The State of the Global Real Estate Market — and How It Affects Toronto

The State of the Global Real Estate Market — and How It Affects Toronto

Global real estate will be a $6.13 trillion market by 2030 — that's nearly twice as much as the GDP of India! According to Research and Markets, this industry will grow at a CAGR of 5.2% from 2022 to the end of the decade, providing lucrative new opportunities for property owners around the world. But what's driving the global real estate market? And how do these developments impact Toronto locals? Learn more below.

Population Growth

One of the biggest factors pushing the global real estate market is a huge increase in the world's population, which now stands at just over 8 billion. With more people on the planet than ever before, demand for residential, commercial, and industrial property has skyrocketed. That has resulted in a trillion-dollar market that shows no signs of slowing down.

As populations in many cities increase, so does the price of property. If you're wondering why it's more expensive to buy a home now than a few years ago, population growth could be part of it. Take Toronto, for example. The number of people living in this city increased by 0.93% from 2023 to 2024 — that's about 64,000 extra residents. With low housing stock, demand for homes is at an all-time high, sending property prices into the stratosphere.


Economic conditions are also fueling the global real estate market. When a country has a strong economy, demand for real estate increases. It's that simple. That might not be the case right now in Canada, which recently experienced rampant inflation and a cost of living crisis. However, many nations have prospered in the last few years, inflating the global real estate market.

Of course, economies fluctuate, and Canada's will recover soon — especially if inflation continues to decline. When that happens, interest rates will tumble, driving demand for properties in Toronto. That means more homes on the market and more first-time buyers climbing the property ladder, thanks to mortgage rates with favorable terms. When major economies rebound, the global real estate market will get even stronger.

Sustainable Development

Sustainability is a massive priority for property builders at the moment, leading to a "green" housing boom in many markets. Governments in different countries might offer tax rebates and other incentives for eco-friendly building practices and energy-efficient designs, further driving the global real estate market.

The shift toward sustainable development is one of necessity. Like any major city, Toronto's buildings generate a significant number of greenhouse emissions, which is harming the environment. However, the city continues to implement policies that address climate change. Toronto aims to have net zero emissions by the year 2050, according to the Carbon Neutral Cities Alliance.


Another major force in the global real estate market is technology. Over the last few years, realtors have integrated tools that make it easier for them to buy and sell houses. One of these technologies is virtual reality, which allows people to take tours of potential homes remotely. This innovation was particularly popular during the COVID-19 pandemic when people couldn't attend open house events because of Toronto's "stay at home" laws.

Big data is another technology that's streamlining real estate. Realtors can use it to learn more about potential buyers and sellers and find unique property opportunities. The latest analytical tools reveal valuable insights about the Toronto real estate market. Artificial intelligence also makes life easier for realtors. This innovation can help experts write property listings, for example.

Experts predict the real estate IT market to be worth $17.22 billion in 2029.

Remote Work

In May 2021, over a year after the start of the pandemic, 5 million Canadians were working from home. While some have returned to the office, many still perform their jobs remotely and have no plans to change these arrangements.

Remote work has become a global phenomenon in the past few years, contributing to the success of the global real estate market. Growing demand for homes with large offices has invigorated the residential real estate market in many locations, including Toronto. Meanwhile, the commercial market experienced an uplift because of the need for accessible co-working spaces.

It's unclear what work models will look like a few years from now. However, many employers will continue to allow team members to work from home, at least for part of their schedules.

How a Toronto Real Estate Expert Can Help You Navigate These Trends

The global real estate market is booming! That's because of population growth, economic conditions, remote work trends, and other factors. While the local Toronto market might still be struggling, there are plenty of profitable opportunities for both buyers and sellers in this city.

Working with a reputable, experienced Toronto realtor lets you get the best out of Toronto's property market. Yin-Lynn Realtor Group can help you buy or sell a home in this incredible city without the stress that normally comes with real estate transactions. Contact us now for a consultation.


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