Photo: 123RF
New Zealand still ranks amongst the best in the world when it comes to commercial property investment, despite the recent economic downturn.
Global property manager JLL's Why Invest in New Zealand report said population growth remained a key driver for long-term property demand, with the working-age population exhibiting one of the highest growth rates among advanced economies - a trend projected to continue over the next decade.
In addition to long-term growth prospects, it said New Zealand enjoyed sustained investor confidence.
International investors accounted for $673.4 million or 18 percent of all commercial property transactions valued at $5m or more in 2024, and 17 percent of transactions in the first half of 2025.
The total volume of commercial property transactions rose 13 percent in 2024, with total sales of property valued at $5m or more, rising 5.4 percent to $4.12 billion over the year earlier.
JLL head of research Chris Dibble said New Zealand demonstrated rare consistency in policy, governance, and market performance, which was attractive to foreign investors.
He said there was also strength in all key market sectors, including office, industrial, hotels, retail and large format retail, such as supermarkets.
"A lot of other sectors that are garnering a bit more interest ... opportunities in healthcare, data centres, self storage, purpose built student accommodation, built to rent and the like."
He said Auckland was still considered to be the economic powerhouse for New Zealand among international investors, despite a recent downturn.
"You've got a sort of a Sydney, Brisbane and Auckland investigation story going on at the moment," he said adding investors were looking for opportunities in those cities in particular.
Dibble said the relatively low value of the New Zealand dollar was also attractive to would-be investors.
"Ultimately, it's another attractive component for offshore entities. Looking at New Zealand and going, look, we understand the long term, and we've got some benefit and upside with a stronger currency in their home market."
Scarcity of supply against increasing demand was also a driver for investment growth.
"Because we do have some challenges in regards to upscaling for construction activity and also our geographic constraints, you can kind of see that there is always going to be a sort of natural restriction on supply, and that kind of helps that whole demand supply balance," Dibble said.
"In the background, what we've also got is a country that's relatively easy to work in, from a business perspective.
"It's got good real estate transparency, and it's also got a relatively benign tax environment as well.
"So when people are investing into New Zealand, they understand that there's a lot of things that really add up for long term, stable and positive gains in the commercial and industrial sector."
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