Investment MarketDynamics
Keytrends
1
Globalinvestmentrecoveryhasbecome clear
Therecovery ofglobalrealestateinvestment volume,whichstartedtoincrease from3Q, becameclear,withtheincrease ininvestment volumesexpandingin4Q.Investmentvolumein theAmericas,whichhadbeenslowtorecover, alsoincreased significantlyinthefourthquarter.
2
Japan’sinvestment volumesexceedsJPY fivetrillionforthefirsttimeinnineyears
Thereweremanylarge-scaletransactionsin offices,retail,logisticsfacilitiesandhotelsacross thecountry,andinvestmentvolumeinJapan increased by63%fromthepreviousyear, exceeding JPYfivetrillionforthefirsttimeinnine years.Hotelinvestmentvolumeexceeded JPYone trillionforthefirsttime,accountingfor19%oftotal domesticinvestmentvolume.
3 4
Investmentdemandremainsstrong despiterisinginterestrates
Interestratescontinuetorise,buttheycanbesaid tobeamongthelowestintheworld,andthe aggressivelendingstanceofbanksremains unchanged.Investmentdemandcontinuestobe strongduetothediversificationofassetsunder managementbydomesticinvestorsandthe returnofoverseasinvestors,resultingina continuedactiverealestateinvestmentmarket.
Outlook
Thefirstquarterof2025hasalreadyseenseveral large-scaletransactions,andtherealestate investmentmarketisshowingevenmoreactivity. Therealestateinvestmentmarketin2025is expected tocontinuetooutpacethatof2024,with increasinginvestmentopportunitiesduetothe saleofcorporaterealestate,andsoon.
Historicalglobalinvestmentvolume
Globalinvestmentvolume
• Globalrealestateinvestment volume increased 14% y-o-ytoUSD703billionin2024.
• TransactionsintheAmericaswere up10%y-o-y; in EMEA(Europe, theMiddleEastandAfrica),theywere up17%y-o-y; andinAsia-Pacific,theywere up17%yo-y.
• InAsia-Pacific,JapanandSouthKoreasawlargerscaleofficetransactionsstartinginthethirdquarter, andthisactivitybroadened toinclude Australiainthe fourthquarter.Japan, AustraliaandSouthKorea led ininvestment volumesin4Q,withlarge-scale transactionsinoffices,hotelsandlogisticsfacilitiesin Japan.
Source:JLL
HistoricalJapaninvestmentvolume
Japaninvestmentvolume
• In4Q24,domestic realestateinvestment volume was up31%q-o-q and166%y-o-ytoJPY1,630.8billion (USD10.7billion,up149%y-o-y).
• Investment volume infull-year2024totalledJPY 5,487.5billion,up63%y-o-y, exceeding JPYfive trillionforthefirsttimeinnineyears.Inthehotel sector, therewere large-scaletransactions,including theGrandNikkoTokyo Daiba,inthefourthquarter, andthetotalinvestment volume for2024exceeded JPYonetrillion.
Source:JLL
Globalcityrankingbyinvestment volume
Globalcityranking
• In2024,byglobalcityinvestment ranking, Tokyo cameinsecond withatotalinvestment volume of USD20.18billion.Tokyo maintained theleadfrom thefirsttothirdquartersbutwasovertaken byNew York inthefourthquarter.
• Osakaranked18thplaceatUSD7.71billion, remaining withinthetop 20from1Q24.
Source:JLL
Inboundinvestments
• Inbound investment, whichisthepurchasevolume of realestatebyoverseasinvestors, wasJPY939.7billion in2024,up63%fromJPY575.8billionin2023.
• Theshareofinbound investment in2024was17%, unchanged fromtheprevious year.
Historicalinboundinvestmentvolume
Source:JLL
Historicalinvestment volumesharebySector
Sectoranalysis
• Theshareofofficeinvestment in2024was36%, expanding from33%in2023.Transactions oflargescaleofficebuildingsincentralTokyo, including MeguroGajoenandOtemachiOneTower, recovered in4Q2024.
• Hoteltransactionswere seenalloverJapan, from HokkaidotoOkinawa.Thetotalinvestment volume forhotelsin2024exceeded JPYone trillionforthe firsttimesinceJLLbegan trackingitin2008, accounting for19%ofthetotaldomestic investment volume.
• Theretailsharewas7%,thelogisticsfacilitiesshare was24%andmultifamilyhousingwas12%,down slightlyfrom11%,26%and13%in2023,respectively.
Source:JLL
Historicalinvestment volumesharebylocation
Locationanalysis
• In2024,theshareofTokyo CBD(5-kus)was27%, down slightlyfrom28%in2023.
• TheshareofGreaterTokyo (excluding Tokyo), or Chiba,SaitamaandKanagawaprefectures, was13%, alsodown from17%in2023.
• TheshareofGreaterOsakawas22%,thehighest sinceJLLstartedtrackingitin2008.
Source:JLL
TokyoCBD(5-ku) Tokyo(Excluding5-ku) GreaterTokyo(ExcludingTokyo)
GreaterOsaka
Other
Nagoya
Fukuoka
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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