The Japanese real estate market has recently attracted more and more foreign investors. The reason for this is the lower interest rates compared to other key markets.

According to a report from JLL, foreign investment in Japan in Q1 2023 increased by 43% compared to the same period last year—during this time, the country has attracted $8.9 billion. By comparison, investment in America and Europe fell 61% and 58%, respectively, during the same period.

“Foreign investors are actively trying to enter Japan because of its favorable interest rate differential compared with other key markets,” said JLL's representative Koji Naito.

In the United States, for example, rising interest rates have been the main factor that has led to a decline in investment in the country over the past year. In addition, following the collapse of Silicon Valley Bank in March, many leading industry figures have begun to express concern about the mounting debt that will mature as early as 2025.