In recent years, charitable and for-purpose investors have increasingly turned to unlisted commercial property funds to complement the income side of their portfolios.

The drop in deposit rates has only accelerated that shift, as investors seek dependable, inflation-shielded returns.

So, can direct property funds provide the answer?

They offer the benefits of owning property directly - regular rental income, long-term capital growth, and diversification - without the daily volatility of listed markets.

When share markets wobble, listed property and equity funds often move first. By contrast, unlisted commercial property remains anchored by leases and tenants, not headlines, delivering predictable income and long-term stability.

Of course, not all property funds are created equal. Look for those that combine:

• Diversification across sectors and regions
• Strong tenants and long leases
• Inflation-linked rental growth
• Low gearing and transparent fees

Funds with these characteristics tend to provide consistent, lower-volatility returns that can help preserve and grow income over time.

For investors looking to strengthen income and rebalance toward stability, unlisted commercial property funds in New Zealand offer a solid foundation for long-term success.