Residential Real Estate Market In Latin America Market Size (2024 - 2029)

Latin America Residential Real Estate Market Analysis

The Residential Real Estate Market In Latin America Industry 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. The COVID-19 pandemic impacted the Latin American residential real estate market significantly, with the economic slowdown and increased investor uncertainty serving to dampen growth in the short term. However, the pandemic has stimulated demand for rental properties and accommodation with outdoor space, accelerated the digitalization of the industry, and boosted competition among mortgage lenders.
• South American countries grapple with the familiar challenge of housing affordability, particularly in their urban centers. In 2022, it took an average-income household in Lima, Peru, nearly 19 years to buy a home, while in cities like Buenos Aires, Bogota, and Rio de Janeiro, this stretched to around 30 years. Roughly a quarter of Peruvians opt for renting, a figure that likely surges in major cities like Lima. Renting is notably prevalent in Colombia, with over 40% of homes in several departments being rentals. Bogota, Colombia's capital, emerged as the most lucrative city for rental investments in South America, closely followed by Santiago, Chile.
• Residential real estate prices exhibit significant disparities across and within cities. In 2022, Puerta Madero, located in Buenos Aires, Argentina, emerged as South America's priciest neighborhood for apartment purchases, with an average square meter price nearing USD 6,000. However, Buenos Aires boasted several neighborhoods where apartment prices dipped below USD 2,000. In the city's central region, encompassing San Nicolas and Montserrat, apartment prices ranged from USD 1,700 to USD 1,800 per square meter.
• In September 2023, Montevideo, the capital of Uruguay, emerged as the priciest real estate market in Latin America, commanding an average selling price of USD 3,166 per square meter for apartments. Mexico City, the capital of Mexico, secured the second spot with a price tag of USD 2,948 per square meter. Moreover, as the production and consumption of residential real estate continue to surge, they are poised to fuel the growing appetite among consumers.

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 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.