Property around the world was worth $379.7 trillion at the end of 2022, nearly four times more than the global GDP of $100.6 trillion.
Real estate is also worth more than global equities ($98.9 trillion) and debt securities ($129.8 trillion) combined, according to research from Savills.
In comparison, all the gold ever mined holds a value of $12.2 trillion, only 3% of the overall value of global real estate.
While the total value of global real estate fell 2.8% year-on-year in 2022, it is up 18.7% from 2019 pre-COVID levels. This decline is part of a broader trend of slowed growth across all asset classes in 2022, due to rising inflation and higher interest rates.
The value of all sectors of real estate remains higher than 2020 levels. Residential real estate takes the lead, constituting 76% of global real estate value, totalling $287.6 trillion in 2022, down 1.6%.
World’s commercial property worth $50.8 trillion
Commercial real estate is worth $50.8 trillion, down from $51.7 trillion the year before, 13% of the total, but was up 14.4% over the three-year period. Agricultural land valued at $41.3 trillion, made up 11% of the total.
Paul Tostevin, head of Savills World Research which carried out the analysis, says, “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. Residential property dominates, and between 2019-2022 its value grew 21.1% – only outperformed by gold — as it benefited from ultra-low interest rates over this period, coupled with a focus on the home in many countries during lockdowns. It’s clear that given the under-developed nature of real estate in some locations on a long-term basis growth will continue as more stock is added around the world.”
China was the world’s most valuable real estate market, accounting for 26% of total global real estate value (residential and commercial), followed by the United States on 19%. Notably, Canada (7th) and Australia (10th), despite having smaller populations, rank higher than more populous nations in terms of total real estate value. India, the most populous country globally, sits at the 14th position by value, indicating potential for future growth in its real estate market.
