Global losses of natural area are primarily attributed to cropland expansion, while the role of urban expansion is considered minor. However, urban expansion can induce cropland displacement, potentially leading to a loss of forests elsewhere. The extent of this effect is unknown. This study shows that indirect forest losses, through cropland displacement, far exceed direct losses from urban expansion. On a global scale, urban land increased from 33.2 to 71.3 Mha between 1992 and 2015, leading to a direct loss of 3.3 Mha of forests, and an indirect loss of 17.8-32.4 Mha. In addition, this urban expansion led to a direct loss of 4.6 Mha of shrublands, and an indirect loss of 7.0-17.4 Mha. Guiding urban development towards more sustainable trajectories can thus help preserve forests and other natural areas at a global scale.