Condominiums & Apartments Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Condominiums & Apartments Market is projected to expand from USD 1.30 billion in 2025 to USD 1.92 billion by 2031, reflecting a CAGR of 6.74%. These residential units, characterized by individual ownership or rental rights within shared structures featuring common amenities, are seeing increased demand due to rapid urbanization and their cost-effectiveness relative to detached single-family homes. Changing demographics, particularly a shift toward smaller household sizes, further support the trend toward centrally located living arrangements. Data from the National Association of Realtors indicates that in December 2024, the median price for existing condominiums and co-ops in the United States rose to $359,000, marking a 4.5 percent annual increase.

However, the market faces significant headwinds from a global environment of high interest rates. Rising borrowing costs are straining developer liquidity and reducing affordability for potential buyers, creating immense pressure on the sector. This financial burden has led to delays in new project starts and a decline in sales volumes as investors and prospective homeowners withdraw due to prohibitive debt service costs. Consequently, the combination of expensive financing and reduced purchasing power is dampening market activity and slowing the progression of new developments.

Market Drivers

A major catalyst for market expansion is the surge in institutional investment within residential real estate, as pension funds, private equity firms, and insurance companies aggressively target the build-to-rent and multifamily sectors. This influx of capital is motivated by the asset class's ability to resist inflation and provide stable, long-term returns, offering a favorable alternative to the volatility seen in commercial office markets. These substantial funds are supporting both the acquisition of current assets and the financing of new developments in high-growth regions. According to CBRE's 'Multifamily Rent Growth Decelerates as Vacancy Rises' report from October 2025, multifamily investment volume in the United States grew by 7.5 percent year-over-year, reaching $108 billion in the first three quarters of 2025.

Concurrently, rapid urbanization and migration toward metropolitan centers are intensifying the demand for apartments and condominiums, especially in economic hubs where land shortages necessitate vertical construction. As populations flock to major cities for jobs and lifestyle benefits, the strain on limited housing inventory drives up rental and occupancy rates, reinforcing the need for high-density living solutions. In Dubai, residential rents surged by a record 23.5 percent in 2024 due to population growth and international migration, as noted in Savills' February 2025 'Prime Residential Index: World Cities' report. This pattern of capital chasing supply-constrained urban markets is global, with JLL’s January 2025 'European Living Market Perspectives 2025' report highlighting that investment in European living real estate increased by 19 percent in 2024 to approximately €53 billion.

Market Challenges

The prevailing high interest rate environment stands as the primary obstacle to the growth of the Global Condominiums & Apartments Market, creating substantial financial hurdles for both supply and demand. Elevated borrowing costs increase the capital required for land acquisition and construction, directly impacting developers' bottom lines. As debt service obligations reach prohibitive levels, developers encounter liquidity issues that necessitate the delay or cancellation of planned projects. This stagnation in construction restricts the pipeline of new inventory, preventing the market from meeting urbanization demands and limiting the availability of modern high-density housing in major metropolitan areas.

Furthermore, this tight monetary landscape severely undermines purchaser affordability, leading to a contraction in transaction volumes. Prospective buyers are often forced to exit the market or postpone decisions as high mortgage rates drastically diminish their purchasing power. This slowdown is reflected in construction data; the National Association of Home Builders reported that multifamily starts fell by 25 percent in 2024 compared to the prior year, driven by strict lending conditions and high development costs. This significant decline in new project commencements illustrates how elevated interest rates perpetuate a cycle of reduced supply and suppressed investment that fundamentally restricts market expansion.

Market Trends

The adaptive reuse of commercial and office buildings for residential living is becoming a key strategy to mitigate housing shortages in dense urban environments. With remote work patterns enduring, developers are repurposing underutilized office structures into residential units to leverage existing infrastructure and reduce the environmental footprint associated with new construction. This approach revitalizes central business districts and increases the supply of modern apartments in constrained markets, serving as a practical alternative to ground-up developments limited by land scarcity. A July 2024 report by RentCafe titled 'Future of Adaptive Reuse' notes that the United States pipeline for converting commercial spaces into apartments has reached 151,000 units, highlighting a major shift toward repurposing legacy assets.

Simultaneously, the integration of smart home ecosystems and IoT-enabled features is redefining tenant expectations and operational efficiency within the sector. Property managers are implementing interconnected devices, such as automated lighting, keyless entry systems, and smart thermostats, to improve security and optimize energy usage. This digital infrastructure facilitates remote asset management and predictive maintenance, which are essential for sustaining net operating income and ensuring tenant retention in a competitive market. According to the National Multifamily Housing Council's January 2024 'Renter Preferences Survey Report', 86 percent of respondents cited reliable digital connectivity and high-speed internet as crucial home features, compelling developers to prioritize advanced technological capabilities in residential communities.

Key Players Profiled in the Condominiums & Apartments Market

• American Campus Communities, Inc.
• Greystar Real Estate Partners, LLC
• CBRE Group, Inc.
• Keller Williams Realty, Inc.
• D.R. Horton, Inc.
• Lennar Corporation
• The Related Companies, L.P.
• Brookfield Asset Management Inc.
• UDR, Inc.
• Veris Residential, Inc.

Report Scope

In this report, the Global Condominiums & Apartments Market has been segmented into the following categories:

Condominiums & Apartments Market, by Property Type:

• Luxury Residential
• Mid-range
• Affordable

Condominiums & Apartments Market, by Application:

• Urban
• Suburban
• Rural

Condominiums & Apartments Market, by End User:

• Property Owner-Occupants
• Investors
• Corporate Buyers

Condominiums & Apartments Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Condominiums & Apartments Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.