Pattaya City, July 28, 2020: The size of the real estate market was predicted to grow from $3386.12 billion to $3741.08 billion respectively in the years 2021 and 2022 at a CAGR (compound annual growth rate) of 10.6%. The market growth has been affected due to the pandemic/ covid-19 and now recovering the impact by rearranging their operations. The market is expected to reach $5388.96 billion in 2026, at a CAGR report. Real estate market growth will be sustained by steady economic growth predictions in several developed and under-developed countries. Earlier, the IMF expected GDP growth approx 2.8% for the year 2019-2020 and 3.9% from 2021-2023.

Retrieving commodity prices is likely to support the real estate market growth after a massive decline in the historical period. Plus, the developing markets expect to grow a little faster than the developed markets in the coming years. The explosion of Covid-19 brought a massive obstruction to the real estate market in 2020 as the entire industry was isolated globally during the pandemic, which resulted in the destruction of the economy and GDP of many countries all over the world. The outbreak left a negative impact throughout 2020. Then, gradually, markets started coming on track.

Economic Growth

Housing demand is influenced by revenue. With a strong economy and growing wages, people may invest more in real estate, boosting applications and prices. However, the reality is that housing demand is frequently seen as elastic in terms of income, leading to a growth in household revenues. In a recession, decreased sales will not let people buy, and people who have lost their jobs will not be capable of paying their mortgage and turn out to be in their homes repossessed.

Rate of Interest

A 1% increase in the interest rate of a home loan decreases the affordability of purchasing a house by approx 7%. For mortgages, Interest rates affect the monthly payment. Therefore, a high-interest rate would increase the mortgage costs and reduce the purchasing demand for a house. Also, the stock value will be affected. In December 2021, the Bureau of Labour Statistics stated that the U.S. inflation rate had increased by 6.7% over the year, which is the highest since 1982.

Trends in Real Estate Industry

Rapid urbanization is the central pillar driving the industry's growth across the world. In addition, the increasing population, rising need for quality housing, and the burgeoning trend of nuclear families are aiding the growth of the real estate market. In correspondence to this, the changing consumer preferences towards a safe, secure and clean environment, also infrastructure development such as better connectivity via roads, air, and railways, are erecting a standpoint for the market. Moreover, unification with several technological advancements, such as information technology (IT) and artificial intelligence (AI), is a legislative exhortation to market growth.

In a Nutshell

This report predicts the growth of the industry from the year 2022 to 2026. Also, you have a quick examination of the forecast and trends in the market. If you are interested in getting insight into the market, you can reach out to GLOBAL TOP GROUP via the link https://globaltopgroup.com/.