Private wealth investors have become a “formidable source” of capital in global commercial real estate (CRE) over the past decade, with this trend expected to continue in the coming years, according to analysis from JLL.

JLL tracked more than $1.5trn of private wealth investments into CRE via direct deals between 2013 and 2024, comprising of high net worth individuals (HNWI), family offices, family-owned businesses, and selected private developers and property companies.

The Americas saw the largest value of private wealth investment into CRE, attracting $643bn in capital between 2013 and 2024, closely followed by EMEA, which received $566bn of private wealth investment in CRE over the same period.

London had emerged as a “prime destination” for private wealth investment into CRE, attracting $87bn of capital.

The UK was the most sought-after market in EMEA across all sectors except retail, which JLL said indicated its robust and diverse investment landscape.

"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," commented JLL CEO, capital markets, Richard Bloxam.

"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.”

Half of the top 10 global markets preferred by private wealth investors were located within the EMEA region, and JLL head of private wealth for capital markets, EMEA, Joseph von Maltzahn, said the substantial inflow of private wealth into EMEA's commercial real estate sector underscored 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 square metre basis,” he continued.

“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 US was the most popular investment destination over the decade, attracting 40 per cent of all private wealth investment volumes in commercial real estate, ahead of the UK (10 per cent), Germany (6 per cent) and Australia (6 per cent).

According to JLL’s data, offices have emerged as the preferred investment preference of private wealth investors, drawing $464bn in capital over the decade.

Living assets attracted $359bn in private wealth investment capital over the same period, while retail ($282 billion), industrial and logistics ($185 billion), and hotels ($174 billion) all drew in private wealth investment.

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