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The Size and Composition of Global Commercial Real Estate Markets

Author

Listed:
  • Martin Hoesli

    (University of Geneva - Geneva School of Economics and Management (GSEM); Swiss Finance Institute; University of Aberdeen - Business School)

  • Richard Malle

    (Conservatoire National des Arts et Métiers (CNAM))

Abstract

The article analyzes the evolution from 2001 to 2024 of the size and composition of commercial real estate investment markets. The evolution of the composition of the market through time is done both by region and by sector. We first focus on global figures, and then discuss some trends for Europe. Design/Methodology/Approach We analyze the size of commercial real estate investment markets over time. The current size of the market is compared with the market capitalization of stocks and bonds. We then focus on changes in the composition of the real estate investment market by geographical region and sector. We also provide analyses for Europe and to a lesser extent the Asia-Pacific and North American regions. Findings Having trebled in size from 2001 to 2024, the value of global real estate markets is USD 12,428 billion as of the end of 2024, with the U.S. market accounting for 39% of that figure. The importance of office and retail sectors has diminished over time, while that of residential and industrial investments has increased. The size of the European investment market is USD 3,873 billion, with the U.K., German, and French markets accounting for 57% of that amount. Wide discrepancies in sectoral compositions are observed across European markets. The markets of China, Japan, Hong Kong and Australia dominate the Asia-Pacific region, while U.S. markets constitute the bulk of markets in North America. Originality/Value This paper provides for a better understanding of the size and composition of commercial real estate investment markets. This is important for investors wishing to invest in the asset class. Among other things, we compare the size of the real estate market with that of stock and bond markets. We also provide insights concerning possible changes in the future.

Suggested Citation

  • Martin Hoesli & Richard Malle, 2025. "The Size and Composition of Global Commercial Real Estate Markets," Swiss Finance Institute Research Paper Series 25-84, Swiss Finance Institute.
    • Handle: RePEc:chf:rpseri:rp2584
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    Keywords

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    JEL classification:

    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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