Investment MarketDynamics
Keytrends
1
Globalinvestmentvolumesreturnto growth
Globalrealestateinvestmentvolumesin1Q-3Q 2024increased y-o-yforthefirsttimeinawhile.
InvestmentvolumesintheAmericas,whichhad beendecliningy-o-y,leveledofffromtheprevious quarterandseemed tohavebottomedout.
Investmentdemandremainsstrong despiterisinginterestrates
Evenamidrisinginterestrates,theaggressive lendingstanceofbanksremainsunchanged,and investmentdemandremainsstrong,resultingina limitedimpactontherealestateinvestment market.
Japan’sinvestment volumesincrease significantly
Numeroushoteltransactionstookplaceacross Japan,andinvestmentvolumesincreased significantlyy-o-y.
Largetransactionswereseen inavarietyof sectors,includinglargeofficesbydomestic investorsandlargelogisticsfacilitiesbyoverseas investors.
Outlook
Consideringthepipelineofmultiplelarge-scale transactionsandtheappetiteofinvestorsto acquireproperties,theinvestmentvolumein2024 isexpected toreachJPY5trillion.
In2025,withtherecoveryofoverseas investor investmentandthediversificationofdomestic investors,continuedactivityinJapan'srealestate marketisexpected.
Historicalglobalinvestmentvolume
Globalinvestmentvolume
• Globalrealestateinvestment volumesincrease6%yo-y toUSD471billionin1Q-3Q24.
• TransactionsintheAmericaswere flaty-o-y, inEMEA (Europe, theMiddleEastandAfrica),theywereup5% y-o-y, andinAsia-Pacific,theywere up28%y-o-y.
• Investment activityinAsia-Pacificcontinued to improve, withSingapore-led growthinthethird quarter.SouthKorea andJapanremainactivewith largeprime officetransactionsdriving growth in Korea andcross-borderinvestorsfuelingcontinued interestinopportunities inJapan.
Source:JLL
HistoricalJapaninvestmentvolume
Japaninvestmentvolume
• In3Q24,domestic realestateinvestment volume was up38%q-o-q and110%y-o-ytoJPY1,246.2billion (USD8.00billion,up95%y-o-y).
• Investment volume in1Q-3Q24totalledJPY3,856.7 billion,up40%y-o-y. Source:JLL
Globalcityrankingbyinvestment volume
Globalcityranking
• In1Q-3Q24,byglobalcityinvestment ranking,witha totalinvestment volume ofUSD14.95billion,Tokyo keptthetopposition from1Q24.
• Osakawasin18thplaceatUSD5.48billion,remaining withinthetop20from1Q24.
Source:JLL
Historicalinboundinvestmentvolume
Inboundinvestments
• Inbound investment, whichisthepurchasevolume of realestatebyoverseasinvestors, wasJPY465.8billion in1Q-3Q24,down 12%fromJPY530.7billioninthe sameperiod lastyear.
• Theshareofinbound investment in1Q-3Q24was 12%,down from19%inthesameperiod lastyearand 17%forfullyear2023.
Historicalinvestment volumesharebySector
Sectoranalysis
• Theshareofofficeinvestment in1Q-3Q24was37%, expanding from33%forfull-year2023.
• Hoteltransactionswere seenalloverJapan, from HokkaidotoOkinawa,andthesharewas21%,the highestsinceJLLbegan trackingin2008.
• Ontheotherhand,theretailsharewas8%,down slightlyfrom11%forfull-year2023.Theshareof logisticsfacilitieswas18%,down significantlyfrom 26%forfull-year2023.
• Theshareofmultifamilyhousingincreasedslightlyto 14%.
Historicalinvestment volumesharebylocation
Locationanalysis
• In1Q-3Q24,theshareofTokyo CBD(5-kus)was27%, slightlydown from28%forfull-year2023.
• TheshareofGreaterTokyo (excluding Tokyo), or Chiba,SaitamaandKanagawaprefectures, was12%, alsodown from17%infull-year2023.
• TheshareofGreaterOsakawas22%,thehighest sinceJLLstartedtrackingin2008.
Tokyo CBD (5-ku) Tokyo (Excluding 5-ku)
Greater Tokyo (Excluding Tokyo) Greater Osaka
Nagoya
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
DaihakataBldg.
2-20-1Hakata-ekimae, Hakata-ku,Fukuoka-shi Fukuoka812-0011
+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.2024
ManabuTaniguchi
Senior Director Research
Japan
manabu.taniguchi@jll.com
TomomiKemmochi Manager Research
Japan
tomomi.kemmochi@jll.com
KojiNaito
ResearchDirector
CapitalMarkets
Japan
koji.naito@jll.com
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