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Residential Real Estate Leases - South Korea

South Korea

In South Korea, the revenue of the Residential Real Estate Leases market market is estimated to reach €59.89bn in 2024.
The dominant segment in this market is House Leases, which is projected to have a market volume of €30.91bn in 2024.
Over the period of 2024 to 2029, the revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 0.18%, resulting in a market volume of €60.42bn by 2029.
Despite the recent economic downturn, South Korea's residential real estate lease market continues to thrive due to high demand and government support.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in South Korea has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the South Korean Residential Real Estate Leases market have been shifting towards more flexible and convenient options. With an increasing number of people seeking rental accommodation, there is a growing demand for properties that offer flexible lease terms and amenities such as fully furnished units and on-site facilities. This preference for convenience and flexibility has led to the emergence of co-living spaces and serviced apartments, which cater to the needs of young professionals and expatriates. Trends in the South Korean Residential Real Estate Leases market reflect the changing dynamics of the housing market. The rising property prices in major cities like Seoul have made it difficult for many individuals to afford homeownership, leading to a surge in demand for rental properties. Additionally, the increasing number of single-person households in South Korea has also contributed to the growth of the rental market. As a result, there has been a rise in the construction of rental properties and the conversion of existing properties into rental units. Local special circumstances in South Korea have also played a role in the development of the Residential Real Estate Leases market. The government has implemented various measures to encourage the growth of the rental market, including the introduction of tax incentives for landlords and the relaxation of regulations on short-term rentals. These initiatives have attracted more investors to the rental market and have contributed to the overall expansion of the sector. Underlying macroeconomic factors have also influenced the growth of the Residential Real Estate Leases market in South Korea. The country's strong economy and low unemployment rate have increased the purchasing power of individuals, enabling them to afford rental properties. Additionally, the influx of foreign investment in the real estate sector has further boosted the market, as international investors see the potential for high returns in the South Korean rental market. In conclusion, the Residential Real Estate Leases market in South Korea is experiencing significant growth due to customer preferences for flexibility and convenience, market trends such as rising property prices and the increasing number of single-person households, local special circumstances including government initiatives to promote the rental market, and underlying macroeconomic factors such as a strong economy and foreign investment. These factors combined have created a favorable environment for the development of the Residential Real Estate Leases market in South Korea.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.