Real Estate Market Report 2025

The real estate market size has grown strongly in recent years. It will grow from $4.14 trillion in 2024 to $4.46 trillion in 2025 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to strong economic growth in emerging markets, increased demand for affordable housing, government initiatives and rise in disposable incomes.

The real estate market size is expected to see strong growth in the next few years. It will grow to $5.87 trillion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to increasing investments in infrastructure, an increasing population, increasing urbanization and fall in interest rates. Major trends in the forecast period include focus on use of blockchain for easy transferability and greater customer control over property, use of data analytics to gain insights into market trends, pricing, and customer preferences, integration of augmented reality and virtual reality in real estate, use of artificial intelligence (AI) technology that assists in developing projections for rental prices and determining house prices, and alternative payment methods to offer customers the ability to pay their rent on credit.

The growth of the real estate market is expected to be supported by stable economic growth forecasted in many developed and developing countries. For instance, in April 2024, the International Monetary Fund, a US-based financial agency, projected that the global economy would maintain a growth rate of 3.2% in 2024 and 2025, consistent with the pace observed in 2023. Recovering commodity prices, following a significant decline in the historical period, are also anticipated to contribute to market growth. Developed economies are expected to experience stable growth during the forecast period, while emerging markets are projected to grow slightly faster than developed markets. For example, official data from the World Bank indicated that India's GDP increased to $3.17 trillion in 2021, up from $2.66 trillion in 2020.

The growing demand for construction activities is expected to drive the growth of the real estate market in the future. The construction industry encompasses a wide range of activities related to the construction, alteration, and repair of buildings, infrastructure, and industrial facilities. The real estate sector offers a steady stream of opportunities and projects for the construction industry, supporting its growth, innovation, and sustainability. For example, in December 2022, Stats NZ Tatauranga Aotearoa, a New Zealand-based government data agency, reported that building activities increased by 3.8% in September 2022. Additionally, residential building activity rose by 3.1% in the September 2022 quarter, while non-residential building activity grew by 4.9%. Therefore, the increasing demand for construction activities is driving the growth of the real estate market.

Gen Z, born between the mid-1990s and early 2000s, represents the subsequent generation of renters following the millennials, and they are anticipated to surpass other generations in lifetime spending on rental services. Being highly tech-dependent, Gen Z relies extensively on the internet and social media for making purchasing and lifestyle decisions. Given their lifelong exposure to technology, real estate rental services must integrate technology into leasing and marketing campaigns to effectively engage with Gen Z on platforms where they are most active, such as apps, social media, and other online sources. With Gen Z constituting almost a quarter of the U.S. population, the real estate market is poised for growth from this generation in the five-year period from 2019 to 2023.

Prominent companies in the real estate sector are incorporating artificial intelligence (AI)-powered tools such as the MLS Suite to deliver reliable services to customers. The MLS Suite, equipped with AI-powered tools, aims to offer more detailed and accurate property information, facilitating the property search process for potential buyers. For example, in September 2022, Restb.ai, a Spain-based computer vision provider for real estate, introduced the MLS Suite for Multiple Listing Services in the field of AI in real estate. These AI-powered tools were designed to automate the listing entry process, enhance user safety on IDX and VOW websites, and enrich and elevate the value of MLS data. Key solutions provided by the MLS Suite include AI tagging, compliance, MLS match, and property descriptions.

Major companies operating in the real estate market include Xiamen C&D, Brookfield Asset Management Inc., Mitsui Fudosan Co., Ltd, Sun Hung Kai Properties Limited, Anywhere Real Estate Inc. (Realogy Holdings Corp), Daito Trust Construction Co., Ltd., Prologis, Inc., Berkshire Hathaway Inc., SIMON PROPERTY GROUP Inc, DLF Limited, Godrej Properties Limited, Oberoi Realty Limited, Brigade Enterprises Limited, Mitsubishi Estate Co., Ltd, Sumitomo Realty & Development Co., Ltd, Nomura Real Estate Holdings, Inc, Sekisui House, Ltd, Samsung C&T Corporation, Lotte E&C Co., Ltd, Hyundai Engineering & Construction Co., Ltd, GS Engineering & Construction Corp, Daewoo Engineering & Construction Co., Ltd, Lendlease Group, Mirvac Group, Stockland Corporation Limited, China Vanke Co., Ltd, Country Garden Holdings Co., Ltd, China Resources Land Limited, Sunac China Holdings Limited, Evergrande Group, Mra Group, Vonovia SE, GSW Immobilien AG, Sedlmayr Grund, SEGRO plc, Savills, Knight Frank, BNP Paribas Real Estate, Grainger plc, Hamilton May, Griffin Real Estate, Dom Development SA, Develia SA, Echo Investment SA, Capital Park SA, Archicom SA, Cavatina Holding Spólka Akcyjna, JLL, Colliers, DTZ, Lennar Corporation, Dream Finders Homes, Kilroy Realty Corporation, Archway Equities, Realty Income Corporation, Recnation Storage, Rexford Industrial Realty, Quinn Residences, Prolific Group, JHSF Participações, Iguatemi S.A, Even, PDG S.A, Camargo Corrêa Desenvolvimento Imobiliário, MRV Engenharia e Participações SA, Cyrela Brazil Realty, Gafisa, Tenda, IRSA, TGLT, SalfaCorp, Paz Corp, Azrieli Group, Alony Hetz Properties & Investments Ltd, Africa Israel Investments, Elco Holdings Ltd, Delek Real Estate, Emaar Properties, Aldar Properties, Dubai Properties, DAMAC Properties, Nakheel Properties, Jabal Omar Development Company, Dar Al Arkan Real Estate Development Company, Ewaan Global Residential Company, Al Akaria Saudi Real Estate Company, Alandalus Property Company, Talaat Moustafa Group (TMG), Palm Hills Developments, SODIC, Hassan Allam Properties, Iwan Developments, Orascom Development Egypt, Growthpoint Properties, Redefine Properties, Hyprop Investments, Vukile Property Fund, Resilient REIT, Attacq Limited, Emira Property Fund, UPDC Real Estate Investment Trust, Mixta Real Estate, Adron Homes and Properties Limited, Grenadines Homes.

Asia-Pacific was the largest region in the real estate market in 2024. North America was the second-largest region in the real estate market. The regions covered in the real estate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the real estate market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The real estate market consists of revenues earned by entities that are engaged in providing services such as residential buildings and dwellings rental, non-residential buildings rental services, non-residential buildings rental services, mini-warehouses, and self-storage unit rental services. The real estate market includes establishments such as builders, developers, lessors of real estate, and property management companies. This market also includes managing, selling, renting, buying, and appraising real estate for others. 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.

Real estate encompasses the activities of constructing, renting, purchasing, and selling both residential and commercial properties. Developers generate profits by enhancing the value of land through the creation of buildings, improvements, and rezoning. Real estate agencies play a crucial role in guiding buyers through the intricacies of all associated paperwork.

The primary categories within real estate include real estate rental, real estate agency, and brokerage. Real estate rental, also known as hiring or letting, involves a contractual arrangement where a fee is paid for the temporary use of a good, service, or property owned by someone else. This process can be conducted through various modes, including online and offline, and encompasses different property types such as fully furnished, semi-furnished, and unfurnished.

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

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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