The global real estate investment market was valued at $11444.7 billion in 2021, and is projected to reach $30575.5 billion by 2031, growing at a CAGR of 10.7% from 2022 to 2031. Real estate that produces income or is in some other way meant for investment reasons as opposed to be a primary residence is referred to as real estate investment. Investors frequently own several pieces of real estate, one of which is utilized as a primary residence and the others to produce rental income and profit through price growth. Investing in real estate has different tax consequences than buying a home, which is a common difference.

The ability to create passive income through the collection of rent, move-in fees, pet rent, and other fees is the primary benefit of investing in real estate. In addition, rental properties typically appreciate over time, meaning the value of the property increases yearly. These factors notably contribute toward the growth of real estate investment market. However, slow economic activity after the pandemic has been limiting the real estate investment market growth. On the contrary, growth in urbanization and population drives the commercial and industrial sector, which in turn is expected to propel the demand for real estate investment in the coming years. Furthermore, growth in technological innovations in the real estate investment industry is propelling the adoption of virtual real estate investment, which is expected to create lucrative opportunities for real estate investment services in future.

The real estate investment market is segmented into Distribution Channel, Property Type and Purpose.

By property type, the market is differentiated into residential investment, commercial investment, industrial investment, and land investment. Depending on purpose, the market is segmented into sales and rental. The distribution channel segment is segregated into public REIT, private REIT, and private real estate investment. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

By region, Asia-Pacific is expected to grow at the highest CAGR during the forecast period in real estate investment market share. This is attributed to the fact that Asia-Pacific is an emerging economy, where real estate market is witnessing growth, owing to increased infrastructure development projects. Further, economic recovery and growth in construction demand are significantly driving the market growth.

Key players operating in the global real estate investment market analysis include ATC IP LLC, AVALONBAY, INC., Ayala Land, Inc., Brookfield Asset Management Inc., Gecina, Link Asset Management Limited, Prologis, Inc., SEGRO, Simon Property Group, L.P., CBRE, Jones Lang LaSalle IP, Inc., New World Development Company Limited, Colliers, NMRK, Welltower, Cadre, and Roofstock, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the real estate investment industry.

COVID-19 Impact - The COVID-19 outbreak had a moderate effect on the real estate investment industry. In addition, when the crisis became evident, most people with real estate investments adjusted their portfolios. Furthermore, the investors also researched more before investing in any properties in order to precisely prevent the uncertainties of the future.

Rise in Demand for Industrial and Commercial Development - In emerging economies such as China, India and South Korea, foreign investment in commercial real estate is positively influencing the market growth. Furthermore, rapid surge in the global population as a result of increase in migration has led to rapid urbanization. This factor is expected to fuel the demand for real estate investments. Moreover, rise in demand for commercial buildings is expected to continue to drive the market growth in developed regions. Moreover, increase in industrialization in economies, such as Asia-Pacific and LAMEA, is expected to boost the global market development.

Increase in Public–Private Partnerships (PPP) - In this type of partnership, a private company handles the project with the help of technical and operational assistance from the government. The growth in public–private partnerships in different countries, such as India and China, would continue to fuel the growth of the real estate investment industry.

Rise of Residential Construction Industry - Growth in the demand for residential development benefits the growth of real estate investment market. The construction industry is to grow to US$8 trillion by 2030, driven by countries such as China, the U.S., and India. Hence, the construction industry is anticipated to represent a much bigger part of the global economy by 2030. Considering the growth in urban population and increase in residential construction industries, the real estate investment market is projected to grow at a significant rate.

Real Estate Investment Global prospects

The real estate investment market has witnessed significant growth over the past decade, owing to increase in land-related transactions in the commercial, industrial, and residential projects across the globe. For instance, in September 2019, Gladstone Land Corporation acquired more than 400 acres of farmland in California. It entered into lease agreements with respective firms to operate the property. These firms will focus on growing a variety of berry crops. Hence, growth in number of such projects is expected to increase the demand for land across the globe. Furthermore, increase in focus toward affordable warehouse structures has a significant impact over the market growth in the recent years. In addition, increase in investment in commercial construction activities is expected to drive the growth of the global real estate investment market. The Region Asia-Pacific  (China, Japan, India, Australia, South Korea, Hong Kong, Rest Of Asia-Pacific) especially India is witnessing serious development and rise in Real Estate demand and increase in Public Private Partnership.

Major players operating in this market have witnessed significant adoption of strategies that include business expansion and partnerships to reduce supply and demand gaps. With increase in awareness & demand for real estate investment across the globe, major players have collaborated on their product portfolio to provide differentiated and innovative products.