E - PAPER
CURRENT MONTH
LAST MONTH
Home-Buying Boom Drove Value of Global Realty Assets up 5% in 2020
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 on 22nd September from Savills.
BY
Realty Plus
Published -
Friday, 24 Sep, 2021
BY
Realty Plus
Published - Friday, 24 Sep, 2021
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 on 22nd September 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. 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,” Paul Tostevin, director of the Savills world research team, said in the report.
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 $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 $32.6 trillion, and is expected to rebound in 2021 and hit a new peak by the end of the year.
RELATED STORY VIEW MORE
Nigeria Shows Widening Transparency Gap in Real Estate
Singapore Private Home Rents Set To Climb By 10-15%
Saudi Arabia’s Ambitious Projects from World’s Largest Airport to Skyscraper
NEWS LETTER
Subscribe for our news letter
E - PAPER
-
CURRENT MONTH
LAST MONTH
REALTY+ SPECIAL ISSUES
Test Magazine
THE TECH TITANS 2022
COFFEE TABLE BOOK 2022
Anniversary Issue 2022
Anniversary Issue 2020
VIDEO GALLERY VIEW MORE
