The value of the real estate market moves with numbers and astronomical data, to the point that the figure managed means 60% of conventional investment assets. Something extraordinary, if we take into account that the registry constitutes an extensive arsenal of national wealth.

Residential sector

The residential sector is once again the most important when it comes to clearing accounts. It impresses 75 percent of the total value of global real estate, almost three times the world’s GDP.

The calculations of the international real estate consultant Savills are clear: “The total value of real estate in the world reached the sum of 217 billion dollars (about 200 billion euros) in 2015.”

The residential sector has the largest extension of property with approximately 2.5 billion households, and is more closely linked to the wealth of the population, says Savills, who also took the accounts of all real estate, including Agricultural and forestry land.

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If we take as reference the value of gold extracted on the planet throughout the year, it is easy to analyze the phenomenon. The precious metal is equivalent to about six trillion dollars (5.5 trillion euros), and compared to the value of real estate, gold is ridiculous in a ratio of 36 to 1, say some specialists.

Yolande Barnes, director of global analysis at Savills explains how the sector’s role in economies around the world impacts. “The total value of the real estate exceeds – by almost a third – the total value of globally traded shares and securitized debt instruments together.”

The global monetary conditions

The expert adds that “the real estate business will be more affected by the global monetary conditions and by the investment activity; And in turn, is the one that has the greatest impact power in national and international economies. ”

In recent years, the movement of investment activity, and the increase of capital to invest have been very present in the main real estate markets. This factor has led to price increases in most cases.

Statistics from official sources reveal that houses constitute the main component of the global real estate value that amounts to 150 billion euros. In the residential sector, about 2.5 billion homes are closed, an indicator closely linked to the wealth of the population.

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Developing countries such as China account for a large share of the total value of residential property. The greatest weight is found in the nations of the western zone of the planet, especially in North America, which despite having only 5% of the global population, shows 21% of the total estimate of the Assets of the world.

On our continent, particularly in the United States and Canada, the dominant trend is more pronounced in the tertiary markets; While the European territory accounts for a quarter of the total value of assets. Asia and Oceania contain 22%. The South American, Middle Eastern and African nations are lagging behind with only 5 percent.

Some small-scale commercial properties located in less-favored neighborhoods and factories is not included in the calculations above for tertiary real estate markets; Although they mean components to be taken into account in economic growth, especially in developing areas.