Over the past 20 years, our knowledge of real estate and its investment performance characteristics has developed enormously. One area lagging in this advancement is our knowledge of how much stock is available for institutional investment. This is not a major issue, as investment decisions are usually based on estimates of expected returns, but it is useful to know. In this ViewPoint, we:

  • explain the methodology for estimating real estate market size;
  • estimate the size of the global real estate market, using the latest data and providing a breakdown by country;
  • look at the relationship between capital flows into real estate and estimated market size; and,
  • note patterns in our results, having judged the methodology to be effective.