Real estate is more valuable than all 2022 global equities and debt securities combined
Real estate is more valuable than all 2022 global equities ($98.9tn) and debt securities ($129.8tn) combined, and almost four times that of global GDP ($100.6tn), says Savills. The value of all the gold ever mined, by comparison, stands at $12.2tn – 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 $390.5tn, 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 $287.6tn in 2022, a decrease of 1.6% on 2021 levels ($292.2tn). Commercial real estate value stands at $50.8tn (2021 comparison: $51.7tn), comprising of 13% of total real estate value, and ahead of the total value of agricultural land at $41.3tn (2021 comparison: $46.6tn) 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.
