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We often examine our own property portfolios but have you ever thought to examine the portfolio of the whole world? That’s exactly what Global real estate advisory firm Savillis has done releasing world first research into the total value of the world’s developed real estate assets.
Savillis’ research found that the world’s developed real estate is 2.7 times the value of the world’s GDP and is currently worth 30 times the value of all the gold that has been mined. So what is this magical figure? US$217 trillion (and you thought your portfolio was impressive).
This means that the world’s property makes up roughly 60% of mainstream global assets. Residential real estate accounted for 75% ($162 trillion) of the total value of global real estate, a staggering 2.5 billion households. $29 trillion was invested in commercial and $26 trillion agricultural.
The figures highlight the importance of real estate as part of the global economy with the value of global real estate exceeding the total value of all globally traded equities and securitised debt instruments by almost two thirds. Such importance on the housing market and its impact upon the economy is evident around the world with record low interest rates in several countries.
Housing markets, building booms and the price of real estate have always been major talking points and form an index for Federal Reserve Banks, Governments and economists around the world when determining future development, interest rates and cost of living pressures.
Sorry if this has made your portfolio look small….. might be time to do some more investing