The Japanese real estate market is currently experiencing a significant revival, with foreign investors pouring capital into both residential and commercial properties across the country. Recent major deals have featured several hotels and luxury condos purchased by overseas investors, but the latest trend is focusing on office buildings and warehouses, especially in Tokyo and Osaka.
Warehouses are being considered lucrative due to the current labor shortage caused by strict regulations on delivery drivers’ working hours, which will be implemented in 2024. Transit logistic points between major cities will be necessary, so owners of larger warehouses and industrial facilities are expected to benefit from this trend.
Another prominent trend is the large-scale construction of office properties in Japan's largest cities. Older buildings are being demolished to make way for giant office towers. In autumn 2023, a 49-story office building was opened in the Tokyo Toranomon business district.
In March, Mitsui Fudosan opened a 45-story, 240-meter office and hotel complex in front of Tokyo Station. Last week, Mori Building inaugurated a 49-story, 266-meter office tower in the Toranomon business district.
In November, Mori Building will also open a 64-story, 330-meter residential and office complex in upscale Azabu, which will be the tallest building in Tokyo for at least the next five years. Also next month, Tokyu Land will open a 39-story office tower next to a train terminal in trendy Shibuya.
On September 27, Mitsubishi Estate broke ground on a 385-meter, 62-story office and hotel complex right next to Tokyo Station, which is expected to open in 2028.
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