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Leading Growth Driver in the Real Estate Market in 2025: Economic Stability Fuels Real Estate Market Growth Driver's Influence
Which drivers are expected to have the greatest impact on the over the real estate market's growth?The anticipated stable economic expansion in many developed and developing nations is set to boost the growth of the real estate market. As an example, the International Monetary Fund, an American financial organization, predicted in April 2024 that the global economy is expected to keep a 3.2% growth rate in 2024 and 2025, mirroring the trajectory observed in 2023. The market growth will also be spurred by the recovery of commodity prices, following a substantial drop in the previous period. Throughout the predicted timespan, developed economies should also experience steady growth. Furthermore, it is projected that emerging markets will marginally outpace developed markets in terms of growth in the future. For instance, World Bank official stats showed that India's GDP rose to $3173.40 billion in 2021, a noticeable increase from $2667.69 billion in 2020.
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What is the future CAGR of the real estate market, and how will it impact industry expansion?
The strength of the real estate market has been evident in its substantial growth over recent years. Its size is projected to expand from $4143.71 billion in 2024 to $4466.58 billion in 2025, equating to a compound annual growth rate (CAGR) of 7.8%. Various factors have contributed to the growth witnessed in the past, including robust economic growth in burgeoning markets, enhanced demand for reasonably priced housing, favorable government initiatives, and an increase in disposable income.
The real estate market is projected to witness substantial expansion in the coming years, escalating to a worth of $5871 billion in 2029, thanks to a compound annual growth rate (CAGR) of 7.1%. The anticipated expansion over this projected period is largely due to increased spending on infrastructure, rise in population, expansion of urban areas, and dipping interest rates. Key trends predicted during this period encompass leveraging blockchain technology for easy property transfers and granting customers amplifed control over properties, utilizing data analytics to comprehend market trends, pricing and customer choices, incorporating augmented reality and virtual reality into the real estate sphere, applying artificial intelligence (AI) to aid in creating rental pricing forecasts and establish housing costs, and introducing alternative payment methods to provide customers with the option to pay their rent via credit.
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How are the latest trends influencing the growth of the real estate market?
Born between the mid-1990s and the early 2000s, Gen Z is the generation that follows millennials and is anticipated to spend more on rental services over their lifespan than any previous generation. Highly dependent on technology, Gen Z relies largely on digital platforms, the internet, and social media for purchasing decisions and lifestyle choices. Given that technology has always been a part of their lives, it's essential that real estate rental services integrate technology into leasing and marketing strategies to effectively reach this demographic in spaces where they are most active, such as apps and various online platforms. With Gen Z comprising nearly a quarter of the U.S. population, significant growth in the real estate market is expected over the five-year period from 2019 to 2023.
Which key market segments comprise the real estate market and drive its revenue growth?
The real estate market covered in this report is segmented -
1) By Type: Real Estate Rental, Real Estate Agency And Brokerage
2) By Mode: Online, Offline
3) By Property Type: Fully Furnished, Semi Furnished, Unfurnished
Subsegments:
1) By Real Estate Rental: Residential Rental, Commercial Rental, Industrial Rental, Vacation Rentals
2) By Real Estate Agency And Brokerage: Residential Brokerage, Commercial Brokerage, Industrial Brokerage, Property Management Services
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What regions are at the forefront of real estate market expansion?
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
Who are the leading players fueling growth in the real estate market?
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
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What Is Covered In The Real Estate Global Market Report?
• Market Size Forecast: Examine the real estate market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the real estate market for a structured understanding.
• Key Players Overview: Analyze major players in the real estate market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the real estate market.
• Segment Contributions: Evaluate how different segments drive overall growth in the real estate market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the real estate market.
• Industry Challenges: Identify potential risks and obstacles affecting the real estate market.
• Competitive Landscape: Review strategic developments in the real estate market, including expansions, agreements, and new product launches.
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