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Direct Real Estate Activities in Europe - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)

ISIC 681 March 2024 Spotlight Report

Revenue

€558.2bn

2019-2024 4.0 %
2024-2029 X.X %

Employees

2m

2019-2024 3.2 %
2024-2029 X.X %

Businesses

2m

2019-2024 3.7 %
2024-2029 X.X %

Wages

€XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

Direct Real Estate Activities in Europe industry analysis

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the rising base rate environment in the years since, which have inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Revenue is forecast to fall at a compound annual rate of 4.0% over the five years through 2024 to €588.2 billion, including an anticipated drop of 3.1% in 2024. However, profitability remains strong, with the average industry profit margin standing at an estimated 41.6% in 2024.

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Industry Statistics and Trends

Direct Real Estate Activities in Europe key trends

Rising rates ratchet up the cost of borrowing for potential buyers, weighing on property transactions and placing downwards pressure on prices.

 

As online sales continue to climb, parcel companies need to get hold of more warehouse space to meet demand.

 

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Direct Real Estate Activities in Europe

Industry Revenue

Total value and annual change from 2011-2029. Includes 5-year outlook.

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Direct Real Estate Activities in Europe market size (2019-2024)

Industry revenue has declined at a CAGR of 4.0 % over the past five years, to reach an estimated €558.2bn in 2024.

Trends and Insights

Rising mortgage rates hurt demand for residential housing

  • Real estate agents rely heavily on the performance of the property market, which is influenced by a huge range of economic, social and regulatory factors that affect both supply and demand.

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Direct Real Estate Activities in Europe outlook (2024-2029)

Market size is projected to grow over the next five years.

High mortgage mean the short-term outlook for the residential property market looks bleak

  • Elevated mortgage rates will continue to weigh on demand for residential property due to inflated borrowing costs. This will translate into declining house prices, which can make it more difficult to sell property, as both buyers and sellers become more hesitant.

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Revenue

€558.2bn

2019-2024 4.0 %
2024-2029 X.X %

Employees

2m

2019-2024 3.2 %
2024-2029 X.X %

Wages

€XX.Xbn

2019-2024 X.X %
2024-2029 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 3.2 % *
  • Job Growth

Top 5 Countries

  1. Romania +13.6%
  2. Bulgaria +12.8%
  3. Hungary +10.2%
  4. Cyprus +10.1%
  5. Croatia +9.3%

Bottom 5 Countries

  1. Germany -1.7%
  2. Lithuania -1.3%
  3. Sweden -0.7%
  4. Malta +0.1%
  5. Slovakia +0.3%

* CAGR values are for the years 2019-2024.

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Biggest companies in the Direct Real Estate Activities in Europe

Company
Market Share (%)
2024
Revenue (€m)
2024
Profit (€m)
2024
Profit Margin (%)
2024
Nexity SA
3,661.4
194.1
5.3
Vonovia SE
6,413.5
2,813.6
43.9
Sareb
2,403.6
85.5
3.6

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Direct Real Estate Activities in Europe

Products & Services Segmentation

Industry revenue broken down by key product and services lines.

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Top Questions Answered in this Report

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What is the market size of the Direct Real Estate Activities industry in Europe in 2024?

The market size of the Direct Real Estate Activities industry in Europe is €558.2bn in 2024.

How many businesses are there in the Direct Real Estate Activities in Europe industry in 2024?

There are 2m businesses in the Direct Real Estate Activities industry in Europe, which has grown at a CAGR of 3.7 % between 2019 and 2024.

Has the Direct Real Estate Activities industry in Europe grown or declined over the past 5 years?

The market size of the Direct Real Estate Activities industry in Europe has been declining at a CAGR of 4.0 % between 2019 and 2024.

What is the forecast growth of the Direct Real Estate Activities industry in Europe over the next 5 years?

Over the next five years, the Direct Real Estate Activities industry in Europe is expected to grow.

What does the Direct Real Estate Activities in Europe include?

Residential Property and Commercial Property are part of the Direct Real Estate Activities industry.

Which countries have the most businesses in the Direct Real Estate Activities industry in Europe?

The European country with the most businesses in the Direct Real Estate Activities industry is Russia.

How competitive is the Direct Real Estate Activities industry in Europe?

The level of competition is high and increasing in the Direct Real Estate Activities industry in Europe.

Related Industries

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Table of Contents

About this industry

Industry definition

This industry includes lessors, agents and brokers involved in the selling, buying and renting of real estate. It also covers appraising and acting as real estate escrow agents.

Related Terms

ESCROWREAL ESTATE INVESTMENT TRUSTBROWNFIELDGREENFIELD

What's included in this industry?

Residential PropertyCommercial PropertyIndustrial Property

Companies

Nexity SAVonovia SESareb

Industry Code

ISIC 2006

681 - Real estate activities with own or leased property in Europe

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Performance

Key Takeaways

Rising mortgage rates hurt demand for residential housing

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Revenue Highlights

Trends
  • Revenue
  • 2024 Revenue Growth
  • Revenue Volatility

Employment Highlights

Trends
  • Employees
  • Employees per Business
  • Revenue per Employee

Business Highlights

Trends
  • Businesses
  • Employees per Business
  • Revenue per Business

Profit Highlights

Trends
  • Total Profit
  • Profit Margin
  • Profit per Business

Current Performance

Charts
  • Revenue in the Direct Real Estate Activities in Europe industry (2011 -2029)
  • Employees in the Direct Real Estate Activities in Europe industry (2011 -2029)
  • Business in the Direct Real Estate Activities in Europe industry (2011 -2029)
  • Profit in the Direct Real Estate Activities in Europe industry (2011 -2029)
Analysis

What's driving current industry performance in the Direct Real Estate Activities in Europe industry?


Outlook

Analysis

What's driving the Direct Real Estate Activities in Europe industry outlook?


Volatility

Analysis

What influences volatility in the Direct Real Estate Activities in Europe industry?

Charts
  • Industry Volatility vs. Revenue Growth Matrix

Life Cycle

Analysis

What determines the industry life cycle stage in the Direct Real Estate Activities in Europe industry?

Charts
  • Industry Life Cycle Matrix

Products and Markets

Highlights

Trends
  • Largest Market
  • Product Innovation

Key Takeaways

Rising interest rates lift mortgage rates. Mortgage rates have trended upwards over the past couple of years, ramping up the cost of borrowing and hitting demand for residential property.

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Products and Services

Charts
  • Products and Services Segmentation
Analysis

How are the Direct Real Estate Activities in Europe industry's products and services performing?

Analysis

What are innovations in the Direct Real Estate Activities in Europe industry's products and services?


Major Markets

Charts
  • Major Market Segmentation
Analysis

What influences demand in the Direct Real Estate Activities in Europe industry?


International Trade

Highlights

  • Largest Importer
  • Smallest Importer
  • Total Imports into Europe
  • Largest Exporter
  • Smallest Exporter
  • Total Exports into Europe
Heat maps
  • Industry Concentration of Imports by Country
  • Industry Concentration of Exports by Country
Data Tables

Value and annual change (%) included

  • Number of Imports and Exports by European Country (2024)

Geographic Breakdown

Business Locations

Heat maps
  • Share of Total Industry Revenue by Region (2024)
  • Share of Total Industry Enterprises by Region (2024)
  • Share of Total Industry Employment by Region (2024)
  • Share of Total Industry Wages by Region (2024)

Industry Geographic Breakdown

Data Tables

Values and annual change provided for 37 European countries:

  • Revenue (2024)
  • IVA (2024)
  • Enterprises (2024)
  • Employment (2024)
  • Exports (2024)
  • Imports (2024)

Competitive Forces

Highlights

Trends
  • Concentration
  • Competition
  • Barriers to Entry
  • Substitutes
  • Buyer Power
  • Supplier Power

Key Takeaways

The real estate market remains fragmented. There’s plenty of room for small and large companies alike to succeed in all corners of the market, given the wide array of properties dealt with.

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Supply Chain

Charts

Buyer and supply industries

Companies

Market Share

Charts
  • Industry Market Share by Company (2019-2024)

Companies

Data Tables

Top 11 companies by market share:

  • Market share (2024)
  • Revenue (2024)
  • Profit (2024)
  • Profit Margin (2024)

Data Tables
  • Countries of operation for Nexity SA
  • Countries of operation for Vonovia SE
  • Countries of operation for Sareb
  • Countries of operation for Unibail-Rodamco-Westfield SE
  • Countries of operation for BPD Europe BV
  • Countries of operation for Klepierre SA
  • Countries of operation for Land Securities Group plc
  • Countries of operation for BNP Paribas Real Estate SASU
  • Countries of operation for SEGRO plc
  • Countries of operation for Hines Interests Limited Partnership
  • Countries of operation for Hines Interests Ltd

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Real estate transactions must align with strict regulations. Regulation in real estate exists to protect the interests of buyers, sellers, investors and the public.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Direct Real Estate Activities in Europe industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Bleak economic conditions weigh on the property market, cutting into returns. Businesses and consumers have reined in spending on big-ticket purchases like property amid uncertain economic environment and interest rate hikes.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Direct Real Estate Activities in Europe industry?


Key Ratios

Data tables
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)
  • Revenue per Employee (2014-2029)
  • Wages/Revenue (2014-2029)
  • Employees per Establishment (2014-2029)
  • Average Wage (2014-2029)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and boottom five countries listed for each:

  • Revenue Growth (2024)
  • Business Growth (2024)
  • Job Growth (2024)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2024)
  • Imports/Demand (2024)
  • Exports/Revenue (2024)
  • Revenue per Employee (2024)
  • Wages/Revenue (2024)
  • Employees per Establishment (2024)
  • Average Wage (2024)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.