Commercial Real Estate Market Size, Share, Growth, and Industry Analysis, By Type (Community Business, Commerce Center, Others), By Application (Rental, Sales) and Regional Forecast to 2029

Updated On: 20 November 2023

REPORT OVERVIEW

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The global commercial real estate market size was 2269.4 million in 2022. As per our research, the commercial real estate market is expected to reach USD 2731.9 million by 2029, exhibiting a CAGR of 3.1% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, commercial real estate experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Commercial real estate (CRE) is material that is used solely for commercial purposes or to offer a workspace, as opposed to residential real estate, which is utilized for living purposes. Most commercial real estate are rented to tenants in order for them to generate income. This vast group of real estate may encompass everything from just one storefront to a large shopping mall. Commercial real estate can take several forms. It could be anywhere from a place of business to a duplex, as well as a dining establishment, coffee shop, or warehouses. Individuals, businesses, and corporations can profit through real estate through renting it or owning it and reselling it.

The commercial real estate market share is dependent on various factors, including the expanding business sector globally, rising aggregated private investment, and increased e-commerce spending.

COVID-19 Impact: Interruption in Services to Deplete Market Growth

Work-from-home (WFH) culture emerged as a result of the COVID-19 outbreak, which had an immediate effect on new space obligations. In 2020, new office space in India's seven cities was 36.34 million square feet, a 30% decrease than the previous year. Despite difficulties, the industry's recovery period appears to be encouraging, with offices reopening and leasing activity increasing.

The swift progress of the vaccine initiative, which is supported by a decline in COVID-19 cases, is boosting confidence among investors in a quick economic recovery. Developers are confident about a robust return in office leasing activity with the gradual reopening of economic operations and companies' shift in workplaces for greater demand for co-working space.

LATEST TRENDS

"Office Segment to Stimulate Market Development  "

During the projection period, the offices segment's market share will expand significantly. The offices segment dominated the worldwide commercial real estate market  share during 2022 in addition is expected to continue to do so over the projected period. The growing need for professional offices from factories and other industrial enterprises is the primary driver of this segment's growth.

SEGMENTATION

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• By Type

Based on type; the market is divided into community business, commerce centre, others

Community business is the leading part of the type segment.

• By Application

Based on the application; the market is divided into rental, sales

Rental is the leading part of the application segment.

DRIVING FACTORS

"Expanding Commercial Sector to Aid Market Expansion "

The expanding commercial sector internationally is the primary driver of market expansion. Commercial building is predicted to benefit from the rapid urbanization and industrialization in developing nations such as Thailand, China, Malaysia, and Indonesia. Development of commercial spaces, buildings for institutions, manufacturing units, and public works has increased across the Middle East.

"Adoption of Technologies to Foster Industry Progress "

Adoption of technology within the real estate business will drive market growth. The business-oriented real estate market is being transformed by technological innovation. The increased use of creative instruments will increase production and reduce costs for all stakeholders. Smart technology for sensors, cloud computing, VR and 3D image processing, cloud-based applications for mobile devices, networking systems, and big analytics for data are among the developing market technological trends.

These solutions not only reduce project costs but also increase energy savings by turning green. For property managers who manage their processes and client connections, cloud-based technology serves as a system of record. Thus, the adoption of technology is one of the emerging trends that are projected to boost market growth throughout the forecast period.

RESTRAINING FACTORS

"Increasing Demand for Work-from-Home Paradigm to Limit the Market Evolution "

The increasing demand for the work-from-home paradigm poses a significant obstacle to commercial real estate market growth expansion. The increasing acceptance of the work-from-home concept has had a substantial impact on industry growth in recent years. Throughout the state of emergency that accompanied the COVID-19 pandemic, the majority of firms instituted a work-from-home policy, which drastically reduced the requirement for office space and depleted the market.

Businesses have saved money by establishing work-from-home policies, especially in densely populated core city centers. Furthermore, many businesses, especially IT firms, are making significant efforts to provide their employees with the option of working from home on a permanent basis. As a result, the increasing demand for working from home models may provide a significant obstacle to market during the projection period.

REGIONAL INSIGHTS

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"Significant Office Space Take-Up in Asia Pacific to Support Market Advancement "

The Asia Pacific commercial real estate industry is highly competitive and largely fragmented. Because of significant office space take-up, reducing vacancy levels, and rising rental rates, Indian commercial property is becoming an increasingly popular option for global institutional investors. DLF, Godrej Property along with Oberoi Realty are some of the country's main commercial real estate businesses. As the amount of developers offering commercial buildings decreases, the Asia Pacific retail real estate industry is entering an intermediate consolidation phase. Small-scale firms are also combining with larger companies or abandoning the market.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

The analyst provides a comprehensive picture of the market through the study, synthesis, and summarization of data from various sources, as well as an examination of important variables such as financial gain, sales prices, competition, and promotions. It identifies the key industry influencers and presents various market facets. The information provided is thorough, reliable, and the result of extensive primary and secondary research. The market report provides a comprehensive competitive landscape as well as an in-depth vendor evaluation methodology and analysis based on both qualitative and quantitative studies to accurately forecast market growth.

The reports cover important advances with in market, as well as inorganic and organic growth strategies. Various companies are concentrating on organic business expansion such as product announcements, product approvals, and other things like patents and events. Acquisitions, partnerships, and collaborations were among the inorganic growth strategies observed in the market. The above activities have paved the way for market participants to expand their business and customer base. With the growing demands for filter products in the international market, market participants in the market are expected to benefit from substantial growth opportunities in the near future.

List of Market Players Profiled

• PulteHomes (U.S.)
• Horton (U.S.)
• Lennar (U.S.)
• Evergrande (China)
• Vanke (China)
• Country Garden (China)
• Poly (U.S.)
• SUNAC (U.S.)
• LongFor (China)
• Greenland (China)
• R&F (U.S.)
• CR Land (China)
• Green Town (China)
• Agile (U.S.)
• Wanda (China)
• Hongsin (China)

REPORT COVERAGE

This research offers a thorough analysis of the global market, covering all relevant areas. This includes everything from a broad market overview to micro-level information about size of the market, degree of competition, evolution trend, opportunities in the market, important market drivers, and SWOT opportunities and threats. The reader can use the study to influence industry competitiveness and competitive environment strategies to increase potential profit. Additionally, it offers a straightforward framework for assessing and gaining access to the situation of the corporate organization.

In a nutshell, this study should be read by all market participants, traders, academics, analysts, business planners, and anyone else with an interest in the market. The market competitive landscape is another area that the report structure focuses on. This report presents in depth information the share of the market, macroeconomic indicators, product scenario, operation circumstances of the major players, which aids readers in the industry in recognizing the key rivals and better understanding the market's competitive landscape.