Market capitalization of the REIT market in Japan 2015-2023

As of the end of 2023, the market capitalization of the Japanese real estate investment trust (J-REIT) market amounted to around 15.4 trillion Japanese yen. The figure decreased from 15.8 trillion yen in the previous year. 

What is a REIT?

Real estate investment trusts are investment vehicles that acquire income-producing real estate and distribute 90 percent or more of the profits generated to investors. In this way, they allow individuals to invest in large-scale commercial properties without owning them themselves. REITs own a variety of properties, from multifamily residences to logistics facilities. Some specialize in a particular sector, while others have a mixed portfolio. REITs were first introduced in the United States in the 1960s. The first Japanese REIT was listed much later in 2001. Since then, the Japanese REIT market has gradually expanded to become one of the largest in the world in terms of market capitalization.

The REIT market in Japan

Publicly traded REITs in Japan are known under the term J-REITs. Around 58 of them were listed on the Tokyo Stock Exchange in 2023. In addition, there is a growing number of privately placed REITs primarily aimed at institutional investors.
J-REITs held around 4.7 thousand properties in 2023. Offices accounted for 39 percent of their portfolio based on the acquisition value. The majority of REIT properties were located in Japan’s capital Tokyo and the surrounding metropolitan region.