The residential real estate market is predominantly driven by urbanization in developing countries. Residents of small towns and rural communities are migrating to urban regions to raise their standard of living. An expansion in adjacent industries has led to the growth of cities. In addition, governments in several nations, like those in the U.S. and Australia, offer mortgages for real estate with lower interest rates for long-term borrowers and discounts for first-time purchasers, respectively. The governments of several other nations, like Poland, the United States, and Canada, provide incentives to buyers through initiatives like Golden Visa and low-cost housing plans.
Due to urbanization in Brazil, Argentina, South Africa, India, and China, people have moved to large cities in search of a higher quality of life. For instance, according to World Bank projections, Africa's urbanization rate was 36% in 2010 and is expected to reach 50% by 2030 due to economic expansion. By 2035, the National Academy of Economic Strategy projects that 70% of China's population will live in urban areas. The market for residential real estate in the major cities of these emerging nations is expected to grow due to the increase in demand for residential property. Additionally, developing countries draw more foreign investment as industries and tourists expand due to urbanization.
Governments have been obliged to either plan for a brand-new metropolis or expand the limits of existing ones to balance economic growth across the country due to the overcrowding of big cities. Examples include Dream City in Gujarat, Vikram City in Madhya Pradesh, New Town in Kolkata, and New Kanpur City, which are new cities that will have commercial, residential, and industrial districts. In a similar vein, the government of South Korea decided to create two brand-new cities to balance the growth of the Gangnam and Gangbuk regions. Such municipal development and expansion plans promote immigration, which increases investor demand for residential real estate. As a result, these traits offer lucrative opportunities for market expansion.
Asia-Pacific generates the majority of revenue and is anticipated to grow at a CAGR of 9.80% over the projection period. This study examines four significant Asian countries: China, India, Japan, South Korea, and the rest of the region. Asia-Pacific dominates the residential real estate market. Urbanization, which supports a rise in the construction of residential infrastructure, is one reason why countries like China, India, Singapore, and South Korea have become acknowledged as essential marketplaces. In the Asia-Pacific area, there are three significant market players: Sun Hung Kai Properties, DLF Limited, and IJM Corporation Berhad. Rapid urbanization has benefited the residential real estate sector in the Asia-Pacific countries, including China, Japan, India, and South Korea. The Asia-Pacific residential real estate market is seeing increased investment due to high returns on sales and rentals.
North America is anticipated to grow at a CAGR of 8.50 percent over the projection period. This study focuses on the North American residential real estate market, which spans three countries: the United States, Canada, and Mexico. In 2019, North America's residential real estate market came in second. In 2019, the U.S. owned a substantial share of the sector, but it is predicted that Mexico will increase over the coming several years. People are increasingly opting to own their own homes rather than rent them because of the high per capita income level in the United States and Canada. The higher rents in developed and emerging locations are another reason why many people invest in homes since they can produce more notable returns in the future. These factors support the residential real estate industry in North America.
The global market's major key players are Arabtec Holding, Christie's International Real Estate, Hochtief Corporation, IJM Corporation Berhad, Lennar Corporation, Coldwell Banker Real Estate LLC, Raubex Group Limited, Savills plc, Sotheby's International Realty Affiliates LLC, DLF Limited, Engel and Völkers AG, Pultegroup, Inc., and Sun Hung Kai Properties Limited.