Shibuya massive makeover aims to be finished by 2035 says Tokyu

One of Tokyo’s largest and most ambitious urban renewal projects is entering its final stage. Tokyu Corporation has broken ground on the Central and West towers of Shibuya Scramble Square, pushing forward a massive redevelopment effort that began more than two decades ago.

Speaking at a press conference on June 3rd, Tokyu Executive Officer Yoichiro Sakai said the company aims to complete the new towers by fiscal 2031, adding major commercial space to the already transformed district.

Finished project CG rendering with Hachiko Square in the foreground.  Rendering courtesy of the Shibuya Station Area Joint Development Group.

Shibuya’s redevelopment spans 11 major projects, with Tokyu investing heavily to reshape the area into a vibrant, accessible, and resilient city center. Once chaotic and flood-prone, the neighborhood is being restructured with new pedestrian decks, improved transit connections, and underground infrastructure to manage heavy rain.

The upgrades also include expanded public plazas and emergency-ready buildings like Shibuya Hikarie.

Since the project began, Shibuya has seen a 33% increase in its workforce and steady growth in residents living near the station. Tech giants like Google Japan and DeNA have moved in, driving up demand for office and retail space.

As of May 2025, vacancy rates for retail locations in Shibuya are effectively zero, according to CBRE.

But the transformation hasn’t been without delays. Key developments like the Shibuya Upper West Project and the second phase of Scramble Square have been pushed back by two years, with completion now expected closer to 2031.

Tokyu acknowledges that the delay will limit the short-term impact on its earnings, even as completed buildings like Shibuya Axsh (not a spelling mistake – this is how the registered building name is in English) are already generating strong profits.

Tokyu’s vision extends beyond architecture. “We want to create a city people love - one that brings new energy and connections to Shibuya,” said Executive Officer Yoichiro Sakai. The company is planning events and art installations to keep the area lively while construction continues. 

The total investment is expected to exceed ¥2 trillion by 2040, with Tokyu covering about half. Even after the current phase ends, additional redevelopment projects are already being discussed. For Tokyu, Shibuya is more than a real estate project - it’s the heart of a long-term strategy to anchor its business in one of Tokyo’s most iconic neighborhoods.

Sources:

R.E. Port News (Japanese only)

Nikkei Shimbun (Japanese only; paywalled)