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The world’s gone mad for real estate

JLL's Global Market Perspective report suggests good things for commercial property in New Zealand in 2016



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JLL says the continued global surge in investment into commercial real estate means good things for New Zealand’s commercial property market in 2016.

The pace of investment into commercial properties globally continues, with full-year volumes of US$704 billion in 2015, just 1% below 2014, international commercial real estate firm JLL says. 

The strength of the US dollar continues to underplay the true level of market activity; with fixed exchange rates, full-year volumes would be US$765 billion, 8% ahead of 2014 and a new record, surpassing the previous peak of US$758 billion in 2007.

The figures were released in JLL’s Global Market Perspective, for the first quarter of 2016. The report has followed the world’s dominant real estate markets since the recession in 2008. Since that time, strengthening investment markets have helped funnel huge amounts of money into real estate assets. 

New Zealand appears to be following the global real estate trend. 

The latest forecasts show a steadily improving profile for world economic growth over the next two years and Asia-Pacific is expected to maintain its position as the fastest-growing region globally.

“Off the back of these global and regional trends, we can expect a continued influx of international investors in New Zealand in 2016,” JLL New Zealand managing director Nick Hargreaves says. 

“JLL is confident that investment volumes across Asia Pacific will remain stable this year as more institutional investors look towards multi-asset portfolios in light of subdued performance across traditional asset classes such as equities and fixed income. This means we are likely to continue to see demand flow into New Zealand for the foreseeable future.”

JLL also sees market fundamentals improving and leasing activity on the up across the Asia Pacific region, an indicator that occupier confidence remains sound. 

​JLL New Zealand’s director of research Justin Kean says corporate occupiers remain in growth mode across the global markets. JLL’s corporate sentiment surveys reveal little sign of any slowing in the robust and broad-based growth of occupier leasing activity.

Click here to read the report in full.