eBusiness Weekly
The global real estate market grew from US$3, 694,47 billion in 2022 to US$3, 976,18 billion in 2023 at a compound annual growth rate (CAGR) of 7.6 percent. The real estate market is expected to grow to US$5, 209,84 billion in 2027 at a CAGR of 7 percent.
Major companies in the real estate market include Mitsui Fudosan Co. Ltd., Daito Trust Construction Co. Ltd., Brookfield Asset Management, American Tower Corporation, Sun Hung Kai Properties Limited, CapitaLand Limited, Realogy Holdings Corp., Xiamen C&D, Simon Property Group Inc and Berkshire Hathaway Inc.
Real estate refers to the process of building, renting, buying, and selling properties, both residential and commercial. Developers earn a profit by adding value to the land by creating buildings or improvements, and rezoning. The real estate agencies are responsible for guiding the buyer through all the related paperwork.
The main types of real estate are real estate rental, real estate agency, and brokerage. Renting real estate, also referred to as hiring or letting, is a contract in which a fee is paid in exchange for the temporary use of a good, service, or property that belongs to someone else.
The different modes include online, and offline and involve various property types such as fully furnished, semi-furnished, and unfurnished.
Gen Z (born between the mid-1990s and early 2000s) is the next generation of renters after the millennials and they are predicted to spend more than any other generation on rental services in their lifetime.
Gen Z is highly dependent on technology and relies more on the internet and social media to make purchasing and lifestyle decisions.
Since Gen Z has experienced technology their entire lives, leasing and marketing campaigns for real estate rental services should incorporate the use of technology to reach this generation where they are most active such as on apps, on social media, or any other internet source. Gen Z makes up almost one-quarter of the U.S. population therefore, the real estate rental services market is expected to witness growth from this generation in the five years from 2019 to 2023
Asia-Pacific was the largest region in the real estate market in 2022. 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, and Africa.
The real estate market’s growth will be aided by stable economic growth forecasted in many developed and developing countries.
The International Monetary Fund (IMF) predicts that the global real GDP growth will be 3,7 percent over 2019 and 2020 and 3,6 percent from 2021 to 2023.
Recovering commodity prices, after a significant decline in the historic period is further expected to aid the market growth. Developed economies are also expected to register stable growth during the forecast period.
Additionally, emerging markets are expected to continue to grow slightly faster than developed markets in the forecast period. For instance, according to official data from the World Bank, the GDP of India increased to reach US$3,173.40 billion in 2021, compared to US$2, 667.69 billion in 2020.
The real estate market consists of revenues earned by entities that are engaged in providing services such as residential buildings and dwellings rental, non-residential buildings rental services, non-residential buildings rental services, mini-warehouses, and self-storage unit rental services.
The real estate market includes establishments such as builders, developers, lessors of real estate, and property management companies.
This market also includes managing, selling, renting, buying, and appraising real estate for others.
The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced.
It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products. — Yahoo Finance
