China accounts for 26% of total global real estate value, still the world’s most valuable real estate market
Savills World Research reports that the value of all global real estate (residential and commercial real estate, and agricultural land) reached USD$379.7 trillion in 2022, maintaining the asset’s position as the world’s most significant store of wealth.
Overall, the total value of global real estate in 2022 decreased 2.8% over 2021, when it was USD$390.5 trillion, although it was up 18.7% compared to 2019 levels (pre-Covid-19). Growth across all asset classes (real estate, equities etc) slowed in 2022 compared to 2020-21 as inflation rose and interest rates spiked.
In terms of the different property sectors, residential was by far the largest, accounting for 76% of all global real estate value at USD$287.6 trillion in 2022, a decrease of 1.6% on 2021 levels (USD$292.2 trillion). Commercial real estate value stood at $50.8 trillion (2021 comparison: USD$51.7 trillion), comprising of 13% of total real estate value, and ahead of the total value of agricultural land at USD$41.3 trillion (2021 comparison: USD$46.6 trillion) which accounted for 11%.
Real estate was more valuable than all 2022 global equities (USD$98.9 trillion) and debt securities (USD$129.8 trillion) combined, and almost four times that of global GDP (USD$100.6 trillion). The value of all the gold ever mined, by comparison, stood at $12.2 trillion - just 3% the value of global real estate.
Paul Tostevin, Head, Savills World Research: “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.”
View growth by asset graph here.
View floating USD exchange rates graph here.
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%. However, both Canada (7th) and Australia (10th) 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.
View distribution of global real estate value pie chart here.
The value of property in Europe and North America accounted for almost half (47%) of the total value worldwide. This was despite them being home to only 17% of the world population. Asia-Pacific (excluding China), by contrast, had 37% of the world’s population but registered for only 17% of global real estate value.
Jeremy Lake, Managing Director, Investment Sales & Capital Markets: “Real estate values have appreciated significantly in Singapore over the years and this trend will continue. This has not gone unnoticed by foreign investors who continue to look actively for real estate investment opportunities here despite some head winds at the moment.”
View top 10 countries by real estate value graph here.
Read the full article here.
For further information, please contact:
Paul Tostevin, Director, World Research, Savills UK
Tel : +44 (0) 7807 999 136 | PTostevin@savills.com
Jacke Chye, Head of Marketing and Communications, Savills Singapore
Tel: +65 9678 6761 | Jacke.Chye@savills.com.sg