Private capital is making a powerful play in property markets across the globe – and New Zealand is right in the thick of the action. According to the latest edition of The Wealth Report by Knight Frank, released in partnership with Bayleys, the real estate landscape is shifting as high-net-worth individuals (HNWIs) and family offices ramp up investment in commercial and residential sectors, while institutional investors take a more cautious approach.
Private Wealth Steps into the Spotlight
Knight Frank’s 2025 report reveals a global resurgence in private capital targeting real estate – especially in times of market recalibration. With inflation still a concern but expected to ease, private investors are seizing the moment. Of the family offices surveyed, 44% plan to expand their commercial property holdings in the next 18 months, and 25% are eyeing more residential acquisitions.
Bayleys’ senior director of capital markets, Jason Seymour, confirms that the trend is playing out locally. “In 2024, private investors accounted for 68% of Bayleys’ transactions over $20 million – a sharp rise from 47% in 2023 and the highest level in seven years.”
He notes that private buyers are stepping up where institutional capital is sitting back. “Institutions have been managing their portfolios conservatively due to economic pressures, while private investors, many of whom have been stockpiling cash, are now pouncing on repriced assets.”
Kiwis Keep It Local
Perhaps more surprising is just how domestically focused New Zealand’s wealthy investors are. An eye-popping 93% of Kiwi family office real estate investments remain within Aotearoa—the highest rate of domestic focus among all countries surveyed, ahead of Australia (90%) and the US (86%).
“In uncertain times, local is comfortable,” says Seymour. “You know the market, avoid currency risks, and benefit from straightforward tax and legal frameworks. It’s the same stability that attracts overseas capital to New Zealand.”
Hot Sectors: Living, Logistics and Luxury
Globally, the sectors attracting the most private capital are “living” (including build-to-rent and student accommodation), logistics, and luxury residential. Seymour says New Zealand is no exception.
“Population growth, a stubborn housing shortage, and e-commerce expansion are driving demand. These sectors offer stable returns, lower vacancy risk, and solid growth potential, particularly compared to more volatile office and retail markets.”
Luxury residential is also seeing renewed interest, as wealthy buyers re-enter the market for high-end, lifestyle-driven properties.
Next-Gen Wealth, New Priorities
The report also signals a generational handover in decision-making. Nearly 60% of family offices now involve the next generation in investment strategy, and close to 40% say that has shifted their approach—with sustainability emerging as a key focus.
“Climate resilience and ESG factors are now essential parts of the due diligence process,” says Seymour. “Smart investors are asking tougher questions—how much will it cost to meet future carbon requirements? Is the energy data available and credible? It’s no longer just about green labels.”
Visa Overhaul to Spark Development
A major development for New Zealand’s property sector is the April 2025 revamp of the Active Investor Plus visa. With new growth and balanced investment categories, the visa now allows for direct investment into qualifying residential and commercial developments.
Minimum thresholds have dropped significantly—from a weighted $15 million to $5 million (growth) or $10 million (balanced). Time-in-country requirements have also been adjusted, making the visa more accessible for serious offshore investors.
Seymour sees this as a much-needed catalyst. “The inclusion of property in the new visa scheme opens the door for capital that was previously locked out. It could be the green light developers need to get stalled projects moving.”
What’s Next? Opportunity Amid Uncertainty
While global risks remain—geopolitics, trade tensions, and the spectre of AI-driven bubbles—Knight Frank’s global head of research Liam Bailey believes opportunity is out there for investors willing to think long-term.
Seymour agrees. “Private investors are positioned to strike early as the market stabilises. Institutions may return once conditions improve, but right now, private capital is shaping the future of New Zealand’s property landscape.”
As 2025 unfolds, one thing is clear: when it comes to commercial and residential property, private wealth is no longer the quiet partner. It’s leading the charge.
__________________
For more on the Active Investor Plus visa changes, visit immigration.govt.nz.