Forecast: Value Added of Real Estate in Japan

The forecasted value added of real estate in Japan from 2024 to 2028 shows a steady yearly increase from 67.472 trillion JPY in 2024 to 69.085 trillion JPY in 2028. Using 2023 as a base, this trend reflects consistent growth year-on-year, progressing by approximately 0.6-0.7% annually. Looking at the past two years from 2022 to 2023, the industry showed noteworthy resilience, maintaining stability amidst global economic uncertainties.

Over the longer term, the Compound Annual Growth Rate (CAGR) from 2024 to 2028 is 0.6%. This steady, albeit modest growth highlights the sector's potential for continued expansion.

• The real estate market is supported by sustainable urban development and government policies aimed at revitalizing rural areas.
• Emerging trends in proptech and green building standards are also expected to drive value addition in the sector.
• However, demographic challenges, such as an aging population and fluctuating birth rates, could pose potential risks.