Commercial real estate saw an increase of 4.1% in value from last year to reach US$58.5 trillion. Growth in this sector was bolstered by the development of new stock and stabilising values. (Photo: Albert Chua/The Edge Singapore)
Property has maintained its title of the world’s greatest store of wealth, according to research by Savills. Data published by a global real estate services provider reveals that the combined value of all global real estate, consisting of residential and commercial real estate, and agricultural land, stood at US$393.3 trillion ($507.1 trillion) at the start of this year.
The figure represents a 0.5% decline y-o-y, underpinned by a 2.7% reduction in the value of global residential stock to US$286.9 trillion. Savills attributes the decline to falling property values in China, which accounts for nearly a quarter of global residential value.
Still, real estate continues to make up the largest asset class globally, exceeding the global value of debt securities (US$144.8 trillion) and equities (US$135.7 trillion) as at the start of 2025. It also exceeds the value of all gold ever mined, at US$20.2 trillion. Since 2019, the total value of global real estate has risen 21.3%, roughly aligned with global GDP growth across the same period.
Read also: Frasers Hospitality opens Modena premium rental apartments in Shenzhen
China retained its rank as the most valuable real estate market, holding 23.5% of the worldwide value for residential and commercial real estate, followed by the United States with 20.7%.
Top 10 world’s most valuable real estate markets
(Source: Savills Research)
Japan, Germany, the United Kingdom, France, Canada, Australia, South Korea and Italy were among the other top markets. Together, the 10 markets make up 71% of the world’s total real estate value.
Commercial real estate saw an increase of 4.1% in value from last year to reach US$58.5 trillion. Growth in this sector was bolstered by the development of new stock and stabilising values. Some markets, such as the US, were also boosted by onshoring efforts, which increased investment into manufacturing.
Notwithstanding varied growth paces across sectors and geographies, real estate remains relevant amid the evolving investment landscape, says Paul Tostevin, head of Savills World Research. “While shorter-term factors, such as elevated interest rates and market cycles, can affect the values of certain types of property, real estate’s long-term position as the world’s most valuable asset class looks set to remain.”