Today, ResearchAndMarkets.com released a report, “Real Estate Rental Global Market Report 2022,” that found the global real estate rental market is expected to grow from $2164 billion in 2021 to $2397 billion in 2022, according to a press release.
That growth equates to a compound annual growth rate (CAGR) of 10.7%, which is higher than the 7.9% CAGR increase the U.S. property management market is projected to grow, according to Fortune Business Insight’s Property Management Market report released yesterday. The rental market is also predicted to reach $3477 billion in 2026, at a CAGR of 9.7%.
The rental report attributes the growth in this forecast window to companies “rearranging their operations and recovering from the impacts of COVID-19,” which had caused operational challenges due to restrictive measures (social distancing, remote working, closure of commercial activities).
The Asia-Pacific was listed as the largest region in the 2021 real estate rental market, with North America ranked as second largest. Major companies named in the industry report include Daito Trust Construction Co., Brookfield Asset Management, American Tower Corporation, CapitaLand Limited, Simon Property Group, and Digital Realty Trust.
Effects of technology
Another driving factor for the market includes increased technology adoption by real estate agents, including online listings, video and virtual reality (VR), which help to provide better service and strengthen buyer-agent relationships.
The report noted that advancements in technology are shifting the primarily roles of real estate agent; while agents previously acted mostly as a messenger and arbitrator of information, online listing services have removed that need and turned them to act as local experts and service providers.
Video, virtual reality and digital e-signing services have also led to simpler and faster real estate transactions for agents and renters alike, according to the report.
In other recent proptech news, Findingaplace exceeded its crowdfund target to fund its alternative rental portal platform. Pacaso also released its earning, revealing explosive growth the market’s fastest proptech unicorn.