[Real-Estate] Exploring the 8 Different Types of Real-Estate Investment Opportunities Available to Individuals in Japan
The real estate market has seen a significant increase in foreign investment since 2020, with investments surpassing ¥1 trillion for three consecutive years. This trend shows no signs of slowing down, as more and more foreign investors are drawn to the lucrative opportunities in the sector.
There are several reasons to this, but the main ones are:
Undervalued and politically stable market: Japan's real-estate market is attractive to foreign investors due to its undervaluation and political stability. Japan's real-estate yields, or the ratio of income obtained to real-estate prices, are generally higher than those in major overseas cities like London and New York. Additionally, Japan is considered to be a relatively safe country for real-estate investment due to its low risk of political instability and relatively low risk of disasters like earthquakes.
High yield: In recent years, real-estate investment strategies have increasingly focused on the monthly rental income obtained from renting out offices and residences. Rental income is more stable than real-estate prices, so this approach allows for investment in low-growth areas.
Cheap exchange rates: The depreciation of the Japanese yen in recent years has made Japanese assets cheaper for foreign investors. When the yen is weak, foreign investors can purchase properties in Japan at a lower cost.
Overall, foreign investors are attracted to Japan's real-estate market due to its undervaluation, political stability, high yields, and relatively cheap exchange rates.
So how can you get into investing in real-estate in Japan?