REAL ESTATE PROPERTY MANAGEMENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Concentration and Competitive Landscape

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Increasing number of real estate investors

A flourishing real estate market has witnessed rise of many individual and institutional investors globally in recent years. Easy availability of home loans at low interest rates, emergence of REITs as an alternative investment avenue as well opportunities through crowd funding platforms have drawn more capital into the sector. Investors are exploring real estate as a profitable asset class to generate long term returns through capital appreciation as well as stable rental incomes.

Many first time property buyers are gradually turning into accidental landlords after shifting to bigger homes. They then realize rental incomes can help repay their existing home loans and also earn higher returns than traditional savings. This has motivated several small time investors to directly manage one or few rental properties. However, issues around tenant management, maintenance responsibilities and regulatory compliances have left many struggling. As their portfolio grows beyond personal bandwidth, outsourcing management to experts is becoming a necessity.

Larger institutional investors like pension funds, insurance companies, and sovereign wealth funds are also allocating billions into commercial real estate like offices, malls and warehouses. For them, core focus remains on asset allocation rather than direct oversight of properties. Thus, these institutional landlords invariably prefer appointing specialized property managers who can handle entire lifecycle of their assets professionally right from finding tenants to exit.

With rising global liquidity and improving connectivity, many foreign investors are now exploring investment opportunities across borders. However, lack of local market knowledge increases operational challenges for overseas owners. Engaging an internationally experienced property manager provides them comfort of managing assets away from home. Overall, for all categories of investors, professional management allows maximum utilization of capital by freeing it from operational hassles. This driver is thus increasing reliance on real estate property management firms globally.