Why Residential Property Remains One of the World’s Most Powerful Investment Assets

When it comes to long-term, reliable investment options, few asset classes can compete with residential property. Globally, the residential property market holds the largest share of total wealth—and it continues to outperform traditional investment assets such as stocks, bonds, and even cryptocurrencies.

For investors looking to build long-term wealth, buy-to-let property, particularly in the UK, offers a combination of stability, strong returns, and sustained demand.

Global Property Market Tops £379.7 Trillion—Led by Residential

Recent research from Savills shows the global real estate market hit an astounding £379.7 trillion by the end of 2022, with residential property making up over £287.6 trillion—more than three-quarters of that total. This illustrates just how dominant residential property has become in global wealth distribution.

For context, this puts real estate well ahead of all other asset classes in terms of both value and resilience.

21.1% Growth in Residential Value Over Three Years

From 2019 to 2022, the residential sector grew by an impressive 21.1%, proving its strength even during global upheavals such as the pandemic. Only gold performed better in that same timeframe—up 26.9%—but its total value still falls far short of real estate as an overall asset class.

Investors who held property during this period not only protected their capital but also benefited from substantial value growth, highlighting the stability and strength of residential property investment.

Outperforming Bonds and Equities: Why Property Stands Tall

The past few years have been volatile for many asset classes. Equities fell by 20.3%, agricultural land dropped 11.4%, and debt securities declined by 3.2%. In contrast, residential property surged, confirming its role as a resilient, income-generating investment.

Unlike more speculative or reactive markets, real estate offers a tangible asset backed by consistent demand, especially in thriving rental sectors.

Where the Wealth Is: Europe and North America Lead the Way

Savills highlights that 47% of global real estate wealth is concentrated in Europe and North America, despite these regions housing only 17% of the world’s population. This highlights the investment appeal of mature and regulated markets like the UK, where legal frameworks and rental demand offer long-term security.

UK Residential Property Now Worth £8.68 Trillion

The UK remains one of the most attractive markets globally, with residential property values reaching £8.68 trillion at the end of 2022—a 5.1% increase year-on-year. Since 2019, UK property values have climbed nearly 23%, outpacing mortgage debt growth, which rose only 11%.

According to Savills, this growth added £1.46 trillion in equity compared to £168 billion in new borrowing—highlighting a dramatic increase in investor wealth through property.

Why UK Buy-to-Let Remains a Smart Move

Despite economic shifts and rising interest rates, the UK buy-to-let market remains a favourite among investors. Strong rental demand, limited housing supply, and ongoing capital growth continue to drive investment performance.

Hamptons forecasts renewed momentum in the market from 2025, with a new property cycle expected to begin—offering further potential for capital appreciation and yield growth.

Position Your Portfolio for Long-Term Growth

As property continues to outperform alternative assets on a global scale, investors are increasingly turning to residential property—particularly UK buy-to-let—as a cornerstone of their wealth strategy.

With solid fundamentals and growing equity returns, the case for investing in real estate has never been stronger.

Speak to Regents Property today to learn how you can take advantage of the UK’s robust and resilient property market.

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