IMARC Group has recently released a new research study titled “South Korea Real Estate Market Size, Share, Trends and Forecast by Property, Business, Mode, and Region, 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.

South Korea Real Estate Market Overview

The South Korea real estate market size was valued at USD 12.35 Trillion in the base year 2024. It is projected to grow at a CAGR of 2.00% from 2025 to 2033, reaching USD 14.90 Trillion by the end of the forecast period. This growth is driven by rapid urbanization, supportive government policies, rising disposable incomes, and increasing demand for residential and commercial properties in major cities like Seoul.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

South Korea Real Estate Market Key Takeaways

• Current Market Size: USD 12.35 Trillion (2024)
• CAGR: 2.00% (2025-2033)
• Forecast Period: 2025-2033
• The market is highly influenced by South Korea's robust economic growth, with an expected real GDP growth of 2.2% in 2024.
• Disposable personal income rose to 2,438,286.40 KRW Billion (approximately USD 1,828.71) in 2023, enhancing purchasing power.
• Rapid urbanization with 81.43% urban population in 2022, concentrated in major cities such as Seoul.
• Supportive government initiatives, including plans to develop 830,000 housing units nationwide.
• Technological innovations like prop-tech and generative AI are improving real estate processes and market productivity.

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Market Growth Factors

Urbanization and Economic Growth:

The South Korea real estate market is propelled by rapid urbanization and strong economic expansion. With 81.43% of the population living in urban areas by 2022, metropolitan centers like Seoul experience soaring demand for residential and commercial properties. Real GDP growth is expected to reach 2.2% in 2024, which increases disposable income and stimulates property investments. The disposable personal income grew to 2,438,286.40 KRW Billion in 2023, about USD 1,828.71, enabling consumers to spend more on housing and real estate investments, thus fueling market growth.

Government Support and Policy Initiatives:

The South Korean government has introduced multiple initiatives to stabilize and stimulate the real estate market. Notably, in January 2021, efforts included easing construction regulations and endorsing redevelopment projects aimed at increasing housing supply, especially in densely populated areas. A significant plan involves developing 830,000 housing units nationwide, including 320,000 in Seoul, within two years. The Green Standard for Energy and Environmental Design (G-SEED) encourages eco-friendly building projects, while fast-track approval processes by public developers aim to meet the soaring demand for affordable housing.

Technological Advancements Driving Efficiency:

Technological innovations, including virtual reality tours, artificial intelligence (AI) in property management, and blockchain for secure transactions, are transforming the real estate sector in South Korea. The industry anticipates a productivity gain of USD 110 Billion to USD 180 Billion primarily driven by Generative AI. AI technologies help in developing comprehensive customer profiles, optimizing engagement timing, and automating sales processes. These advancements enhance transaction transparency, increase efficiency, and attract tech-savvy investors, thereby contributing substantially to market growth.

Market Segmentation

By Property:

• Residential: High demand due to urban population growth, perceived as secure investments including apartments, condominiums, and houses.
• Commercial: Active sector with office complexes, retail buildings, and business parks attracting local and foreign investors.
• Industrial: Includes warehouses, logistics hubs, and manufacturing plants supporting the country's global manufacturing prowess.
• Land: Not specifically described in detail in the source.

By Business:

• Sales: A main driver in residential and commercial sectors backed by urbanization and steady economic conditions.
• Rental: Strong presence due to preference for renting, especially among younger generations and city dwellers.

By Mode:

• Online: Rapidly expanding with virtual tours and online listings, favored by younger, tech-savvy demographics.
• Offline: Important for personalized service and high-value transactions, preferred by the elderly and seasoned investors.

Regional Insights

The Seoul Capital Area dominates the South Korea real estate market, incorporating Seoul, Incheon, and Gyeonggi Province. It accounts for a major share of residential and commercial transactions due to being the nation's economic, political, and cultural center. The region's concentrated high population density and urbanization fuel property demand. Its comprehensive infrastructure and connectivity make it a prime market for domestic and international investors.

Recent Developments & News

• March 2025: South Korea's government launched 'Binjibae', an online platform to track vacant homes, supporting transactions and repurposing.
• March 2025: Madison International Realty opened its first office in Seoul to strengthen its presence in Asia and relationships with Korean investors.
• March 2025: Warburg Pincus and Wide Creek Asset Management acquired an 82,000-square-meter site in Anseong to build a dry warehouse, pre-leasing 70% to life sciences tenants.
• October 2024: Heitman acquired a distribution center in Anseong, aligning with its global core plus strategy focused on logistics.
• October 2024: Nuveen Real Estate bought the Jeongdong Building in Seoul's Jung district for USD 250 million, marking its first office investment in Korea.
• October 2024: Blackstone, with Blue Cove Investment and Travelodge, acquired a Gangnam office building for USD 86 million intending to convert it back to a hotel.

Key Players

• CBRE Korea
• Cushman & Wakefield plc
• Jones Lang LaSalle Incorporated
• Knight Frank
• RE/MAX Korea

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