Real estate services encompass a wide array of activities designed to assist individuals and businesses in buying, selling, managing, investing in, and leasing residential and commercial real estate. This includes brokerage, mortgage advice, and title services. Obtain the Best information about marketing for real estate agents.
Due to the specialized nature of real estate services, buyer bargaining power in this market is low, and it can be challenging for consumers to switch service providers.
Global
The global real estate services market is experiencing significant growth due to rising demand for residential and commercial properties driven by factors like urbanization, GDP growth, and consumer purchasing power growth. Furthermore, an increasing number of real estate investors who seek higher returns from their investments are further propelling this market growth.
Additionally, online real estate services are further strengthening the market. Buyers and sellers benefit from greater transparency and convenience while saving money on commissions/fees with these services. Furthermore, the COVID-19 pandemic has also broadened the market significantly as people become more comfortable using technology to conduct their business transactions.
The report thoroughly examines market trends, opportunities, and key players in this industry. It focuses on market segmentation by type of service (trading and rental services), application, region, competitive strategies of major industry participants, and an analysis of the regulatory framework in various countries.
United States
Real estate is a multifaceted industry that encompasses the acquisition, development, and management of residential and commercial properties, as well as the sale or rental of properties to generate income. The industry is driven by economic trends and demographic changes, such as rising population numbers, which, in turn, cause demand for housing and infrastructure development, driving real estate market expansion. Furthermore, economic indicators like unemployment rates can impact people’s willingness to purchase property.
The United States real estate services market is projected to experience robust growth over its forecast period. Key drivers include an improving economy, changing demographics, and technological advancements. Virtual property tours and estate platforms have increased efficiency and transparency within the real estate market, leading to increases in real estate sales and rentals. Smart home technology that supports energy-efficient building practices is helping shape new property development.
The United States real estate services market is highly fragmented, featuring many local and international players operating across the country. Some major market participants include Jones Lang LaSalle Incorporated, CBRE Group Inc., Brookfield Properties LLC, HomeServices of America Inc., and Cushman & Wakefield Holdings Inc. as critical players.
Europe
Europe’s real estate market reflects the needs and preferences of occupiers and investors alike. Factors like demand for space and the trend toward countryside living, multifamily real estate models, and demographic shifts create opportunities to meet the needs of changing populations while improving living conditions.
The COVID-19 pandemic affected Europe’s real estate industry, yet it is slowly beginning to rebound and should return to pre-pandemic levels by 2024. According to AEW, among the most attractive real estate investment markets are logistics in Germany and retail in Spain and Belgium; other attractive markets include high street retail in the UK/Dutch/German industrial facilities/office spaces, respectively.
Investors are actively searching for value, with many repurposing properties to make them more sustainable and functional. Furthermore, some are taking advantage of low-interest rate environments to leverage debt financing investments and reposition portfolios. Still, markets remain highly unpredictable, so investors should remain selective by selecting only best-in-class assets.
According to Deloitte’s 2024 global outlook, real estate companies face many obstacles, such as an uncertain economy and low-interest rates. Yet the sector appears poised for recovery; therefore, the next 12-18 months will be crucial in helping real estate firms reposition themselves for success.
Asia-Pacific
2023 will see numerous APAC markets benefit from increased tourism arrivals and corporate investment rebounds, as well as improving cyclical economic forecasts supporting leasing demand recovery. Office sector performance should remain steady, supported by a positive cyclical economic outlook and lease recovery; retail occupier performance should improve, with high street locations gaining from increased inbound tourism visits and post-pandemic consumption boost. Hotel occupancy and RevPAR should return to pre-pandemic levels across most APAC cities.
Logistics real estate demand continues to outstrip other CRE sectors in the Asia Pacific region, although annual rental growth rates have moderated significantly year-on-year. Greater Tokyo, Singapore, and Seoul experience significant shortages of modern warehouse space, while Sydney and Melbourne experience strong demand for prime logistics assets. China’s reopening has helped enhance e-commerce delivery services, relieving pressure off logistics assets in many APAC cities.
Even in an environment of rising interest rates, APAC capital markets remain resilient and present investors with opportunities to acquire quality real estate at attractive prices. Investors with long-term horizons and deep pockets should move quickly when purchasing assets that capture megatrends or offer diversification benefits; data centers to living sectors represent such assets that offer more vital investor interest while being less susceptible to interest rate movements, providing more defensive yields than traditional office, retail, or logistics assets.
