Outlook 2022 reports that the demand for high-end properties remains strong, driven by the growing affluence of the Indian population. Overall, the housing market continues to be a significant economic factor, with potential for growth in the face of macroeconomic headwinds.
Market Research Overview
The residential real estate market is a significant business model for financiers, particularly in urban areas where supply shortages persist. Construction technology and affordable housing growth are critical inputs, with USD 1 trillion in new housing units expected by 2030. However, critical input costs, such as labor and materials, have led to price increases, causing financial stress for homebuyers. Developers are exploring cutting-edge strategies like home automation and larger homes to meet the changing consumer sentiment. Sales growth in the home ownership market is positive, with low prices offering a lifestyle upgrade for many. However, economic fundamentals like interest rates, inflation, and regulatory reforms are essential support for the housing market's recovery. Investment opportunities exist in underconstruction properties, REITs, and rental cash flow. Traditional options like traditional options like traditional real estate investments offer a low-risk method for investors. However, the inventory overhang of unsold residential properties and foreign homebuyers' decreased activity due to economic headwinds pose challenges. The economy's economic foundations, including population growth, GDP per capita, and purchasing power, impact the housing market in real and nominal terms. The RBI's monetary policy and managing expectations while educating customers are crucial to managing macroeconomic headwinds. The housing market's recovery depends on the housing market's ability to adapt to the economic fundamentals and changing consumer preferences. In conclusion, the residential real estate market's business model is evolving, with a focus on affordability, technology, and consumer preferences. Developers, financiers, and investors must manage expectations and adapt to economic factors, regulatory reforms, and changing consumer sentiment to succeed in this market.
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