Core Viewpoint - The real estate investment in Japan is experiencing significant growth, with a 22% year-on-year increase in the first half of 2025, surpassing 3 trillion yen for the first time since 2007, driven by low interest rates and rising rental expectations [2][7]. Investment Trends - Real estate investment in Japan reached 3.1932 trillion yen in the first half of 2025, marking a 22% increase compared to the previous year [2]. - Tokyo ranks first among global cities for real estate investment, with overseas investors increasing their purchases by 3.7 times, accounting for 34% of Japan's total real estate investment [5][7]. Sector Analysis - Office buildings represent 53% of the total real estate investment in Japan, with significant transactions occurring in Tokyo's central areas [4]. - Major transactions include Mitsubishi Estate's acquisition of the Akasaka Park Building and Wacoal's sale of its building in Kyoto, indicating a trend of asset sales among companies [4]. Regional Insights - The five central districts of Tokyo (Chiyoda, Chuo, Minato, Shinjuku, Shibuya) accounted for 56% of the investment, the highest since the first half of 2018 [5]. - The Osaka region's share of investment decreased to 10%, down from 21% the previous year, as hotel investment demand related to the Osaka Kansai Expo has subsided [5]. Future Outlook - JLL forecasts that Japan's real estate investment will approach 6 trillion yen in 2025, with financial institutions maintaining a positive stance on real estate financing [7]. - The current investment return rate for A-grade office buildings in Tokyo's central districts is between 2.0% and 2.5%, with expectations of slight increases if interest rates rise further [7].