GLOBAL REAL ESTATE MARKET FORECAST 2022-2026
The global real estate market will reach 3,741.06 billion USD in 2022 and jump to the level of 5,388.87 billion USD in 2026.
The Global Real Estate Report 2022 is conducted by research firm The Business Research Company based in India, USA and UK and published in January 2022.
The global real estate market forecast 2022-2026 / ph: pexels
Accordingly, the global real estate market is expected to grow from $3,386.11 billion in 2021 to $3,741.06 billion in 2022, at a compound annual growth rate (CAGR) of 10.5 %. This is mainly due to the restructuring process of companies after many months of being affected by the pandemic (social distancing, working from home and shut down the economy). By 2026, the global real estate market is expected to reach $5,388.87 billion with a CAGR of 9.6%.
The global real estate market will be driven by steady economic growth forecast in many developed and developing countries. According to the International Monetary Fund (IMF), global real GDP growth is 3.7% between 2019 and 2020, and 3.6% between 2021 and 2023. Commodity prices recover after a record drop will be a strong driving force for the return of the real estate market. Developed economies are also expected to recover well in the period 2021 - 2026. Meanwhile, emerging markets will accelerate with faster growth.
In terms of target customers, Gen Z (born from the mid-1990s to the early 2000s) is the main customer of the real estate market behind the millennial generation. Gen Z is predicted to spend more than any other generation on real estate rentals over their lifetime, especially as housing affordability declines.
According to the report, Gen Z is heavily influenced by the internet and social media when it comes to purchasing and lifestyle decisions. Therefore, marketing campaigns for rental properties should use technology to best reach this prospect segment such as through apps and social networks. In the United States, Gen Z accounts for nearly a quarter of the population and will become the main customer segment of the rental property market within five years from 2019.
According to the report, Asia-Pacific is the largest real estate market in the world in 2021, and the Americas ranked second place.
GLOBAL REAL ESTATE MARKET FORECAST 2022-2026
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