Global Real Estate Assets Rose 5% In 2020
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Global Real Estate Assets Rose 5% In 2020

Residential appreciation fueled the overall growth.

By Liz Lucking
Thu, Sep 23, 2021 11:02amGrey Clock 2 min

The insatiable appetite for home buying last year saw the world’s real estate assets—the most significant store of wealth globally—jump 5% in value to a record high in 2020, according to a report Wednesday from Savills.

Last year’s price appreciation left the total volume of global real estate assets at $326.5 trillion, a figure that’s more than all global equities and debt securities combined, and worth almost four times that of global GDP,  the estate agency said.

“Government stimulus in the wake of Covid-19 means there is plenty of capital at large, and real estate is viewed as a safe store as global investors search for income in a low-interest-rate environment,” Paul Tostevin, director of the Savills world research team, said in the report.

“While real estate’s capital value annual growth of 5% in 2020 is lower than those seen in securitized debt, equities and gold, at 17%, 20% and 29% respectively, it is the extra income component of property which makes it such a compelling purchase for many buyers,” he added.

The gains were driven by the residential property sector—which accounts for 79% of all global real estate value—a market that has thrived amid the pandemic as homeowners rush to larger homes better suited for working from home and lockdown living.

The sector saw its value increase 8% last year to US$258.5 trillion, pushed up in particular by activity in China.

China is home to 30% of the world’s residential wealth, and the segment recorded gains of 13% in 2020, driven by “strong price growth coupled with the delivery of new supply,” Savills said.

After China, the U.S. accounts for 11% of the global residential wealth, and the two countries along with Japan, Germany, the U.K., France, South Korea, Canada, Italy and Australia, make up 75% of the global residential total.

The value of global commercial property, meanwhile, fell 5% in 2020 to US$32.6 trillion, and is expected to rebound in 2021 and hit a new peak by the end of the year.

Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: September 22, 2021.


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Plenty of people are looking to get away from it all. But most are reluctant to give up the conveniences and small luxuries of modern living.

This split-level property at 166 Westwood Street, Bridport on the north coast of Tasmania offers both, with direct access to a stunning coastline as well as easy living in a three-bedroom, Hamptons-style home. Just a 10-minute walk from Mermaids Beach in the Granite Point dress circle, the house on a 1206sqm site is a two-hour drive from Devonport and the Spirit of Tasmania terminal port.

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Entry is via a spacious reception area with integrated hall table and storage cupboard. A short hallway offers access to the master suite to the right and secondary bedrooms to the left, or through to the open plan living area to the rear.

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Agent: Andrew MacDonald, The Agency, 0409 368 151


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