Real Estate Market Size, Share & Trends Analysis Report By Property (Residential, Commercial, Industrial, Land), By Type (Sales, Rental, Lease), By Region (North America, Europe, Asia Pacific), And Segment Forecasts, 2025 - 2030

Real Estate Market Summary

The steady increase in the global population is creating a higher demand for housing, as more people require places to live, particularly in urban and rapidly developing areas. As cities become more crowded, individuals and families value personal space and comfort more. This shift in preference, driven in part by lifestyle changes, has led many to seek homes with more room for work, leisure, and privacy.

The commercial real estate space is primarily driving the expansion of the real estate industry. This growth is fueled by several key factors: the rapid rise of e-commerce, which drives demand for warehouses and logistics centers; the evolution of workplaces due to hybrid work models, prompting redesigns and upgrades of office spaces; and the recovery of retail and hospitality sectors in many regions. Additionally, large-scale infrastructure projects and increased foreign investment in commercial assets, especially in developing markets, further accelerate development. As a result, commercial real estate continues to be a major growth engine within the global real estate industry.

Moreover, the influence of the internet has increased consumers' awareness of real estate services. Key players offer various services, such as live-streaming rooms, to gain market share. For instance, according to Alibaba, more than 5,000 real estate agents from almost 100 locations in China have adopted the live-streaming rooms method, allowing homebuyers to explore homes and make deals all at home. Furthermore, various initiatives taken by the governments of different countries are likely to favor the market's growth. The Government of India, in collaboration with the governments of several states, has taken several steps to promote development in the sector. The real estate industry has the opportunity with the Smart City Project, which aims to develop 100 smart cities.

In October 2021, the Reserve Bank of India (RBI) stated that the benchmark interest rate would remain 4%, substantially boosting the country's real estate sector. Low house loan interest rates are predicted to fuel housing demand and increase sales by 35-40% during the holiday season of 2021. These initiatives will positively impact the growth of the real estate industry.

Consumer Surveys & Insights 

Two major groups, Baby Boomers and Millennials, are experiencing lifestyle changes that will significantly influence the types of real estate in demand during the next decade.  The world's 1.8 billion Millennials are entering their mid-career era, and as a result, they will desire more living space (usually in suburban regions) but on a tight budget.  While Millennials are entering the high-spending, high-expense phase of their life, Baby Boomers are approaching retirement. Baby boomers, for example, foresee increased healthcare costs and a greater need for simpler lifestyle concepts.  At the same time, this generation is the wealthiest in history and has more free time than ever.  These changes will increase demand for real estate investors in particular locations where retirees may desire to reside or vacation, as well as property types that support the care lifecycle.

Trump Tariff Impact

In early 2025, President Trump's tariff policies, particularly those targeting imported construction materials such as Canadian lumber, Chinese steel, and aluminum, have led to a noticeable increase in construction costs across the U.S. real estate market. For instance, tariffs on imported building materials, such as Canadian softwood lumber and Mexican drywall, have raised construction expenses. For instance, a 25% tariff on $200,000 worth of Canadian lumber adds $50,000 in costs, often passed on to homebuyers, leading to higher home prices. The residential sector felt the impact through higher homebuilding expenses, translating into increased home prices for buyers. Developers, facing elevated material costs, either passed these costs onto consumers or delayed projects to reassess budgets. Additionally, inflationary pressure caused by tariffs contributed to rising mortgage rates, which weakened affordability and discouraged some buyers from entering the real estate industry.

In the commercial real estate sector, tariffs disrupted the supply chain and raised material costs, affecting everything from office buildings to industrial warehouses. These increased development expenses often resulted in higher rents for tenants and tighter profit margins for developers. The uncertainty surrounding international trade policy also made foreign investors more cautious, reducing cross-border investments in U.S. real estate. While the tariffs aimed to boost domestic production, their indirect effects introduced volatility and increased costs, slowing residential and commercial real estate development momentum.

Property Insights

Residential property held a market revenue share of 35.33% in 2024. Access to affordable financing through favorable mortgage rates significantly influences home buying, with affordability being a key factor in both developed and developing markets. Millennials are a major driver of growth as they have become more inclined toward homeownership in recent years. For instance, according to Apartment List’s Homeownership report, the homeownership rate among millennials increased to 47.9% in 2021 from 40% in 2020.

Commercial property is projected to register a CAGR of 6.1% from 2025 to 2030. Demand for office, retail, and industrial spaces is driven by corporate growth, global supply chain activity, and the expansion of service sectors, especially in key economic hubs. The market is booming at an exceptional pace due to the growth of the tourism sector. Moreover, the growing number of hotels and resorts is expected to drive the demand for bathroom furniture. According to TOPHOTELPROJECTS GmbH, in 2020, Citadines Apart Hotels was Thailand's most active hotel brand with five projects consisting of 945 rooms.

Type Insights

In terms of revenue, the rental type held a significant market share of about 51.4% in 2024. Remote and hybrid work has fueled demand for rentals, especially in cities with strong digital infrastructure and lifestyle appeal. People are choosing mobility over ownership. This is attributable to rising home prices in developed countries, owing to which there is a rise in the number of renters, favoring the segment's growth. For instance, according to a blog published by Mansion Global, Germany is the country of renters, with about 60% of the properties being rented in 2021.

Sales type is estimated to grow at a CAGR of 7.3% over the forecast period. Increasing populations in urban centers and changing lifestyle preferences, such as demand for larger homes post-pandemic, drive property purchases, especially in suburban and satellite towns. As a result of increasing consumer perception towards owning a property, there has been a rise in demand for luxury homes, villas, and second homes. For instance, according to a blog published by Construction Week Online, between January and September 2021, around 1,63,000 units of new residential supply were added from the top 7 cities across India.

Regional Insights

Asia Pacific real estate held a significant market share of 52.8% in 2024. The growth is mainly attributed to the rising homeownership rates in the region. China is estimated to have the largest market share in the area, accounting for over 65.0% of the market. The rising number of tourists in developing countries such as India, the Philippines, Indonesia, Thailand, and Vietnam is further estimated to support the market growth in the region. Economic resilience, moderated interest rates, and investor interest in value-added opportunities are contributing to a projected 5-10% increase in investment volumes, particularly in countries like Australia, Korea, and Singapore. Office leasing is driven by a "flight to quality," favoring premium spaces, while logistics demand remains steady due to e-commerce and manufacturing needs. Retail rents are gradually recovering, especially in prime locations, supported by improving consumer sentiment and employment markets.

India Real Estate Market Trends

The real estate market in India witnessed significant growth over the years. Significant government investments, such as the National Infrastructure Pipeline, are enhancing connectivity through roads, railways, and airports. This development is boosting real estate demand in Tier-2 and Tier-3 cities by making them more accessible and attractive for both residential and commercial purposes. Moreover, initiatives like the Pradhan Mantri Awas Yojana (PMAY) and the Real Estate Regulation and Development Act (RERA) are promoting transparency and encouraging affordable housing. These policies aim to provide housing for all and have led to increased construction of budget-friendly homes, catering to the needs of the urban and rural populations.

Middle East & Africa Real Estate Market

The Middle East & Africa are expected to witness a CAGR of 7.2% from 2025 to 2030. The growth is mainly attributed to the country's rising number of residential and commercial projects. For instance, according to the Middle East Construction Pipeline Trend Report, in the third quarter of 2021, there were 545 hotel projects with 168,042 rooms. Moreover, in July 2021, Durrat Marina signed an agreement with Tamcoon to develop 18 residential villas in Bahrain. Additionally, there is a growing emphasis on eco-friendly and technologically advanced real estate projects. Initiatives like Dubai's Sustainable City and Abu Dhabi's Masdar City exemplify the region's commitment to green building practices and smart city concepts.

Key Real Estate Company Insights

The real estate market is fragmented primarily due to several globally recognized and regional players. Some prominent companies in this market are Brookfield Asset Management Inc., ATC IP LLC, Prologis, Inc., SIMON PROPERTY GROUP, L.P., Coldwell Banker, RE/MAX, LLC., and others. Players in the market are diversifying their service offerings to maintain their market share.

• Brookfield Asset Management Inc. is a global alternative asset manager focused on real estate, infrastructure, renewable power, and private equity. The firm manages over a trillion dollars in assets and leverages its operational expertise to create long-term value. It operates in more than 30 countries worldwide. Its investment philosophy centers on sustainable, long-duration strategies.

• Prologis, Inc. is a leading global logistics real estate company, specializing in high-quality industrial properties. It owns and manages warehouses near major population centers to support e-commerce and supply chain operations. The company is in key global markets across the Americas, Europe, and Asia. Prologis emphasizes innovation and sustainability in its development and operations.

Recent Development

• In May 2025, Legal & General (L&G) strategically acquired a 75% ownership interest in Proprium Capital Partners, a globally recognized real estate private equity firm with assets under management totaling $3.5 billion. This transaction marks a significant step in L&G’s broader initiative to deepen its presence in private markets and further diversify its real estate investment platform through enhanced global exposure and asset management capabilities.

• In February 2025, CoStar Group, Inc., a prominent provider of online real estate marketplaces, data intelligence, and analytics, formally concluded its acquisition of Matterport, Inc., a global leader in 3D digital twin solutions. This strategic integration unites two innovation-driven enterprises with the shared objective of advancing the deployment of AI-enabled digital twin technologies throughout the global real estate sector. The acquisition is expected to enhance the digital transformation of property visualization, marketing, and management across commercial and residential markets.

• In May 2024, Brookfield Asset Management, one of the world's biggest institutional investors, plans to invest more than $10 billion into India's real estate sector over the next 3-5 years. This investment is expected to double Brookfield's real estate assets under management (AUM) in India during the period.

Real Estate Market Report Scope

Global Real Estate Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global real estate market on the basis of property, type and region:

• Property Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential

  • Commercial

  • Industrial

  • Land

  • Others

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Sales

  • Rental

  • Lease

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia/New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • Saudi Arabia