Tokyo tops 2025 Q1 global real estate investment rankings says JLL
- Adam German
- Jun 6
- 2 min read
Commercial real estate investment in Japan surged to a record high of over ¥2 trillion in the first quarter of 2025, according to data released by U.S.-based property services firm Jones Lang LaSalle (JLL).
Tokyo emerged as the world’s top city for real estate investment during the period, outpacing New York and Dallas-Fort Worth.
The total value of real estate investments in Japan reached ¥2.095 trillion (approx. $14 billion) between January and March, marking a 23% increase year-on-year and surpassing the ¥2 trillion mark for the first time since JLL began tracking the data in 2007.
The global market also experienced strong growth, with total investments rising 34% to $185 billion (approx. ¥27 trillion). While activity increased in Japan and across Western markets, China recorded a 33% decline, reflecting continued economic stagnation and a weakening property market.
Tokyo Leads All Global Cities in Q1 2025
Tokyo led the global rankings with $11 billion in investment during Q1, significantly ahead of New York at $7.3 billion and Dallas–Fort Worth at $6.3 billion.
A key driver of Japan’s investment boom was the influx of foreign capital, which surged to ¥633.1 billion - more than 3.7 times higher than the same period a year ago.
Notable transactions included U.S. private equity firm Blackstone’s acquisition of Tokyo Garden Terrace Kioicho from Seibu Holdings for approximately ¥400 billion.
Patience Capital Group together with Hong Kong-based Gaw Capital Partners also purchased the Tokyu Plaza Ginza commercial complex.
Tokyu Plaza Ginza courtesy of Edomura no Tokuzo via Wikipedia.
Beyond major investment funds, wealth management firms representing affluent individuals from China and other parts of Asia have also been increasingly active.
Meanwhile, domestic life insurers are allocating more capital to real estate as an alternative asset class.
Strong Inbound Tourism Boosting Returns
Central Tokyo continues to benefit from a rebound in inbound tourism, pushing up retail rents and hotel rates. This has improved profitability for commercial properties, while tightening supply-demand dynamics are driving up office rents. Office buildings accounted for 60% of total real estate investment in Japan during the quarter.
JLL forecasts that real estate investment in Japan could approach ¥6 trillion for the full year 2025, up from approximately ¥5 trillion in 2024.
