Residential Real Estate Market Registering a CAGR of 9.0% from 2020 to 2027 |Region North America, Asia-Pacific, LAMEA

Market is poised for significant growth over the next few years, driven by factors such as urbanization, supportive government policies, and population growth

WILMINGTON, DE, UNITED STATES, January 14, 2025 /EINPresswire.com/ — According to a recent report by Allied Market Research titled “Residential Real Estate Market by Budget and Size: Opportunity Analysis and Industry Forecast, 2020–2027,” the global residential real estate market was valued at $8,567.4 billion in 2019. The market is projected to grow significantly, reaching $12,182.1 billion by 2027, with a compound annual growth rate (CAGR) of 9.0% during the forecast period. In 2019, properties priced below $300,000 dominated the market, followed by those in the $300,001 to $700,000 price range.

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The residential real estate market primarily comprises revenue generated from the buying and selling of various types of residential properties, including mini-flats, studio apartments, bungalows, and villas. The market’s growth is driven by multiple factors, including increased urbanization in developing nations, population growth, and supportive government policies. For instance, initiatives like the Golden Visa program, low-interest housing loans, and affordable housing schemes have played a vital role in boosting demand.

Urbanization, especially in emerging economies, has significantly contributed to the growth of the residential real estate sector. As people migrate from rural to urban areas in search of better employment opportunities and improved living standards, the demand for residential properties continues to rise. Moreover, governments across various countries have introduced policies and incentives aimed at facilitating homeownership. These include tax benefits, reduced interest rates on housing loans, and schemes promoting the construction of affordable housing units.

Despite the positive growth drivers, the residential real estate market faces several challenges. One significant issue is the over-construction of residential properties in developed countries, leading to a supply-demand imbalance and market saturation. This oversupply has resulted in stagnant property prices in certain regions, reducing profitability for real estate developers and investors.

Furthermore, the COVID-19 pandemic created substantial disruptions in the residential real estate market. Nationwide lockdowns and restrictions on movement halted construction activities, delayed project completions, and impacted property transactions. The uncertainty caused by the pandemic also led to a temporary dip in consumer confidence, affecting new property purchases.

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Nevertheless, several countries are taking proactive steps to revitalize their real estate markets. For example, South Korea is expanding cities like Gangnam and Gangbuk, with large-scale urban development projects aimed at accommodating the growing population and enhancing urban living standards. Such initiatives are expected to drive the residential real estate market’s growth in the coming years.

The report categorizes the residential real estate market based on budget and size. By budget, the market is segmented into the following price brackets:

Less than $300,000

$300,001 to $700,000

$700,001 to $1,000,000

$1,000,001 to $2,000,000

More than $2,000,000

On the basis of property size, the market is classified into:

Less than 50 square meters

51 to 80 square meters

81 to 110 square meters

111 to 200 square meters

More than 200 square meters

In 2019, properties priced below $300,000 accounted for the largest share of revenue in the residential real estate market. This trend reflects the high demand for affordable housing, particularly in developing regions where budget constraints are a significant consideration for homebuyers. Similarly, by size, residential units measuring less than 50 square meters generated the highest revenue in 2019, indicating a preference for smaller, more affordable living spaces among buyers.

The report also highlights key players operating in the residential real estate market. These include:

Arabtec Holding

Christie’s International Real Estate

Coldwell Banker Real Estate LLC

DLF Limited

Engel & Völkers AG

Hochtief Corporation

IJM Corporation Berhad

Lennar Corporation

PulteGroup, Inc.

Raubex Group Limited

Savills plc

Sotheby’s International Realty Affiliates LLC

Sun Hung Kai Properties Limited

Vinci

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These companies play a pivotal role in shaping the global residential real estate landscape by engaging in large-scale development projects, offering diverse property portfolios, and implementing innovative marketing strategies. Strategic partnerships, mergers, and acquisitions are common among these key players as they strive to expand their market presence and enhance profitability.

In conclusion, the residential real estate market is poised for significant growth over the next few years, driven by factors such as urbanization, supportive government policies, and population growth. While challenges such as market saturation in developed regions and the lingering impact of the COVID-19 pandemic remain, ongoing urban development initiatives and increasing demand for affordable housing are expected to create lucrative opportunities for industry players. The market’s segmentation by budget and size further highlights the diverse range of opportunities available to developers, investors, and homebuyers alike.

David Correa
Allied Market Research
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