Australian property market ranks 10th in the world as global value of real estate hits 380 trillion dollars
Global real estate values dropped by 2.8 per cent to just under three hundred and eighty trillion dollars. Image: Canva.
  • Residential property accounts for over three quarters of global real estate value.
  • Rising inflation and interest rates tempered the market in 2022, leading to a fall in values.
  • Australia's property market recently returned to the A$10 trillion mark.

Real estate across the globe hit US$379.7 trillion in 2022, according to Savills World Research. Comprising residential and commercial real estate, and agricultural land, this equates to approximately A$591 trillion.

While the total value of real estate slipped 2.8% from 2021’s $US390.5 trillion, it remains 18.7% up on pre-Covid (2019) levels.

It comes as little surprise, then, that real estate remains the world’s most significant store of wealth.

“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,” said the head of Savills World Research, Paul Tostevin.

“Residential property dominates, and between 2019-2022 its value grew 21.1% – only outperformed by gold – as it benefited from ultralow interest rates over this period, coupled with a focus on the home in many countries during lockdowns.

“It’s clear that given the underdeveloped nature of real estate in some locations on a long-term basis growth will continue as more stock is added around the world.”

Paul Tostevin, Savills

Residential property accounted for over three quarters (76%) of global property value, worth US$287.6 trillion in 2022 (A$450 trillion). Homes across the globe were worth US$292.2 trillion (A$455 trillion) in 2021, with the latest figures representing a 1.6% fall in value.

Commercial property was worth just over an eighth (13%) of the total real estate market value at US$50.8 trillion (A$80 trillion); in 2021, the commercial property market was worth US$51.7 trillion (A$80.6 trillion).

Agricultural land comprised the remaining 11% of the world’s real estate value, at US$41.3 trillion (A$64 trillion), down from 2021’s US$46.6 trillion (A$73 trillion).

Which country has the most valuable property market?

  1. China,
  2. United States of America,
  3. Japan,
  4. Germany,
  5. United Kingdom,
  6. France,
  7. Canada,
  8. South Korea,
  9. Brazil, and
  10. Australia.

The People’s Republic of China made up just over a quarter (26%) of the world’s real estate value, as of 2022. This comprises both residential and commercial real estate.

The United States of America accounted for 19% of the total global real estate value.

Top 10 countries by real estate value

World's top 10 countries for property market values
The world’s most valuable property market is China, with America, Japan, Germany, and the UK rounding out the top five. Source: Savills Research.

Despite only being home to 17% of the world’s population, Europe and North America accounted for nearly half (47%) of the world’s total property value. Starkly contrasting this is the Asia Pacific, excluding China, which comprised 37% of the world’s population and only 17% of global real estate value.

Distribution of global real estate value

global real estate value breakdown between china usa g7 and others
China makes up over a quarter of the world’s real estate value, with the United States of America just under a fifth. Source: Savills Research.

Ranking ahead of more populous nations, Canada and Australia were notably in the top ten, recording incredible levels of real estate price growth in recent years.

Australia’s residential market hit A$10 trillion in value in June 2022, before values dipped due to inflation and soaring interest rates. The Australian property market quickly recovered, seeing values turn around and reprise its A$10 trillion value in June this year.

Total value of dwelling stock, Australia

Value of dwelling stock in Australia June quarter 2023.
Source: ABS.

The drivers behind Australian house prices and the market’s value included a floor under prices, and indeed significant growth, due to a lack of supply, and a growth in the number of Australian homes.

How does property compare to stock markets and other investments?

To recap, global real estate was valued at US$379.7 trillion in 2022, with residential comprising US$287.6 trillion.

Global equities were valued at almost a quarter of global real estate value, worth $US98.9 trillion, according to Savills.

Debt securities were about a third of the value of real estate, coming in at US$129.8 trillion.

Starkly, Savills highlighted that the value of all the gold ever mined was US$12.2 trillion, a mere 3% of the value of global real estate.



You May Also Like

When will Australian property prices fall? One major challenge continues to prop prices up

Property prices are up by over 35% across the country since Covid, and while not the same story in each city, that’s little solace to prospective buyers pulling their hair out.

A window of opportunity could be open for savvy Australian property investors, but time is ticking

One expert has noticed investors are on the move while there’s less competition and fewer buyers in the marketplace.

Why Aussie property buyers aren’t waiting for rate cuts anymore

A surge in home loans shows buyers aren’t waiting for interest rates to drop before taking the plunge.

How population density is reshaping Australian cities

Explore the relationship between population density and housing trends.

Top Articles

PropertyGuru Asia Property Awards (Australia) returns for its 7th edition, including several brand new award ...

This year's awards include several brand new categories, with entries closing 2 August 2024.

Rentvesting in Australia: A deep dive

Rentvesting offers an alternative path into the property market for priced-out first-time buyers.

Housing crisis survival guide: How to buy your first Australian property

Three property experts give the low down on how to nab a home in this tough housing market.