Published on: December 05, 2019
Real estate refers to properties that comprise land as well as resources on the land such as buildings and natural resources including uncultivated flora and fauna, cultivated crops, water bodies, and mineral deposits. The global real estate rental and leasing market has been categorized as part of the global real estate operating companies market. The global real estate operating companies market includes companies engaged in operating real estate properties for the purpose of leasing and management.
The housing segment dominates the global real estate rental and leasing market by type. APAC is the key contributing region to the global real estate rental and leasing market, with factors such as high rate of expansion in cities in countries such as India and China, and growing migration of working population toward urban cities driving market growth in the region. Trends such as the rising popularity of co-living spaces are expected to characterize the growth of the global real estate rental and leasing market during the forecast period.
Many factors are expected to influence growth in the global real estate rental and leasing market during the forecast period. Our analysis identifies the following factors to be driving the growth of the global real estate rental and leasing market:
Factors such as high migration rates of the population towards urban cities worldwide, and growing investments in the development of new cities to reduce the ecological and environmental impact on existing urban areas are driving high expansion in cities. The rising disposable income per capita of consumers in emerging markets such as India are further expected to drive the demand for real estate during the forecast period.
With several related industries such as healthcare and infrastructure witnessing an increase in overall production costs due to price inflation, real estate sector sales have witnessed a slowdown in growth due to surge in pricing. As a result, the competition among vendors in the real estate sector is highly intense, with the competition primarily based on price. The steady rise in property prices and housing mortgage interests worldwide are making housing unaffordable, especially to the booming millennial population. Subsequently, real estate rentals and leases are emerging as an affordable option to consumers worldwide.
The growing adoption of technology such as big data in real estate has aided the growth of the global real estate rental and leasing market. Additionally, the rapid penetration of internet infrastructure and mobile devices enables vendors to advertise and promote directly through online platforms. Technology software and tools enable vendors to analyze data about prospective customers such as demographics, which can be used to customize and personalize advertisements and marketing strategies and make informed business decisions. Subsequently, the rising adoption of technology in real estate is expected to boost the growth of the global real estate rental and leasing market during the forecast period.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
The slow growth in the gross domestic product (GDP) and jobs over the last few years have impacted the demand for real estate worldwide. Expectations for the real estate market are expected to remain modest during the forecast period, with factors such as rapidly rising population and resource-related constraints in existing urban cities expected to continue to challenge the growth of the global real estate rental and leasing market.
The global real estate rental and leasing market is highly regulated, with several governments imposing stringent measures to ensure the affordability of housing and tenancies in the market. These regulations typically cover key aspects such as price control, eviction control, and maintenance related to real estate rental and leases. For instance, in Canada, state regulations in Ontario mandate that the prices for rented properties do not rise over 2.5% each year.
Owing to the rising popularity of real estate rental and lease bookings through online platforms, there has been an increase in instances of rental scams over the last few years. These scams typically aim to steal money by trying to get the potential tenant to send a check for a security deposit or move-in fee without actually let them see the apartment in person. Rental scams are expected to challenge the growth of the global real estate rental and leasing market during the forecast period.
The global real estate rental and leasing market can be segmented into the following:
The global real estate rental and leasing market is moderately fragmented with the presence of several international and regional players. We provide a detailed analysis of around 25 vendors operating in the global real estate rental and leasing market, including some of the prominent vendors such as CBRE Group Inc., Jones Lang LaSalle Inc., Newmark Group Inc., Century 21 Real Estate LLC, and Realogy Holdings Corp. Mergers, acquisitions and partnerships are among the strategies adopted by manufacturers in the global real estate rental and leasing market.
Backed with competitive intelligence and benchmarking, our global real estate rental and leasing market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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