Recent announcements by Prime Minister Christopher Luxon outlining changes to the Active Investor Plus (AIP) visa category, will turbocharge the commercial and industrial property market, according to New Zealand’s largest full-service real estate firm, Bayleys.

“Allowing a more straightforward pathway to direct investment in high-value commercial property and businesses will boost the already strong demand we’re seeing from active global capital in real estate assets here,” says Bayleys national director commercial and industrial, Ryan Johnson.

“We’ve had a surge in enquiry out of the US since Trump was re-elected to office and following the devastating wildfires, and the AIP visa category announcement will have a tangible effect on capital flow and ultimately, people flow, into New Zealand when it is activated in April.

“In tweaking the visa policy settings, the government has very clearly signalled that its growth mantra has teeth.”

Changes to the AIP settings are designed to simplify the existing more-cumbersome system and attract high-value investment in New Zealand businesses and commercial property.

According to the government’s immigration website, the changes come into force on April 1, 2025 with the creation of two main investment categories, the removal of potential barriers to investment such as the English language requirement, and changes to residency thresholds.

The Growth category will focus on higher-risk investments, including direct investments in New Zealand businesses. It will require a minimum investment of NZD $5 million for a minimum period of three years.

The Balanced category will allow direct investment in new residential, new/existing commercial or industrial developments along with bonds and listed entities, with a minimum investment of NZD $10 million over five years.

Johnson says the weight of private capital globally is powerful and highly mobile, and given our safe haven status, New Zealand should expect to get more of this money as a result of changes to the policy settings.

“In its 2024 Wealth Report, Bayleys’ global real estate partner Knight Frank confirmed that private investors remained the most active global buyers for commercial real estate. This group accounted for around half of all transactions, with the Asia-Pacific region identified as the world’s newest wealth hub.

“Private capital is an integral component of real estate investment across the living, industrial, logistics, and office sectors globally. In New Zealand, we’re seeing continued strong enquiry and activity from both local and offshore ultra-high net worth individuals and family office buyers.

“Broader interest can only escalate given the government’s more-accessible policy settings. Combined with the establishment of Invest NZ to promote foreign direct investment in key projects and critical infrastructure, this sends a clear message to the world that New Zealand is open for business.”

Johnson says this country’s hotel, tourism and leisure sector is likely to get a shot in the arm from the new growth strategies, but says businesses across all sectors will benefit from a bigger and motivated buyer pool.

“Our dedicated business sales’ arm, Bayleys Business, is adept at advisory, brokerage, valuation and syndication for enterprise businesses with scale. I expect this division – along with all our other specialist teams – will be very busy as 2025 unfolds.”