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In this article, we’ll navigate the 25 fastest-growing real estate markets in the world. If you want to skip the detailed analysis, you can go directly to the next page. The five fastest growing real estate markets in the world.
Real estate market: analysis
Savills, a leading real estate services provider, reports that the total global real estate value in 2022 is estimated at $379.7 trillion, nearly four times the global GDP. By sector, residential real estate accounted for 76% of the total market, reaching a value of $287.6 trillion in 2022. Commercial real estate is second only to residential real estate, with a value of $50.8 trillion in 2022, accounting for 13% of the world’s total real estate value. value. The remaining value was provided by agricultural land.
Although China and the United States are considered the most valuable real estate markets around the world, several other regions also show strong potential for growth. Two of the major growing real estate markets are in the Middle East. Let’s take a look at each.
The Turkish real estate market is performing well, supported by the strong growth of the national economy. According to a report by Mordor Intelligence, Turkey’s residential real estate market is estimated to reach $99.05 billion in 2024 and $168.1 billion by 2029 with a compound annual growth rate of 11.16% during the forecast period. It is expected to grow to $10 million. Market trends include a growing trend towards apartment buildings and an increase in foreign direct investment in the local real estate market, making Istanbul a center of attraction for many foreigners.
Another Middle Eastern market showing a strong growth trajectory in the real estate sector is the United Arab Emirates. Dubai’s real estate market recorded an increase in sales prices and average rents in 2023, according to a report by Deloitte. This growth is predicted to continue steadily until 2024. Areas where sales prices have shown high year-on-year growth include Palm He Jumeirah Apartments, Dubai South, and MBR City. Overall, the market trading volume increased by 29% between 2022 and 2023. Dubai has also seen a surge in rental activity, which can be attributed to the demand for cheaper villas and townhouses.
Middle East real estate options
Real estate companies dominating the UAE’s fast-growing real estate market include Emaar Properties PJSC (DFM:EMAAR), Aldar Properties PJSC (ADX:ALDAR) and Damac Properties Dubai Company PJSC (DFM:DAMAC) etc. Let’s take a look at what these companies have been up to.
Emaar Properties PJSC (DFM:EMAAR) develops residential and commercial pre-built assets in the United Arab Emirates. Since 2002, the company has successfully delivered over 70,000 residential units. On February 8, Emaar Properties PJSC (DFM: EMAAR) reported that the real estate sales of its subsidiary Emaar Development increased by 22% to reach $10.2 billion in 2023. The increase in sales was achieved through 27 new projects launched by the company. In 2023, Emaar Development launched The Oasis by Emaar, one of Dubai’s largest developments with a total development value of $20 billion. The subsidiary also introduced Address Residences Al Marjan Island in Ras Al Khaimah during the fourth quarter of 2023.
Aldar Properties PJSC (ADX:ALDAR) is another leading real estate developer in the UAE. On February 8, the company reported significant investments in European logistics and storage assets. The company took this step for strategic international expansion, investing in a portfolio of self-storage facilities and development locations in Western Europe with global investment firm Carlyle (NASDAQ:CG) and other investors. Through this partnership, Aldar Properties PJSC (ADX:ALDAR) plans to enter the European real estate market.
DAMAC Properties Dubai Co PJSC (DFM:DAMAC) is engaged in providing residential, commercial and leisure facilities across the Middle East. As of June 2023, the company has delivered his 46,000 homes. On February 22, DAMAC Properties Dubai Co PJSC (DFM:DAMAC) reported that the luxury Mandarin Oriental Bolidhufaru Reef Resort in the Maldives is under construction. The resort is located in South Male Atoll. There will also be a diving center and water sports center where residents can enjoy outdoor recreation. Multiple specialty restaurants offer visitors a diverse dining experience. The luxury resort is scheduled to open in the fourth quarter of 2025.
Now that we’ve looked at global real estate, let’s move on to the top 25 fastest growing real estate markets in the world.
25 Fastest Growing Real Estate Markets in the World
Our methodology:
The real estate market is multifaceted and influenced by several factors. These include economic stability, price increases, interest rates, government support, and political stability. However, we focused on her two key metrics. The first indicator we chose is year-on-year growth in residential real estate prices. world economy. Rising home prices are also associated with improved consumer confidence and increased demand.
Economic stability and growth are also factors that encourage foreign investment and increase demand in the real estate market. To represent overall economic stability, we considered real GDP growth as a second indicator.This indicator was available in IMF, as of 2023. Since the main indicator we focus on is house price growth, some of the countries on our list have positive house price growth but slightly negative real GDP growth. be careful.
We ranked countries by year-over-year growth in house prices, using real GDP growth as a tiebreaker.
25 Fastest Growing Real Estate Markets in the World
25. Estonia
Year-over-year growth rate of house prices: 0.34%
Real GDP growth rate: -2.3%
Estonia ranks as one of the fastest growing real estate markets in the world. This is evident from the 0.34% year-on-year increase in domestic residential real estate prices recorded in the third quarter of 2023.
24. Slovakia
Year-over-year growth rate of house prices: 0.53%
Real GDP growth rate: 1.3%
As of the third quarter of 2023, the year-on-year growth rate of house prices in Slovakia was recorded at 0.53%. Furthermore, Slovakia recorded a real GDP growth rate of 1.3% in 2023.
23. France
Year-over-year growth rate of house prices: 0.54%
Real GDP growth rate: 1%
The world’s fastest growing real estate markets include France. In the third quarter of 2023, the country’s residential real estate prices registered a year-on-year growth of 0.54%. France’s real GDP growth rate is reported to be 1% in 2023.
22. Malaysia
Year-over-year growth rate of house prices: 0.61%
Real GDP growth rate: Four%
The year-on-year growth rate of house prices in Malaysia was 0.61% in Q3 2023. According to the IMF, real GDP growth in 2023 was 4%.
21. Mexico
Year-on-year growth rate of house prices: 0.84%
Real GDP growth rate: 3.2%
Mexico is also ranked as the fastest growing real estate market. In the third quarter of 2023, house prices in the country increased by 0.84% year-on-year. Furthermore, the country’s real GDP grew by 3.2% in 2023.
20. Greece
Year-on-year growth rate of house prices: 0.85%
Real GDP growth rate: 2.5%
Greece’s housing prices in the third quarter of 2023 recorded a year-on-year growth of 0.85%. According to the IMF, the country’s real GDP grew by 2.5% in 2023.
19. Austria
Year-over-year growth rate of house prices: 0.91%
Real GDP growth rate: 0.1%
The year-on-year growth rate of house prices in Austria was recorded at 0.91% in the third quarter of 2023. Austria is ranked one of the fastest growing real estate markets in the world. The country’s GDP grew by 0.1% in 2023.
18. United Arab Emirates
Year-over-year growth rate of house prices: 0.94%
Real GDP growth rate: 3.4%
The UAE’s real GDP growth rate was recorded at 3.4% in 2023. The year-on-year growth rate of domestic residential real estate prices in the third quarter of 2023 is reported to be 0.94%. Therefore, the UAE ranks as one of the fastest growing real estate markets around the world.
17. United Kingdom
Year-over-year growth rate of house prices: 1.14%
Real GDP growth rate: 0.5%
The UK recorded a 1.14% year-on-year growth in residential property prices in the third quarter of 2023. Real GDP in 2023 grew by her 0.5%.
16. Serbia
Year-over-year growth rate of house prices: 1.83%
Real GDP growth rate: 2%
As of the third quarter of 2023, the year-on-year growth rate of residential real estate prices in Serbia was 1.83%. The country is one of the fastest growing real estate markets in the world, recording a real GDP growth rate of 2% in 2023.
15. Croatia
Year-over-year growth rate of house prices: 2.11%
Real GDP growth rate: 2.7%
Croatia is also the fastest growing real estate market in the world. According to the IMF, Croatia’s real GDP in 2023 grew by 2.7%. The year-on-year growth rate of house prices in Croatia in the third quarter of 2023 was 2.11%.
14. America
Year-over-year growth rate of house prices: 2.71%
Real GDP growth rate: 2.1%
The United States is considered a growing real estate market. The real GDP growth rate in 2023 was recorded at his 2.1%. According to the report for the third quarter of 2023, residential real estate prices increased by 2.71% year-on-year.
13. Switzerland
Year-over-year growth rate of house prices: 2.84%
Real GDP growth rate: 0.9%
According to the IMF, Switzerland’s real GDP grew by 0.9% in 2023. In the third quarter of 2023, residential real estate prices in Switzerland recorded a year-on-year growth of 2.84%. Switzerland ranks as one of the fastest growing real estate markets in the world.
12. Ireland
Year-over-year growth rate of house prices: 2.94%
Real GDP growth rate: 2%
The year-on-year growth rate of residential property prices in Ireland was recorded at 2.94% in Q3 2023. Real GDP growth in 2023 is reported to be 2%.
11. North Macedonia
Year-over-year growth rate of house prices: 3.5%
Real GDP growth rate: 2.5%
North Macedonia is also a growing real estate market. In the third quarter of 2023, residential real estate prices increased by 3.5% year-on-year in North Macedonia. The country’s real GDP grew by 2.5% in 2023.
10. Luxembourg
Year-over-year growth rate of house prices: 3.96%
Real GDP growth rate: -0.4%
The year-on-year growth rate of residential real estate prices in Luxembourg was recorded at 3.96% in the third quarter of 2023. This country is ranked as one of the fastest growing real estate markets in the world.
9. Slovenia
Year-over-year growth rate of house prices: 4.08%
Real GDP growth rate: 2%
Slovenia is one of the fastest growing real estate markets worldwide. In the third quarter of 2023, house prices in the country recorded a year-on-year growth of 4.08%. Slovenia also saw real GDP grow by her 2% in 2023.
8. Portugal
Year-over-year growth rate of house prices: 4.81%
Real GDP growth rate: 2.3%
Portugal is among the fastest growing real estate markets in the world. The year-on-year growth rate of residential real estate prices in the country in the third quarter of 2023 was 4.81%. Also, the real GDP growth rate in 2023 was 2.3%.
7. Japan
Year-over-year growth rate of house prices: 4.85%
Real GDP growth rate: 2%
The year-on-year growth rate of residential real estate prices in Japan in the third quarter of 2023 was 4.85%. In 2023, the country’s real GDP grew by his 2%. Therefore, Japan is also one of the fastest growing real estate markets in the world.
6. Singapore
Year-on-year growth rate of house prices: 5.85%
Real GDP growth rate: 1%
Singapore ranks as one of the fastest growing real estate markets in the world. The real GDP growth rate in 2023 was recorded at 1%. In the third quarter of 2023, domestic residential real estate prices increased by 5.85% compared to the same period last year.
Click to keep reading to discover the five fastest growing real estate markets in the world.
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Disclosure: None. 25 Fastest Growing Real Estate Markets in the World Originally published on Insider Monkey.
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