Global real estate has emerged as the dominant repository of worldwide wealth, with current valuations reaching an estimated $393.3 trillion and surpassing the aggregate value of both global equities and bonds combined.
Real estate now dominates global wealth at $393.3 trillion, exceeding combined equity and bond markets worldwide.
Property comprises roughly 2.7 times the value of global GDP and represents more than three-fifths of the world’s total wealth, with residential real estate accounting for nearly 75% of total global property value.
Ultra-high-net-worth individuals continue to rely on real estate as their primary store of private wealth, while private capital investment remains pivotal in driving market dynamics.
Family offices demonstrate sustained confidence in property markets, with 44% planning to increase real estate allocations in coming years despite recent market volatility.
Regional wealth distribution patterns reveal significant geographic variations in growth trajectories.
North America leads all regions, recording a 5.2% annual increase in individuals with $10 million or more in net worth.
Meanwhile, Asia demonstrates the highest growth rates for ultra-high-net-worth individuals at 9.7%, and those with $100 million-plus portfolios at 17.8%.
Europe and Australasia display moderate but steady gains in wealth concentration.
In contrast, Latin America and Africa show increasing but smaller absolute numbers of high-wealth individuals.
Global property investment volumes fell almost 60% since the 2021 peak due to rising interest rates and elevated debt costs.
However, recent data indicate stabilization and partial recovery in transaction volumes during late 2024.
Investor confidence remains robust as private wealth preference for real estate rises amid broader market volatility.
Family offices and younger affluent investors are signaling increased interest in direct property holdings.
Market risks concentrate in select urban centers.
Dubai and Madrid have been identified as cities experiencing the largest recent increases in real estate bubble risk.
Miami, Tokyo, and Zurich top bubble risk indices as rising interest rates and tightening credit conditions fuel localized valuation excesses.
Sustainability considerations have become integral to high-value real estate investment strategies.
Demand for energy-efficient, low-carbon, and green-certified properties among institutional and private capital is rising.
Sustainable assets increasingly command valuation premiums in major markets as younger investors prioritize long-term resilience. Singapore’s property market exemplifies this trend, with properties featuring BCA Green Mark certification commanding 3-5% higher premiums among investors seeking stable returns.
Despite recent global challenges, the retail sector has demonstrated remarkable strength with retail real estate achieving top asset-class status and delivering superior returns compared to other property classes.
The digital nomadism trend is reshaping global property markets as remote work capabilities continue expanding.
