New purchases for Japan won’t be long. Despite the Covid .Despite the drama of the pandemic. This is the news that is leaving us puzzled, but also intrigued. That’s why we decided to focus our mini guidebook on this one. At a time like the present, the few markets that manage to stand out are worthy of note. Therefore, it is obvious to focus on Japanese real estate. It seems to know no equal, so much so that, according to forecasts, it will continue to stay afloat. Especially in the area of commercial real estate. So, if you are ready, we can start our mini guide! Let’s go to Japan!
Before analysing the current situation, it is appropriate to take a step back to understand what the starting point was. A recent analysis carried out between the end of 2019 and the beginning of 2020 highlighted how commercial investment would increase in Japan. All this, despite three major threats reported at unsuspicious times:
So how was it possible, despite a less than encouraging situation, to achieve these positive results?
Simply thanks to the spirit of initiative of Japanese investors.
So what was the winning strategy in such an uninspiring climate ? the race to buy ! In view of the economic outlook, which already indicated a significant price increase (44%), investors thought it would be a good idea to take advantage of the moment. As the Latins say, carpe diem! It is therefore not surprising how, in a short time, the interest in real estate has also increased both nationally and internationally.
The stability of income flow has been seen as an encouraging element, as well as a constant to be exploited to the full. A propensity to take risks – according to many – which would increase more and more in the following months.
What were the most commonly used strategies for the purchase of commercial real estate ? Prime or Core for 29 % of the population surveyed, Core – Plus or Good Secondary for 26 %. We also add, currently, the so-called ”high risk” strategies such as ”Value – Add” (understandable in a period like this).
Immediately after the commercial sector, there is the office sector, considering that Japan has undergone a very strong economic expansion in recent years.
We must not forget also the great interest in sustainability. Japan, unlike neighbouring China, has always had an eye for environmental protection. The latter has also poured into real estate, increasing interest from investors.
What can I say, it seems that Japan has defended itself very well against Covid – real estate!
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