The attractiveness of Japan's property market: reasons

The real estate market in Japan is in a positive state thanks to investment and the weakness of the yen. According to the latest data provided by Commercial Real Estate Services - CBRE, total foreign investment in the Japanese real estate market in the first half of 2023 is up 45% compared to the same period last year. Henry Chin, head of CBRE's Asia-Pacific research division, said this is a "golden time for the Japanese real estate market." Japan has attracted foreign investors due to its extremely accommodative monetary policy, while global economies are in a general process of tightening.

The main reasons for the growth of the Japanese real estate market are political''s stability, which has been in place in the country for several years, and the weakness of the yen. The Bank of Japan is keeping the interest rate at -0.1%, contrary to the policies of other major central banks, which have raised interest rates over the past two years in an attempt to curb inflation. As a result, the yen has weakened more than 11% against the U.S. dollar this year.

There has been a significant increase in demand for real estate among foreign buyers, as well as increased interest from institutional investors, sovereign wealth funds and private''s head of the research center, believes investment will continue and will not change in the coming quarters.

Tokyo is the top real estate investment destination, falling back to first place only to Los Angeles in the first half of the year. The Japanese capital climbed 14 positions with a total real estate investment of $9.3 billion, ahead of New York, Paris, Dallas and London. Osaka ranked 29th with an investment volume of $1.9 billion. The growth of the tourism industry in Japan following the lifting of border restrictions has spurred hotel construction and hospitality investment. It is predicted that with the limited number of new hotel rooms in the near future, the upward trend''employment will continue to grow. The logistics sector also showed impressive growth, underpinned by the success of e-commerce.