What's driving the Melbourne real estate investment market?

With remarkable population expansion powering real estate demand across sectors, Melbourne stands out as an attractive investment destination across asset classes. But before you invest, you need to truly understand what's driving the Victorian capital to guide your decisions.

We've gathered the need-to-know insights across build-to-rent, office, industrial and retail that will give you a crash course in the trends shaping the Melbourne metro.

• Melbourne is leading the charge with 54% of the nation’s new BTR pipeline, creating opportunities for private investors to capitalise on extremely tight rental conditions
  
  
• The first quarter of 2025 recorded strong  absorption in the CBD office market driven by large corporate centralization.
  
  
• Melbourne’s industrial vacancy remains exceptionally tight below 3.5% due to e-commerce, and additional need for warehouse and logistics space due to companies moving operations onshore.
  
  
• Proactive owners investing in tenant improvements and property upgrades have reaped the benefits, with Melbourne shopping centre vacancy rates declining from a peak of 7.4% in Q4 2021 to just 4.1% as of Q4 2024

When it comes to your investments, it’s personal. You aren’t just putting your money into an apartment building or a warehouse. It’s a legacy — for you, your business, your loved ones and your future generations. Partner with JLL to find new investment properties to expand your portfolio.