Investment market recovery is coming to fruition. Despite the recent volatility in bond markets, the outlook for 2025 appears favourable for a continued rebound in investment markets, with stronger than expected economic growth supporting occupier market conditions. Meanwhile, slowing inflation and the prospect of rate cuts in 2025 are enhancing overall sentiment.

Investors are now in the process of recalibrating risk-return expectations, a strategic move that is being carried out with a heightened focus on deploying capital to drive returns through targeted income growth strategies, with greater resilience in ‘beds’ (residential and select hospitality), ‘sheds’ (industrial), ‘tech’ (data centres), retail and centrally located prime offices.

Liquidity is expected to improve in 2025 amid growing pressure to deploy capital. However, the ongoing slide in fundraising activity points to a gradual recovery as investors shift focus to value-added and opportunistic strategies.

In our new Spotlight on 2025 report, we reflect on where we are in the cycle, where we are headed and the capital market impacts facing commercial real estate in Australia. We also look at the property sector trends to watch in 2025 and highlight our top investment picks for core/core plus, value-added and opportunistic investment strategies.

View the Spotlight on 2025 here