📌1) Real Estate Market Size

The real estate market size in both Korea and worldwide is substantial and continues to evolve alongside economic development.

1] Korean Real Estate Market Size

- Total Real Estate Value: As of 2022, the Korean real estate market is estimated at approximately 1,000 trillion KRW. This figure represents the total value of all real estate assets, including land and buildings.

- Transaction Volume: In 2023, the total real estate transaction volume in Korea is projected to exceed 300 trillion KRW annually, encompassing residential, commercial, and industrial properties. The Seoul metropolitan area holds a significant portion of the national market.

- Housing Market: Korea’s housing market comprises over 15 million households, with a large share of transactions in the apartment sector. Despite a decrease in apartment transactions nationwide in 2023, the volume remains high.

- Rental Market: The rental market, including both deposit-based (jeonse) and monthly rentals, has shown steady growth. In the Seoul metropolitan area, the rental market is balanced between deposit-based and monthly rent options.

2] Global Real Estate Market Size

- Total Global Market: The global real estate market was valued at approximately $326 trillion as of 2022, covering the total value of all commercial and residential real estate assets worldwide.

- Commercial Real Estate Market: The commercial real estate market (office buildings, retail spaces, industrial properties) is a significant sector globally, valued at around $32 trillion. Major urban areas in the U.S., China, and Europe dominate this market.

- Residential Real Estate Market: Residential real estate holds the largest share in global real estate assets, estimated at around $258 trillion. Key housing markets include the U.S., China, Europe, and Japan, with urban areas in these countries accounting for a large share of the global market.

- Regional Differences

• United States:The U.S. is one of the world’s largest real estate markets, with an estimated real estate asset value of about $60 trillion as of 2022. Residential real estate makes up a substantial portion, particularly in regions like New York, California, and Texas.

• China:China’s real estate market is estimated at approximately $55 trillion, centered in major cities like Beijing, Shanghai, and Shenzhen. Rapid urbanization and economic growth have driven swift expansion in China’s real estate market.

• Europe:Europe’s real estate market is valued at around $30 trillion, with major contributions from countries such as the U.K., Germany, and France.

3] Key Characteristics of the Global Real Estate Market

- Urbanization:With ongoing global urbanization, property prices in urban areas continue to rise, and there is a growing concentration in major city markets.

- Growth in Commercial Real Estate:The growth of the digital economy, such as e-commerce, has increased demand for commercial real estate like warehouses and data centers.

- Global Investment:International investors are increasingly investing in real estate markets across various countries, with major city areas in the U.S., Europe, and Asia being popular destinations.

- Real Estate Technology (PropTech):Advances in technology are driving digitalization and automation within the real estate sector, revolutionizing property management, investment, and transaction methods.

The Korean and global real estate markets are continually shaped by various factors, including economic conditions, interest rate changes, and urbanization trends.