Source: Yahoo! —
In this article, we will discuss the 20 Most Valuable Real Estate Companies in the World. You can skip our industry overview and go directly to the 5 Most Valuable Real Estate Companies in the World.
The global real estate industry involves the buying, selling, and management of properties such as residential homes, commercial buildings, and industrial spaces. It is a complex and diverse industry that includes a wide range of participants, including real estate agents and brokers, property developers, landlords and property managers, real estate investment trusts (REITs), and financial institutions. As is true for most other industries, the world of real estate is prone to influence by a number of factors, including economic conditions, demographic trends, government policies, and technological advancements. Following a pandemic-fueled course correction, the global real estate industry faces transformational shifts in how buildings will be used, valued, and transacted in 2023 and beyond. This is evidenced by Deloitte’s 2023 Commercial Real Estate Outlook, which revealed that only 40% of global real estate chief financial officers (CFOs) expected to finish 2022 with higher revenues than last year, and 33% anticipated cuts to expenses, citing sustained high inflation, workforce management, and cyber as the top risks to financial performance.
According to a report by GrandViewResearch, the global real estate market size was valued at $3.69 trillion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2030. The market is expected to grow at a healthy pace during the forecast period, owing to the rising population and a desire for personal household space. As of 2021, the commercial real estate space was estimated to be the most important element driving industry expansion. Additionally, in terms of revenue, rental real estate types dominated the market with a share of 52.1% in 2021. This is attributable to rising home prices in developed countries, owing to which there is a rise in the number of renters, favoring the segment growth.
The pandemic caused significant changes in consumer demand, which led retailers to modernize their systems to better adapt to these changes. This includes improved analytics and strategies to maintain customer loyalty in response to changing consumer preferences. This holds especially true for Gen Z as it is highly dependent on technology and relies more on the internet and social media to make purchasing and lifestyle decisions. Since Gen Z has experienced technology their entire lives, leasing and marketing campaigns for real estate services should incorporate the use of technology to reach this generation where they are most active, which includes social media, or any other internet source.
Our Methodology
We used stock screeners to identify the most valuable real estate companies in the world based on market capitalization as of February 1, 2023. The companies in this list all engage in the global real estate industry, and hold strong market positions.
Most Valuable Real Estate Companies in the World
20. Equity Residential (NYSE:EQR)
Market Capitalization: $25.21 billion
Equity Residential (NYSE:EQR) is a Chicago-based REIT that is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. As of December 31, 2021, the company owned or had investments in 310 properties consisting of 80,407 apartment units in several urban areas. According to experts, occupancy rates are at a record level for Equity Residential (NYSE:EQR). The company has high exposure to growing residential markets and also has the power to increase rents faster during a high inflation period.
19. AvalonBay Communities, Inc. (NYSE:AVB)
Market Capitalization: $25.84 billion
AvalonBay Communities, Inc. (NYSE:AVB) is a publicly traded real estate investment trust that is involved in the business of developing, redeveloping, acquiring and managing apartment units. As of January 31, 2021, the company owned 79,856 apartment units in New England, the New York City metropolitan area, the Washington, D.C. metropolitan area, Seattle, and California.
