Real Estate Market Expected to Reach $8.6 Trillion by 2026

According to a new report published by Allied Market Research, titled, “Real Estate Market by Property and Business: Opportunity Analysis and Industry Forecast, 2019–2026,” the global real estate market size was valued at $6.8 trillion in 2018, and is projected to reach $8.6 trillion by 2026, growing at a CAGR of 2.8% from 2019 to 2026. In 2018, by property, the land segment accrued the largest share in the global market. In addition, the expansion of the industrial infrastructure sector throughout the globe especially in emerging nations such as China and India fuels the demand for real estate. 

The real estate companies are focusing on business expansion and new projects as a strategy to increase their real estate market share. For instance, in July 2019, CBRE Group, Inc., a U.S.-based commercial real estate investment firm acquired shares of UK-based Telford Homes Plc. The acquisition aims to expand footprints in the UK and Europe. Similarly, Life House, a vertically integrated hotel company has secured around $100 million in Blue Flag Partners for its business expansion through the acquisition of additional hotels.

Furthermore, growth in urbanization and population drives the commercial and industrial sector, which in turn is expected to propel the demand for real estate in the coming years. Currently, by business, in 2018, the sales segment has garnered significant market share, owing to the expansion of the infrastructure sector in developing regions. The growth is mainly because of the growth in the demand for various properties such as residential, commercial, and industrial. Moreover, government initiatives to open up the real estate sector for foreign direct investment boost the market growth. For example, in February 2018, Government of India has approved 100% foreign direct investment in the construction development sector.

In terms of region, Asia-Pacific and Europe collectively contributed around 66.9% of shares in the global real estate market in 2018.

The key players profiled in the report include American Tower, AvalonBay Communities, Ayala Land Inc., Gecina, Link REIT, Prologis, Segro, Simon Property Group, Sinar Mas Land, and Welltower.  

Key Findings Of The Study

• The report provides an extensive analysis of the current and emerging real estate market trends and dynamics.  

• Depending on property, the land segment dominated the market of real estate, in terms of revenue in 2018 and is projected to grow at a CAGR 2.2% during the forecast period.

• By business, the sale segment led the real estate market in 2018.

• LAMEA is projected to register the highest growth rate in the coming years. 

• The key market players within the global market are profiled in this report, and their strategies are analyzed thoroughly, which help understand the competitive outlook of the real estate industry. 

• The report provides an extensive analysis of the real estate market growth and emerging opportunities of the market.  

• In-depth market analysis is conducted by constructing estimations for the key segments between 2018 and 2026. 

• The global real estate market forecast analysis from 2018 to 2026 is included in the report.