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Worldwide real estate assets comprise nearly 60% of the value of all global assets

wssilv “We estimate that the value of all developed real estate in the world amounts to approximately 217 trillion US dollars”, says the report of “Savills” - “Around the World in Dollars and Cents”. The research covers retail property, offices, industrial, hotels, residential, other commercial uses, and agricultural land. The value of all gold ever mined (in the region of $6 trillion) pales into insignificance next to the value of all developed real estate.

Overall, the most important component of global real estate value is the homes that people live in. There are approximately 2.5 billion households on the planet and those in developed economies occupy housing at much higher price points than those in less developed economies.

Global property value in 2015 amounted to 2.7 times the world’s GDP and represents an important store of national, corporate and individual wealth. It accounts for roughly 60% of all mainstream global assets.

The dominance of real estate in Western economies is most noticeable in commercial markets, where nearly half of the total asset value resides in North America and over a quarter in Europe. Asia and Australasia contain 22% of commercial asset value, leaving just 5% for South America, the Middle East, and Africa.