The world’s real estate market is valued at US$393.3 trillion (£292.5 trillion), cementing its position as the planet’s largest store of wealth and significantly outpacing all other asset classes combined, according to new research from Savills.
The staggering figure, which encompasses residential, commercial, and agricultural property worldwide, dwarfs the combined value of global equities, debt, and gold.
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To put this in perspective, all the gold ever mined throughout human history is worth approximately $20.2 trillion – representing just over 5% of real estate’s total value.
Since 2019, global real estate has demonstrated remarkable resilience and growth, with its total value increasing by 21.3%. This trajectory has broadly aligned with global GDP growth over the same period, which expanded by 25.6%, underscoring real estate’s fundamental role in the global economy.
Residential real estate dominates but shows decline
According to research by Savills in 2024, residential property accounts for the lion’s share of global real estate wealth, valued at $286.9 trillion. However, this segment experienced a 2.7% year-on-year decline, which contributed to a modest 0.5% slip in total global real estate value.
The residential market’s contraction was driven primarily by falling property values in China, which alone accounts for a quarter of global residential value.
Despite house price increases and new construction in most countries worldwide, China’s property market downturn proved significant enough to drag down the global average.
China maintains its position as the world’s most valuable real estate market overall, representing 23.5% of global value. The United States follows in second place at 20.7%. Together with Japan, Germany, the UK, France, Canada, Australia, South Korea, and Italy, these ten markets account for 71% of total global real estate value – highlighting the concentration of property wealth in established economies.
Commercial and agricultural sectors show strength
While residential markets faced headwinds, commercial real estate demonstrated robust performance with a total value of $58.5 trillion, marking a 4.1% annual increase.
This growth was supported by new development and stabilising values across various markets.
The US commercial sector received a particular boost from increased investment in manufacturing facilities as companies pursued onshoring strategies, bringing production closer to home markets. This shift reflects broader economic trends favouring supply chain resilience over cost minimisation.
Agricultural land proved to be the star performer, with its $47.9 trillion valuation representing a substantial 7.9% growth in 2024.
Data suggests this expansion has been driven by constrained supply meeting rising demand from global population growth and increased per capita food consumption – fundamental drivers that show no signs of abating.
Real estate's enduring appeal as store of wealth
Paul Tostevin, head of Savills World Research, emphasised real estate’s continued dominance in the global investment landscape despite near-term market fluctuations.
“While the pace of growth may vary across sectors and geographies, real estate’s long-term fundamentals remain strong: it is a store of wealth, a driver of economic growth and development, and its ability to reflect global economic shifts ensures its continued relevance in an evolving investment landscape,” Tostevin noted.
He acknowledged that shorter-term factors such as elevated interest rates and market cycles can affect specific property types, but maintained that real estate’s position as the world’s most valuable asset class appears secure for the foreseeable future.
Implications for investors and markets
The research reveals several critical insights for investors and policymakers. The concentration of real estate wealth in relatively few countries suggests both stability and potential opportunity.
Established markets in North America, Europe, and developed Asian economies continue to attract and hold capital, benefiting from mature legal frameworks, transparent markets, and stable governance.
However, the disparity also points to significant growth potential in emerging markets with large populations and developing economies. As these nations industrialise and urbanise, their real estate markets may represent substantial upside for long-term investors willing to navigate higher risk profiles.
Resilience in sector signals continued evolution
The resilience of real estate as an asset class, even amid technological disruption, changing work patterns, and economic uncertainty, demonstrates its fundamental importance to human activity and wealth preservation.
Whether providing homes, facilitating commerce, or producing food, property remains inextricably linked to economic prosperity and human wellbeing.
As global wealth continues to expand and populations grow, real estate’s $393.3 trillion valuation serves as both a reflection of past development and a foundation for future growth.
For investors seeking to preserve and build wealth across generations, property’s enduring status as the world’s largest asset class offers compelling reassurance in an increasingly complex financial landscape.
