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Residential Land Planning And Development Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Residential Land Planning And Development Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • January 2021
  • 300 pages
  • ID: 6018885
  • Format: PDF
  • The Business Research Company

Summary

Table of Contents

Major companies in the residential land development market include Barratt; Persimmon; Crest Nicholson; Miller and Wainhomes.

The global residential land planning and development market is expected to grow from $84.58 billion in 2020 to $90.45 billion in 2021 at a compound annual growth rate (CAGR) of 6.9%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $135.64 billion in 2025 at a CAGR of 11%.

The residential land development market consists of sales of residential land planning and development services and related goods by entities (organizations, sole traders and partnerships) that service land and subdivide real property into lots, for subsequent sale to builders for residential construction. Servicing of land may include excavation work for installation of roads and utility lines. The residential land planning and development market is segmented into houses and housing estate developments and apartments and other residential developments.

Asia Pacific was the largest region in the global residential land planning and development market, accounting for 45% of the market in 2020. North America was the second largest region accounting for 24% of the global residential land planning and development market. Africa was the smallest region in the global residential land planning and development market.

Technologies such as augmented reality (AR) are gaining popularity in the residential land planning and development market for faster construction and to cut costs associated with construction. Augmented reality is the real world supplemented with computer-generated sensory inputs, allowing the creation of a 3-dimensional model of construction design to interact realistically. These technologies benefit the construction industry in reducing rework, increasing quality, lowering labor costs, meet timelines, improving safety and customer experience, streamline collaboration, design analysis, measuring accuracy, construction project management and presentation of plans. Some of the major construction companies utilizing AR technology are McCarthy Building Companies, Mortensen construction companies, BNBuilders, Inc and ISG, Global Construction Services Company.

During the forecast period, interest rates globally are expected to rise in most developing and developed economies; this is expected to limit the new investments in capital intensive industries such as residential land planning and development market. Most countries across the world are raising interest rates to control inflation and also to limit the flow of capital out of the country. This is likely to affect new investments in terms of expansion, research and development of new products. The US interest rates, for instance, are expected to rise up to 3.5% by 2021. In addition, the increase in interest rates is likely to have a major impact on construction of both residential and non-residential housing. Higher mortgage rates not only discourage new home buyers but also put pressure on homeowners forcing them to sell. For instance, mortgage rates are expected to increase from about 3.75% in 2017 to about 5.20% in 2021. These factors are expected to have a negative impact on the market as borrowing money becomes expensive, affecting the market’s growth.

Technological development was a key driver of the residential land planning and development market during the historic period. Markets such as construction which involve technology benefited from this trend during the historic period. Areas of rapid technological change include smart highways, 3D concrete printing, drone surveying, kinetic roads, ’tiny houses’ and solar roads. Due to the advancement in technology the demand for better infrastructure increased and positively impacted the demand in residential land planning and development market.

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