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25 Fastest Growing Real Estate Markets in the World

In this article, we will be navigating through the 25 fastest-growing real estate markets in the world. If you wish to skip our detailed analysis, you can move directly to the 5 Fastest Growing Real Estate Markets in the World.

Real Estate Markets: An Analysis

As reported by the leading real estate services provider Savills, the total value of global real estate was estimated at $379.7 trillion in 2022 which was nearly four times the global GDP. Sector-wise, residential real estate accounts for 76% of the overall market and was valued at $287.6 trillion in 2022. Following residential real estate is commercial real estate which was worth $50.8 trillion in 2022 and contributed to 13% of the total global real estate value. The remaining value was covered by the agricultural land.

While China and the United States were deemed the most valuable real estate markets around the world, several other areas have also been demonstrating a strong potential for growth. Two of the major growing real estate markets are from the Middle East. Let’s take a look at each one of them.

Supported by the strong growth of the national economy, the real estate market in Turkey has been performing well. According to a report by Mordor Intelligence, the Turkish residential real estate market is estimated to reach $99.05 billion in 2024 and is expected to grow to $168.11 billion by 2029 at a compound annual growth rate of 11.16% over the forecasted period. Some of the trends in the market include the growing inclination towards mass housing and a rising foreign direct investment in the local real estate market with Istanbul being a center of attraction among many foreigners.

Another Middle Eastern market showcasing a strong growth trajectory in real estate is the United Arab Emirates. As reported by Deloitte, the real estate market in Dubai witnessed growth in sales prices as well as average rents during 2023. This growth has been projected to remain robust through 2024. Areas experiencing high year-over-year sales price growth include Palm Jumeirah apartments, Dubai South, and MBR City. Overall, the transaction volume in the market increased by 29% between 2022 and 2023. A surge in rental activity has also been seen in Dubai, which can be attributed to the demand for cheap villas and townhouses.

Real Estate Options in the Middle East

Real estate companies dominating the rapidly growing UAE real estate market include Emaar Properties PJSC (DFM:EMAAR), Aldar Properties PJSC (ADX:ALDAR), and DAMAC Properties Dubai Co PJSC (DFM:DAMAC). Let’s take a look at what these firms have been up to.

Emaar Properties PJSC (DFM:EMAAR) develops residential and commercial build-to-sell assets in the United Arab Emirates. The company has been successful in delivering more than 70,000 residential units since 2002. On February 8, Emaar Properties PJSC (DFM: EMAAR) reported that its subsidiary Emaar Development recorded an increase of 22% in property sales, reaching $10.2 billion in 2023. This sales growth was accomplished through 27 new projects launched by the firm. In 2023, Emaar Development launched The Oasis by Emaar which is one of Dubai’s largest developments and has a total development value of $20 billion. The subsidiary also introduced Address Residences Al Marjan Island in Ras Al Khaimah during the fourth quarter of 2023.

Aldar Properties PJSC (ADX:ALDAR) is another dominant real estate developer in the UAE. On February 8, the company reported a significant investment in logistics and storage assets in Europe. The company has undertaken this step for its strategic international expansion and has invested in a portfolio of self-storage facilities and development sites in Western Europe with the global investment firm Carlyle (NASDAQ:CG) and other investors. Through the partnership, Aldar Properties PJSC (ADX:ALDAR) plans to penetrate the European real estate market.

DAMAC Properties Dubai Co PJSC (DFM:DAMAC) engages in delivering residential, commercial, and leisure properties across the Middle East. As of June 2023, the company has delivered 46,000 homes. On February 22, DAMAC Properties Dubai Co PJSC (DFM:DAMAC) reported that its luxury Mandarin Oriental Bolidhuffaru Reef Resort in the Maldives is under construction. The resort will be situated in South Male Atoll. It will feature a dive center and water sports center for residents to seek outdoor recreation around. Multiple specialty restaurants will be offering diverse dining experiences to the visitors. The opening of the luxury resort is expected in the fourth quarter of 2025.

Now that we have taken a look at global real estate, let’s move to the 25 fastest-growing real estate markets in the world.

25 Fastest Growing Real Estate Markets in the World

Our Methodology:

The real estate market is multi-faceted and is impacted by several factors. These include economic stability, growth in prices, interest rates, government support, and political stability. However, we focused on two key metrics. The first metric we have chosen is the year-over-year growth in residential property prices, which has been sourced from TheGlobalEconomy. Higher house prices are also associated with higher consumer confidence and higher demand.

Economic stability and growth are other factors that improve foreign investment and increase demand in the real estate market. To represent the overall economic stability, we considered the real GDP growth rate as our secondary metric to break the tie. This metric was available on IMF, as of 2023. Please note that the primary metric we are focusing on is the house price growth and hence, some of the countries on our list have positive growths in house prices but slightly negative real GDP growths. 

We have ranked the countries in ascending order of their year-over-year house price growth and used real GDP growth as a tie-breaker.

25 Fastest Growing Real Estate Markets in the World

25. Estonia

Year-Over-Year House Prices Growth: 0.34%

Real GDP Growth: -2.3%

Estonia ranks as one of the fastest-growing real estate markets globally. This is evident from the 0.34% year-over-year growth in the country’s residential property prices as recorded in the third quarter of 2023.

24. Slovakia   

Year-Over-Year House Prices Growth: 0.53%

Real GDP Growth: 1.3%

As of Q3 2023, Slovakia’s year-over-year growth in house prices was recorded at 0.53%. Furthermore, Slovakia recorded a real GDP growth of 1.3% in 2023.

23. France 

Year-Over-Year House Prices Growth: 0.54%

Real GDP Growth: 1%

The fastest-growing real estate markets globally include France. In Q3 2023, the country recorded a 0.54% year-over-year growth in residential property prices. Real GDP growth for France was reported to be 1% in 2023.

22. Malaysia  

Year-Over-Year House Prices Growth: 0.61%

Real GDP Growth: 4%

The year-over-year growth in house prices in Malaysia was recorded at 0.61% in the third quarter of 2023. According to the IMF, the country’s real GDP experienced a growth of 4% in 2023.

21. Mexico 

Year-Over-Year House Prices Growth: 0.84%

Real GDP Growth: 3.2%

Mexico ranks as another rapidly growing real estate market. In the third quarter of 2023, the country experienced a year-over-year house price growth of 0.84%. Furthermore, the country’s real GDP grew by 3.2% in 2023.

20. Greece 

Year-Over-Year House Prices Growth: 0.85%

Real GDP Growth: 2.5%

Greece recorded a year-over-year house price growth of 0.85% in Q3 2023. According to the IMF, the country’s real GDP recorded a growth of 2.5% in 2023.

19. Austria

Year-Over-Year House Prices Growth: 0.91%

Real GDP Growth: 0.1%

The year-over-year growth in house prices in Austria was recorded at 0.91% in the third quarter of 2023. Austria ranks among the fastest growing real estate markets in the world. The country’s GDP grew by 0.1% in 2023.

18. United Arab Emirates

Year-Over-Year House Prices Growth: 0.94%

Real GDP Growth: 3.4%

UAE’s real GDP growth was recorded at 3.4% in 2023. In the third quarter of 2023, the year-over-year growth in residential property prices in the country was reported to be 0.94%. Hence, the UAE ranks among the fastest-growing real estate markets across the globe.

17. United Kingdom 

Year-Over-Year House Prices Growth: 1.14%

Real GDP Growth: 0.5%

The United Kingdom recorded 1.14% year-over-year growth in its residential property prices in the third quarter of 2023. The country’s real GDP grew by 0.5% in 2023.

16. Serbia  

Year-Over-Year House Prices Growth: 1.83%

Real GDP Growth: 2%

As of Q3 2023, the year-over-year growth in residential property prices in Serbia was 1.83%. The country witnessed a real GDP growth of 2% in 2023 and is one of the most rapidly growing real estate markets in the world.

15. Croatia

Year-Over-Year House Prices Growth: 2.11%

Real GDP Growth: 2.7%

Croatia is another fastest growing real estate market in the world. According to the IMF, the country’s real GDP grew by 2.7% in 2023. In Q3 2023, the year-over-year house price growth in Croatia was recorded at 2.11%.

14. The United States       

Year-Over-Year House Prices Growth: 2.71%

Real GDP Growth: 2.1%

The United States is deemed a growing real estate market. The country’s real GDP growth was recorded at 2.1% in 2023. Its residential property prices grew by 2.71% year-over-year as reported in the third quarter of 2023.

13. Switzerland    

Year-Over-Year House Prices Growth: 2.84%

Real GDP Growth: 0.9%

According to the IMF, the real GDP of Switzerland grew by 0.9% in 2023. In the third quarter of 2023, the country recorded 2.84% year-over-year growth in its residential property prices. Switzerland ranks as one of the fastest-growing real estate markets globally.

12. Ireland

Year-Over-Year House Prices Growth: 2.94%

Real GDP Growth: 2%

The year-over-year growth in residential property prices in Ireland was recorded at 2.94% in the third quarter of 2023. The real GDP growth for the country was reported to be 2% in 2023.

11. North Macedonia

Year-Over-Year House Prices Growth: 3.5%

Real GDP Growth: 2.5%

North Macedonia is another growing real estate market. In Q3 2023, North Macedonia experienced a 3.5% year-over-year growth in residential property prices. The country’s real GDP grew by 2.5% in 2023.

10. Luxembourg   

Year-Over-Year House Prices Growth: 3.96%

Real GDP Growth: -0.4%

The year-over-year growth in residential property prices in Luxembourg was recorded at 3.96% in the third quarter of 2023. The country ranks as another rapidly growing real estate market in the world.

9. Slovenia 

Year-Over-Year House Prices Growth: 4.08%

Real GDP Growth: 2%

Slovenia is one of the rapidly growing real estate markets globally. In Q3 2023, the country recorded a 4.08% year-over-year growth in its house prices. Slovenia also witnessed a growth of 2% in its real GDP in 2023.

8. Portugal

Year-Over-Year House Prices Growth: 4.81%

Real GDP Growth: 2.3%

The fastest-growing real estate markets in the world include Portugal as well. The year-over-year growth in residential property prices in the country was recorded at 4.81% in the third quarter of 2023. The country also recorded a real GDP growth of 2.3% in 2023.

7. Japan     

Year-Over-Year House Prices Growth: 4.85%

Real GDP Growth: 2%

In Q3 2023, the year-over-year growth in residential property prices in Japan was recorded at 4.85%. In 2023, the country’s real GDP grew by 2%. Therefore, Japan is another rapidly growing real estate market in the world.

6. Singapore  

Year-Over-Year House Prices Growth: 5.85%

Real GDP Growth: 1%

Singapore ranks as one of the fastest-growing real estate markets in the world. In 2023, the country’s real GDP growth was recorded at 1%. In the third quarter of 2023, the residential property prices in the country grew by 5.85% year-over-year.

Click to continue reading and see 5 Fastest Growing Real Estate Markets in the World.

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Disclosure: None. 25 Fastest Growing Real Estate Markets in the World is originally published on Insider Monkey.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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