The Real Deal New York

Big in Japan: RE funds have poured $15B into the market since 2014

Investors expect their yields will remain comparatively high relative to government bonds
April 14, 2018 01:45PM

(Credit from back: Pixabay, Nesnad)

Japanese real estate is racking up billions from foreign investors — and has been for years.

Between January 2014 and September 2017 alone, real estate funds have sunk about $15 billion into Japanese property markets, according to Bloomberg, with expectation that, thanks to the Bank of Japan, investment yields will stay high relative to government bond.

The staggering interest is consistent with the moves of Norway’s sovereign wealth fund, the largest in the world, and its property group, Norges Bank Real Estate Management; Norges has set aside nearly $1 billion for investment in Japanese real estate. In 2017, over $10 billion in foreign real estate investment poured into the country — more than triple the amount invested in 2016.

On the flip side, Japanese investors are increasingly looking to U.S. real estate as viable investments, in light of the U.S. rising interest rates, as The Real Deal reported. [Bloomberg]Erin Hudson