Latin America Residential Real Estate Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 477.77 Billion |
| Market Size (2029) | USD 712.45 Billion |
| CAGR (2024 - 2029) | 8.32 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Latin America Residential Real Estate Market Analysis
The Residential Real Estate Market In Latin America Industry in terms of Equal-8.32 is expected to grow from USD 477.77 billion in 2024 to USD 712.45 billion by 2029, at a CAGR of 8.32% during the forecast period (2024-2029).
- The market is driven by increased urbanization and a burgeoning middle class. COVID-19 had a significant impact on the Latin American residential real estate market, with the economic slowdown and increased investor uncertainty serving to dampen growth in the short term.
- However, the pandemic has stimulated demand for both rental properties and accommodation with outdoor space while also accelerating the digitalization of the industry and boosting competition among mortgage lenders.
- Despite the negative social and human cost of COVID-19, one positive development has been the accelerated adoption of new digital technologies across a range of sectors. The Latin American residential real estate sector is no exception to this trend, with firms embracing digitalization to bring innovative products and services to consumers.
- The COVID-19 pandemic accelerated the process of the digitization of real estate across Latin America. In the face of social distancing, the search for real estate on virtual platforms grew, confirming the bet of startups and companies that acted strongly on the internet and, at the same time, pressured developers and real estate companies to quickly invest in technology to follow this transition from the physical to the digital world.
- Further, the rise in production and consumption is expected to aid the increasing consumer demand for residential real estate.
Latin America Residential Real Estate Market Trends
Increase in urbanization boosting demand for residential real estate
The economies of Latin America range from emerging economies such as Mexico and Brazil to more established economies such as Chile and Uruguay, providing investors with diversified real estate investment opportunities that match their risk tolerance and investment objectives. In addition, Latin America has one of the highest urbanization rates in the world. As a result, demand for residential and commercial properties is on the rise.
The economic growth of many Latin American economies is boosting real estate demand. For instance, the economic growth of Brazil is projected to be 2.5 % in 2023, and the economic growth of Mexico is expected to be 2.1 % in 2023. Economic growth in Latin America creates jobs and increases disposable income, which in turn boosts real estate demand.
In 2021, the total population of Latin America was approximately 660 million inhabitants. In 2022, the population in Latin America grew by approximately 0.9% compared to the previous year. As the population is increasing, many people are moving to urban areas for better education and job opportunities. Due to the increasing urban population, there is an increase in the demand for residential properties in urban areas of Latin America. Some Latin American governments have taken steps to promote pro-poor urban infrastructure, especially housing.
Increase in residential property prices in Mexico
The Federal Mortgage Society (FMS) reported that the average home price in Mexico reached USD 90,850 in Q1 2023, a year-on-year (YoY) increase of 11.7%. Mexico's housing market has seen steady growth over the last decade, adapting to the fluctuations of global economic conditions. The growth in Q1 is a testament to the resilience and potential of the Mexican housing market. High inflation has also led to an increase in construction costs, resulting in an even higher increase in house prices for new builds, which account for 40% of Mexico's housing market, rising 12.8%.
Prospective investors looking to invest in Mexico and Riviera Maya, in particular, are in for a treat. The current bullish market is a testament to the strength and prospects of Mexico's real estate market. In 2023, it was anticipated that continuous demand and strong economic growth would drive up property prices in Mexico. With a focus on regions like Riviera Maya, the housing market in Mexico is set to continue its upward trend, providing exciting prospects for investors and homeowners.
Latin America Residential Real Estate Industry Overview
The Latin American residential real estate market is competitive and fragmented, with the presence of regional and international players. Major companies in the market have adopted strategies such as acquisition, business development, joint ventures, partnerships, and product launches to offer better services to customers in the residential real estate market. The major players include JLL, CBRE, Mrv Engenharia e Participacoes SA, Homex, and Consorcio ARA, among others.
Latin America Residential Real Estate Market Leaders
JLL
CBRE
Mrv Engenharia e Participacoes S/A
Homex
Consorcio ARA
*Disclaimer: Major Players sorted in no particular order
Latin America Residential Real Estate Market News
- December 2023: CBRE opened a new office in Riyadh, Saudi Arabia. CBRE is a leading global real estate advisor.
- November 2023: CBRE, one of the world’s leading consultancy and real estate services companies, announced the launch of its new platform, Latam - Iberia, with the aim of reviving the real estate market in Europe and Latin America and promoting investment between the two regions. The objective of the tool is to strengthen business relationships and increase the visibility of the real estate solutions between the two regions to drive sector growth.
Latin America Residential Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects Pertaining to the Residential Real Estate Sector
4.4 Insights into the Size of Real Estate Lending and Loan-to-value Trends
4.5 Insights into the Interest Rates for the General Economy and Real Estate Lending
4.6 Insights into the Rental Yields in the Residential Real Estate Sector
4.7 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increase in Population is boosting the residential real estate market
5.1.2 Rapid Growth in Urbanization
5.2 Market Restraints
5.2.1 Accelerated increase in construction costs
5.3 Market Opportunities
5.3.1 Proptech in the real estate
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers / Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Apartments and Condominiums
6.1.2 Landed Houses and Villas
6.2 By Geography
6.2.1 Mexico
6.2.2 Brazil
6.2.3 Colombia
6.2.4 Rest of Latin America
7. COMPETITIVE LANDSCAPE
7.1 Overview
7.2 Company Profiles
7.2.1 JLL
7.2.2 CBRE
7.2.3 Mrv Engenharia e Participacoes SA
7.2.4 HomeX
7.2.5 Consorcio ARA
7.2.6 Cyrela
7.2.7 Multiplan Real Estate Asset Management
7.2.8 Groupe CARSO
7.2.9 Grupo Sadasi
7.2.10 Bmx Realizacoes Imobiliarias e Participacoes SA*
- *List Not Exhaustive
7.3 Other Companies
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
9.1 Marcroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)
9.2 Key Production, Consumption, and Export and Import Statistics of Construction Materials
Latin America Residential Real Estate Industry Segmentation
Homes or apartments are residential properties. These may include single-family homes, townhouses, or studios. Most residential property owners who own residential property but do not live there will rent it to others to make money from the property.
The report provides a comprehensive background analysis of the market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The report on the Latin American residential real estate market is segmented by type (apartments and condominiums and landed houses and villas) and by geography (Mexico, Brazil, Colombia, and the Rest of Latin America).
The report offers the market sizes and forecasts for the Latin American residential real estate market in value (USD) for all the above segments.
| By Type | |
| Apartments and Condominiums | |
| Landed Houses and Villas |
| By Geography | |
| Mexico | |
| Brazil | |
| Colombia | |
| Rest of Latin America |
Latin America Residential Real Estate Market Research FAQs
How big is the Residential Real Estate Market In Latin America Industry?
The Residential Real Estate Market In Latin America Industry size is expected to reach USD 477.77 billion in 2024 and grow at a CAGR of 8.32% to reach USD 712.45 billion by 2029.
What is the current Residential Real Estate Market In Latin America Industry size?
In 2024, the Residential Real Estate Market In Latin America Industry size is expected to reach USD 477.77 billion.
Who are the key players in Residential Real Estate Market In Latin America Industry?
JLL, CBRE, Mrv Engenharia e Participacoes S/A, Homex and Consorcio ARA are the major companies operating in the Residential Real Estate Market In Latin America Industry.
What years does this Residential Real Estate Market In Latin America Industry cover, and what was the market size in 2023?
In 2023, the Residential Real Estate Market In Latin America Industry size was estimated at USD 438.02 billion. The report covers the Residential Real Estate Market In Latin America Industry historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Residential Real Estate Market In Latin America Industry size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Residential Real Estate Industry Report
Statistics for the 2024 Residential Real Estate in Latin America market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Residential Real Estate in Latin America analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
