1 Global Real Estate Advisory Service Market Insight Analysis
The global Real Estate Advisory Service market is valued at USD 38,448.4 million in 2024, with a CAGR of 4.21% from 2024 to 2033.
Real estate advisory service is when real estate advisory service providers help clients make better choices when buying, selling, or investing in real estate. These may include a combination of accounting, finance, and real estate expertise. Real estate advisory services include strategic consulting, transaction support, outsourcing, cross-border consulting, capital and debt market consulting, asset divestitures, etc. The service objects of real estate advisory services include enterprises, governments, developers, and investors.
Figure Global Real Estate Advisory Service Market Size (M USD) and CAGR (2024-2033)
2 Real Estate Advisory Service Market Growth Drivers and Restraints
Demand growth in key regions: In the Americas and Europe, the United States, as the world’s largest consulting services market, has many top consulting companies that meet the vertical needs of various end users. Its high economic volatility and government regulatory reforms have prompted real estate companies to seek help from consulting services, while the application of advanced technologies has also helped consulting services companies expand their business.
The European market has seen growing demand for management consulting services due to strong economic growth, financial sector regulatory reforms, back-end business outsourcing, and public investment. In the Asia-Pacific region, market growth is mainly attributed to the region’s rising home ownership rate. China’s rapid infrastructure development, high household savings rate and government control of mortgage rates, as well as the increase in the number of tourists, urban expansion and housing renovation in developing countries such as India, have all driven the growth of the real estate market, which in turn has driven the development of the real estate consulting services market.
Demand growth in key applications and potential industries: The complexity of real estate transactions has led buyers to seek professional advice to reduce risks. Real estate consultants identify potential risks and provide advice through in-depth investigations. Good after-sales service also reduces customer concerns, resulting in continued growth in the real estate consulting services market. As an important investment area, real estate has maintained a leading position in obtaining maximum profits, which can help investors obtain passive income, tax benefits, etc.
After experiencing COVID-19, investors pay more attention to pre-investment research, and real estate consulting services can help them determine the holding period of investment properties and reduce the risk of loss. In addition, economic development and immigration drive urbanization, the increase in the construction of industrial parks and manufacturing facilities in emerging economies, and low-interest real estate loans provided by various countries have prompted customers to invest in real estate, and foreign investment in commercial real estate has also had a positive impact on market growth.
Affected by macroeconomic policies: The real estate consulting services industry is closely related to the real estate industry, and the supervision and regulation policies of various governments on the real estate industry will have a significant impact on it. In developing countries, the laws, regulations and regulatory systems are imperfect, and frequent policy changes bring certain operational risks to the real estate consulting services industry.
Increased costs and talent shortages: The industry is a labor-intensive industry, and labor costs account for a large proportion of the main business costs. With the increase in employee wage standards and social security benefits, labor costs continue to rise, affecting corporate development. At the same time, the rapid expansion of the real estate industry has led to a mismatch between employee wages and contributions, high work intensity and pressure, and many employees have chosen to change careers.
Young talents also face difficulties in entering the industry, resulting in an imbalance between the supply and demand of professional talents. In addition, owners have higher requirements for talent, requiring people with multidisciplinary knowledge, but the industry lacks talent reserves in this regard.
3 Technological Innovations in the Real Estate Advisory Service Market
Application of AI and automation technologies: AI and automation technologies are widely used in real estate consulting services, which can help consultants process and analyze large amounts of data more efficiently, provide insights to customers quickly, improve the efficiency of consulting projects, and shorten turnaround time. Automation technology can be used by employees to analyze, model and perform algorithmic work on repetitive or routine data to discover patterns and trends in large data sets. AI tools can also provide accurate insights for business areas such as sales, operations, and supply chain. Real estate consultants use them to process and analyze unstructured data to understand consumer behavior and emotions.
The role of video conferencing and digital platforms: Video conferencing technology makes it easier for consultants to communicate with customers, enable remote services, reduce the need for face-to-face meetings, reduce travel costs, and facilitate cooperation with customers in different geographical locations. The development of digital platforms makes it easier for customers to search and compare prices and find consultants who meet their needs. Real estate consulting service companies also integrate automation into daily processes to improve project management, resource allocation, customer engagement activities, and secondary processes such as finance, human resources, and internal reporting, thereby improving corporate operational efficiency.
Corporate M&A cases and motivations: There have been many corporate M&A events in the market. CBRE acquired Valuation & Information Group (VIG), which provides valuation and market feasibility services for senior housing and healthcare real estate. This acquisition will help CBRE strengthen its leadership in professional valuation and consulting services. Newmark acquired Gerald Eve, a real estate consulting company in London, expanding its business in the UK and Europe and enhancing the depth and breadth of its services. The main motivation for these mergers and acquisitions is that companies want to expand their market share, expand their business areas, and enhance their competitiveness.
4 Global Real Estate Advisory Service Market Size by Type
Advisory leasing is anticipated to be a dominant segment in 2024, with projected revenues reaching $13,470.2 million. This represents a significant portion of the total market, reflecting the ongoing demand for professional advice in leasing strategies to maximize rental incomes and occupancy rates. The market share for advisory leasing in 2024 is expected to be 35.03%, indicating its pivotal role in the real estate advisory services landscape.
The valuation segment, crucial for determining the market value of properties, is forecasted to generate revenues of $4,215.7 million in 2024. This service is essential for a variety of financial transactions, including sales, investments, and insurance purposes. The market share for valuation services in 2024 is projected to be 10.96%, highlighting its importance in the decision-making processes of investors and property owners.
Property management services, which ensure the efficient operation and maintenance of real estate assets, are expected to contribute $11,751.2 million to the market in 2024. This segment is vital for both residential and commercial properties, aiming to enhance asset value and ensure regulatory compliance. The market share for property management in 2024 is anticipated to be 30.56%, underscoring its significance in the overall advisory services market.
Table Global Real Estate Advisory Service Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Advisory leasing | 13470.2 | 35.03% |
Valuation | 4215.7 | 10.96% |
Property management | 11751.2 | 30.56% |
Others | 9011.3 | 23.44% |
5 Global Real Estate Advisory Service Market Size by Application
For the Enterprise application, it holds a significant portion of the market. In 2024, the revenue from enterprise – related real estate advisory services is expected to be 25986.6 million US dollars. This accounts for 67.59% of the total market share. Enterprises often require real estate advisory services for various purposes. They might need assistance in property acquisition for business expansion, site selection for new offices or production facilities, and strategic real estate planning to optimize their real estate portfolios. These services help enterprises manage their real estate assets more effectively, reduce costs, and enhance overall business performance.
On the other hand, the Investors application also plays an important role in the market. In 2024, the revenue generated from real estate advisory services for investors is 12461.9 million US dollars, which represents 32.41% of the total market share. Investors, including individual investors and investment firms, rely on real estate advisory services to make informed investment decisions. Advisors assist them in evaluating potential real estate investment opportunities, analyzing market trends, and conducting due diligence. This helps investors identify properties with high – growth potential and manage investment risks, aiming to achieve optimal returns on their real estate investments.
Table Global Real Estate Advisory Service Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Enterprise | 25986.6 | 67.59% |
Investors | 12461.9 | 32.41% |
6 Global Real Estate Advisory Service Market Size by Region
The Americas region is anticipated to be a significant contributor to the global real estate advisory service market in 2024, with projected revenues reaching $14,944.5 million. This region, driven primarily by the United States and Canada, has a mature real estate market with a high demand for advisory services. The robust economic growth, coupled with a dynamic real estate landscape, positions the Americas as a key player in the market. The region’s ability to adopt innovative technologies and its focus on sustainable development are expected to further boost the demand for advisory services.
The Asia-Pacific region (APAC) is projected to have revenues of $12,797.0 million in 2024. This region is characterized by rapid urbanization and economic growth, particularly in countries like China, Japan, and India. The increasing middle class and the expansion of commercial activities are driving the need for real estate advisory services. APAC’s diverse market, ranging from developed economies like Japan to emerging ones like India and Indonesia, presents unique challenges and opportunities for advisory firms. The region’s focus on infrastructure development and the growing interest in smart cities are expected to influence the demand for advisory services positively.
Europe is expected to contribute $9,803.5 million to the global real estate advisory service market in 2024. Despite economic uncertainties and the impact of geopolitical events, Europe remains a crucial market due to its mature real estate sector and the presence of numerous international businesses. Countries like Germany, France, and the UK are significant contributors to the market, driven by their stable economies and the need for professional advisory services in real estate transactions. The region’s regulatory environment and the focus on sustainability are also expected to shape the demand for advisory services.
The Middle East & Africa region is projected to have revenues of $903.4 million in 2024. This region is experiencing significant growth due to increasing investment in real estate, driven by factors such as economic diversification efforts in Gulf countries and the expansion of African economies. The region’s rich in natural resources and strategic geographical location make it attractive for real estate investments. However, the market is also influenced by political instability and economic fluctuations, which can impact the demand for advisory services. The growing interest in luxury real estate and the development of tourism sectors are expected to drive the market further.
Figure Global Real Estate Advisory Service Market Size (M USD) by Region in 2024
7 Global Real Estate Advisory Service Market Analysis by Major Players
CBRE Group, Inc.
Company Profile: CBRE Group, Inc., established in 1906 and headquartered in the USA, is a leading provider of commercial real estate services and investment management. With a global presence, CBRE operates in over 400 offices worldwide.
Business Overview: CBRE offers a wide range of services including property sales and leasing, corporate facilities management, mortgage banking, loan servicing, investment management, valuation, and development services. The company serves various sectors including industrial and logistics, data centers, energy, financial services, and retail.
Product Offered: CBRE’s offerings include advisory leasing, valuation services, property management, and strategic consulting, among others. They leverage deep insights and global expertise to help clients achieve their real estate goals.
2023 Financial Summary: In 2023, CBRE reported revenues of $10098.31 million with a gross margin of 56.95%, showcasing its strong market position and financial health.
Cushman & Wakefield
Company Profile: Founded in 1917 and headquartered in the USA, Cushman & Wakefield is a top global real estate services firm with a presence in over 60 countries and approximately 50,000 employees.
Business Overview: Cushman & Wakefield provides services to real estate occupiers and owners, including property leasing, sales, investment management, and valuation. They operate in various real estate sectors and offer strategic advice to maximize real estate value.
Product Offered: Their product offerings encompass valuation & advisory services, property management, agency leasing, and capital markets services, among others. They are known for their specialized real estate strategies and solutions.
2023 Financial Summary: Cushman & Wakefield achieved revenues of $6200.25 million in 2023 with a gross margin of 55.55%, reflecting its solid performance in the real estate advisory services market.
JLL
Company Profile: JLL, established in 1968 and headquartered in the USA, is a professional services firm specializing in real estate and investment management.
Business Overview: JLL offers a full range of services including property and corporate facility management, real estate investment sales, and advisory services. They serve a diverse client base across various industries including banking, energy, healthcare, and technology.
Product Offered: JLL’s product offerings include investment sales & advisory, property leasing, facilities management, and more. They are recognized for their global market expertise and research capabilities.
2023 Financial Summary: In 2023, JLL reported revenues of $4440.00 million with a gross margin of 55.37%, indicating its profitability and significant market share.