The total value of global real estate in 2022 was estimated at $379.7 trillion, dwarfing global GDP by almost four times, according to international real estate advisor Savills.
This valuation encompasses residential and commercial real estate, as well as agricultural land, and solidifies real estate’s position as the world’s most significant repository of wealth.
The figures reveal that the combined worth of all global real estate far surpasses the value of 2022 global equities and debt securities, which stand at $98.9 trillion and $129.8 trillion respectively.
To put it in another perspective, the value of all the gold ever mined is just $12.2 trillion, a mere 3% of the global real estate value.
While the total global real estate value did experience a 2.8% dip compared to 2021, when it was $390.5 trillion, it is up 18.7% from 2019 levels. Savills notes that growth across all asset classes, including real estate and equities, slowed in 2022 due to rising inflation and interest rates.
Residential property accounted for a massive 76% of all global real estate value, with its value standing at $287.6 trillion in 2022. This marked a 1.6% decrease from 2021 levels, which were $292.2 trillion. Commercial real estate followed at $50.8 trillion, or 13% of the total value. Agricultural land was valued at $41.3 trillion, making up the remaining 11%.
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.
“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.”
Savills also pointed out that China and the United States remain the world’s most valuable real estate markets, contributing 26% and 19% of total global real estate value respectively.
Interestingly, Canada and Australia, both of which have seen rapid growth in residential prices in recent years, rank higher in total real estate value than more populous nations.
India, despite being the world’s most populous country, ranks only 14th in terms of total real estate value, suggesting significant potential for future growth in its market.
The UK comes in fifth place when it comes to total real estate value trailing Germany and Japan.
