Japan Brief - Demand from foreign investors likely to remain robust in 2022

Foreign investors accounted for 30% of total real estate investment in Japan during 2020-2021, slightly above the 24% recorded between 2015-2019, as the COVID-19 pandemic failed to dent robust overseas interest in Japanese real estate.

CBRE expects demand from overseas investors to remain robust this year, especially for logistics and residential properties, for which foreign groups could be more aggressive buyers than domestic investors. Overseas buyers are also likely to remain active in big ticket transactions.

However, with the outlook for the Japanese economy remaining uncertain especially with the depreciation of yen and the impact of the Russia-Ukraine war, overseas investors are likely to adopt a more selective approach.

This Brief assesses current investment demand among foreign investors in Japan and identifies several purchasing trends CBRE expects to emerge over the course of 2022.