Key players in the real estate industryThe real estate market encompasses various fields such as real estate development and sales, brokerage, leasing, and property management. Companies operating in real estate sales and brokerage or property management for condominiums are regulated and supervised by the Ministry of Land, Infrastructure, and Tourism (MLIT). With a law that came into effect in June 2021, the requirement to register with MLIT was extended to rental property management companies and new rules and standards were introduced to the leasing business in general.
The key players of the Japanese real estate industry are large corporations that combine a wide range of services from development to property management through numerous subsidiaries under their umbrella. Three major corporations are Mitsui Fudosan, Japan’s leading real estate company based on sales revenues, Mitsubishi Estate and Sumitomo Realty & Development.
Recent trends in the real estate industryAmidst a worldwide drive for digital transformation (DX) in the real estate industry, Japanese companies have started to adopt digital technologies to improve their services. The PropTech market (property technology market) was projected to expand significantly over the coming years, largely driven by an increase in the business-to-consumer (B2C) segment. Digitalization in the real estate industry also received a further push amid the coronavirus (COVID-19) pandemic, with some companies introducing 360-degree virtual tours for potential home buyers, or implementing electronic contract systems, among others.
As Japan is pushing for a shift towards renewable energy, an increasing share of major developers has announced plans for a switch to green energy in their properties over the coming decade, among them Mitsubishi Estate and Mitsui Fudosan.