Why Japan remains an attractive real estate investment destination​

With monetary tightening measures introduced to suppress inflation having stoked fears of a recession in Europe and the U.S., Japan’s appeal as a real estate investment destination is on the rise. The Japanese property market has long featured a number of elements that make it attractive to both domestic and foreign investors. This report considers the factors in comparison to foreign markets.

Summary

• The liquidity of Japanese real estate market is high relative to other major markets across Asia Pacific.
• Relatively high cash-on-cash yields and stable rents are reasons for the growing presence of core and core-plus investments by foreign investors in Japan.
• With most experts projecting Japan’s easy monetary policies to continue, financial environment should continue to be favorable for the investors.
• Occupied office space in Japan has continued to increase, with the percentage of workers returning to office among the highest globally.
• Demand for logistics market continues to grow.The “2024 problem” and the strengthening of supply chains are likely to further drive nationwide demand for modern logistics facilities.