Japan Investment Major Report - Investor Intentions Survey 2022

Strong appetite among Japanese investors points to active market in 2022

54% of Japanese investors indicated that they expected their acquisition volume in 2022 to exceed that of the previous year. While this represents a 10pp increase from the previous year’s results, the number of investors who answered that their disposition volume would  exceed 2021’s also showed an increase. This suggests that investment volume is likely to increase in 2021.

Other key findings

• While Japanese investors continue to prefer core strategy, an increasing number are selecting value-add strategy in pursuit of higher yields.

• Investors’ view on office demand is improving, with Japanese investors selecting them once again as the most attractive asset type.

• An increasing number of Japanese investors are pursuing alternative investment targets including data centers and cold storage facilities.

• Tokyo was selected as the most attractive city for investment in Asia Pacific for the third successive year.

• Awareness of Environmental, Social and Governance (ESG) criteria continues to rise among Japanese investors, with J-REITs and real estate funds increasingly keen to implement such considerations in investment decisions.

• ESG investment is seen as key in raising corporate brand value, with a property’s environmental certifications viewed as important when investing.