MarketDynamics
Keytrends
1 2
Globalinvestmentcontinuestoexpand
Globalrealestateinvestmentcontinuestogrow, drivenbyanincrease inlarge-scaletransactions byinstitutionalinvestorsamidliquiddebtmarket. Intermsofsectors,investmentinmultifamily housingcontinuestogrow,andinvestmentin officesisalsoexpandingduetostabilizing occupier demand.
3
Investmentopportunitiesincrease.
Thenumberofinvestorssellingpropertiesis increasingduetochangesintheinvestment environmentwithrisingprices andinterestrates. InJapan,whereinterestratesremainlow comparedtoEuropeandtheUnitedStates, investmentdemandfromvariousinvestors, includingdomesticlifeinsurance companiesand Asianinvestors,remainsstrong,andthereal estateinvestmentmarketcontinuestothrive.
Japan’sinvestment volumeexceedsJPY twotrillioninonequarter.
Withanincrease insalesoflargepropertiesamid continuedstronginvestordemand,investment volumeinonequarterexceeded JPYtwotrillion forthefirsttime.InvestmentinTokyoCBD,where largeofficeandretailtransactionswereseen, accountedforahigh61%oftotaldomestic investmentvolume.Tokyorankedfirstinthe globalcityinvestmentranking.
4
Outlook
Despitegrowingeconomicuncertaintycentered in theUnitedStates,nomajorchangeshavebeen observed intherealestateinvestmentmarket, andtheimpactontheJapaneserealestate market isexpected tobeminor.Duetoincreased investmentopportunitiesandrobustdemand, realestateinvestmentvolumein2025isexpected toexceed thatof2024,reachingnearlyJPYsix trillion.
Historicalglobalinvestmentvolume
investmentvolume
• Globalrealestateinvestment volume increased 34% y-o-ytoUSD185billionin1Q25.
• TransactionsintheAmericaswere up37%y-o-y; in EMEA(Europe, theMiddleEastandAfrica),theywere up41%y-o-y; andinAsia-Pacific,theywere up20%yo-y. Severalfactorscoalesced todrivecontinued growthinactivity,including liquiddebtmarkets, increased institutionalbidding activity,agradual uptickintransactionsofscale,andariseincrossborder transactions.
• InAsia-Pacific,Japan, SouthKorea, Australiaand Singapore performed well,whileChinasawa33%yo-ydecrease intransactionactivity.Unlikeother marketsacrosstheglobe, theofficesectorwasa majorcontributor toy-o-ygrowth inAsiaPacific, notablyinJapanandSouthKorea
Source:JLL
• In1Q25,domestic realestateinvestment volume was up28%q-o-q and23%y-o-y toJPY2,095.2billion (USD13.7billion,up20%y-o-y).
• Investment volume inasinglequarterexceeded JPY twotrillionforthefirsttimesinceJLLbegantracking in2007.Thiswaspartlyduetotransactionsofsome largeofficesincludingTokyo Garden Terrace Kioicho andlargeretailfacilitiessuchasTokyuPlazaGinza.
Source:JLL
Globalcityrankingbyinvestment volume
Globalcityranking
• In1Q25,byglobalcityinvestment ranking,Tokyo rankedfirstwithatotalinvestment volume ofUSD 11.0billion.Tokyo remains infirstplace,asitdidin thesameperiod lastyear.
• Osakaranked39thplacewithaninvestment volume ofUSD0.9billionin1Q25,asignificantdrop fromthe previous year,when itremained withinthetop20 throughouttheyear.
Source:JLL
Historicalinboundinvestmentvolume
Inboundinvestments
• Inbound investment, whichisthepurchasevolume of realestatebyoverseasinvestors, wasJPY633.1billion in1Q25,up3.7timesfrom JPY177.3billioninthe sameperiod lastyear.Duetolarge-scaletransactions, including Tokyo Garden Terrace Kioicho andTokyu PlazaGinza,investment volumeinthefirstquarter wasthehighestsinceJLLbegan trackingin2007.
• Theshareofinbound investment in1Q25was32%, thefirsttimea1Qfigurehasexceeded 30%since 2020. Source:JLL
Historicalinvestment volumesharebySector
Sectoranalysis
• Theshareofofficeinvestment in1Q25was58%with aninvestment volume ofJPY1,210billion,upfrom 51%inthesameperiod oftheprevious year.Thisis thefirsttimethatinvestment volumesinasingle quarterhaveexceeded JPYone trillionsince1Q15.
• Theshareofretailinvestment was16%,with investment volumesexceeding JPY300billionforthe firsttimesince1Q15.
• Logisticsfacilityandhoteltransactionsfellsharply, accounting for6%and11%ofthetotaldomestic investment volume, respectively.
• Theshareofmultifamilyhousingremained thesame asin1Q24at9%.
Source:JLL
Historicalinvestment volumesharebylocation
Locationanalysis
• Tokyo CBD,whichsawmultiplelargeofficeandretail transactionsin1Q25,accounted for61%ofthetotal domestic investment volume, exceeding 60%forthe firsttimesince1Q18.Thisisthefirsttimesince4Q07 thatinvestment volume intheTokyo CBDinasingle quarterhasexceeded JPYone trillion.
• TheshareofGreaterTokyo (excluding Tokyo), comprising Chiba,SaitamaandKanagawa prefectures, whichwasaffected byadecrease in transactionsoflogisticsfacilities,was8%,down from 9%inthesameperiod lastyear.
• TheshareofGreaterOsakawas6%,down significantlyfromthepreviousyearwhenitrecorded itshighestshare.
TokyoCBD(5-ku)
Tokyo(Excluding5-ku)
GreaterTokyo(ExcludingTokyo)
GreaterOsaka GreaterNagoya GreaterFukuoka
Other
Source:JLL
Note:TokyoCBC(5-kus)referstoChiyoda-ku,Chuo-ku,Minato-ku,Shinjuku-kuandShibuya-ku;GreaterTokyoreferstoTokyo,Chiba,SaitamaandKanagawa;GreaterNagoyareferstoAichi, GifuandMie;GreaterOsakareferstoOsaka,Hyogo,KyotoandNara; GreaterFukuokareferstoFukuoka,Saga,Nagasaki,Kumamoto,Oita,Miyazaki,KagoshimaandOkinawa.
JonesLangLaSalleK.K.
Tokyo Headquarters
KioiTower,
Tokyo Garden Terrace Kioicho
1-3Kioi-cho Chiyoda-ku, Tokyo 102-0094
+81343611800
Kansai
Nippon Life
Yodoyabashi Building
3-5-29KitahamaChuo-ku, Osaka541-0041
+81676628400
Fukuoka
FukuokaDaimyoGardenCity
2-6-50Daimyo, Chuo-ku,Fukuoka-shi
Fukuoka810-0041
+81922336801
Nagoya
JPTowerNagoya
1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
Formoreinformation,pleasecontact
Takeshi Akagi
HeadofResearch Research
Japan
takeshi.akagi@jll.com
COPYRIGHT ©JONESLANGLASALLEIP,INC.2025
ManabuTaniguchi
Senior Director Research
Japan
manabu.taniguchi@jll.com
TomomiKemmochi Senior Manager Research
Japan
tomomi.kemmochi@jll.com
KojiNaito
ResearchDirector
CapitalMarkets
Japan
koji.naito@jll.com
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