Global real estate revenue forecast tops $4.9 trillion by 2031

Allied Market Research says the global real estate market will rise from $28,917.7 billion in 2021 to $4,923.3 billion by 2031, growing at a 5.3% CAGR from 2022 to 2031. The report points to urbanization, foreign investment and new city development as key drivers, while Asia-Pacific leads and LAMEA posts the fastest regional growth.

Why it matters: - The global real estate market is projected to keep expanding through 2031, signaling continued demand across residential, commercial and industrial property. - Urbanization and population growth in developing countries are supporting new investment in housing, offices and industrial space. - The forecast also highlights where capital is likely to flow next, including Asia-Pacific and infrastructure-led markets in LAMEA.

What happened: - Allied Market Research published a report on the global real estate market covering property, business and type segments for 2021-2031. - The report estimates global real estate revenue at $28,917.7 billion in 2021 and $4,923.3 billion by 2031. - The market is forecast to grow at a 5.3% CAGR from 2022 to 2031. - The report includes analysis of market trends, key investment pockets, value chains, regional dynamics and competition. - A sample report is available here.

The details: - Growth is being driven by urbanization, population gains and government efforts to open the sector to foreign direct investment. - Slower growth in residential real estate in developed markets is limiting expansion because many major cities have reached saturation. - New-city projects in developing markets, including Dream City in Gujarat and New Kanpur, create additional commercial, industrial and residential opportunities. - COVID-19 disrupted the market through shutdowns in construction, manufacturing, hotel and tourism industries. - Lockdowns forced manufacturing facilities to close, which cut construction activity. - Real estate companies have resumed full-scale operations, supporting recovery. - By type, buildings held more than two-thirds of the market in 2021 and are projected to remain the largest segment. - The buildings segment is expected to grow at a 5.7% CAGR from 2022 to 2031 because it reduces construction time and cost. - By property, residential accounted for more than two-fifths of the market in 2021 and is expected to stay a leading segment. - Residential real estate is projected to post a 5.7% CAGR in 2031, helped by diversification, liquidity and rental-income resilience during downturns. - By business, sales accounted for nearly two-thirds of the market in 2021 and is expected to remain the top segment. - Sales is forecast to grow at a 5.7% CAGR because it offers privacy, customization and tax benefits. - By region, Asia-Pacific held more than two-fifths of the market in 2021 and is expected to generate the most revenue growth through 2031. - LAMEA is projected to grow fastest at a 6.4% CAGR, supported by government infrastructure spending. - The report lists American Tower Corporation, AvalonBay Communities, Ayala Land, Gecina, Link REIT, Prologis, Segro, Simon Property Group, Sinar Mas Land and Welltower as key players. - The report says these companies are using expansion, new product launches and partnerships to strengthen market position. - More information is available through the purchase inquiry page.

Between the lines: - The strongest growth themes are not in mature, saturated markets but in regions and property types tied to population growth, infrastructure and new development. - The segment data suggests investors are still favoring assets with steadier income and lower execution risk, such as buildings, residential holdings and sales-focused models. - The regional split points to a market where Asia-Pacific remains the demand center, while lower-income emerging regions may offer faster percentage growth from a smaller base.

What’s next: - Developers and investors are likely to watch new-city projects, infrastructure spending and foreign-investment policy for the next wave of demand. - The report expects buildings, residential property, sales and Asia-Pacific to keep leading the market through 2031. - LAMEA’s pace of growth will depend on whether government infrastructure plans translate into sustained private-sector activity.

The bottom line: - Real estate remains a large, globally expanding market, but the clearest growth is shifting toward developing economies, infrastructure-led expansion and property types that offer scale, flexibility and resilience.