The global real estate market has been growing in recent years, reaching a value of US$ 6,883 billion in 2021. The market is projected to continue its growth, reaching a value of US$ 7,806 billion by 2027. This growth is driven by trends, including population growth, increased urbanization, and the rising popularity of second homes.
In addition, the market is being bolstered by several government initiatives to promote investment in the real estate sector to support the economy following the pandemic. As a result of these trends, the market is expected to grow at a CAGR of 1.90% during the 2022-2027 forecast period.
This 2022, you can expect to see an increase in demand for rental properties, a rise in the popularity of co-living, and a growing demand for second homes. Moreover, we will see an increase in investment in the real estate sector from foreign investors and a continued rise in prices for luxury properties.
An analyst report predicts that the global market for tiny homes will reach a CAGR of 6.99% between 2018 and 2022. The latest trend gaining momentum in the tiny homes market is the growing number of retirement home parks and the high-cost construction of traditional houses.
The tiny homes market is expected to grow due to the rising awareness about environmental sustainability and energy efficiency. Moreover, the small homes market is bolstered by the increasing popularity of the minimalist lifestyle among millennials.
Eco-Friendly and Sustainable Housing
Eco-homes allow people to save on energy costs and have a smaller carbon footprint. Some eco-home features that may be seen in 2022 are solar panels, rainwater harvesting, green roofs, energy-efficient appliances, water-saving plumbing, and the use of recycled materials during construction.
While some of these features may require professional services to add to your home, you can add solar panels or a rainwater harvesting system to the roof of your home yourself. Moreover, you can install energy-efficient appliances and water-saving plumbing fixtures when they need replacing.
The prefabricated housing construction market, with a CAGR of 4.7% from $40.74 billion in 2021, is forecasted to reach $42.64 billion this 2022 and become $51.23 billion by 2026. And this resulted from the many benefits of prefabricated homes, such as shorter construction time, reduced site waste, and increased energy efficiency.
In addition, prefabricated homes are more resistant to natural disasters, such as hurricanes and earthquakes. Other advantages includes easier site preparation, less on-site construction noise and traffic, and improved indoor air quality. As a result of these advantages, prefabricated homes are becoming increasingly popular in both developed and developing countries.
According to findings commissioned by Coldwell Banker Global Luxury, in 2021, people with a net worth of $5 million or more grew by 20.4% from 2.1 percent the prior year. Meanwhile, the number of wealthy people worldwide rose by 19.8% in 2021, compared to 2020, which only increased by 2.2%.
Many of these high-net-worth individuals began moving into or purchasing second bigger homes in response to the pandemic quarantine protocols. This luxury home purchasing trend has continued into 2022. As a result, the cost of luxury housing has increased, and there has been greater market competition, which has encouraged more construction.
As the world progresses, more and more diverse housing trends become available. And this provides more options for individuals and families when it comes time to find a home. The availability of different housing types allows people to be creative in their choices and better meet their needs.
Moreover, as new technology emerges, the way homes are designed and built changes too, which is evident in the increasing popularity of sustainable homes and smaller functional homes. These homes are designed with a focus on efficiency and are often more affordable than traditional homes.
When you’re ready to build a house, pick a company that has a wide range of packages to choose from, so you can find the perfect house and land size for your needs. If you’re not sure what you want, they should also be able to provide tips on choosing the right size house for the land lot you’ve chosen. When you find the right home builder, you’ll be well on your way to building the perfect place for your family.
From eco-friendly and sustainable homes to luxury housing, everyone has an option. If you’re looking to buy a new house or build one, it’s essential to stay up-to-date on the latest trends to make the best decision for your needs.