Japan Major Report - In and Out Japan 2021

2022 inbound investment may exceed 2021 total

• Inbound investment into Japan in 2021 reached US$10.3 billion, a decline of 21% from the previous year due to the high base recorded in 2020, during which one large-scale deal was completed. Excluding this transaction from 2020’s total, inbound investment volume remained unchanged on a y-o-y basis.
• All the major sectors except residential saw investment volume rise y-o-y. Logistics investment volume (US$3.4 billion, up 66% y-o-y) was the largest since 2005.
• CBRE’s Investor Intentions Survey, conducted in December 2021, found that around 74% of overseas investors who invest in Japan anticipate their acquisition volume in 2022 will exceed that of the previous year.

Outbound investment likely to increase in 2022

• Outbound investment in 2021 reached US$2 billion, up 72% y-o-y, although 45% below pre-pandemic (2019) level.
• All major property sectors except residential and hotels saw investment volumes increase y-o-y. Investment in logistics (US$900 million, up 526% y-o-y) reached its highest annual total since 2005, with most transactions concluded in the U.S. 
• CBRE’s Investor Intentions Survey, conducted in December 2021, found that North America continues to be the most attractive investment destination for Japanese investors in 2022. Should restrictions be eased in 2022, more investors will resume or commence new investments.