Real estate is one of the most dynamic and fascinating industries in the world. It involves the buying, selling, renting, and leasing of land, buildings, and other properties. Real estate is also a major source of wealth, investment, and economic activity for many countries and regions.
But how much do you really know about real estate? Do you know the history, the trends, the challenges, and the opportunities that shape this industry? Do you know the facts and figures that reveal the secrets and surprises of real estate?
In this article, we will share with you 28 shocking real estate facts that will blow your mind. These facts will cover various aspects of real estate, such as:
By the end of this article, you will have a deeper and broader understanding of real estate and its role in the world. You will also discover some of the industry’s surprises that you may not have expected. So, let’s get started!
The term “real estate” is derived from the Latin word “res”, which means “thing” or “property”. The word “real” is also related to the word “royal”, as in the past, most land was owned by the king or the nobility. The word “estate” refers to the extent or condition of the property. Therefore, real estate literally means “the thing that belongs to the king” or “the royal property”.
The earliest known real estate transaction in history was in 334 BC, when Alexander the Great bought a small strip of land in Asia Minor (modern-day Turkey) from the Persians for 100 talents of silver (about $4.8 million in today’s money). He used this land as a base for his invasion of the Persian Empire. This was also the first recorded use of money as a medium of exchange for real estate.
According to the Savills World Research, the total value of the global real estate market was estimated at $280.6 trillion in 2020. This is equivalent to 3.5 times the global GDP, or 60% of the global net worth. The global real estate market consists of three main segments: residential, commercial, and agricultural. The residential segment accounts for 75% of the total value, followed by the commercial segment (13%) and the agricultural segment (12%).
The United States is the world’s largest real estate market, with a total value of $36.2 trillion in 2020. This represents 13% of the global real estate market value, or 1.6 times the US GDP. The US real estate market is dominated by the residential segment, which accounts for 86% of the total value, followed by the commercial segment (11%) and the agricultural segment (3%).
China is the world’s second-largest real estate market, with a total value of $32.6 trillion in 2020. This represents 12% of the global real estate market value, or 3.3 times the Chinese GDP. China also has the fastest-growing real estate market in the world, with an average annual growth rate of 16.4% since 2000. The Chinese real estate market is driven by the rapid urbanization, population growth, and economic development of the country.
Real estate is responsible for 40% of the global greenhouse gas emissions, according to the World Green Building Council. This is mainly due to the energy consumption and waste generation of buildings during their construction, operation, and demolition. Real estate also contributes to other environmental issues, such as land degradation, water pollution, and biodiversity loss.
Real estate also has the potential to be the largest source of energy savings and emission reductions in the world, according to the International Energy Agency. By implementing green building practices, such as improving energy efficiency, using renewable energy sources, and reducing waste and water consumption, the real estate sector could save up to 50% of its energy use and 40% of its emissions by 2050. This would also result in significant economic and social benefits, such as lower operating costs, higher property values, better health, and more jobs.
Monaco is the world’s most expensive real estate market, with an average price of $58,300 per square meter in 2020, according to the Global Property Guide. This is equivalent to $5,420 per square foot, or $54.2 million for a 10,000-square-foot mansion. Monaco is a small and wealthy city-state in the French Riviera, with a population of about 38,000 and an area of 2.02 square kilometers. Monaco is known for its luxury lifestyle, tax haven status, and famous events, such as the Monaco Grand Prix and the Monte Carlo Casino.
Venezuela is the world’s most affordable real estate market, with an average price of $400 per square meter in 2020, according to the Global Property Guide. This is equivalent to $37 per square foot, or $370,000 for a 10,000-square-foot mansion. Venezuela is a large and oil-rich country in South America, with a population of about 28 million and an area of 916,445 square kilometers. Venezuela is also one of the most troubled and unstable countries in the world, with a severe economic and political crisis, hyperinflation, social unrest, and humanitarian emergency.
The most expensive property ever sold in the world is a penthouse in Monaco, which was bought by an unnamed buyer for $335 million in 2015, according to Forbes. The penthouse is located on the top floor of the Tour Odeon, a 49-story skyscraper that is the tallest building in Monaco. The penthouse has a floor area of 3,300 square meters, and features five bedrooms, a private elevator, a rooftop pool, a slide, and a 360-degree view of the Mediterranean Sea and the city.
The most expensive property ever sold in the United States is a mansion in Los Angeles, which was bought by Jeff Bezos, the founder and CEO of Amazon, for $165 million in 2020, according to The Wall Street Journal. The mansion is located on a 9-acre estate in Beverly Hills, and was previously owned by David Geffen, a media mogul and philanthropist. The mansion has a floor area of 1,200 square meters, and features nine bedrooms, a ballroom, a theater, a tennis court, a golf course, a pool, and a guest house.
The most expensive property ever sold in China is a villa in Shanghai, which was bought by Chen Hongtian, a billionaire and property developer, for $154 million in 2016, according to The New York Times. The villa is located on a 1.6-acre plot in the exclusive Sheshan Golf Estate, and was previously owned by Xu Jiayin, another billionaire and property developer. The villa has a floor area of 3,000 square meters, and features seven bedrooms, a wine cellar, a karaoke room, a pool, and a garden.
The most unusual property ever sold in the world is a missile silo in Kansas, which was bought by Matthew and Leigh Ann Fulkerson, a couple and entrepreneurs, for $40,000 in 2010, according to CNN. The missile silo was built in 1961 as part of the Atlas missile program, a nuclear deterrent during the Cold War. The missile silo has a depth of 52 meters, and features a launch control center, a blast door, a decontamination shower, and a missile bay. The Fulkersons converted the missile silo into a luxury underground home, and also rent it out as an Airbnb.
The most unusual property ever sold in the United States is a ghost town in California, which was bought by Brent Underwood, a marketer and author, for $1.4 million in 2018, according to Business Insider. The ghost town is called Cerro Gordo, and was founded in 1865 as a silver mining town. The ghost town has an area of 121 hectares, and features 22 buildings, including a hotel, a saloon, a church, a museum, and a cemetery. The ghost town also has a rich and violent history, with over 500 murders and countless deaths from accidents and diseases.
Hey, in Propphy we're determined to make a business grow. My only question is, will it be yours?
Do you want to take your real estate agency's online presence to the next level?
To enhance the online presence of your real estate agency, a modern and optimized website is essential. Boost your business by taking its online presence to the next level and stand out among the competition with our websites. Visit our main page for more information on how we can assist you. Tap the button below to get started!
Claim Your Free Audit, I’ll analyze traffic, trust and conversions, give you a rating and a suggestion to find key points of improvements..
Elevate Your Online Presence:
Where Innovation Meets Property Perfection.
