Global Real Estate Valued At $379.7 Trillion, Surpassing Combined Equities And Debt Markets

Global real estate, encompassing residential, commercial and agricultural lands, cemented its status as the world's largest repository of wealth in 2022 when the market reached a value of $379.7 trillion.

According to a report from international real estate adviser Savills, this value is more than global equities ($98.9 trillion) and debt securities ($129.8 trillion) combined and nearly four times the global gross domestic product ($100.6 trillion).

Although the value in 2022 declined by 2.8% from 2021 when it reached $390.5 trillion, real estate is worth 18.7% more than it was in 2019 before the COVID-19 pandemic. According to Savills, all asset classes experienced slower growth in 2022 compared to 2020-21.

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

Residential property, which accounts for 76% of all global real estate value, outperformed all other real estate sectors, increasing by 21.1%. Ultralow interest rates combined with a focus on the home during lockdowns benefited the housing market. Its value stood at $287.6 trillion in 222, a decrease of 1.6% from 2021.

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Commercial real estate, which accounts for 13% of total real estate value, was worth at $50.8 trillion in 2022 compared to $51.7 trillion the previous year. Agricultural land, which comprises 11% or real estate value, was worth $41.3 trillion in 2021 compared to $46.6 trillion the previous year.

The Chinese market accounted for 26% of global real estate value, followed by the United States, which has a 19% share of the wealth created by property. Canada (ranked No. 7) and Australia (ranked No. 10) are ahead of more populated countries because of the significant growth in residential prices.

"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," Tostevin said. 

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