Japan Real Estate Market Quarterly Review-Third Quarter 2021

Financial Research Department Makoto Sakuma 

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Macro Economy
  • Japan’s real GDP is expected to contract by 0.2% q-o-q (annualized 0.9%) in Q3 2021 dragged by the continued state of emergency and global chip shortage.
  • Japan’s real GDP is expected to expand by 3.1% in FY2021 and 2.0% in FY 2022.

Real Estate Market
  • Tokyo Grade-A office rents are hovering from Q4 2020 to Q3 2021, after declining to the same level of Q4 2017.
  • Multifamily rental growth appearing to have hit their peak in Tokyo as net migration slowed.
  • Hotels and retails are continuing to struggle due to continued state of emergency.
  • In major logistics markets, demand remained resilient, while large supply weighed on some submarkets in Tokyo.

Capital Market
  • J-REIT Index declined by 3.7% q-o-q in Q3 2021, trading at price to NAV ratio at 1.12x, dividend yield at 3.5% and dividend and JGB spread at 3.4%.
  • J-REITs acquired property assets totaling JPY486 billion in Q3 2021 (82% increase 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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