Major companies in the real estate market include CBRE Group; Jones Lang LaSalle Inc; New World Development Company Limited; Colliers International and Newmark Grubb Knight Frank. The global real estate market is expected to grow from $2687.
New York, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Real Estate Global Market Report 2021: COVID 19 Impact and Recovery to 2030" - https://www.reportlinker.com/p06009752/?utm_source=GNW
35 billion in 2020 to $2774.45 billion in 2021 at a compound annual growth rate (CAGR) of 3.2%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $3717.03 billion in 2025 at a CAGR of 8%.
The real estate market consists of sales of real estate services by entities (organizations, sole traders and partnerships) that rent, lease and allow the use of buildings and/or land. The industry also includes managing real estate for others, selling, renting and buying real estate for others and appraising real estate. The real estate market is segmented into real estate rental and real estate agency and brokerage.
Asia Pacific was the largest region in the global real estate market, accounting for 40% of the market in 2020. Western Europe was the second largest region accounting for 24% of the global real estate market. Africa was the smallest region in the global real estate market.
Gen Z (born between mid-1990s and early 2000s) is the next generation renters after the millennials and they are predicted to spend more than any other generations 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 make 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 following 2019.
Coronavirus Pandemic - The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the real estate market in 2020 as the need for services offered by these establishments declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in a decline in economic activity with countries entering a state of ’lock down’ and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the real estate market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.
Faster Economic Growth - 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% over 2019 and 2020, and 3.6% 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 the developed markets in the forecast period. For instance, India’s GDP is expected to grow at 7.3%, whereas China is forecasted to register GDP growth of 6.2% in 2019.
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