Why cinemas are attracting investor interest – Burgess Rawson

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Mar 2, 2025

Why cinemas are attracting investor interest – Burgess Rawson

The cinema industry in Australia is gaining increasing attention from property investors, thanks to its stable demand, long-term lease potential, and growing consumer interest says Burgess Rawson Partner Matthew Wright.

Burgess Rawson
Burgess Rawson

North Hobart’s Iconic State Cinema for sale by Burgess Rawson and RWC Tasmania

The cinema industry in Australia is gaining increasing attention from property investors, thanks to its stable demand, long-term lease potential, and growing consumer interest.

Cinemas, particularly in entertainment-focused areas, offer an enduring and resilient investment, with their consistent consumer experience providing a buffer during market downturns. The steady foot traffic, combined with the potential for long-term, reliable cash flow, has made cinemas an appealing option for investors seeking stability.

Cinemas in Australia have been evolving, adapting their offerings to stay competitive in a crowded entertainment market. Operators have invested in enhancing the cinema experience, with upgrades like premium seating, gourmet food and beverage options, and complementary businesses such as bookshops.

These improvements are transforming cinemas into cultural hubs, which in turn boosts occupancy rates and attracts more patrons. Cinemas have also become more integrated into local communities, providing a unique blend of entertainment that appeals to a broad range of demographics.

The market performance of cinemas in Australia reflects their growing significance in the broader entertainment landscape. According to IBISWorld, the Australian cinema market experienced an impressive 21.8% growth from 2018 to 2023, indicating strong consumer demand.

Cinemas also continue to generate significant revenue. Statista estimates that the Australian cinema industry generates approximately $1.31 billion in box office revenue annually, with the wider filmed entertainment industry contributing an additional $3.65 billion.

With revenue projected to reach $1.813 billion by 2025 and a steady growth rate of 2.93% annually until 2029, cinemas are on track for sustained growth. Recent figures from Screen Australia also confirm the positive trend, showing a 4.7% increase in box office revenue in 2023, with cinema attendance climbing back to pre-pandemic levels.

This indicates a robust and established market that continues to recover and thrive in the post-pandemic era.

Given these favorable statistics, cinemas are emerging as a particularly attractive option for property investors. Their proven resilience, evolving business models, and strong recovery trajectory point to a sector with significant potential for long-term stability and steady returns. Investors are increasingly recognising cinemas as more than just entertainment venues—they are now integral parts of the cultural landscape, offering a unique opportunity for growth and reliable income streams.