The value of global real estate (including residential, commercial and agricultural real estate) reached $379.7 trillion by the end of 2022, making real estate the world's largest concentration of wealth, according to data collected by Savills in Impacts, its global real estate sector analysis programme.
The value of real estate globally is greater than that of all equities ($98.9 trillion) and debt securities ($129.8 trillion) combined, and represents almost four times global GDP ($100.6 trillion).
Overall, the total value of real estate in 2022 declined by 2.8% from 2021, while remaining 18.7% above the levels recorded in 2019. The increase in the value of different types of real estate slowed down in 2022 compared to 2020-21 due to rising inflation and the rebound in interest rates.
The residential segment accounts for 76% of global real estate value at USD 287.6 trillion, down 1.6% from USD 292.2 trillion in 2021, while in 2019-2022 its growth was 21.1%. The value of tertiary assets represents 13% of the total value with $50.8 trillion, down 1.8% from 2021 ($51.7 trillion) but up 14.4% from 2019 and ahead of the total value of agricultural land, which represents 11% of the total with $41.3 trillion, down 11.4% from the previous year ($46.6 trillion in 2021) and 8.8% above the value recorded in 2019.
As Savills notes, despite the uncertainty, real estate as a whole continues to hold the highest concentration of wealth in the world. Residential property values grew by 21.1% between 2019 and 2022 - second only to gold - as it benefited from ultra-low interest rates during this period, coupled with a focus on housing in many countries during the confinements. Given the underdeveloped nature of real estate assets in some locations over the long term, growth will continue as more stock is added globally.
According to Savills World Research's analysis, with data as of year-end 2022, China is the world's most valuable real estate market, accounting for 26% of the total value of the global real estate market (residential and tertiary), followed by the US, which accounts for 19%. However, Savills points out that Canada (7th) and Australia (10th), two countries that have experienced significant growth in house prices in recent years, outperform much more populous nations in terms of total property market value. India, the world's most populous country, ranks 14th in terms of value, demonstrating the potential for future growth in this market. Spain ranks 15th with $3.66 trillion.
