20 Most Valuable Real Estate Companies in the World
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.
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.
18. Goodman Group (ASX:GMG)
Market Capitalization: $26.71 billion
Goodman Group (ASX:GMG) is an Australian integrated commercial and industrial property group that owns, develops and manages real estate, including warehouses, large scale logistics facilities, business and office parks globally. The company was founded in 1967 and has since grown to become a leading player in the Australian property market, with operations in Australia, New Zealand, Asia, Europe, and North America. Among its $77.8 billion portfolio are properties leased to global giants including Amazon, Coles Group Ltd, DHL, and Walmart.
17. CBRE Group Inc (NYSE:CBRE)
Market Capitalization: $27.95 billion
One of the world's largest commercial real estate services and investment firms, the CBRE Group Inc. (NYSE:CBRE) is an American commercial real estate services and investment firm that provides a wide range of services such as property management, investment management, valuation and appraisal, market research, and consulting. The abbreviation CBRE stands for Coldwell Banker Richard Ellis. With more than 105,000 employees, the company reported generating a revenue of $27.75 billion in 2021.
16. China Overseas Land & Investment Limited (HKG:0688)
Market Capitalization: $29.08 billion
China Overseas Land & Investment Limited (HKG:0688), also known as China Overseas, is a Hong Kong-based and incorporated real estate conglomerate that is an indirect subsidiary of China State Construction Engineering Corporation Limited. The Company operates its businesses through three segments; the Property Development segment is engaged in the development of residential and commercial properties; the Property Investment segment is engaged in the investment in properties for rental, while the Other Operations segment is engaged in the provision of real estate management services, as well as construction and building design consultancy services.
15. Alexandria Real Estate Equities, Inc. (NYSE:ARE)
Market Capitalization: $29.59 billion
Alexandria Real Estate Equities, Inc. (NYSE:ARE) is an American real estate investment trust that invests in office buildings and laboratories leased to tenants in the life science and technology industries. The company also has a venture capital arm, Alexandria Venture Investments, which invests in life sciences firms.
On February 2, Alexandria Real Estate Equities, Inc. (NYSE:ARE) announced that it is commencing an underwritten public offering, subject to market conditions, of two tranches of senior notes. These notes will be unsecured obligations of the company, as well as fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P., a 100% indirectly owned subsidiary of the company.
14. CoStar Group, Inc. (NASDAQ:CSGP)
Market Capitalization: $32.18 billion
CoStar Group, Inc. (NASDAQ:CSGP) is a Washington, DC-based provider of information, analytics and marketing services to the commercial property industry in the United States, Canada, the United Kingdom, France, Germany, and Spain. Its research services include online services, and research for the rental home and hotel industry.
13. SBA Communications Corporation (NASDAQ:SBAC)
Market Capitalization: $33.23 billion
SBA Communications Corporation (NASDAQ:SBAC) is structured as a REIT that owns and operates wireless infrastructure in the United States, Canada, Central America, South America, and South Africa. The company provides wireless carriers with essential infrastructure services and solutions, including tower leasing and management, small cell solutions, and fiber solutions.
As of February 1, SBA Communications Corporation (NASDAQ:SBAC) is valued at $33,23 billion and is ranked among the most valuable real estate companies in the world.
12. Digital Realty Trust, Inc. (NYSE:DLR)
Market Capitalization: $35 billion
Digital Realty Trust, Inc. (NYSE:DLR) is a real estate investment trust that invests in carrier-neutral data centers and provides colocation and peering services specializes in the ownership, acquisition, development, and management of technology-related real estate. The company's portfolio consists of data centers and other technology-enabled properties located in various markets around the world, including North America, Europe, and Asia.
As of July 2022, Digital Realty operates 167 data centers worldwide, of which 155 are in North America. Digital Realty Trust, Inc. (NYSE:DLR) has a market cap of $35 billion, putting it in the 95th percentile of companies in the Commercial REITs industry.
11. Welltower Inc. (NYSE:WELL)
Market Capitalization: $36.09 billion
Welltower Inc. (NYSE:WELL) is a Toledo, Ohio-based real estate investment trust focused on healthcare real estate that comprises infrastructure that serves the senior housing, post-acute care, and medical office segments of the healthcare industry. As of 2021, the REIT has $34.91 billion in total assets.
10. VICI Properties Inc. (NYSE:VICI)
Market Capitalization: $36.11 billion
VICI Properties Inc. (NYSE:VICI) is a real estate investment trust specializing in casino properties that was formed in 2017 as a spin-off from Caesars Entertainment Corporation as part of its bankruptcy reorganization. One of the largest owners of gaming properties in the United States, the company's diverse range of properties include casinos, hotels, restaurants, and other entertainment venues. Also known as the Landlord of Las Vegas, a title the company earned after buying out Blackstone’s stake in MGM Grand and Mandalay Bay, its portfolio includes Caesars Palace, Venetian/Palazzo, Park MGM, Excalibur and Luxor.
9. Sun Hung Kai Properties Limited (HKG:0016)
Market Capitalization: $41.19 billion
Sun Hung Kai Properties Limited (HKG:0016) known for its high-quality developments and innovative design, is a leading property developer in Hong Kong. In addition to its core business in property development, the company is also involved in a range of related businesses, including property management, construction, and hotel management.
8. Realty Income Corporation (NYSE:O)
Market Capitalization: $43.08 billion
Realty Income Corporation (NYSE:O) is a real estate investment trust that invests in free-standing, single-tenant commercial properties in the United States, Spain and the United Kingdom that are subject to NNN Leases. The company is organized in Maryland with its headquarters in San Diego, California. Also known as the Monthly Dividend Company, Realty Income Corporation (NYSE:O) is supported by the cash flow from almost 11,000 real estate properties owned under long-term lease agreements
7. Simon Property Group, Inc. (NYSE:SPG)
Market Capitalization: $45.54 billion
Simon Property Group, Inc. (NYSE:SPG) is an American real estate investment trust that invests in shopping malls, outlet centers, and community/lifestyle centers. Recognized as the largest owner of shopping malls in the United States, it owns interests in 232 properties comprising approximately 241,000,000 square feet (22,400,000 m2) of gross leasable area in North America and Asia.
6. Public Storage (NYSE:PSA)
Market Capitalization: $55.32 billion
Public Storage (NYSE:PSA) is a fully integrated, self-administered, and self-managed American REIT that primarily acquires, develops, owns, and operates self-storage facilities. The largest brand of self-storage services in the US, the company was re-structured as a publicly traded REIT in 1995, when Storage Equities merged with Public Storage and adopted its name.
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Disclosure: None. 20 Most Valuable Real Estate Companies in the World is originally published on Insider Monkey.