Global Real Estate Valued at $379.7 Trillion in 2022, Surpassing Equities and Debt Securities Combined, Reports Savills

Global Real Estate Valued at $379.7 Trillion in 2022, Surpassing Equities and Debt Securities Combined, Reports Savills

(IN BRIEF) Savills has revealed that the total value of global real estate, including residential, commercial, and agricultural properties, reached $379.7 trillion in 2022, solidifying its status as the world’s most significant store of wealth. This value exceeds the combined worth of global equities ($98.9 trillion) and debt securities ($129.8 trillion) and is nearly four times greater than the global GDP ($100.6 trillion). For context, the total value of all the gold ever mined is just $12.2 trillion, representing a mere 3% of the value of global real estate. Despite a 2.8% decrease in overall real estate value compared to 2021 ($390.5 trillion), it still marks an 18.7% increase over 2019 levels, reflecting real estate’s resilience and continued growth. Residential real estate accounts for the majority of this wealth, making up 76% of the total, with commercial real estate and agricultural land constituting 13% and 11%, respectively. Savills’ analysis highlights China as the world’s most valuable real estate market, followed by the United States, while countries like Canada and Australia rank ahead of more populous nations in terms of total real estate value.

(PRESS RELEASE) LONDON, 26-Sep-2023 — /EuropaWire/ — Real estate is more valuable than all 2022 global equities ($98.9 trillion) and debt securities ($129.8 trillion) combined, and almost four times that of global GDP ($100.6 trillion), says Savills.  The value of all the gold ever mined, by comparison, stands at $12.2 trillion – just 3% the value of global real estate.

Overall, the total value of global real estate in 2022 decreased 2.8% on 2021, when it was $390.5 trillion, although is up 18.7% on 2019 levels (pre-Covid-19). Growth across all asset classes (real estate, equities etc) slowed in 2022 compared to 2020-21, according to the international real estate advisor, as inflation rose and interest rates spiked.

The value of all sectors of real estate, however, remain up on their 2020 levels, according to Savills. In terms of the different property sectors, residential is by far the largest, accounting for 76% of all global real estate value: its value stood at $287.6 trillion in 2022, a decrease of 1.6% on 2021 levels ($292.2 trillion). Commercial real estate value stands at $50.8 trillion (2021 comparison: $51.7 trillion), comprising of 13% of total real estate value, and ahead of the total value of agricultural land at $41.3 trillion (2021 comparison: $46.6 trillion) which accounts for 11%.

Paul Tostevin, head of Savills World Research which carried out the analysis, comments: “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.”

As of 2022, 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 which accounts for 19%. Savills notes, however, that Canada (7th) and Australia (10th), both countries that have seen significant growth in residential prices in recent years, rank ahead of much more populous nations for total real estate value. India, the world’s most populous country, is 14th position by value, demonstrating the potential for future growth in this market.

Media Contacts:

Paul Tostevin
Director, Head of Department, World Research
+44 (0) 20 7016 3883

Charlotte Rushton
Global Research Analyst, World Research

SOURCE: Savills plc