Total value of global real estate reaches $217 tn in 2015
The total value of global real estate reached US$217 trillion in 2015, according to calculations by international real estate adviser, Savills. The analysis measures the entire developed property universe including commercial and residential property as well as forestry and agricultural land.
The value of global property in 2015 amounted to 2.7 times the world’s GDP, making up roughly 60% of mainstream global assets and representing an important store of national, corporate and individual wealth. Residential property accounted for 75% of the total value of global property.
Yolande Barnes, head of Savills world research, comments: “To give this figure context, the total value of all the gold ever mined is approximately US$6 trillion, which pales in comparison to the total value of developed property by a factor of 36 to 1.
“The value of global real estate exceeds – by almost a third – the total value of all globally traded equities and securitised debt instruments put together and this highlights the important role that real estate plays in economies worldwide. Real estate is the pre-eminent asset class which will be most impacted by global monetary conditions and investment activity and which, in turn, has the power to most impact national and international economies.”
Global residential property is valued at $162tn (£113tn), or 75pc of the total amount. Savills said that taking into account that there are 2.5bn households in the world, the average residential house price is $43,000.