Australia’s automotive real estate sector is attracting growing investor interest as strong market fundamentals, long-term leases and an expanding national vehicle fleet continue to deliver resilient returns, according to a new report from commercial real estate firm CBRE.
The company’s June 2026 Automotive Intelligence Report found private investors are increasingly targeting automotive service centres, tyre retailers and auto parts properties, with demand underpinned by stable rental income and tenants backed by major listed companies.
CBRE head of private wealth research, Jesse Lapham, said Australia’s expanding vehicle fleet and the ongoing need for servicing, maintenance and crash repairs were driving the sector’s strength.
“The size of Australia’s vehicle fleet is a critical driver,” Lapham said.
“As the number of vehicles continues to grow, so too does the need for consistent servicing, parts and maintenance, supporting long-term tenant demand.”
According to the report, Australia now has more than 21.6 million registered vehicles, while annual net overseas migration of around 300,000 people continues to support vehicle ownership and demand for automotive services.
CBRE found automotive assets have maintained stable yields despite higher interest rates, with metropolitan properties returning between 4.14 and 5.82 per cent. Regional automotive properties are offering investors up to 120 basis points of additional return, further increasing their appeal.
Queensland has emerged as the country’s most active automotive property market, accounting for 44 per cent of national transaction volumes since 2024. The report attributes this to strong population growth across South East Queensland and the continued expansion of suburban communities where private vehicle ownership remains essential.
Lapham said automotive properties offered investors a combination of accessible price points and high-quality tenants.
“The market is dominated by a small number of national operators backed by listed parent companies,” he said.
“For investors, that provides institutional-grade tenants at price points that remain accessible to private capital, alongside long leases and built-in rental growth.”
The report also points to Australia’s long-term population growth as a key driver of future demand, with the national population forecast to reach 32 million by 2035, supported by an additional 2.9 million workers and rising household incomes.
While electric vehicles continue to gain market share, CBRE believes the transition will remain positive for automotive property investors, as EVs still need regular servicing and will still be involved in accidents necessitating crash repairs.
“EVs still require regular servicing across tyres, brakes, suspension and air conditioning, and tend to wear tyres more quickly,” Lapham said.
“Fleet size matters more than drivetrain mix, and that fleet continues to grow.”