JLL analysis concludes private wealth contributed $1.5 trillion in direct deals globally between 2013-2024.
Private wealth investors have become a formidable source in global commercial real estate in the past decade, according to data and analysis published today by JLL (NYSE: JLL). Between 2013-2024 JLL tracked over $1.5 trillion in private wealth investments – comprising of high-net-worth individuals, family offices, family-owned businesses, and selected private developers and property companies – deployed into global commercial real estate via direct deals.
“We’re witnessing an increasingly diverse investor base looking to deploy capital into commercial real estate, with private wealth one of the fastest growing segments,” says Richard Bloxam, CEO, Capital Markets, JLL. “This class of investor is becoming one of the most active and influential participants in real estate, complementing the strengths of traditional institutional powerhouses. In the coming years, we expect private wealth participation to continue to increase via direct investment in property and operators, indirect investment in private real estate funds as well as taking other positions in the capital stack”.
The Americas has been the primary beneficiary of growing private wealth investment into commercial real estate, attracting $643 billion in capital between 2013-2024. During the same time period, JLL analysis concludes EMEA commercial real estate received private wealth investments of $566 billion and while APAC saw direct deals worth $318 billion.
“The substantial inflow of private wealth into EMEA’s commercial real estate sector underscores the region’s enduring appeal and robust market fundamentals,” comments Joseph von Maltzahn, JLL head of private wealth for Capital Markets, EMEA. “We’re witnessing a rare moment where repricing and selective divestments have unlocked opportunities in prime markets, often at price points that are highly compelling on an absolute price per sqm basis . This trend not only reflects the region’s economic stability but also highlights the growing sophistication of private investors in identifying and capitalizing on prime real estate opportunities across diverse European markets, particularly in their home countries.”
The United States proved to be the most popular investment destination over the decade drawing 40% of all private wealth investment volumes in commercial real estate, ahead of the United Kingdom (10%), Germany (7%), Australia (6%) and Hong Kong (4%). Japan, France, the Netherlands, Canada and Sweden rounded out the top ten recipients between 2013-2024.
According to JLL proprietary data and analysis, office has emerged as the preferred investment preference of private wealth investors, attracting $464 billion in capital over the past decade. Living assets have also demonstrated substantial appeal to private wealth investors between 2013-2024, drawing $359 billion in capital. During this period, private wealth investors were also active in retail ($282 billion), industrial & logistics ($185 billion) and hotels ($174 billion).
“Sophistication in the private wealth space globally is evolving quickly. From New York’s skyline to Spanish wind farms and solar plants, family fortunes are leaving their mark, but they are also increasingly demonstrating a high degree of strategic acumen behind capital deployments into commercial real estate,” says Pamela Ambler, Head of Investor Intelligence, Asia Pacific, JLL.
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