Potential to increase real estate value for foreigners in Japan ​

Jul 6, 2023 - 11:04
Jul 5, 2023 - 11:05
Potential to increase real estate value for foreigners in Japan ​

Japan is a country with a developed economy and diversified real estate market. For foreigners interested in investing in real estate in Japan, learning about the potential for value appreciation is an important factor. 

1. Economic development
Japan is one of the world's largest economies with a developed industrial and service system. Economic growth means increased demand for real estate. Central economic areas such as Tokyo, Osaka and Yokohama are becoming attractive destinations for international businesses and expat employees, creating high demand for housing and offices.

2. Stable investment channel
Real estate in Japan is considered a stable and safe investment channel. Over the long term, property prices in some central areas such as Tokyo have increased significantly. In addition, buying house/land and sub-leasing it to foreigners also brings stable profit and steady income.

3. Urban development and infrastructure
Japan is famous for its modern urban and developed infrastructure. Urban renewal projects and the development of new urban areas offer the potential to add value to real estate. Investing in areas that are growing and have great value-adding potential, such as areas near new metro stations or areas near malls, can yield attractive returns.

4. Tourism growth
Tourism is an important economic sector of Japan. The country attracts millions of international visitors every year. The growth of the tourism industry creates a great demand for hotels, motels and other accommodation services. This provides opportunities for foreigners to invest in tourist real estate such as short-term rental apartments or vacation homes.

5. Land scarcity
With a limited area and a large population, Japan faces a scarcity of land. This contributes to boosting real estate values, especially in central areas. Investing in real estate in areas with great demand and limited supply can yield attractive returns in the future.

Japan has notable property value appreciation potential for foreigners. Economic development, stable investment channels, urban and infrastructure development, tourism growth and land scarcity are important factors that create potential value increase. For foreign investors, seizing and taking advantage of these opportunities can bring attractive returns and contribute to portfolio diversification.

Injavi 編集部 "InJavi" is a website that provides information for foreigners to enjoy life and visit in Japan more smoothly. This website is easy to use even for first-timers to Japan and those who are not very good at Japanese, and supports multiple languages. 「InJavi」は、外国人が日本の生活や観光をよりスムーズに楽しむための情報を提供するウェブサイトです。 初めて日本を訪れる方や日本語が苦手な方でも使いやすい、多言語対応サイトです。