What's next for Australia real estate?


The Australian Horizon report explores:

Our top 7 predictions

Based on our research we give you our Horizon top 7 predictions for 2026.

Economic Rents

From gridlock to green light: high economic rents will limit new supply and drive rent growth.

A New Narrative

The ‘beds & sheds' narrative has run its course and the outlook for the key sectors is on a much more equal footing.

Property Hotspots

With sector specific insights our report dives into key property hotspots heading into 2026.

Sector specific insights......


Capital Markets

Early cycle window still open, but investors will need to venture beyond the core.

Office

Prime office rental growth will defy high vacancy rates.

Industrial

Prime vacancy will stabilise quickly as construction falls.

Retail

Dominant shopping centres to be the pick of the bunch.

Living Sectors

In 2026 co-living best placed to bridge the feasibility gap.

Our Contributors


The Horizon Report's expert opinions and analysis come from the perspectives of these leading industry professionals.

BEN BURSTON

Chief Economist, Research & Consulting

JENNELLE WILSON

Partner, Head of Research & Consulting
Queensland

DR TONY MCGOUGH

Partner, Head of Research & Consulting, Victoria

ALISTAIR READ

Senior Economist,

Research & Consulting

The Horizon Report sets out our views on Australian real estate, taking you on a journey through the macro context underpinning investment performance, with sector specific insights across office, industrial, alternatives and residential markets that shed light on the path to performance in 2026 and beyond.

Knight Frank Australia acknowledges the Traditional Owners of the land where we work and live. We pay our respects to Elders past, present and emerging. We celebrate the stories, culture and traditions of Aboriginal and Torres Strait Islander Elders of all communities who also work and live on this land.

Important notice

© Knight Frank Research provides strategic advice, consultancy services and forecasting to a wide range of clients worldwide including developers, investors, funding organisations, corporate institutions and the public sector. All our clients recognise the need for expert independent advice customised to their specific needs. Important Notice © Knight Frank Australia Pty Ltd 2025 – This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank Australia Pty Ltd in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank Australia Pty Ltd to the form and content within which it appears.