Residential Real Estate Market Size, Share, Forecast, 2020-2027

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. 

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. 

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.

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