Global direct real estate investment reached USD 216 billion in the first quarter of 2026, up 18% year-over-year, JLL reported in May. House prices moved the other way. Knight Frank’s 55-market index slowed to 1.4% annual nominal growth in Q1 2026, its weakest reading since Q3 2024. This post covers market size, investment volumes, house prices by country, and the US benchmark.
Global Real Estate Market
How Big Is the Global Real Estate Market?
Two figures get quoted for market size, and they answer different questions. One counts the value of property transactions worldwide. The other counts what real estate services firms bill in a year.
Statista’s forecast puts the worldwide real estate market at USD 624.62 trillion for 2026, with residential the dominant segment.
| Measure | Value | Period |
|---|---|---|
| Total real estate market value, worldwide | USD 624.62tn | 2026 |
| Residential real estate segment | USD 506.73tn | 2026 |
| China, highest single-country value | USD 133.2tn | 2026 |
| Total real estate market value, worldwide | USD 725.05tn | 2031 |
Source: Statista Market Forecast, Real Estate Worldwide, 2026 and 2031 projections (3.03% CAGR, 2026–2031)
Annual services revenue is the smaller frame. Two research firms measuring it land within 4% of each other for 2026 but split on the forecast horizon.
| Research firm | 2025 | 2026 | Forecast | CAGR |
|---|---|---|---|---|
| The Business Research Company | USD 4,443.46bn | USD 4,744.35bn | USD 6,267.22bn by 2030 | 7.2% |
| Grand View Research | USD 4,332.4bn | USD 4,557.7bn | USD 7,351.3bn by 2033 | 7.1% |
Source: The Business Research Company, Global Real Estate Market Report 2026; Grand View Research, Real Estate Market Report 2026–2033
Global Real Estate Market Investment Volumes in Q1 2026
Direct transaction volumes hit USD 216 billion in Q1 2026, an 18% rise on the same quarter of 2025, according to JLL’s Global Real Estate Perspective published on 5 May 2026. The count covers deals of USD 5 million and above and excludes entity-level and land transactions.
Asia Pacific led on growth. JLL identified Japan as the most liquid market in the region and noted that Singapore recorded its highest quarterly volume on record.
| Region | Direct investment change, Q1 2026 vs Q1 2025 |
|---|---|
| Asia Pacific | +31% |
| Americas | +25% |
| EMEA | −2% |
| Global total (USD 216bn) | +18% |
Source: JLL, Global Real Estate Perspective, May 2026; deals of US$5m and above, excluding entity and land, Q1 2026
EMEA was the only region to fall. JLL points to a particularly robust first quarter in 2025 as the comparison base, with the UK and Germany still leading regional liquidity and Spain, Poland, the Netherlands and Portugal growing.
Cross-Border Capital in the Global Real Estate Market
Cross-border investment reached USD 55 billion in Q1 2026, up 37% year-over-year and the strongest first quarter since 2022. Cross-border growth of 37% outpaced the 18% rise in the overall market.
EMEA received 40% of cross-border capital, with the Americas and Asia Pacific each taking 30%. JLL describes this as the most even distribution on record.
Which US Cities Led Investment Growth?
US transaction volume totalled USD 113 billion in Q1 2026, up 25% year-over-year, with the strongest growth in office, retail and industrial assets. Five markets took the largest share of that volume growth.
| US market | Investment volume growth, Q1 2025 to Q1 2026 |
|---|---|
| San Francisco | +150% |
| Chicago | +96% |
| Atlanta | +91% |
| Washington, D.C. | +23% |
| New York | +21% |
Source: JLL, Global Real Estate Perspective, news release 14 May 2026, Q1 2026 data
Office posted the strongest global investment sales growth of the major property sectors in Q1 2026, up 42% year-over-year. It overtook living as the most liquid sector for the first time since early 2024. In the US alone, office investment activity rose 61%, which JLL links to an active market for larger deals and low levels of new supply.
Global Real Estate Market House Prices by Country
Knight Frank’s Global House Price Index slowed to 1.4% weighted average annual nominal growth across 55 markets in Q1 2026, down from 2.3% in Q4 2025.
The headline masks broader participation. 91% of tracked markets recorded positive annual nominal growth in Q1 2026, up from 87% in Q4 2025. Twelve markets posted nominal annual growth above 10%.
Real prices went the other way, with the index recording an average annual real fall of 1.8% in Q1 2026.
| Rank | Market | Nominal 12-month change | Real 12-month change |
|---|---|---|---|
| 1 | Turkey | 26.2% | −3.5% |
| 2 | Hungary | 21.4% | 17.5% |
| 3 | North Macedonia | 16.7% | 14.2% |
| 4 | Portugal | 16.5% | 13.4% |
| 5 | Croatia | 16.1% | 12.4% |
| 6 | Bulgaria | 14.8% | 7.3% |
| 7 | Spain | 13.9% | 10.1% |
| 8 | Lithuania | 13.8% | 8.6% |
| 9 | Estonia | 11.9% | 8.0% |
| 10 | Slovakia | 11.3% | 7.6% |
Source: Knight Frank Global House Price Index, Q1 2026 edition, published 3 July 2026
Turkey leads the ranking on nominal growth but inflation leaves it at −3.5% in real terms. Hungary is the reverse case, holding 17.5% growth after inflation, the strongest real reading in the index.
Plotting nominal against real growth for all 55 markets separates genuine appreciation from inflation effects. Markets below the zero line lost purchasing power despite rising prices.
The United States sits at 0.7% nominal and −2.5% real. The United Kingdom reads 2.2% nominal and −1.1% real, and Germany 2.5% nominal against −0.1% real. State-level housing profiles such as Utah’s show how far local medians can sit from a national reading.
Where Global Real Estate Market Prices Fell
Six of the 55 markets recorded annual nominal declines in Q1 2026.
| Market | Nominal 12-month change | Real 12-month change |
|---|---|---|
| Mainland China | −6.3% | −7.3% |
| Canada | −5.0% | −7.2% |
| Jersey | −1.4% | −4.1% |
| Israel | −1.3% | −3.1% |
| Peru | −1.1% | −2.4% |
| Taiwan | −0.5% | −2.0% |
Source: Knight Frank Global House Price Index, Q1 2026 edition, published 3 July 2026
Jersey, New Zealand, Mainland China and Canada also saw the sharpest quarterly declines. Monetary policy stayed supportive through the quarter, with 11 rate cuts and four hikes recorded across the main global central banks.
Global Real Estate Market in the United States
Existing-home sales ran at a seasonally adjusted annual rate of 4.09 million in June 2026, down 2.4% from May and up 2.8% year-over-year, the National Association of REALTORS reported on 9 July.
Price and volume are moving in opposite directions. The median existing-home price reached an all-time high while transaction counts slipped.
| Indicator | June 2026 reading |
|---|---|
| Existing-home sales | 4.09 million SAAR |
| Sales change, month-over-month | −2.4% |
| Sales change, year-over-year | +2.8% |
| Median existing-home price | USD 440,600 |
| Price change, year-over-year | +1.8% |
| Total housing inventory | 1.56 million units |
| Months of supply | 4.6 |
| Average 30-year fixed mortgage rate | 6.49% |
| Housing Affordability Index | 102.3 |
Source: National Association of REALTORS, Existing-Home Sales, June 2026; mortgage rate per Freddie Mac as cited by NAR
June marked the 36th consecutive month of year-over-year median price increases. Inventory ended the month 1.3% above June 2025 but 0.6% below May, which NAR chief economist Lawrence Yun flagged as stalling supply growth.
US Regional Prices in the Global Real Estate Market
The West recorded the highest regional median price in June 2026 and the Midwest the lowest, a split that also shows up in city-level housing data for markets such as San Antonio.
| Region | Median price | Price change YoY | Sales (SAAR) |
|---|---|---|---|
| West | USD 633,600 | +0.9% | 740,000 |
| Northeast | USD 564,800 | +3.9% | 480,000 |
| South | USD 377,700 | +0.9% | 1.89 million |
| Midwest | USD 346,600 | +2.7% | 980,000 |
Source: National Association of REALTORS, Existing-Home Sales regional snapshot, June 2026
The South carried the largest sales volume of the four regions at 1.89 million SAAR, though its median price rose just 0.9% year-over-year. Sun Belt markets such as Phoenix and Miami carry their own pricing profiles inside that regional average.
Sales rose month-over-month only in the Northeast, at 2.1%. The Midwest fell 3.0%, the South 3.6% and the West 1.3%, though all three remained above their June 2025 levels. Smaller southern markets like Savannah and El Paso sit well below the regional median on home values.
US Commercial Forecast for 2026
CBRE forecasts US commercial real estate investment activity rising 16% in 2026 to USD 562 billion, close to the 2015–2019 annual average. Cap rates for most property types are expected to compress by 5 to 15 basis points.
Investor intent backs the forecast. 74% of commercial real estate investors surveyed by CBRE for its 2026 North American Investor Intentions Survey plan to buy more assets than they did last year, with Dallas ranked the most attractive US market, followed by Atlanta and San Francisco. Longer-range shifts in construction and computing infrastructure, mapped in forward-looking technology timelines, sit outside that horizon.
FAQs
How big is the global real estate market in 2026?
Statista projects total worldwide real estate market value at USD 624.62 trillion for 2026, with residential at USD 506.73 trillion. Annual real estate services revenue is a separate measure at roughly USD 4.74 trillion, per The Business Research Company.
How much was invested in the global real estate market in Q1 2026?
Global direct investment reached USD 216 billion in Q1 2026, up 18% year-over-year, per JLL. Asia Pacific rose 31%, the Americas 25%, and EMEA fell 2%. Cross-border investment hit USD 55 billion.
Are house prices still rising worldwide?
91% of the 55 markets Knight Frank tracks recorded positive annual nominal growth in Q1 2026. The weighted average was 1.4%, and real prices fell 1.8% on average, so nominal gains trailed inflation.
Do Reddit housing discussions match the official data?
Reddit threads often debate whether US home prices are falling. NAR data shows the median existing-home price hit a record USD 440,600 in June 2026, up 1.8% year-over-year, while sales fell 2.4% month-over-month.
Which country holds the most valuable real estate?
China, at USD 133.2 trillion projected for 2026, the highest single-country value in Statista’s worldwide real estate forecast. Global residential property accounts for USD 506.73 trillion of the USD 624.62 trillion total.
Sources
https://www.jll.com/en-us/insights/market-perspectives/global
https://www.knightfrank.co.uk/research/reports/global-house-price-index-84
https://www.nar.realtor/newsroom/nar-existing-home-sales-report-shows-2-4-decrease-in-june
https://www.cbre.com/insights/books/us-real-estate-market-outlook-2026
