In 2022, global real estate, including residential, commercial, and agricultural properties, solidified its position as the world’s largest asset class with a total value of $379.7 trillion.
A report by international real estate advisor Savills highlighted that this value exceeds the combined value of global equities ($98.9 trillion) and debt securities ($129.8 trillion), and is nearly four times the global gross domestic product (GDP) of $100.6 trillion.
Although there was a 2.8% decline in real estate value from 2021’s $390.5 trillion, the market in 2022 remained 18.7% higher than in 2019, prior to the COVID-19 pandemic. Savills noted that all asset classes experienced slower growth in 2022 compared to the rapid increases seen in 2020 and 2021.
“Despite market upheavals and speculation about the future of some sectors, real estate continues to be the largest concentration of wealth globally,” said Paul Tostevin, head of Savills World Research.
Residential property, which makes up 76% of global real estate value, saw a 21.1% increase. Ultralow interest rates and a heightened focus on home life during lockdowns contributed to this sector’s growth. In 2022, residential real estate was valued at $287.6 trillion, a 1.6% decrease from 2021.
Commercial real estate, representing 13% of the total market, was valued at $50.8 trillion in 2022, down from $51.7 trillion in 2021. Agricultural land, comprising 11% of global real estate value, stood at $41.3 trillion, compared to $46.6 trillion the previous year.
China accounted for 26% of global real estate value, followed by the United States with a 19% share. Countries like Canada (ranked 7th) and Australia (ranked 10th) saw significant residential price growth, placing them ahead of more populous nations.
Paul Tostevin commented, “Given the underdeveloped nature of real estate in certain regions, growth is expected to continue as more properties are developed worldwide
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By Proptechbuzz
By Ravi Kumar
