Global property reached a value of $217tn (£152.1tn) last year – 36 times higher than the value of all the world’s mined gold – according to new research by Savills.
The figure, which shows the total value of all developed property in the world, amounted to 2.7 times the world’s GDP, making up around 60% of mainstream global assets.
In contrast, the estimated value of all gold ever mined in the world is just $6tn (£4.3tn).
Yolande Barnes, head of Savills world research, said: “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.”
Residential property accounted for 75% of the total value of global property, totalling $162tn.
Western nations dominated property in commercial markets, where nearly half of the total asset value resided in North America.
The report found that in recent years, quantitative easing and resulting low interest rates have suppressed real estate yield and fuelled high levels of asset appreciation globally.
Investment activity and capital growth have swept around the major real estate markets of the world and led to asset price inflation in many instances, according to Savills.
The value of informal neighbourhood commercial properties such as workshops, workspaces, shops and small business premises were not included in the report because they were almost impossible to value on a global level, Savills said.
For the first time, the value of agricultural land and forestry was included in the measurement of total world property at an estimated $26tn (£18.2tn).
To send feedback, email louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
