Japan ViewPoint - Japanese Investment Strategies in the Global Context June 2021

CBRE’s 2021 Investor Intentions Survey Cross-border Comparison

• 64% of investors worldwide responded that they intend to purchase more real estate in 2021 compared to 2020. CBRE projects that total worldwide real estate investment volume in 2021 will be approximately 20% greater than that observed in 2020.
• Only 28% of Japanese investors currently implement investment policies based on Environmental, Social and Governance (ESG) criteria, a figure that is significantly lower than other regions. However, 53% of investors are planning or considering the implementation of such policies, making it likely that the adoption of ESG in real estate investment in Japan will accelerate in the coming years.
• Data centers in APAC are gaining popularity as alternative investments. While investment opportunities in this sector in Japan are still few, there has been a gradual increase in deals involving overseas investors.  The presence of such overseas investors may accelerate the growth of the market in the coming years.
• Investors based in the Americas, which remains the most popular region for outbound Japanese investment, are the most pessimistic when it comes to the outlook for future office demand. With outbound Japanese investment set to continue to be focused on the office sector, investors will need to closely monitor any fluctuations in office demand.