Japan Real Estate Market Quarterly Review-Fourth Quarter 2024

Financial Research Department Makoto Sakuma

■Summary

Macro Economy

In Q4 2024, Japan’s real GDP is expected to increase by 0.3% q-o-q (annualized 1.0% increase), marking the third consecutive quarter of expansion.
Japan’s real GDP is expected to expand by 0.4% in FY2024, 1.1% in FY2025, and 1.2% in FY2026.

Real Estate Market

Tokyo office market sees solid demand, boosting rental growth expectations.
In Tokyo 23-ku, multifamily rents rise over 5% across all unit types, driven by continued urban population influx.
Retail sector remains resilient as inbound demand supports stable sales.
Logistics markets in Greater Tokyo sees elevated vacancy rates amid new supply.
Hotel market strengthens further amid expanding inbound demand.

Capital Market

J-REIT declines as rising interest rates and foreign investor selling weigh on sentiment.
J-REITs acquired property assets totaling JPY231 billion in Q4 2024 (+16% 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.