The real estate sector in South Korea saw some fluctuations over the past years, with a significant growth recorded in 2014 and 2020. The value added in this sector reached 8.3 in 2023. Over the last two years, the year-on-year growth has steadied with modest increments: 0.43% in 2022 and 0.36% in 2023. The Compound Annual Growth Rate (CAGR) for the last five years leading to 2023 was 0.85%, indicating a stable, albeit gradual, upward trend.
Looking forward, the forecasts suggest the value added in the real estate sector will continue to grow, albeit at a slower pace. The projected CAGR for the next five years is 0.15%, with an overall forecast growth rate of 0.75% by 2028. This indicates a more modest but steady increase in contribution from the real estate sector to the industry and services in South Korea.
Future trends to watch for include the impact of government policies on real estate development, demographic changes affecting housing demand, and the potential influence of sustainability and green building trends on real estate values.
