$1.5tn and growing: private wealth steps into the spotlight

In the past decade, private wealth investors have allocated a total of $1.5tn (£1.13tn) to global commercial real estate acquisitions. According to JLL, between 2013 and 2024, the Americas accounted for 42% of private wealth investment volumes, amounting to $643bn, followed by EMEA at 37% and APAC at 21%. This group has made cross-border investments worth $277bn since 2013, with American investors being the most active, putting $22bn outside of their home market. Additionally, the US alone saw $604bn in direct investments from private wealth, demonstrating both the region’s dominance and a strong domestic investment bias. London leads At the city level, London is the top destination for private wealth, attracting $87bn, outpacing Hong Kong at $61bn and New York at $53bn. Despite a home market preference, private wealth is actively crossing borders, logging $277bn in cross-border investment since 2013. UK assets are the biggest beneficiary, attracting $73bn from foreign private investors, followed by Germany at $36bn and the US at $30bn. Richard Bloxam, chief executive for capital markets at JLL, said: “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. “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.” Trophy assets In terms of sectors favoured, JLL’s report found that traditional asset classes, such as premium CBD office buildings, high street retail and luxury hotels are proving the most popular across the globe. Offices have also emerged as an investment preference, attracting $464bn in capital over the past decade. Living assets demonstrated substantial appeal between 2013 and 2024, attracting $359bn in capital. During this period, they were also active in retail, investing $282bn, while $185bn went into industrial & logistics and hotels took $174bn. Private wealth investors may also look for better risk-adjusted return to include living, mostly in the Americas, and industrial and logistics in their portfolios. Some have opted to diversify their real estate holdings beyond the traditional sectors to benefit from secular growth trends in technology and energy-related asset classes. For example, Malaysia’s Kuok family is actively investing in data centres, while the family office of Spanish retail magnate Amancio Ortega is investing in renewable infrastructure. For many of these investors, CRE’s appeal is grounded in performance and stability. Over the past decade, private real estate delivered a compound annualised return of 6.4%, outperforming traditional assets like bonds, REITs and gold. They are also drawn to the low correlation with public markets, stable income streams from rents and portfolio diversification benefits that the sector offers. Direct investment remains the preferred approach, through full ownership or co-investment structures. Sentiment shift JLL’s Investor Sentiment Tracker reveals where private wealth is currently placing its next bets:• Office assets – rebounding in the UK, Italy and Japan.• Retail – renewed interest in Spain, Italy, Japan, Singapore and Canada.• Hotels – rising demand in UK, France, Japan and the US.• Living – strong structural support in UK, Japan and Canada.• Industrial and logistics – gaining momentum across EMEA, Japan, South Korea and Singapore. Joseph von Maltzahn, JLL head of private wealth for capital markets in EMEA, said: “The substantial inflow of private wealth into EMEA’s commercial real estate sector underscores the region’s enduring appeal and robust market fundamentals. “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.” Pamela Ambler, the agency’s head of investor intelligence for Asia Pacific, added: “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.” Image © Adobe Stock