According to the report of the global investment ranking by city released by JLL, a major real estate company, real estate investment in Tokyo was $ 19.4 billion, ranking first in the world. Osaka is also ranked 18th with an investment of $ 4.5 billion.
Most of the investors who invest in Japanese real estate are foreign investors, and the ratio is about half.
JLL's chief analyst, Mr. Taniguchi, said that the reason why Japan's real estate investment market has begun to be re-evaluated under the situation of COVID19 is the stability of logistics facilities and residential areas.
Japan has been faster than the other country in the world to develop a multi-story modern logistics facility. These are now recognized as the second largest market after the office market.
In addition, investment in residential properties has been made in Japan for a long time, and these two fields continue to establish stable demand even under the situation of COVID19, and the Japanese real estate market with stable returns and low risk.
Impact of COVID19 on the office market
In the office market, where rents have been rising for more than eight years, rent levels have fallen due to an increase in the number of companies introducing telecommuting due to the influence of COVID19.
At present, the vacancy rate is still below 1%, and although there is no significant decrease in demand, the rate of decline in rents in the Shibuya area, which had been increasing new office rents as IT companies grow, is greater than others.
However, according to Akagi, JLL's director of research, there are still many challenges to working from home, and the importance of working in the office has already begun to be reaffirmed. As a result, it is speculated that rents in the office market will gradually improve from 2022 and will normalize again in a year or two.