Wealth Report
PRIVATE INVESTORS THE MOST ACTIVE BUYERS IN AUSTRALIA AND GLOBALLY • Knight Frank’s The Wealth Report 2024 found private investors* were the mos active buyers in commercial real estate for the first time in Australia over 2023 and for the third consecutive year globally • Private capital invested A$14.8 billion in Australia’s commercial market over 2023, equating to 42.2% of total investment, more than 12% higher than the 30% in 2022, and the highest share on record • Globally, private capital invested US$338 billion in the commercial property market, equating to a 49% share of total investment, slightly up on 48% in 2022 and also the highest share on record • Globally, living sectors were the most targeted by private capital, followed by industrial and logistics, and offices • Australia came in 7th for cross border commercial real estate investment flows in 2023, with US$5.7 billion invested amongst all investors News Release
Article Source: Knight Frank February 2024
29 February 2024 Private investors the most active buyers in Australia and global • Knight Frank’s The Wealth Report 2024 found private investors* were the most buyers in commercial real estate for the first time in Australia over 2023 and for th consecutive year globally • Private capital invested A$14.8 billion in Australia’s commercial market over equating to 42.2% of total investment, more than 12% higher than the 30% in 202 the highest share on record • Globally, private capital invested US$338 billion in the commercial property m equating to a 49% share of total investment, slightly up on 48% in 2022 and al highest share on record • Globally, living sectors were the most targeted by private capital, followed by ind and logistics, and offices • Australia came in 7 th for cross border commercial real estate investment flows in with US$5.7 billion invested amongst all investors Sydney, Australia – Private investors* were most active buyers in commercial real estate for t time in Australia and for the third consecutive year globally over 2023, according to Knight Frank released flagship report The Wealth Report 2024. Private capital invested A$14.8 billion in Australia’s commercial market, equating to 42.2% investment, more than 12% higher than the 30% in 2022, and the highest share on record. The share for private investors in Australia grew significantly despite overall investment in the co commercial property market nearly halving in 2023 from the previous year, falling from $64.1 b 2022 to $35.1 billion in 2023.
Knight Frank Australia Chief Economist Ben Burston said: “In a quiet market, private investors took centre stage in 2023, taking a record share of overall transactions volumes in Australia and globally. “While major institutional and cross-border investors have taken a step back for the time being on account of high debt costs and protracted uncertainty over the outlook, private investors tend to be less reliant on debt and more opportunistic in focus, and this has enabled them to be more active. Commercial investment volumes in Australia Overall ($billion) Private ($billion) Private % 2014 $ 41.8 $ 8.2 19.7% 2015 $ 49.6 $ 8.0 16.2% 2016 $ 41.6 $ 10.7 25.8% 2017 $ 43.9 $ 10.2 23.3% 2018 $ 49.7 $ 11.3 22.8% 2019 $ 63.8 $ 12.3 19.3% 2020 $ 35.3 $ 8.3 23.5% 2021 $ 73.0 $ 20.2 27.7% 2022 $ 64.1 $ 19.2 30.0% 2023 $ 35.1 $ 14.8 42.2% Source: RCA
Sydney, Australia – Private investors* were most active buyers in commercial real estate for the first time in Australia and for the third consecutive year globally over 2023, according to Knight Frank’s justreleased flagship report The Wealth Report 2024. Private capital invested A$14.8 billion in Australia’s commercial market, equating to 42.2% of total investment, more than 12% higher than the 30% in 2022, and the highest share on record. The share for private investors in Australia grew significantly despite overall investment in the country’s commercial property market nearly halving in 2023 from the previous year, falling from $64.1 billion in 2022 to $35.1 billion in 2023. Globally, private capital remained the most active buyers for the third consecutive year in the commercial property market, investing US$338 billion. This equated to a 49% share of total investment, slightly up on 48% in 2022 and the highest share on record. Although globally private investment in 2023 also nearly halved on 2022 volumes, falling by 46% in 2023 to US$698 billion, this was a smaller contraction than institutional and public investment, both falling by 53%.
12 – April / May 2024
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