The State of Commercial Real Estate in Australia: 2025 Market Outlook
As we enter 2025, the commercial real estate landscape in Australia is entering a phase of cautious optimism and structural adjustment. At Vitality Real Estate , we believe that understanding key market drivers, sector-specific dynamics, and geographical divergences is essential for investors, occupiers and landlords alike. Below, we outline the state of play, key trends, challenges and outlook for Australia’s commercial property market in 2025. 1. Macro backdrop & market sentiment Australia’s economy is projected to grow around 2.0 % in 2025, with signs of interest-rate cuts on the horizon and a stabilising real estate finance environment. CBRE Australia Sentiment in the commercial real estate market has improved: after a challenging period in the office sector and some caution in industrial and retail, many key metrics are now pointing to recovery. KPMG Assets +1 For Vitality Real Estate, this means strategising for a transition year , not a full-blown boom. According ...