ResearchAndMarkets.com says its latest report on the global office buildings market shows that the value of this real estate sector is growing – if not quickly. The company says the global office buildings market reached a value of nearly US$580.89 billion in 2023, having grown at a compound annual growth rate of 1.92 per cent since 2018. The market is expected to grow to US$643.49 billion in 2028 at a rate of 2.07 per cent, then by 2.21 per cent from 2028 to reach US$717.87 billion in 2033.

Recent growth resulted from emerging markets in developing countries, an increase green buildings  construction, and heightened demand for flexible workspaces.

Going forward, increasing population density and urbanization, steady expansion of the automotive industry, an increase in the working population, increasing investments in commercial construction and rise in demand for office spaces will drive the market growth. Factors that could hinder growth include conversion of high-vacancy commercial buildings for residential use and lack of skilled workers.

Comparing smart buildings to traditional buildings, the traditional buildings market was the largest segment, accounting for 72.2 per cent or US$419.58 billion of the total in 2023. Going forward, the smart buildings segment is expected to be the fastest growing segment at 3.4 per cent for 2023 to 2028.

By construction type, new construction was the largest segment, accounting for 66.3 per cent or US$385.41 billion of the total in 2023. Going forward, the renovation segment is expected to be the fastest growing segment at 2.39 per cent for 2023 to 2028.

Looking at owned versus rented buildings, the rental market was the largest segment at 69 per cent or US$400.9 billion in 2023. And the rental segment is expected to be the fastest growing at 2.17 per cent during 2023-2028.

To take advantage of the opportunities, ResearchAndMarkets.com says companies should focus on sustainable office solutions, smart buildings, and renovations, among other areas.