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Residential Real Estate - Japan

Japan
  • The Residential Real Estate market market in Japan is projected to reach a value of US$14.20tn by 2024.
  • This represents a significant growth potential for the country's real estate sector.
  • It is expected to show an annual growth rate (CAGR 2024-2029) of 1.53%, resulting in a market volume of US$15.32tn by 2029.
  • In global comparison, it is worth noting that the largest Real Estate value is expected to be generated China, with an estimated value of US$112.9tn in 2024.
  • This further highlights the scale of the real estate market China compared to other countries.
  • The Residential Real Estate market is a crucial segment in the overall real estate industry, and these projections demonstrate the potential growth and value within this sector in Japan.
  • The demand for luxury apartments in Japan's residential real estate market is soaring due to the country's affluent population and high standards of living.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

In-Scope

  • Residential real estate transactions
  • Residential real estate leases

Out-Of-Scope

  • Real estate agencies
  • Construction companies
  • Accommodation services, such as Airbnb
  • Commercial real estate leases and transactions
  • Publicly owned buildings used by the local government
  • Buildings used for public health care services
Residential Real Estate: market data & analysis - Cover

Market Insights report

Residential Real Estate: market data & analysis

Study Details

    Value

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Volume

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Residential Real Estate market in Japan is experiencing significant growth and development. Customer preferences in the Japanese real estate market have been shifting in recent years. There is a growing demand for smaller, more affordable housing options, particularly in urban areas. This is driven by a combination of factors, including changing demographics and a desire for convenience and accessibility. Additionally, there is an increasing interest in sustainable and energy-efficient homes, as environmental consciousness grows among consumers. One of the key trends in the Japanese residential real estate market is the rise of co-living and shared housing. With the high cost of living and limited space in urban areas, many young professionals and students are opting for shared accommodation to reduce expenses and enhance social connections. Co-living spaces offer a range of amenities and services, catering to the needs of this target market. Another trend in the market is the development of smart homes. With advancements in technology, homeowners are increasingly looking for properties that are equipped with smart devices and systems. These homes offer convenience, security, and energy efficiency, attracting buyers who value modern living. Local special circumstances in Japan also contribute to the development of the residential real estate market. The country has a rapidly aging population, which has led to a shortage of suitable housing for the elderly. As a result, there is a growing demand for senior-friendly homes and retirement communities. Developers are capitalizing on this trend by designing properties that cater to the unique needs and preferences of older adults. Underlying macroeconomic factors also play a role in the growth of the Japanese residential real estate market. The country's low interest rates have made it more affordable for individuals to borrow money and invest in property. Additionally, the government has implemented various measures to stimulate the real estate market, such as tax incentives and subsidies for homebuyers. These factors have contributed to an increase in housing transactions and a boost in property prices. In conclusion, the Residential Real Estate market in Japan is experiencing significant growth and development, driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors. The demand for smaller, more affordable housing options, co-living spaces, and smart homes is on the rise. The aging population and low interest rates further contribute to the market's expansion.

    Transaction Value

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Revenue

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Household Type

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Real Estate Type

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Community Size Split

    Most recent update: Mar 2024

    Sources: Statista Market Insights, Statista Consumer Insights Global

    Living Space

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Methodology

    Data coverage:

    Figures are based on total and average value of residential real estate, residential estate transactions and leases.

    Modeling approach:

    Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

    Forecasts:

    We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

    Additional Notes:

    Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

    Financial

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    Residential Real Estate: market data & analysis - BackgroundResidential Real Estate: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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    Residential real estate in Europe - statistics & facts

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    Residential real estate in India - statistics and facts

    Generally considered the third key pillar of the food, clothing, and shelter trinity popularized in India over generations, owning a home is still prioritized as a measure of financial security by a vast majority of the Indian population. The COVID-19 pandemic with its successive lockdowns and restrictions to stay within the confines of one’s home, further reinforced this vision. India’s growing urban population, rising household incomes, and decade-long low-interest rates have been propelling the demand for residential units, driving up the sales volume. Even though the residential real estate sector was severely hit in 2020, it marked a strong recovery in consecutive years, crossing pre-COVID sales figures.
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