Japan renovation orders rise 18.7 percent to JPY 16.4 trillion in FY2025

Orders for building renovation and renewal projects in Japan climbed 18.7% year-on-year to JPY 16.4 trillion in FY2025, according to MLIT.

The increase was driven by strong demand for repairs, refurbishments, and energy-efficiency upgrades.

Photo by Renovations Certified on Unsplash

Residential renovation orders increased 18.7% to JPY 4.9 trillion, while non-residential projects rose 18.6% to JPY 11.5 trillion, highlighting broad-based growth across the sector.

FY2025 Renovation Market at a Glance

• Total renovation and renewal orders: JPY 16.4 trillion (+18.7%)

• Residential projects: JPY 4.9 trillion (+18.7%)

• Non-residential projects: JPY 11.5 trillion (+18.6%)

The growth was led by refurbishment, renovation, maintenance, and repair work, which accounted for the overwhelming majority of activity in both residential and non-residential buildings.

Repair and Refurbishment Drive Demand

Among residential projects, refurbishment and renovation work totaled JPY 3.82 trillion, up 17.4% from the previous fiscal year, while maintenance and repair work increased 35.4% to JPY 921.5 billion.

Non-residential refurbishment, renovation, maintenance, and repair projects reached JPY 10.9 trillion, representing a 20.0% year-on-year increase.

The data suggests property owners continue to prioritize upgrading and extending the useful life of existing assets rather than undertaking major structural expansions.

Top Property Types by Renovation Spending

Residential

1. Detached houses: JPY 2.51 trillion (+15.4%) 

2. Apartment buildings: JPY 2.32 trillion (+21.7%)

Non-Residential

1. Office buildings: JPY 2.50 trillion (+13.3%)

2. Production facilities (factories and workshops): JPY 2.42 trillion (+18.1%)

Apartment buildings recorded faster growth than detached houses, while offices and industrial facilities remained the largest sources of non-residential renovation demand.

Fourth-Quarter Snapshot (January–March 2026)

Renovation activity remained strong throughout the final quarter of the fiscal year.

• Total orders: JPY 3.70 trillion (+10.8% year-on-year)

• Residential projects: JPY 1.17 trillion (+27.0% year-on-year)

• Non-residential projects: JPY 2.54 trillion (+4.7% year-on-year)

The figures compare the same quarter a year earlier.

Energy-Efficiency Upgrades Continue to Expand

Energy-saving improvements remained a significant source of renovation activity.

Residential energy-efficiency projects increased 16.5% year-on-year to 84,200 contracts, making them the second most common category after repairs of deteriorated or damaged building components.

In the non-residential sector, energy-efficiency projects rose 27.6% to 65,473 contracts, also ranking second behind repair and replacement work.

Meanwhile, projects involving the repair or replacement of deteriorated or damaged building components totaled approximately 1.70 million residential contracts and 777,670 non-residential contracts, underscoring the importance of asset maintenance across Japan's building stock.

The survey points to continued strength in Japan's renovation market, supported by demand for repairs, modernization projects, and energy-efficiency improvements across both residential and commercial properties.

Source:

R.E. Port News (Japanese only)