Tokyo Real Estate Boom Set to Reach New Heights
Japan's real estate investment is on track to hit a record high for the second consecutive year, according to Jones Lang LaSalle. Investment volume is forecast to reach 7 trillion yen (US$44 billion) this year, with companies relocating offices and selling properties to adopt asset-light strategies.
In the first half of the year, property investment jumped to a record 3.8 trillion yen, driven by demand for offices. Foreign investors accounted for 30% of investment in the first half, seeking high returns by adding value to properties.
Tokyo ranked second among global cities for real estate investment in the first half, climbing one spot from last year and only trailing Singapore. The city's high occupancy rates and rental growth are spurring returns for investors.