Japan Real Estate Market Quarterly Review-First Quarter 2021

Financial Research Department Makoto Sakuma 

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Macro Economy
  • Japan’s real GDP contracted by 1.3% q-o-q (annualized 5.1%) in Q1 2021, posting negative growth for the first time in three quarters.
  • Japan’s real GDP is expected to expand by 3.7% in FY2021 and 1.7% in FY 2022.

Real Estate Market
  • Contraction in office markets started in Tokyo and spreading to other major cities.
  • Multifamily rents remained on the upward trend, but occupier activity easing in urban residential areas.
  • Hotels and retails are continuing to struggle due to prolonged COVID pandemic.
  • Major logistics markets remain robust and rents are remaining on an upward trend.

Capital Market
  • J-REIT Index increased by 12.8% q-o-q in Q1 2021, trading at price to NAV ratio at 1.1x, dividend yield at 3.6% and dividend and JGB spread at 3.5%.
  • J-REITs acquired property assets totaling JPY443 billion in Q1 2021 (6% decrease y-o-y).

This report includes data from various sources and NLI Research Institute does not guarantee the accuracy and reliability. In addition, this report is intended only for providing information, and the opinions and forecasts are not intended to make or break any contracts.


Financial Research Department  

Makoto Sakuma

Research field
Real Estate Research and Strategy, Proptech


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