Real estate total global value reaches $380trn

This makes real estate the ”world’s most significant store of wealth” as it is more valuable than all 2022 global equities ($98.9trn) and debt securities ($129.8trn) combined, and almost four times that of global GDP ($100.6trn), Savills said.

Despite this high figure, the overall total value of global real estate decreased 2.8% in 2022 when compared with $390.5trn in 2021, although 2021’s figure was up 18.7% on 2019 levels, pre-Covid.

Growth across all asset classes slowed in 2022 compared with 2020-21 as inflation rose and interest rates spiked. However, the value of all sectors of real estate remains up on their 2020 levels, Savills explained.

Residential holds the largest value out of the real estate sectors as it accounts for 76% of all global real estate value, Savills highlighted. Residential value stood at $287.6trn in 2022, a decrease of 1.6% on 2021 levels ($292.2trn).

Commercial real estate value stands at $50.8trn, compared with $51.7trn in 2021, comprising 13% of total real estate value. It is also ahead of the total value of agricultural land at $41.3trn, which accounts for 11%.

As of 2022, China was the world’s most valuable real estate market, accounting for 26% of total global real estate value, including residential and commercial, followed by the US, which accounts for 19%.

Savills added that Canada (7th) and Australia (10th) have seen significant growth in residential prices in recent years and rank ahead of much more populous nations for total real estate value.

India, the world’s most populous country, is in 14th position by value, which Savills said demonstrates “the potential for future growth in this market”.

Paul Tostevin, head of Savills World Research, said: “Despite upheavals in the markets, and some speculation about the future of some sectors, real estate as a whole continues to be the largest concentration of wealth in the world.

“It’s clear that given the underdeveloped nature of real estate in some locations on a long-term basis growth will continue as more stock is added around the world.”

Source: Property Week