Real Estate Strategic Outlook for Japan 2024

This document is a research report that outlines the real estate strategic outlook for Japan as of December 2024. It discusses the expected economic growth driven by a real wage recovery, projecting a 1.1% increase in real GDP for 2025. The report details the impact of recent interest rate hikes by the Bank of Japan, which have raised the policy rate from -0.1% to 0.25%. It highlights the strong business sentiment in consumer-related sectors, supported by increased domestic consumption and inbound tourism. The report also addresses the challenges posed by rising construction costs and a modest capital value correction in the commercial real estate market. It notes that rental growth is anticipated to be a key driver for returns in the near future. Additionally, the report covers trends in logistics, residential, and office markets, including the implications of supply and demand dynamics on vacancy rates and rental prices.