Global Commercial Real Estate Market Expected to Reach USD 9.91 Trillion by 2033, with a CAGR of 3.25% – Spherical Insights & Consulting
The Global Commercial Real Estate Market is set to experience significant growth in the coming years, with a projected increase from USD 7.2 trillion in 2023 to USD 9.91 trillion by 2033. This growth is expected to be driven by various factors such as GDP growth, employment rates, and consumer spending, as well as the increasing demand for office, retail, and industrial spaces.
One of the key drivers of market expansion is the growth of the international business industry. Countries like Thailand, China, Malaysia, and Indonesia are anticipated to see increases in urbanization and industrialization, leading to a positive impact on commercial construction. However, the rise in remote work due to the COVID-19 pandemic poses a significant challenge to the commercial real estate sector, as businesses have increasingly adopted remote work policies to reduce expenses.
The rental segment is expected to dominate the global commercial real estate market, driven by escalating home prices in developed nations and the changing business landscape. The offices segment is also projected to hold a significant share of the market, as companies require office spaces for their daily operations and professional services.
In terms of regional growth, Asia Pacific is expected to lead the global commercial real estate market, fueled by the growing number of homeowners in the region and the surge in tourists in developing countries. North America is forecasted to grow at the fastest pace, supported by a robust economy, low unemployment rates, and an expanding population.
Key players in the Global Commercial Real Estate Market include Brookfield Asset Management Inc., ATC IP LLC., Prologis, Inc., SIMON PROPERTY GROUP, L.P., and others. These companies are continuously innovating and forming strategic alliances to stay competitive in the market.
Overall, the commercial real estate market is poised for significant growth in the coming years, driven by various economic and industry-specific factors. Investors, developers, and corporations are expected to capitalize on the opportunities presented by this expanding market.