Rise in demand for industrial and commercial development, increase in public–private partnerships (PPP), and development of residential construction industry drive the growth of the global real estate market
PORTLAND, Oregon, March 5, 2020 /PRNewswire/ -- Allied Market Research published a report, titled, "Real Estate Marketby Property (Residential, Commercial, Industrial, and Land) and Business (Sales and Rental): Global Opportunity Analysis and Industry Forecast, 2019–2026." According to the report, the global real estate industry was estimated at $6.87 billion in 2018 and is expected to hit $8.66 billion by 2026, registering a CAGR of 2.8% from 2019 to 2026.
Drivers, restraints & opportunities-
Increase in demand for industrial and commercial development, rise in public–private partnerships (PPP), and development of residential construction industry fuel the growth of the global real estate market. On the other hand, volatile economic conditions in Latin America, and slow economic activity after Brexit hamper the growth to certain extent. Nevertheless, surge in government investment in infrastructure development is expected to pave the way for multiple opportunities in the industry.
The land segment to retain its dominance during the estimated period-
Based on property type, the land segment accounted for nearly half of the global real estate market share in 2018, and is expected to dominate by the end of 2026. Growing commercial, industrial, and residential projects especially in developing regions are expected to drive the growth of the segment. The industrial segment, on the other hand, would grow at the fastest CAGR of 4.1% during 2019–2026. Rise in demand for industrial spaces around the globe fuels the growth of the segment.
The sales segment to lead the trail during the study period-
Based on business type, the sales segment held the major share in 2018, garnering more than two-thirds of the global real estate market. Government initiatives to open up real estate sector for foreign direct investment has boosted the market growth. Simultaneously, the rental segment would register the fastest CAGR of 3.2% throughout the forecast period. Development in the commercial and industrial segment is expected to increase the lease and rental transactions around the globe which, in turn, has driven the growth of the segment.
Based on region, North America contributed to more than one-third of the global real estate market revenue in 2018, and is projected to maintain the lion's share from 2019 to 2026. Development in the construction industry and increase in adoption of modular construction fuel the growth of the market in this province. At the same time, the LAMEA region would cite the fastest CAGR of 4.5% by 2026. This is attributed to improvement in business environment and increase in construction expenditure, mainly from Latin American and African countries.
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