The real estate market can be divided into residential and commercial properties. When it comes to residential properties, the number of condominiums sold remained stable in recent years and amounted to around 80 thousand units in 2018. Next to domestic customers, the demand is partly driven by foreign investors. Except for some historically protected locations, Japan has no restrictions on foreign real estate property ownership, making it an attractive market for investors from other countries. At the same time, the home rental rate among Japanese households has decreased in the last decade, indicating that more and more people are buying homes instead of renting. Leading businesses in the real estate market include companies such as Nihon Housing, Tokyu Community, and Daikyo Astage, while leading housing developers include companies such as Sumitomo Realty & Development, Pressance Corporation, and Nomura Real Estate Development.
When it comes to commercial properties, the major metropolitan areas have shown an increase in land prices, while in many rural areas, prices are decreasing. While Japan’s burgeoning tourism industry and low interest rates led to increased hotel and office building numbers throughout the country, more than half of all office space in Japan was located in the Tokyo Metropolitan Area. The central business district in Tokyo is made up of the five wards Chiyoda, Chuo, Minato, Shibuya, and Shinjuku. Vacant office space in Tokyo's central business district has decreased considerably in recent years, while the average monthly office rent increased.