Market Research Report on Global Real-estate Market 2022
Report Overview
The value of the global real estate industry is projected to rise from $3.69 trillion in 2021 to $5.2% CAGR from 2022 to 2030. Due to the growing worldwide population and the resulting need for private living spaces, the market is expected to grow strongly during the projected period. In 2021, it was anticipated that the commercial real estate segment would be the main growth engine for the sector.
The spread of COVID-19 has hindered business growth. Due to lockdown procedures and movement limitations, the pandemic’s impacts were mostly seen in the retail industry during the first several months of the crisis. Due to the extensive shutdowns, construction projects had to be delayed, and the economy expanded less quickly than anticipated.
Despite a significant drop in real estate transactions due to the pandemic, activity in the real estate market started to pick up and finally returned to pre-pandemic levels. The number of individuals trying to purchase a home has increased, which has also helped the real estate market grow. According to the National Association of Realtors, pending sales in American urban areas increased by around 30% by August 2020 after declining by more than 30% in April 2020.
The effect of the internet has also increased clients’ familiarity with online real estate services. Live-streaming rooms are only one of the many services the industry’s top rivals give in their struggle for market supremacy. Alibaba claims that more than 5,000 real estate agents in more than 100 Chinese cities use live-streaming rooms to allow potential clients to see properties and make deals without ever having to leave the comfort of their own homes.
Additionally, certain government initiatives would be anticipated to help the business grow. The Indian federal government and several state governments have put in place a variety of industries to promote industrial development. The Smart City Project seeks to create 100 smart communities and presents an opportunity for real estate investors.
The Indian real estate market significantly increased when the Reserve Bank of India (RBI) announced in October 2021 that the benchmark interest rate would be maintained at 4%. As a direct consequence of low-interest rates on house loans, home sales are anticipated to climb by 35% to 40% in the winter of 2020–21. These efforts will cause the market to expand more quickly.
Forecasts for the size of the world's real estate market from 2022 to 2030
(in billion U.S. dollars)
According to research by Next Move Strategy, the global real estate industry generated 9.5 billion dollars in revenue in 2021 and is expected to grow at a CAGR of 4.8 percent between 2021 and 2030. The global economy is predicted to recover from the coronavirus (COVID-19) pandemic by 2030, leading to increased industrial and commercial infrastructure demand. By 2030, the real estate industry will be worth 14.6 billion US dollars. The residential real estate market saturation in certain cities and nations and increasing government expenditure on infrastructure development are other variables expected to influence how the market develops.
Market Dynamics
Drivers
- Upsurge in Public-Private Partnerships (PPPs)
- The construction of buildings is growing
- Urban Population Growing
Restraints
- People are being deterred from purchasing new properties by rising interest rates since doing so makes them more costly and often pushes the price out of their price range.
- The growing quantity of home developments is significantly impacting the costs.
- Prices are soaring due to the rising demand for basic commodities. For instance, steel costs jumped by 100% in only two years compared to 2020.
- The supply chain has been harmed by Covid, which has caused a gap between supply and demand.
Regional Insights
With a share of 52.6% in 2021, Asia Pacific controlled the bulk of the market. The increase is mostly attributable to rising homeownership rates in the area. Estimates indicate that China has more than 64.8% of the market share in the area. The rise of the local industry is also anticipated to be aided by the rising number of tourists from developing countries like India, the Philippines, Indonesia, Thailand, and Vietnam.
Middle East & Africa is projected to have a CAGR of 6.3% between 2022 and 2030. The increase is mostly related to the country’s expanding residential and commercial project pipeline. For instance, the Middle East Construction Pipeline Trend Report estimates that there will be 545 hotel projects totaling 168,042 rooms in the third quarter of 2021. In addition, Durrat Marina and Tamcoon inked a contract in July 2021 to construct 18 private villas in Bahrain.
Key Companies & Market Share Insights
A small number of well-established businesses and recent newcomers define the market. Many major companies are concentrating more on the escalating real estate trend. To preserve their market share, competitors are broadening the services they provide.
The market is distinct since it is made up of both established businesses and a few recent entrants. Many big companies are paying attention to the growing real estate trend. To preserve their market share, competitors in the space are broadening their service portfolio.
The following are some notable participants in the global real estate market:
World's top public real estate businesses by market value in 2022
(in billion U.S. dollars)
The Canadian corporation Brookfield Asset Management, the biggest office landlord in both London and downtown Los Angeles and controls Canary Wharf in London and Potsdamer Platz in Berlin, came in first on the list in 2022 with a market value of 81 billion US dollars. Even though Prologis has the highest market value, it came in at 524.
Question and Answers
The global market for automated breast ultrasound was expected to be worth $1.34 billion in 2019 and to grow to $1.54 billion by 2020.
Due to the growing worldwide population and the resulting need for private living spaces, the market is expected to grow strongly during the projected period.
Upsurge in Public-Private Partnerships (PPPs)
The construction of buildings is growing
Urban Population Growing
People are being deterred from purchasing new properties by rising interest rates since doing so makes them more costly and often pushes the price out of their price range.
The growing quantity of home developments is significantly impacting the costs.
Prices are soaring due to the rising demand for basic commodities. For instance, steel costs jumped by 100% in only two years compared to 2020.
The supply chain has been harmed by Covid, which has caused a gap between supply and demand.
The Canadian corporation Brookfield Asset Management, the biggest office landlord in both London and downtown Los Angeles and controls Canary Wharf in London and Potsdamer Platz in Berlin, came in first on the list in 2022 with a market value of 81 billion US dollars. Even though Prologis has the highest market value, it came in at 524.