Real Estate Loan Market Report 2024

This Real Estate Loan market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

The real estate loan market size has grown rapidly in recent years. It will grow from $9.86 trillion in 2023 to $11.05 trillion in 2024 at a compound annual growth rate (CAGR) of 12.1%. The growth observed during the historic period can be attributed to several factors such as economic cycles, regulatory changes, fluctuations in interest rates, housing market trends, demographic shifts, technological advancements, and global financial crises.

The real estate loan market size is expected to see rapid growth in the next few years. It will grow to $17.54 trillion in 2028 at a compound annual growth rate (CAGR) of 12.2%. The projected growth during the forecast period can be attributed to several factors such as evolving consumer preferences, sustainability mandates, digital transformation in banking, geopolitical stability, infrastructure investments, and pandemic recovery strategies. Key trends expected to shape this period include a rising demand for sustainable and green financing options, increasing adoption of digital mortgage processes, changes in residential property preferences due to remote and flexible work, expansion of co-living and co-working spaces, and innovations in property technology (prop-tech) impacting property valuations.

The growth of the real estate loan market is anticipated to accelerate due to the rising foreign investment in real estate. Foreign investment in real estate, which involves property purchases by individuals or entities from other countries, is driven by favorable market conditions, attractive returns, and the desire for asset diversification. Real estate loans support these foreign investors by providing the necessary capital to acquire property, facilitating market entry, and expanding their portfolios. For example, according to the National Association of Realtors, foreign buyers spent $59 billion on existing homes in the U.S. from April 2021 to March 2022, reflecting an 8.5% increase compared to the previous year. This trend underscores the role of growing foreign investment in advancing the real estate loan market.

Major players in the real estate loan market are advancing digital financing platforms to enhance and streamline the loan application and approval processes. Digital financing platforms, which leverage technology to manage and deliver financial services online, aim to improve efficiency, accessibility, and the overall user experience. For instance, in May 2024, L&T Finance Ltd., a non-banking financial company based in India, introduced The Complete Home Loan. This product targets new home buyers seeking loans for both under-construction and ready properties and offers the option to finance up to 15% of the total home loan amount, with a cap of ₹75 lakh and a repayment period of up to 10 years. Key features include paperless processing, simplified documentation, competitive interest rates, and high service standards.

In December 2022, U.S. Bancorp, a U.S.-based financial services firm, acquired MUFG Union Bank from Mitsubishi UFJ Financial Group Inc. for an undisclosed amount. This acquisition is expected to expand U.S. Bancorp’s business, enhance operational efficiencies, and improve customer services on the West Coast of the United States. MUFG Union Bank, a provider of asset-based lending including real estate, will now be integrated into U.S. Bancorp’s operations.

Major companies operating in the real estate loan market are JPMorgan Chase & Co., Bank of America Corporation, Citigroup Inc., U.S. Bank, The PNC Financial Services Group Inc., Fairway Independent Mortgage Corporation, HomeBridge Financial Services, Caliber Home Loans Inc., New American Funding LLC, Navy Federal Credit Union, loanDepot.com LLC, Guild Mortgage Company, Flagstar Bank N.A., Movement Mortgage, Carrington Mortgage Services LLC, Embrace Home Loans Inc., Northpointe Bank, Sierra Pacific Mortgage Company Inc., PrimeLending, Regions Bank, Rocket Mortgage.

North America was the largest region in the real estate loan market in 2023. The regions covered in the real estate loan market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the real estate loan market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A real estate loan, commonly known as a mortgage, is a financial arrangement in which a lender provides funds to a borrower to purchase, build, or refinance real estate. This loan enables the acquisition or enhancement of property without requiring the full payment upfront, offering a structured approach to managing property costs by spreading payments over time. This makes substantial real estate investments more affordable and manageable.

Real estate loans cover various property types, including hotels, retail spaces, industrial facilities, office buildings, residential properties, and more. Banks, as financial institutions, offer these loans and other financial services to both individuals and businesses. Regulated entities, banks accept public deposits and utilize these funds to extend credit, including real estate loans. These loans are provided by a range of sources, including banks, non-banking financial institutions, and other providers, and are utilized by diverse end-users such as businesses and individuals.

The real estate loan market research report is one of a series of new reports that provides real estate loan market statistics, including the real estate loan industry global market size, regional shares, competitors with real estate loan market share, detailed real estate loan market segments, market trends, and opportunities, and any further data you may need to thrive in the real estate loan industry. This real estate loan market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The real estate loan market includes revenues earned by entities by providing services such as property development, investment financing, cash flow management, and property renovation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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