Residential Real Estate Market

Residential Real Estate Market Outlook - 2027

The residential real estate market size was valued at $8,567.4 billion in 2019, and is expected to reach $12,182.1 billion by 2027, registering a CAGR of 9.0% from 2020 to 2027. The market includes buying and selling of residential properties such as flats, bungalows, and villas. The residential real estate market is mainly driven by urbanization in developing countries. The major cities in developing countries such as India, China, Brazil, Argentina and South Africa among other are rapidly expanding and need more dwelling to accumulate people migrating from different parts of a country. 

The COVID-19 pandemic has negatively affected the construction and transactions of residential real estate mainly due to the regulations set by government to halt construction activities and prolonged lockdowns.

In addition, policies implemented for affordable houses by governments also drive the market growth. For instance, governments of several countries such as Australia, the U.S., and Canada have planned strategies such as concession for first time buyers, subsidies for veterans, golden visa, low cost affordable housing schemes, and cut in transactional taxes, which is anticipated to boost growth of the residential real estate market during the forecast period. Moreover, rise in tourism in nations such as Egypt, France, and Dubai is also anticipated to propel growth of the market. 

However, there has been a saturation of the residential real estate market in major cities of developed nations. For instance, the market of residential real estate in cities such as Chicago, Washington, and Boston in the U.S. have low rate of growth. Similarly, cities such Berlin in Germany, Paris in France, and London in the UK have also reached saturation in expanding their boundaries and thus, have lower growth rate. Such factors restraint the residential real estate market growth. In addition, during the outbreak of COVID-19, construction, manufacturing, hotel, and tourism industries were majorly affected. Construction activities were also stopped or restricted to a huge extent. Manufacturing and transportation activities, along with their supply chains were hampered on a global level. This had led to decline in number of transaction of deals occurring in residential real estate market. 

However, builders, contractors, and real estate agents have approached governments to waive off or reduce taxes that are charged on registrations and documentations while buying and selling properties. Even governments have started taking measures to bring the residential real estate market back on track. This is expected to aid in reviving losses that occurred to the market due to COVID-19. Further, governments in several developing nations such as India have planned new cities such as Dream City in Gujarat and New Kanpur, which would have commercial, industrial, and residential zones. Thus, acting as an opportunity for growth of the market during the forecast period.

The residential real estate market is segmented into budget and size. On the basis of budget, the market is divided into less than $300,000, $300,001 to $700,000, $700,001 to $1,000,000, $1,000,001 to $2,000,000, and more than $2,000,000. Depending on size, it is classified into less than 50 square meters, 51 to 80 square meters, 81 to 110 square meters, 111 to 200 square meters, and more than 200 square meters.

By budget, in 2019, the less than $300,000 segment dominated the residential real estate market, in terms of revenue and the $700,001-$1,000,000 segment is expected to witness growth at the highest CAGR during the forecast period. On the basis of size, less than 50 square meters segment led the market in 2019, in terms of revenue and the same segment is anticipated to register the highest CAGR during the forecast period.

Competition analysis

The major players profiled in the residential real estate industry 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, and Vinci.

Major companies in the market have adopted strategies such as acquisition, business development, joint venture, partnership, and product launch to offer better services to customers in the residential real estate market. For instance, in March 2019, Adim Provence, a subsidiary of Vinci Construction France, signed a joint venture with Caisse des Dépôts to rehabilitate hanger J1 and its surrounding area in Marseille, in France around the port area. Similarly, in March 2020, Savills acquired Macro Consultants LLC, a project management firm in North America to manage Savills real estate services offered in the U.S.

Key Benefits For Stakeholders

• The report provides an extensive analysis of the current and emerging residential real estate market trends and dynamics. 
• In-depth residential real estate market analysis is conducted by estimations for the key segments between 2020 and 2027. 
• Extensive analysis of the market is conducted by following key product positioning and monitoring of top competitors within the market framework.
• A comprehensive analysis of four major regions is provided to determine the prevailing opportunities.
• The market forecast analysis from 2020 to 2027 is included in the report.
• The key market players operating in the market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the market industry.

 Residential Real Estate Market Report Highlights