Real Estate Market

Market Overview

The global Real Estate Market size was valued at USD 9.8 trillion in 2023, and is predicted to reach USD 14.54 trillion by 2030, at a CAGR of 5.8% from 2024 to 2030. Simply put, real estate encompasses a diverse range of tangible properties, including homes, commercial spaces, and land that serve as the foundation of where people live, work, and invest. Residential real estate offers the comfort of homes and apartments, while commercial real estate provides operational spaces for businesses.

Land, on the other hand, holds potential for development or future investment. Real estate is a dynamic market influenced by factors such as the economy and population growth, which impact its value and demand. It plays a vital role in people’s lives and the economy and offers opportunities for homeownership, business establishment, and wealth accumulation, making it a significant area of interest for several individuals and businesses alike.

The Growing Urbanization Across the Globe Drives the Market Growth

The accelerating pace of urbanization globally is a key driver of growth in the real estate market. As more individuals migrate to cities in search of better economic prospects, education, healthcare, and improved living standards, the demand for residential units, commercial buildings, and supporting infrastructure is rapidly increasing. According to the latest data from the United Nations Department of Economic and Social Affairs, over 55% of the global population resides in urban areas today, with this figure projected to reach 68% by 2050.

This demographic shift is significantly influencing real estate dynamics. The growing urban population is pushing governments and developers to invest in high-density housing, transportation networks, retail spaces, and smart infrastructure. Mega-cities and second-tier cities alike are witnessing a surge in construction activity, with mixed-use developments and vertical expansion becoming key trends. The rising need for efficient urban planning and sustainable housing solutions is positioning real estate as a cornerstone of global development

Rapidly Growing Population Across the Globe Drives the Market Expansion

Global population growth continues to play a crucial role in expanding the real estate market. As the world population surpassed 8 billion in 2022, the demand for housing, office space, commercial buildings, and public infrastructure has intensified. This surge in demand is particularly strong in emerging markets, where young and expanding populations are driving urban development and spurring new residential and industrial projects.

According to the United Nations Population Fund, the increase from 7 billion in 2011 to 8 billion in 2022 highlights the urgency of scaling up infrastructure to support basic living needs. This population growth is prompting governments and private developers to invest in more resilient and adaptable real estate solutions—ranging from affordable housing projects to modernized utility infrastructure. The real estate sector is increasingly vital in addressing global challenges such as overcrowding, urban sprawl, and the need for equitable access to essential services.

Government Policies and Economic Factors Hinder the Market Growth

While the global real estate market offers vast growth potential, it remains vulnerable to restrictive government policies and economic uncertainties. Regulations such as land use laws, tax policies, rent control, and zoning restrictions can significantly limit development opportunities and reduce investor confidence. These challenges vary by region but often create delays in project approvals and increase the cost of doing business for developers and property owners.

Economic volatility—including inflation, interest rate hikes, and recession risks—also exerts downward pressure on real estate markets. Higher borrowing costs reduce affordability for buyers and limit developers’ access to financing. Unstable foreign exchange rates and geopolitical tensions can further disrupt cross-border investments. As a result, stakeholders must carefully monitor regulatory shifts and macroeconomic conditions to navigate potential risks and maintain long-term growth strategies.

Rising Smart City and Sustainable Development Projects Across the Globe Create Market Opportunities

The proliferation of smart city initiatives and green development projects is unlocking new growth avenues for the global real estate market. Governments across Europe, Asia, and the Middle East are investing in technology-driven, eco-conscious urban developments that integrate renewable energy, efficient public transportation, and data-powered city management systems. These projects aim to improve urban livability while reducing environmental impact.

Real estate developers are increasingly aligning with sustainability goals by constructing energy-efficient buildings, integrating smart technologies, and earning green certifications such as LEED and BREEAM. These eco-friendly and tech-enabled properties are gaining favor among investors and tenants alike, who are prioritizing environmental responsibility and long-term cost savings. The intersection of smart infrastructure and sustainable design is expected to shape the future of real estate investment, offering robust opportunities in a rapidly evolving global market.

Asia-Pacific Dominates the Real Estate Market  

The rapid population growth in countries, such as India, China, and Indonesia, is a key driver of real estate market in the Asia-Pacific region. As increasingly more people seek homes and infrastructure, the demand for both residential and commercial properties has been on the rise in this region. This growing demand for properties drives real estate innovation and adaptation and leads to growing emphasis on constructing sustainable and eco-friendly properties, thereby driving the growth of the market in this region.

According to the latest report from the Center of Strategic & International Studies, India has surpassed China as the most populous country in the world in 2023. With this significant increase in population in the region, there is a growing demand for housing and public infrastructure, which drives the expansion of the real estate market in this area.

Moreover, Asia is currently witnessing a substantial transition from rural to urban living, a trend that is fueling the demand for commercial real estate. As more people migrate from rural to urban areas, there is a growing demand for commercial real estate. Businesses and consumers are eyeing these urban hubs, thereby driving the need for office spaces and retail centers. This urbanization-driven demand for commercial properties presents a notable opportunity for real estate developers and investors, which boosts the overall growth of the real estate market in the region.

According to the latest report published by the Central Intelligence Agency, the rate of urbanization in numerous Asian countries, such as China, India, Indonesia, reached 1.78%, 2.33%, and 1.99% respectively. This surge in urbanization, with increasingly more people relocating to cities, has generated substantial demand for real estate properties, thus fueling the growth of the real estate market.

North America is Expected to Show Steady Growth in the Real Estate Market

The increasing government investment in construction and infrastructure development across North American nations, such as the U.S., Canada, and Mexico, is propelling the growth of the real estate market in this region. These substantial investments in a diverse range of projects, including the expansion and enhancement of transportation networks, the revitalization of urban infrastructure, and the development of rural areas boost the demand for real estate properties.

For instance, in May 2023, the U.S. Government announced to invest USD 220 billion in 32,000 infrastructure projects across 4,500 communities across the country. These infrastructure projects, ranging from transportation networks and utility upgrades to community development, drive the demand for real estate properties in this region.

Moreover, the presence of key market players such as Redfin Corporation, Brookfield Asset Management Inc., and Prologis, Inc., plays a significant role in the growth of the real estate market in this region. For instance, in August 2023, Redfin Corporation partnered with Zillow Group Inc. to enhance the home-buying experience for its customers.

In August 2023, Redfin partnered with Zillow to expand home-buying options for its customers who face high demand and limited existing home supply. The partnership aims to enable Redfin's 50 million monthly visitors to access Zillow's extensive selection of new-construction communities, providing more choices.

Competitive Landscape  

The market players operating in the real estate market include American Tower Corporation, Prologis, Inc., Crown Castle Inc., Equinix, Inc. (REIT), Brookfield Asset Management Ltd., CBRE Group, Inc., Simon Property Group, Inc., Public Storage, Welltower Inc, Realt Income Corporation, AvalonBay Communities, Inc., VICI Properties, Inc., Vonovia SE, Mitsubishi Estate Co., Ltd., Mitsui Fudosan Co., Ltd., Goodman Group, Sun Hung Kai Properties Limited, Emaar Properties PJSC, Link Real Estate Investment Trust among others. These companies are taking various initiatives such as housing project launches to remain dominant in the market. 

For instance, in April 29, 2025, American Tower Corporation (REIT)merican Tower reported stronger-than-expected first-quarter revenue of $2.56 billion, up 2% year-over-year, driven by solid leasing demand in its telecom infrastructure business. AFFO per share was $2.75, slightly down from $2.79 a year prior. The company raised its full-year property revenue forecast to $9.97 billion–$10.12 billion.

Moreover, in July 16, 2025, Prologis, Inc., The company launched over $900 million in new warehouse development projects—nearly triple the $324 million from Q2 2024—with 65% pre-leased before construction began. Full-year development forecast was raised to $2.25 billion–$2.75 billion.

The move caters to the growing importance of logistics real estate and aims to provide companies with an all-encompassing approach to their operational needs, from material handling equipment to sustainable energy solutions. 

Real Estate Market Key Segments

By Property Size

• Small (<500 sq. ft.)

• Medium (500–2000 sq. ft.)

• Large (2000+ sq. ft.)

By Property Type

• Residential

  • Apartments/Flats

  • Single-Family Homes

  • Multi-Family Homes

  • Condominiums

  • Townhouses

  • Vacation Homes

• Commercial        

  • Office Spaces    

  • Retail Spaces

  • Co-working Spaces    

  • Warehouses

• Land        

  • Urban Plots    

  • Suburban/Rural Plots    

• Industrial        

  • Manufacturing Plants    

  • Distribution Centers    

  • Data Centers       

By Business Type

• Buying    

• Selling    

• Leasing    

• Renting    

• Real Estate Investment    

  • Direct Property Investment

  • Real Estate Investment Trusts (REITs)

By Ownership        

• Owner-Occupied Properties    

• Rental Properties    

• Co-ownership    

By Property Value        

• Affordable Housing    

• Luxury Housing    

• Ultra-Luxury Housing

By End User            

• Individual Buyers        

  • First-time Homebuyers    

  • Repeat Buyers    

  • Luxury Buyers    

  • Seniors/Retirees    

• Business Entities        

  • Startups    

  • SMEs    

  • Large Corporations    

• Government        

  • Civic Projects    

  • Affordable Housing Initiatives    

• Institutional Investors

By Region

• North America    

  • The U.S.

  • Canada

  • Mexico

• Europe    

  • The U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of World    

  • Latin America

  • Middle East

  • Africa

Key Players

• American Tower Corporation

• Prologis, Inc.

• Crown Castle Inc.

• Equinix, Inc. (REIT)

• Brookfield Asset Management Ltd.

• CBRE Group, Inc.

• Simon Property Group, Inc.

• Public Storage

• Welltower Inc

• Realt Income Corporation

• AvalonBay Communities, Inc.

• VICI Properties, Inc.

• Vonovia SE

• Mitsubishi Estate Co., Ltd.

• Mitsui Fudosan Co., Ltd.

• Goodman Group

• Sun Hung Kai Properties Limited

• Emaar Properties PJSC

• Link Real Estate Investment Trust

REPORT SCOPE AND SEGMENTATION: