5 Reasons for Investing in Osaka Real Estate

There’s plenty of headline news these days about global investors snapping-up real estate in Japan. According to MSCI Real Assets, Japan was the most active commercial property investment market in Asia in the first half of 2023 with US$ 16.3 billion in deal volume. The way has been led by institutional investors, with private investors fast becoming aware of the advantages of buying in Japan, and in Osaka in particular.

L Catterton in partnership with LVMH have bought in to a major redevelopment project in Osaka with local real estate business, Hulic. City Developments Limited from Singapore have invested heavily in Osaka’s hospitality sector, and Blackstone from the USA have also said that hotels in Japan are at the top of their list of investments.

In addition to the historically weak Japanese Yen, down 17% against the Thai Baht in the past two years, and the transparent legal and regulatory system, political and economic stability, and a freehold property structure with no restrictions on foreign ownership in Japan, here are five reasons for Osaka’s special popularity among investors:

1. Osaka city-centre is one of the few major metropolitan centres in Japan allowing private short-term rentals due to an insufficient supply of hotel rooms, and yearly visitor projections are soon expected to surpass the pre-pandemic figure of 12.3 million.
2. In 2025 Osaka will host the Osaka-Kansai Expo which in turn is stimulating infrastructure development, including the spaceship themed train on the Chuo Line subway.
3. A new Integrated Resort on Yumeshima Island, including an MGM Casino, will open in 2030 and is expected to draw 15 million visitors and generate revenue of US$ 3.3 billion annually.
4. In 2023 The Economist Intelligence Unit (EIU) voted Osaka the most liveable city in Asia, and among the top 10 cities in the world.
5. Property affordability and ease of management with prices for freehold investment condominiums generating a 5% annual net yield starting from under THB 12 million, available with hassle-free tenant management services.

Investing in real estate in Japan can meet the criteria for buyers to apply for a Japanese Business Management Visa which can lead to qualification for permanent residency. For more information on the Business Management Visa, and how invest in Japan, please email [email protected] and reserve your seat at our Japan Property Event at the Skyview Hotel on Sukhumvit 24 (Phrom Phong BTS Station) on 27-28 January 2024!