Nomura Real Estate to expand luxury housing amid record profit outlook
- Adam German
- 2 days ago
- 2 min read
On May 19th, the Nikkei Shimbun reported that Nomura Real Estate Holdings expects to post a record profit for the fiscal year ending March 2026, buoyed by strong condominium sales and rising office rents.
Amid continued strength in Japan’s real estate market, President Satoshi Arai told the Nikkei that the company will expand its offerings to include more ultra-luxury condominiums and centrally located single-family homes, aiming to position itself for long-term growth.
Nomura Real Estate Holdings President & Rep. Director Satoshi Arai. Photo courtesy of Nomura Real Estate Holdings.
According to the Nikkei, construction cost inflation has so far had a limited impact on Nomura’s core residential and office projects, many of which have already been contracted.
Nomura Real Estate anticipates that the effects of rising costs will begin to show in projects scheduled for beyond the fiscal year ending March 2028, particularly in redevelopment.
Some redevelopment plans have already been postponed or revised as a result of higher expenses though which specific projects were not elaborated on.
Despite these headwinds, Arai said the company continues to acquire land without major disruption.
In the global arena, the Nikkei reported that Arai said Vietnam accounts for roughly half of the company’s overseas assets. To reduce reliance on a single market, Nomura Real Estate is looking to diversify into other countries such as the United Kingdom and the Philippines.
As for geopolitical risks, such as the potential impact of renewed U.S. tariffs - often referred to as “Trump tariffs” - Arai said the company has not yet observed any decline in demand for high-end properties and is not incorporating such risks into its current forecasts.
Office rents are also expected to remain stable. However, he cautioned that a serious global economic downturn could weaken housing demand, a possibility the company is closely monitoring.
Source:
Nikkei Shimbun (Japanese only; paywalled)
