Global Real Estate Market Outlook to 2027
The Global Real Estate Market is expected to expand significantly in the coming years, particularly in developing countries. Several major trends are expected to have an impact on the market. These include rapid urbanization, increased foreign investment, and the COVID-19 pandemic's impact. The study also includes several regional outlooks and forecasts to help readers understand what factors will shape the market in the coming years.
The real estate market is being driven by two major factors: rapid urbanization and economic growth. Furthermore, the growing population and the trend toward nuclear families are driving the market. Other factors driving the market are technological advancements and rising disposable incomes. Here are some of the most important factors influencing the global market over the next decade. The World Property Report website has detailed market forecasts for the next ten years.
The global real estate market is being driven by the rapid urbanization and commercialization of emerging countries. Furthermore, rising investments in infrastructure development are boosting the market. Several major players are investing in aggressive marketing strategies and promotional campaigns in order to increase their online presence. Rapid urbanization and rising construction activity in emerging markets are also propelling market growth. Furthermore, the growing number of businesses in these areas has increased demand for commercial real estate.
Since the pandemic, the global real estate market has seen an increase in foreign investment, and investors have increasingly turned to the United States' Sunbelt and smaller markets such as Chicago and Philadelphia rather than traditional stamping grounds such as New York and Los Angeles. Last year, 64% of foreign investments went into nonmajor metropolitan markets, up from 53% in 2019. Foreign investment is expected to rise further in the coming years, with foreign investors focusing on a variety of sectors, including industrial and multifamily properties.
Urbanization and the digitalization of the commercial sector are two factors driving this growth. Foreign investment, as well as an increase in office space demand and retail sales, are also driving market growth. Furthermore, the appeal of commercial real estate investment has grown as a result of technologically enabled and automated property management systems. These tools, in addition to being efficient and cost-effective, have enabled it to manage properties from anywhere.
The commercial real estate industry has been impacted by the COVID-19 pandemic, with travel restrictions and social distancing affecting sales and public mobilization. Office, retail, and hospitality sales were particularly impacted. Despite the difficulties, the global market has recovered and sales have returned to pre-pandemic levels. Growth in the commercial real estate sector is also being driven by urbanization, digitization, and increased foreign investment.
The value of real estate in countries affected by the COVID-19 pandemic has fallen, but it is expected to rise again. The increased investment is expected to increase the property's value. As more investors seek to capitalize on the burgeoning market, this will increase demand for commercial real estate in affected countries. Before investing in commercial real estate, investors should exercise caution and consider the consequences of their decisions.
The IMARC Group has identified several key factors that will contribute to the commercial real estate industry's rapid growth. The industry's growth will be aided by rapid urbanization and the trend toward nuclear families. Furthermore, a shift toward consumption of goods and services will help the global economy grow. Rapid infrastructure development in emerging markets such as China and India will drive industry growth, particularly in retail and multifamily residential.
The commercial real estate market in the United States finished 2021 with record demand, low vacancy rates, and high rental growth. The recent supply chain crisis impacted many economic factors, and supply chain reconfiguration benefited the industrial sector. In particular, in 2021, industry demand was diverted away from e-commerce, propelling the market for logistics warehouses and third-party logistics providers. However, by 2027, the industry is expected to lead the global retail sales market.
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