Australia Real Estate Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Australia Real Estate Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia real estate market size reached around USD 136.50 billion in 2024. Supported by the robust demand for residential properties coupled with the rise in government incentives and infrastructure developments, the industry is expected to grow at a CAGR of 3.60% during 2025-2034 to attain a value of about USD 195.02 Billion by 2034.

The Australia real estate market growth is driven by a range of factors including low interest rates, population growth, and an increasing demand for both residential and commercial properties. As one of the largest and most stable sectors of the Australian economy, the real estate market plays a crucial role in shaping the country’s economic landscape. Over the past few years, Australia has seen significant activity in both the housing and commercial property markets, with trends indicating a continued strong demand for property in key metropolitan areas. The market has demonstrated resilience, even in the face of challenges such as the global pandemic, making it an attractive investment opportunity for both local and international investors.

One of the key drivers of the Australia real estate market expansion is the growing demand for housing, particularly in major cities such as Sydney, Melbourne, and Brisbane. As Australia’s population continues to increase, driven by both natural population growth and immigration, the demand for residential properties remains high. The shortage of affordable housing in major cities has led to a rise in property prices, especially in desirable suburban and inner-city locations. As more people look to buy homes or invest in real estate, the market has been able to maintain its upward trajectory, despite challenges such as tighter lending conditions and stricter regulations for property buyers.

Another significant factor contributing to the growth of the Australia real estate market is the low interest rate environment. The Reserve Bank of Australia’s decision to keep interest rates at historic lows has made home loans and investment properties more accessible to a broader range of buyers. Lower borrowing costs have encouraged many Australians to enter the property market, whether for first-time homeownership or investment purposes. This has led to an increase in demand for both new and established homes, as well as a surge in property developments, with developers focusing on meeting the needs of a growing population.

According to the Australia real estate market analysis, the commercial real estate market in Australia has also experienced growth, particularly in the logistics and industrial sectors. The rise of e-commerce has significantly impacted the demand for distribution centres and warehouses, leading to a boom in the industrial property market. Many businesses, especially those involved in online retail, are looking for larger spaces to store and distribute goods, driving up demand for industrial properties across the country. Similarly, the demand for office spaces is also recovering, as companies start to return to the office following the pandemic. While remote work is still prevalent, businesses are increasingly looking for flexible office spaces that can accommodate hybrid working models.

Despite the positive outlook, the Australia real estate market faces a number of challenges, such as the affordability of housing with many Australians struggling to enter the property market due to high property prices and limited access to financing. This has led to calls for increased government intervention, such as the development of affordable housing initiatives and policies aimed at improving access to homeownership for first-time buyers. The rise in property prices has made it difficult for many people, particularly young Australians, to afford to buy their first home. This has resulted in increased demand for rental properties, driving up rents in key areas, which further exacerbates the affordability issue. Another challenge facing the real estate market in Australia is the impact of regulatory changes. The government’s tightening of lending standards and the introduction of measures to cool the housing market have had a significant effect on buyer activity.

Looking ahead, the Australia real estate market development is likely to be driven by foreign investment, particularly from international buyers looking to invest in Australia’s stable and lucrative property market. Australia has long been seen as a safe haven for foreign investors due to its strong economic fundamentals, transparent regulatory environment, and attractive returns on investment. Foreign buyers, particularly from countries like China, the United States, and the United Kingdom, have been a significant source of demand for Australian properties, particularly in high-growth cities such as Sydney and Melbourne. While foreign investment in residential properties has been subject to stricter regulations in recent years, the commercial property market remains a key focus for international investors looking to diversify their portfolios.

Market Segmentation

The market can be divided based property, business, and region.

Market Breakup by Property

• Residential
• Commercial
• Industrial
• Others

Market Breakup by Business

• Sales
• Rental

Market Breakup by Region

• South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia real estate market. Some of the major players explored in the report by Expert Market Research are as follows:

• Hauss Pty Ltd.
• The Agency
• McKean McGregor Pty Ltd.
• Harris Real Estate Pty Limited
• McGrath Limited
• eXp Australia Pty Ltd.
• CBRE Pty Limited
• Luxury Real Estate Agents
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report. Show more