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18 strong forecasts for real estate in Daegu in 2025

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Authored by the expert who managed and guided the team behind the South Korea Property Pack

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What will happen in Daegu’s real estate market? Will prices go up or down? Is Daegu still a hotspot for foreign investors? How is South Korea’s government impacting real estate policies and taxes in 2025?

We’re constantly asked these questions because we’re deeply involved in this market. Through our work with real estate agents, developers, and clients who buy properties in Daegu, we’ve gained firsthand insights.

That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.

Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

How this content was created 🔎📝

At BambooRoutes, we study the Daegu real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

When working on this content, we started by gathering insights from these conversations and our own observations. But we didn’t stop there. To make sure our predictions are reliable, we also dug into trusted sources like KOTRA, the KFEZ, and the Ministry of Economy and Finance (among many others).

We are committed to accuracy and authority. Any forecast lacking strong backing from reliable data or expert opinions was set aside. For the forecasts that pass our initial screening (meaning, we consider there is enough solid data to consider them credible), we take things a step further by incorporating insights from trusted real estate blogs, industry publications, and expert analyses. This additional information helps us gain a clearer perspective without compromising reliability. Naturally, we also draw on our own experience and knowledge.

Trustworthiness is key to us. Clear citations are provided throughout this article, allowing you to see exactly where our information comes from. To ensure our explanations are easy to read and engaging, we used an AI-powered writing tool—but only for this specific purpose.

To make the data even more accessible, our design team created custom infographics that highlight key trends and comparisons. We hope you find them helpful.

Finally, every illustration, screenshot, and other non-text media was produced in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Foreign investment in Daegu will grow as international companies expand their operations there

Daegu is quickly becoming a prime spot for foreign investment, drawing international companies to expand their operations.

In 2024, Daegu made waves by signing investment agreements with three water-related companies: Namutree, JTechWater, and Naekang. These companies are pouring KRW 21 billion into manufacturing plants as part of the Korea Water Cluster, signaling a robust commitment to the city's burgeoning water industry.

Adding to the excitement, the IMC Group, under the umbrella of Warren Buffett's Berkshire Hathaway Inc., is investing KRW 130 billion in a semiconductor materials plant in Daegu. This strategic move underscores Daegu's growing reputation in the tech industry, as the city positions itself as a key player in the global semiconductor market.

Daegu's appeal is further enhanced by the Korean Free Economic Zones (KFEZs), which offer enticing incentives for foreign businesses. These include exemptions or reductions in tariffs, acquisition tax, and property tax, making Daegu a cost-effective choice for international companies aiming to boost their bottom line.

Infrastructure is also getting a major boost with the construction of a new international airport, slated for completion by 2030. This development is set to elevate Daegu's status in global transportation, making it an even more attractive hub for international firms.

With these developments, Daegu is not just a city on the rise; it's a city that's actively shaping its future as a global business hub. The combination of strategic investments, economic incentives, and infrastructure improvements is creating a fertile ground for foreign investment.

Sources: KOTRA, KED Global, KFEZ, DroneLife

2) Property prices in the city will level out as new housing projects finish

In 2023, Daegu's housing transactions jumped from about 29,000 to around 40,000, showing a significant increase.

This surge in transactions indicates a growing housing supply, which is crucial for stabilizing property prices. By the end of the year, Daegu had an excess housing supply of 13,445 units, making up 19.4% of the total 66,107 units. This surplus suggests the market is moving towards a balance between supply and demand.

New housing projects like Daemyung Xi Grand City and Suseong-gu's 'Suseong Forest Switzen' have been selling well, with hundreds of contracts signed quickly. This trend reflects a healthy demand for new housing, supporting the idea of a stabilizing market.

For potential buyers, this means that Daegu's property prices are likely to stabilize as these new housing projects are completed. The city's real estate market is becoming more balanced, which is good news for those looking to invest in property here.

With the completion of these projects, the housing supply will continue to grow, further contributing to the stabilization of property prices. This is a promising sign for anyone considering buying property in Daegu.

Sources: MK Real Estate, Statista, Korea JoongAng Daily

infographics rental yields citiesDaegu

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

3) Rental yields in Daegu will rise as demand for rentals grows

Daegu is seeing a steady rise in rental yields as more people look for rental properties.

One reason for this is the high net migration rate to Daegu, especially in areas like Jung-gu, which has seen a 10.6% increase in people moving in. Many of these newcomers are driven by housing needs, with 34% of them moving specifically for housing.

New housing developments in Daegu are limited, which means more people are turning to rentals. In 2023, the number of apartment purchases in Daegu jumped from about 11,000 to 23,000, showing a strong demand for housing. This makes renting a more attractive option when buying becomes tough.

Property prices in Daegu are rising, making it harder for many to buy homes. This has led to a shift towards renting, supported by the high occupancy rates in rental properties. For instance, Airbnb listings in Daegu have a median occupancy rate of 58%.

These factors suggest that rental yields in Daegu will keep climbing as the demand for rental properties stays strong. The city's appeal is growing, and with limited new housing, renting is becoming the go-to choice for many.

As more people move to Daegu and property prices continue to rise, the rental market is set to thrive. This trend is likely to persist, making Daegu an attractive option for property investors looking for good returns.

Sources: Airbtics, Kostat, Statista

4) More foreign buyers will invest in the city's residential market because of favorable exchange rates

Foreign buyers are getting more bang for their buck in South Korea, thanks to favorable exchange rates.

In Daegu, this means that American buyers, for instance, find it cheaper to invest when the US dollar is strong against the Korean won. This city is becoming a hotspot for those looking to stretch their dollars further.

Daegu's foreign population is on the rise, jumping from 27.2 thousand in 2021 to 29.6 thousand in 2022. This growing community is driving up demand for homes, as more people from abroad choose to settle here.

Compared to other big cities in South Korea, Daegu offers more affordable property options, making it even more attractive to foreign buyers. It's a city where your money can go further in the real estate market.

The South Korean government is also making moves to lure in foreign investors. By requiring developers to secure part of the capital for housing projects, foreign investors with the funds have new opportunities in Daegu.

Interest in South Korean real estate is climbing, with international investors increasingly eyeing the market. Daegu stands out as a promising destination for those looking to invest abroad.

Sources: Statista, Korea Times

5) More foreign buyers will invest in Daegu’s real estate as the city becomes internationally recognized

Foreign interest in Daegu's real estate is set to rise as the city gains more international recognition.

In South Korea, foreign investors are increasingly eyeing the real estate market, especially after the base rate was cut from 3.5% to 3.0% in late 2024. This makes investing in properties more appealing, and Daegu is poised to benefit from this trend.

Daegu's charm is also drawing in more tourists, with attractions like E-World and the Daegu Arboretum welcoming millions of visitors in 2023. This surge in tourism can entice foreign investors eager to tap into the city's growing allure.

The city is a hub for international conferences, which spotlight Daegu on the global stage. These events, coupled with positive media coverage, highlight Daegu's cultural and economic progress, making it an attractive spot for real estate investment.

With its vibrant cultural scene and economic growth, Daegu is becoming a hotspot for international attention. This increased visibility is likely to draw more foreign interest in its real estate market.

As Daegu continues to shine on the international stage, foreign investors are likely to see the city as a promising opportunity for real estate ventures.

Sources: Statista, Statista, International Conference Alerts, DWS Group

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6) Daegu will attract more investors with new property tax incentives

Daegu is grappling with a high property vacancy rate of 19.4%, with 13,445 homes sitting empty by the end of 2023.

Property prices in Daegu have been dropping, with a 46% decrease in homes for sale compared to February 2022. This decline hints that property tax incentives could boost investment and help stabilize the market.

The government is aware of Daegu's economic challenges and has paused new housing approvals until things settle. This move is part of a larger plan that might include introducing property tax incentives to draw in investors.

Other cities have shown that property tax incentives work. The Korean government has used Opportunity Development Special Zones, offering tax perks to spur regional growth. These incentives have been successful, hinting at their potential in Daegu.

Daegu's situation is unique, but the idea of using tax incentives isn't new. In other regions, such strategies have led to increased investment and economic growth, making them a promising option for Daegu.

With the right incentives, Daegu could see a turnaround, attracting more investors and reducing the number of vacant properties. The city's future might just hinge on these strategic tax breaks.

Sources: Korea JoongAng Daily, PwC Korea

7) Single-family homes will become less popular as urban living gains appeal in Daegu

Urban living in Daegu is on the rise, and it's changing the real estate landscape.

More people are flocking to the city, and with this influx, the demand for urban living spaces is booming. This isn't just a local trend; it's happening all over South Korea as city life becomes more attractive. In Daegu, the appeal of urban living is evident in the numbers.

Take apartment sales, for instance. In the first half of 2024, sales jumped by 14.6% compared to the previous year. Areas like Seo-gu and Nam-gu are seeing even bigger spikes, showing a clear preference for the convenience and amenities that city life offers.

The government is also in on the action, pushing for urban development through initiatives like the Comprehensive Plan for Urban Development of Gunwi-gun. This plan is all about boosting infrastructure and public transportation, making city living even more appealing.

Then there are the mixed-use neighborhoods popping up, like the Suseong Beomeo W complex. These areas blend residential and commercial spaces, giving residents the perk of having everything they need right at their doorstep. It's a shift towards integrated urban living that's hard to ignore.

With these changes, it's clear that single-family homes are losing their charm as more people opt for the vibrant, convenient lifestyle that urban living in Daegu offers.

Sources: MK Real Estate, Daegu Government

8) Daegu’s property prices will rise moderately due to foreign investment

Daegu is becoming a hotspot for foreign investors, which is likely to push property prices up moderately.

In 2023, South Korea experienced a boom in Foreign Direct Investment, with pledges hitting USD 32.7 billion, thanks to thriving sectors like chips, batteries, and transportation. This influx of investment is sparking interest in the real estate market, and Daegu is no exception. The South Korean government is rolling out the red carpet for foreign investors by introducing policies that make it easier to invest in real estate. For instance, they've set up Opportunity Development Zones in non-metropolitan areas and temporarily increased cash grant limits until 2025, making cities like Daegu more appealing.

Daegu is also catching eyes due to its infrastructure projects. The city is planning a new integrated airport and expanding its high-speed railway network, which is expected to boost connectivity. These developments are making Daegu a magnet for international businesses and expatriates, which in turn is likely to drive up property demand.

Foreign investors are particularly interested in Daegu because of its strategic location and growing infrastructure. The planned airport and railway expansions are not just about better transport; they signal a city on the rise, ready to welcome international businesses. This makes Daegu an attractive option for those looking to invest in South Korea's real estate market.

With these developments, Daegu is poised to become a key player in South Korea's economic landscape. The combination of government incentives and infrastructure projects is creating a perfect storm for property price increases. Investors are taking note, and the city's real estate market is expected to benefit from this newfound attention.

As Daegu continues to develop, it's becoming a more attractive destination for both businesses and expatriates. The city's growth is not just about new buildings and transport links; it's about creating a vibrant community that appeals to international investors. This is why Daegu is on the radar for those looking to invest in South Korea's property market.

Sources: Travel and Tour World, Ministry of Economy and Finance, Santander Trade

statistics infographics real estate market Daegu

We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

9) Demand for smaller, accessible homes in Daegu will grow as the population ages

Daegu is experiencing a notable increase in its aging population.

Back in 2019, 15.48% of Daegu's residents were elderly, and this number has been climbing steadily. As those who moved to Daegu in the 1950s and 1960s grow older, the city's overall population is shrinking. This shift is important because older adults often need different types of housing than younger folks.

One big change in Daegu is the rise in single-person households. Just last year, these households grew by 5.1%, reaching 359,048. By 2047, it's expected that 36.8% of all family units will be single-person households. This trend shows a clear demand for smaller, more accessible homes.

Older adults in Daegu are leaning towards smaller homes that are easier to manage and more accessible. This is partly because of the increase in single-person households and the need for homes that suit the physical challenges of aging. The local government is aware of this and is working on solutions, like managing unsold housing and building new apartments that fit these needs.

The real estate market in Daegu is also showing this shift. From 2021 to 2023, the supply of new apartments dropped dramatically from 26,828 to just 941. This decrease, along with steady housing demand, underscores the need for compact homes for the aging population.

Sources: MDPI, MK Real Estate, Korea Times

10) Rental yields in the city will level out as more properties become available

Daegu's property market is buzzing with new developments, thanks to a recent surge in construction projects.

In 2023, the city saw a significant uptick in building permits, signaling a boom in construction activity. This influx of new properties is expected to help stabilize rental yields, making it a promising time for potential buyers.

The Korean government is also stepping in with initiatives like the Opportunity Development Special Zones in Daegu. These zones offer attractive incentives such as tax breaks and financial support, encouraging more property development and contributing to a more balanced rental market.

On top of that, Daegu is investing in infrastructure with projects like the '2023 Smart Specialization Infrastructure Construction Project.' This government-backed initiative aims to complete new residential complexes, further boosting the housing supply and stabilizing rental yields.

These developments are not just about numbers; they reflect a strategic push to make Daegu a more attractive place to live and invest. With more properties entering the market, rental yields are expected to stabilize, offering a more predictable return for investors.

For those considering buying property in Daegu, these changes mean a more dynamic and potentially rewarding market. The city's efforts to expand its housing supply and infrastructure are paving the way for a more stable and appealing rental market.

Sources: ASIA PACIFIC REAL ESTATE STRATEGIC OUTLOOK - DWS Group, Daegu City Selects 2023 Tasks for MOTIE Smart Specialization, New Opportunity Development Special Zones Offer Significant Incentives

11) Demand for modern, tech-enabled apartments will grow as the city's younger population increases

Daegu is a city full of young people, with many under 30, and this trend is expected to continue growing.

Young folks in Daegu are not just youthful; they are also tech-savvy, making them the perfect audience for modern, tech-enabled apartments. As the population increases from 2024 to 2035, their openness to new technologies will likely drive demand for these smart living spaces.

In South Korea, the smart home market is on fire, with rapid growth expected from 2024 to 2030. This boom is largely fueled by young adults craving modern living experiences. They love the convenience and connectivity that tech-enabled apartments offer, aligning perfectly with their lifestyle.

Daegu is not just sitting back; the city is actively promoting smart city developments, focusing on smart home technologies. These initiatives create a supportive environment for tech-enabled apartments, making them even more attractive to the city's young, tech-savvy crowd.

The city hosts tech-focused events and expos, underscoring its commitment to technology and innovation. This not only attracts developers but also draws in consumers eager for the latest tech, further boosting the appeal of smart apartments.

With Daegu's younger demographic driving demand, the city is poised to become a hub for modern, tech-enabled living spaces, perfectly suited for its residents' needs.

Sources: World Population Review, NextMSC, Smart City Korea

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12) Co-living spaces will grow in Daegu to meet the needs of young professionals

Daegu is seeing a surge in young professionals moving to the city, and co-living spaces are popping up to meet their needs.

With the employment rate at its highest since 2000, young professionals are flocking to Daegu for job opportunities. They’re looking for affordable housing, and co-living spaces fit the bill with flexible leases and reasonable prices. This trend is a sign that Daegu is becoming a hotspot for career-driven individuals.

Co-living has already proven successful in other South Korean cities like Seoul. Take "Creator Town Seogyo," for example, where co-living thrives by offering amenities and a sense of community that young adults love. This model is catching on globally, with the co-living market expected to grow significantly by 2030.

Media coverage often highlights the networking perks and community vibe of co-living, which are big draws for young professionals. The rise of single-person households and social media trends are also pushing co-living as a popular lifestyle choice. Studies show that millennials and Gen Z in South Korea prefer urban living that offers both flexibility and community, making co-living a perfect fit.

In Daegu, the low unemployment rate for young people is another factor making the city attractive. As more young professionals move in, the demand for co-living spaces is likely to keep rising. This trend is not just about housing; it’s about creating a lifestyle that resonates with the younger generation.

Co-living spaces are more than just a place to stay; they offer a community and a way of life that appeals to young adults. With Daegu’s growing population of young professionals, the rise of co-living spaces is set to continue, catering to their needs and preferences.

Sources: MK, The Granite Tower, HackMD

13) Property prices in Daegu will keep rising because land is scarce

Daegu's residential property prices are climbing due to limited land availability.

In areas like Suseong-gu, population density is increasing because of attractive schools and neighborhoods. This popularity means more people want to live there, pushing up housing demand and prices. After the 2022 recession, apartment prices bounced back, showing a consistent upward trend.

Economic growth in Daegu is another key factor. With projects like the TK airport and K2 rear site development, new jobs are being created, drawing more people to the city. Even with new housing projects, the demand often outpaces supply, further driving up prices.

Infrastructure improvements, such as the extension of Daegu Line 1, make the city more appealing. As more people move in, housing demand rises, leading to higher property prices. Foreign investors are also eyeing Daegu's market, adding to the demand and contributing to the price surge.

Daegu's limited land means that available plots are highly sought after, making them more valuable. Developers and buyers are willing to pay a premium, which naturally pushes up property prices. This scarcity is a significant factor in the ongoing price increases.

With all these elements at play, it's clear that Daegu's property market is on an upward trajectory. The combination of limited land, economic growth, and infrastructure improvements creates a perfect storm for rising prices.

Sources: MK Real Estate, MK Real Estate, PolyU Library, AI Skill

14) Rent prices in Daegu will stay stable as new housing units are added

In 2023, Daegu experienced a sharp drop in new housing permits, falling from 28.14 thousand in 2022 to 14.4 thousand.

This reduction means fewer new homes are being built, which can help keep rent prices steady as the market adjusts. The city is managing ongoing projects to cut housing supply by 79% over the next three years, showing a strategic effort to balance the market.

Historically, when Daegu expanded its housing, rent prices stayed stable. This pattern suggests that adding new homes can help keep the market balanced, avoiding big rent hikes.

For those considering buying property in Daegu, this controlled approach to housing supply is a good sign. It means the city is working to prevent wild swings in rent prices, making it a potentially stable investment.

With fewer new homes being built, the existing housing market is less likely to face oversupply, which can often lead to unpredictable rent changes. This careful planning is key for anyone looking to invest in Daegu's real estate.

Sources: Statista, MK Real Estate

infographics comparison property prices Daegu

We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

15) Rents in Daegu will rise as urbanization progresses

Rents in Daegu are on the rise as the city continues to urbanize.

Daegu's population is steadily growing, and this trend is expected to continue into 2025. With more people moving in, the demand for housing is naturally increasing. When more people are looking for homes, it's no surprise that rental prices start climbing.

Space is a hot commodity in Daegu, and there's not much land left for new housing projects. This scarcity means that existing homes become more valuable. Landlords know this and often raise rents because they can.

Daegu's economy is booming, turning the city into a magnet for job seekers. As businesses thrive, more people are drawn to the area, which only adds to the housing demand. This influx of new residents is another reason why rents are going up.

With Daegu becoming a business hub, the city is attracting a diverse crowd. This mix of people looking for homes is pushing rental prices higher. The city's appeal is undeniable, and as more folks move in, the competition for housing intensifies.

Sources: Macrotrends, Numbeo, World Population Review

16) Rents will rise in areas with better public transportation access

Areas with better public transportation are seeing a rise in rents.

Take Daegu, for instance, where the introduction of eco-friendly city buses has not only cut down on fuel costs but also made these neighborhoods more appealing. This shift is likely to drive up both property values and rents, as people flock to areas with convenient transit options.

In cities like Seoul, we've seen that when public transit expands, property values and rents often increase. People love living in places with good transit because it cuts down on commute times and boosts their quality of life. Reliable public transportation is a big draw for renters, making these areas more competitive.

Surveys show that tenants often choose locations with excellent transit options. In Daegu, the extended public transportation services have significantly increased the number of users, highlighting how much residents value this feature. This convenience makes neighborhoods more desirable, pushing rents higher.

Reduced commuting times due to improved public transportation can make certain neighborhoods more attractive, leading to higher rental prices. As more people seek out these areas, the demand for rental properties naturally goes up.

In essence, better transit access is a key factor in making neighborhoods more desirable, which in turn drives up rents. This trend is evident in various cities, where improved public transportation has become a major selling point for potential renters.

Sources: Korea Times, MK News, UN Habitat

17) Rental prices in Daegu will dip slightly as more people choose to buy homes

In Daegu, homeownership rates have surged recently.

Back in 2023, the city saw a remarkable jump in apartment purchases, with transactions climbing to around 23,000, a significant leap from the previous year's 11,000. This upward trend didn't stop there; housing purchases reached approximately 25,000 in 2023, up from about 15,000 the year before.

These numbers clearly show that more people are buying homes instead of renting. The real estate market in Daegu is expanding, offering more affordable housing options, which makes homeownership more accessible to many.

Demographic changes are also influencing this shift. Both younger families and older adults are leaning towards the stability of owning a home. This trend is likely fueled by media reports emphasizing the benefits of homeownership, like building equity and enjoying tax perks.

As more people opt for homeownership, the city's rental market is expected to see a slight decline. This shift is reshaping the housing landscape in Daegu, making it an exciting time for potential buyers.

For those considering buying property in Daegu, now might be the perfect time to explore the market and take advantage of these trends.

Sources: Statista, Statista, Green Builder Media

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buying property foreigner Daegu

18) Property prices in Jung-gu will stay stable because of its central location and cultural attractions

Jung-gu district in Daegu is set to keep its property prices stable thanks to its prime location and cultural hotspots.

People are flocking to central areas, and Jung-gu is no exception. The buzz in Daegu's housing market shows that centrally located spots are in high demand, which means property prices here are likely to stay steady.

Jung-gu is home to some amazing cultural and historical gems, like Deoksugung Palace and the Dongdaemun History & Culture Park. These attractions not only draw tourists but also make the area a desirable place to live, helping to keep property values stable.

Another big plus for Jung-gu is the new Dongdaegu Station. This transportation hub boosts connectivity and makes getting around a breeze, which is a huge draw for both residents and investors, supporting stable property prices.

With its central location and cultural appeal, Jung-gu is a hot spot for those looking to invest in property. The area's charm and accessibility make it a solid choice for anyone considering a move or investment.

Whether you're drawn by the cultural sites or the convenience of the transport links, Jung-gu offers a unique blend of both, ensuring its property market remains robust.

Sources: Trip.com, KPF, MK

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.