Real Estate Loan Market Outlook – 2030
The global real estate loan market size was valued at $7,968 billion in 2020, and is projected to reach $23,121 billion by 2030, growing at a CAGR of 11.3% from 2021 to 2030.
Real estate loan is a type of lending services that offers money to purchase new real estate properties such as land or home to end users. It helps individuals and businesses to purchase real estate properties without giving entire buying price upfront. The borrower repays the loan amount and interest up to specified number of years. In addition, increase in adoption of real estate loan services among businesses and individuals for several purposes such as purchasing new lands, buying new homes, and constructing new buildings propels growth of the market globally. Furthermore, several leading financial service providers such as Wells Fargo & Company across the U.S. have started real estate loan comparing platform to offer affordable lending services to businesses, which drives growth of global real estate loan market.
Growth in need to streamline real estate lending services and increase in need for money among businesses and individuals to purchase real estate boost growth of the global real estate loan market. In addition, flexible period to repay the loan amount in real estate loan service positively impacts the real estate loan market growth. However, factors such as enforcement of strong rules by banks and financial institutions for providing loan services is expected to hamper the market growth. On the contrary, rise in prices of real estate properties in China, Japan and India, and adoption of metropolitan cities across the globe are expected to offer remunerative opportunities for expansion of the real estate loan market during the forecast period.
Based on providers, the global real estate loan market is fragmented into banks, non-banking financial institutions and others. The banks segment dominated the market in 2020 owing to less interest rate provide by the banks and easy installment process as compared to other service providers. However, the non-banking financial institutions is expected to witness significant growth rate during the forecast period, owing to growing various advanced features provided by NBFC’s to their client which include flexibility, more personalized services, and fast loan disbursement process.
Region wise, the real estate loan market share was dominated by North America in 2020, and is expected to retain its position during the forecast period. This is attributed to most of banks and financial institutions across the U.S. and Canada offering affordable lending service to end users. However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to increase in penetration of new loan service providers across the China, Japan, and India.
The report focuses on growth prospects, restraints, and trends of global real estate loan market analysis. The study provides porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on global market.
Segment Review
The global real estate loan market is segmented on the basis of provider, end-users, property type and region. By providers, the market is divided into banks, non-banking financial institutions and others. By end user, the market is divided into business and individuals. By property type, it is categorized as hotels, retail, industrial, office, residential and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Competitive Analysis
The key players operating in the global real estate loan market industry Bank of America Corporation., JPMorgan Chase & Co., Lendio, Liberty SBF, Northeast Bank, Santander Bank, N. A., SmartBiz, The PNC Financial Services Group, Inc., U.S. Bank and Wells Fargo. These real estate loan companies have adopted various strategies to increase their market penetration and strengthen their foothold in the real estate loan market industry.
By Provider
Banks segment accounted for the highest market share in 2020.
Top Impacting Factors
Streamlined Real Estate Lending Service
Leading real estate lending providers such as Bank of America Corporation, Wells Fargo and U.S. Bank have been offering hassle free property loan services, which accelerates growth of the market across the globe. In addition, increase in adoption of digital lending technology among banks to improve loan distribution services is considered as an important factor for growth of the market. Moreover, increase in adoption of artificial intelligence and machine learning technology among banks as it offers several benefits such as immediately calculating optimum loan repay time-based on relevant user risk factors drives growth of the market. Furthermore, lending service company have been using analytical technologies to monitor loan applications in week, month, quarter, and year and to allocate suitable supporting resources to provide accommodations seasonal demands. This all factors are contributing to streamline the real estate lending service, which propels the growth of the market across the globe.
Increase in Need for Money Among Businesses and Individuals to Purchase Real Estate
Property lending company offers financial support to business owners to purchase new land and building that boost adoption of real estate loan among business owners. In addition, several business owners across China, Japan, and India have been searching new loan services to sustain their businesses by constructing new buildings, which drives growth of the real estate loan market. Moreover, increase in competition among business owners to purchase new properties and growth in need for money to purchase new properties among businesses accelerate growth of the market globally. Furthermore, most employees are showing more interest in purchasing new homes or lands, which requires money to buy real estate properties. Thus, increase in need for money among individuals to purchase home or land is considered as an important factor for growth of the market globally.
By Region
Asia-Pacific would exhibit the highest CAGR of 17.4% during 2021-2030
Report Coverage & Deliverables
The report examines the real estate loan market, focusing on loan policies, services, and technological advancements. It covers market size, growth projections, regulatory impacts, real estate loan challenge and emerging trends within the real estate loan domain.
Type Insights
Real estate loan policies are designed to provide tailored financing solutions for residential, commercial, and industrial properties. These loans are critical for property acquisition and development across the real estate sector.
Technology Insights
Technological innovations such as AI-driven risk assessment tools and digital lending platforms are accelerating real estate loan adoption. Automation in loan processing ensures faster approvals and reduced paperwork, which drive the real estate loan growth.
Application Insights
Real estate loan shares are widely applied in residential and commercial property purchases. The residential sector holds the majority share, driven by increased homeownership demand, while commercial loans are expanding in urban development.
Regional Insights
North America leads the real estate loan value, supported by high property investments and favorable interest rates. Asia-Pacific is witnessing rapid growth due to increasing urbanization and real estate development in emerging markets.
Key Companies & Market Share Insights
Leading real estate loan companies include Wells Fargo, JPMorgan Chase, and Bank of America, which dominate through comprehensive loan offerings. Emerging players are leveraging technology to provide more flexible lending options.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global real estate loan market forecast along with the current trends and future estimations to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on the global real estate loan market is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the real estate loan industry.
- The quantitative analysis of the real estate loan market trends from 2021 to 2030 is provided to determine the market potential.
Real Estate Loan Market Report Highlights
| Aspects | Details |
 By Region |
|
 By PROVIDERS |
|
 By END USER |
|
 By PROPERTY TYPE |
|
 Key Market Players | BANK OF AMERICA CORPORATION, WELLS FARGO, NORTHEAST BANK, LENDIO, JPMORGAN CHASE AND CO, LIBERTY SBF, THE PNC FINANCIAL SERVICES GROUP, INC, SMARTBIZ, SANTANDER BANK, N A, US BANK |
Analyst Review
Adoption of real estate loan has increased over the years, owing to rise in costs of real estates and growth in need of buying properties among general public. Moreover, with low interest rates of real estate loans, the burden is minimized to minimum, which allows borrowers to repay at their pace. In addition, with growing economy, mindset of people is changing regarding owning a property either for investments or for living, which drives growth of the market.
Key providers of the real estate loan market such as Bank of America Corporation., JPMorgan Chase & Co., The PNC Financial Services Group, Inc., and Wells Fargo account for a significant share in the market. Moreover, companies are innovating solution to expand their services to all sectors of the society from low earners to high earners. For instance, in May 2021, Bank of America and the Neighborhood Assistance Corporation of America (NACA) partnered to expand their national affordable home ownership mortgage program, with a goal of providing $15 billion in mortgages to low-to-moderate income (LMI) homebuyers. This partnership also helps to build wealth for those historically locked out of affordable home ownership, thus reducing racial disparity gap. In addition, it enables the Bank of America to provide more real estate loans to families at time of substantial needs, which drives growth of the market. Furthermore, companies are partnering and collaborating with each other to make it easier for borrowers during the COVID-19 pandemic. For instance, in January 2021, JPMorgan Chase & Co. funded $686 million in UK home loans originated by London-based fintech LendInvest Ltd. to finance properties that will be leased, known as buy-to-let loans.
In addition, owing to COVID-19 pandemic interest rates have hit all-time low, which lead many people to take advantage of opportunities and secure a historically low rate, which, in turn, drives growth of the market. Moreover, many banks started acquiring mortgage companies during the pandemic to expand their reach, which drives the growth of market. For instance, in May 2020, the PNC Financial Services Group, Inc. acquired ARCS Commercial Mortgage, which had 10 origination offices in the U.S. In addition, with acquisition PNC is offering the full spectrum of financing and servicing options to multifamily owners and investors nationally as it is one of the largest lending sectors in real estate. Furthermore, banks such as Wells Fargo have seen demand for business loans shrink substantially during the pandemic, but expects it to pick up in the second half of 2021 as the economy rebounds.
According to the industry experts, the real estate loan market is expected to witness increased adoption in the coming years, owing to rise in need for money among businesses and individuals to purchase real estate. North America is expected to dominate the market during the forecast period while emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities.
The real estate loans market is estimated to grow at a CAGR of 11.3% from 2021 to 2030.
The real estate loans market is projected to reach $23,121 billion by 2030.
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Increase in adoption of digital lending technology among banks to improve loan distribution services.
The key players profiled in the report include Bank of America Corporation., JPMorgan Chase & Co., Lendio, Liberty SBF, and many more.
On the basis of top growing big corporations, we select top 10 players.
The real estate loans market is segmented on the basis of provider, end-users, property type, and region.
The key growth strategies of real estate loans market players have adopted various strategies to increase their market penetration and strengthen their foothold.
NBFCs segment would grow at a highest CAGR of 14.0% during the forecast period.
Asia-Pacific region will dominate the market by the end of 2030.
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