PUBLISHER: The Business Research Company | PRODUCT CODE: 1678305
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678305
Real estate rental involves providing properties as temporary dwellings to rental occupants or tenants, governed by a rental agreement or contract between the property owner and the end-user. Payment is made by the end user for the temporary use of the property.
The primary types of real estate rental services include residential buildings and dwellings rental services, non-residential buildings rental services, mini-warehouses, self-storage unit rental services, and other rental services. Residential rental property is a dwelling purchased by an investor and occupied by tenants under a lease or another rental arrangement. The various modes of rental services include online and offline, covering property types such as fully furnished, semi-furnished, and unfurnished.
The real estate rental market research report is one of a series of new reports from The Business Research Company that provides real estate rental market statistics, including the real estate rental industry global market size, regional shares, competitors with a real estate rental market share, detailed real estate rental market segments, market trends and opportunities, and any further data you may need to thrive in the real estate rental industry. This real estate rental market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The real estate rental market size has grown strongly in recent years. It will grow from $2693.47 billion in 2024 to $2915.55 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to consumer confidence, economic conditions, interest rates, consumer preferences, global events.
The real estate rental market size is expected to see strong growth in the next few years. It will grow to $3877.45 billion in 2029 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to growing sustainability and green practices, remote work trends, affordability challenges, government policies, global events and health factors. Major trends in the forecast period include remote work impact, technology integration, sustainability and energy efficiency, flexible lease terms, affordable housing initiatives, health and safety concerns.
The anticipated increase in home prices is expected to drive demand in the real estate rental market. The surge in housing prices, influenced by pandemic-related lockdowns and rising interest rates, is prompting a greater demand for rental units as an alternative accommodation option for those unable to purchase a home. For instance, in India in 2022, the Delhi-National Capital Region (NCR) experienced a significant 10% year-on-year (YoY) increase in residential prices, followed by Ahmedabad and Hyderabad with 9% and 8% YoY increases, respectively, from 2021. Therefore, the elevated home prices are projected to contribute to the demand for the real estate rental market.
The growing demand for construction activities is anticipated to boost the growth of the real estate market in the coming years. Construction involves assembling various elements to create a structure in a specific location, guided by a detailed design and plan. Real estate rentals play a crucial role in supporting construction activities by providing necessary infrastructure, equipment storage, workspace, accommodation, and logistical advantages. For example, in December 2022, Stats NZ Tatauranga Aotearoa, a New Zealand-based government data agency, reported a 3.8% increase in building activities in September 2022. Additionally, residential building activity rose by 3.1% in the September 2022 quarter, while non-residential building activity saw a growth of 4.9%. Therefore, the rising demand for construction activities is fueling the growth of the real estate rentals market.
Real estate agents are increasingly leveraging new technologies like online listings, video, and virtual reality (VR) to enhance their services for clients and strengthen the relationship between buyers and agents. With technological advancements, the role of real estate agents is evolving from mere information providers to local market experts and service facilitators. Online real estate listing platforms such as Zillow and realtor.com offer comprehensive housing databases, including information on tax and purchase history. Technologies like video tours, VR experiences, and e-signing services also help streamline real estate transactions. For example, in August 2024, The Abu Dhabi Real Estate Centre (ADREC), a regulatory body for the real estate sector in the UAE, introduced its first official Rental Index. This platform aims to improve market transparency, provide indicative rental values, and strengthen the stability of Abu Dhabi's growing real estate market, benefiting both tenants and landlords. It offers accessible and reliable data on residential, commercial, and industrial properties, along with indicative quarterly rental prices for properties across various regions in Abu Dhabi.
Major companies in the real estate rental market are introducing innovative platforms, such as Airbnb-friendly buildings, to enhance revenues. Airbnb-friendly buildings cater to renters interested in earning extra income by hosting their homes on Airbnb part-time, while adhering to building rules and applicable laws. In November 2022, Airbnb, a US-based real estate company, introduced an Airbnb-friendly buildings platform that enables rentals to host apartments in collaboration with major landlords. These apartments are designed as the renter's primary residence, and each building has its own community rules for hosting, including limitations on the number of nights renters can host per year.
Major companies operating in the real estate rental market include Brookfield Asset Management, CBRE Group Inc., Leopalace21 Corporation, Xiamen C&D, Mitsui Fudosan Co. Ltd., Weyerhaeuser Company, Sun Hung Kai Properties Limited, Equinix Inc. (REIT), Prologis Inc., Simon Property Group Inc., Host Hotels & Resorts Inc., Digital Realty Trust Inc, Public Storage, Daito Trust Construction Co. Ltd., Americold Realty Trust, Equity Residential, AvalonBay Communities Inc., Alexandria Real Estate Equities Inc., CapitaLand Limited, Healthpeak Properties Inc., UDR Inc., Camden Property Trust, Regency Centers Corporation, CyrusOne Inc., Federal Realty Investment Trust, STORE Capital Corporation, Rexford Industrial Realty Inc., Duke Realty Corporation, Essex Property Trust Inc., Highwoods Properties Inc.
Asia-Pacific was the largest region in the real estate rental market in 2024. North America was the second-largest region in the real estate rental market. The regions covered in the real estate rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the real estate rental market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.
The real estate rental market consists of revenues earned by entities that rent, lease, and allow the use of buildings and or land such as serviced offices and co-working spaces. The rental agreement is a document used for the occupying of space (either commercial or residential) for a period of time in exchange for monthly rent. This market also includes managing, selling, renting, buying, and appraising real estate for others. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Real Estate Rental Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on real estate rental market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for real estate rental ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The real estate rental market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.