The global real estate market is a world-widely rising industry. The real estate market will grow 5-6% over the next decade. This progress is due to numerous factors, including increased housing demand and urbanization. The rapid surge in urbanization has also contributed to the need for residential and commercial real estate, allowing companies to rent an office or retail space from landlords instead of building their stores or offices. Moreover, Real estate deals with all types of structures used for housing or commercial purposes. Here we will explore some key factors of global real estate market statistics that you should know before investing your money or time into this market.
What is the Global Real Estate Market – An Overview
The real estate market is investing or acquiring a property with the primary objective of earning profit from its future resale or use. The demand for real estate is by four major factors, i.e., economic growth, population growth, income rise and living standards. These factors boost demand for real estate as an investment option and an essential asset for the smooth functioning of a country. Global Real Estate Market: Trends and Statistics
Global Real Estate Market Trends and Statistics
Real estate, in general, is a very diverse market, and many statistics show the growth and demand for it. One statistic shows that the spreading of the global real estate market is likely to rise from $3386.11 billion in 2021 to $3741.06 billion in 2022. The rate of real estate transactions has increased significantly since the year 2022. Moreover, the growth rate was also very high, with a compound annual growth rate of 10.5% during the same period.
Global real estate statistics depend on the type of market. For instance, residential real estate has a large variety of statistics. Two of them are the number of people who live in real estate because this determines the demand for real estate and the price of real estate, which is called the price-to-income ratio. This price-to-income ratio shows the need for real estate and whether it is overvalued or undervalued.
Real Estate Market Statistics in Pakistan
Real estate is one of the expanding industries in Pakistan. The real estate value in Pakistan is US$1.5 trillion. This potential, measured only in the three big cities of Karachi, Lahore, and Islamabad, is over $300 billion. In addition, the modern economy has led to industrialization in Pakistan. Heavy industries contribute 28.117% of the GDP.
Consequently, a growing real estate sector indicates an advanced economy supporting a higher domestic economy. Because of industrialization, Islamabad has become a bustling community. The number of construction sites in Pakistan is 31,348 sq. kilometres. It is less than 5% of the country’s total territory. People are relocating from remote locations to the city hubs to live in better conditions, resulting in the construction of housing societies. An advanced economy and a flourishing real estate industry indicate a more vital domestic economy.
Residential & Commercial Real Estate Market Statistics
Real Estate Marketing Statistics are further studied in two categories which are as below for the convenience of readers:
Residential Real Estate
The residential real estate market statistics compute investment in residential properties worldwide. Most residential real estate investment has to occur in developed countries. For example, in China, there are USD 3.94 Trillion invested in residential assets, accounting for 21% of worldwide acquisitions. Furthermore, developing countries like Pakistan are increasing residential real estate investments. More and more housing societies are emerging to accommodate the country’s growing population—New City Paradise and Kingdom Valley Islamabad are trending housing ventures in the capital, and others.
Commercial Real Estate
Commercial real estate also plays a significant role in the worldwide economy. It helps investors grow their businesses. Countries like China, Japan, the United Kingdom, Germany, France, Russia, and Italy have been the most successful at attracting investment in commercial real estate. It will be long before Pakistan makes the top five countries for investing in the business. Many real estate development projects in the country, like Blue World City and Seven Wonders City Islamabad, promote commercial investments.
Real estate is a diverse market worldwide; many statistics show its growth and demand. Furthermore, the global real estate market is essential to the economic development of a country. Government initiatives such as tax exemption for real estate investments and increasing access to credit are also likely to contribute towards increasing demand for real estate as an investment option. Real estate is a long-term investment that provides a steady flow of income and is an excellent way of securing wealth for the future. More than a few housing societies are emerging to get top global real estate investments in developing countries like Pakistan. To conclude, check out the Globe Real Estate Website to learn about global real estate market statistics.