The data, released by global real estate firm JLL, spans investment flows between 2013 and 2024, and places London well ahead of Hong Kong (USD $61 billion / AUD $93 billion) and New York (USD $52 billion / AUD $79 billion).
The Times reported this impressive performance has been seen as a strong vote of confidence in the long-term stability and resilience of the UK capital’s property market.
The broader UK market ranked second globally, pulling in USD $155 billion (AUD $236 billion) in commercial investment, behind the United States, which led the way with USD $604 billion (AUD $919 billion) in inflows.
The spike in private investment can be traced back to a combination of post-GFC monetary policy, notably ultra-low interest rates and quantitative easing, which made real estate an attractive asset class for wealthy individuals and private funds seeking yield and capital preservation.
In fact, over USD $1.5 trillion (AUD $2.28 trillion) in private wealth has been allocated to commercial property globally in the past ten years, according to JLL’s report.
Even in the face of rising interest rates since 2021, investor appetite remains strong. According to Joseph von Maltzahn, JLL’s head of private wealth for Europe, the Middle East and Africa, “The recent market adjustments attributed to rising interest rates have not dampened the appeal of commercial real estate for private investors.”
Trophy assets still command premiums
Despite a more cautious environment, top-tier commercial assets continue to attract extraordinary prices.
In March 2025, the family owners of Prada made headlines when they purchased 150 New Bond Street in Central London—home to Miu Miu’s flagship store—for £250 million (approx. AUD $482 million).
This deal underscores a clear trend: investors are prioritising quality. Prime locations, modern amenities, and strong ESG credentials are all key drivers of value in the current market.
JLL’s report found that the allocation of global commercial investment over the past decade breaks down as follows:
- 31% to office space
- 24% to residential
- 19% to retail
- 12% to industrial
- 11% to hotels
A divided office market
One of the more notable developments is the bifurcation of the office market.
Premium-grade office buildings in central locations with good environmental ratings continue to perform well, while older buildings outside city cores have become less desirable and harder to sell.
This trend is not unique to London—it’s being observed across many major cities worldwide, including Sydney and Melbourne, where institutional investors are recalibrating their portfolios in favour of high-performing green-certified assets.
Why this matters for agents in Australia
While the report focuses on global trends, the implications for Australian commercial agents and developers are clear:
- Global capital is still actively chasing property, particularly high-quality, well-located commercial stock.
- Australia remains an attractive target for investors looking for stable returns, particularly in sectors like logistics, prime office space, and mixed-use developments.
- With global investors increasingly focused on ESG and location, Australian agents must be able to articulate these value points clearly during presentations and deal negotiations.
- Private wealth channels are growing in influence—agents who can build relationships with family offices and global ultra-high-net-worth individuals are better placed to capture cross-border opportunities.
