
Tokyo average asking rents dip 0.5%
This is for 1F retail units in the city, in H2 2024.
A recent Savills report cited the semi-annual survey conducted by the Japan Real Estate Institute (JREI) and BAC Urban Projects, which revealed that average asking rents for 1F units in Tokyo have strengthened by 3.0% HoH while dipping by 0.5% year-on-year (YoY).
“Similarly, non-1F asking rents grew by 4.3% HoH and 2.8% YoY. Overall, Tokyo’s prime retail submarkets have been performing well, on the back of strong and sustained growth in inbound tourism, supporting consistent take-up of space and a greater sense of scarcity for retail properties in prime areas that have a strong pull for inbound tourists, in particular,” the report said.
Here’s more from Savills:
The Japan Department Stores Association reported that annual nationwide department store sales had reached JPY5.8 trillion in 2024, up 6.8% YoY. Similarly, annual duty-free sales climbed 85.9% YoY to JPY648.7 billion, fuelled by high tourist demand for luxury goods. Japan has been emerging as a preferred travel destination, with the number of inbound visitors in 2024 having reached close to 37 million, and this figure is projected to exceed 40 million in 2025.
Likewise, inbound tourist expenditure per capita has continued to grow, reaching record levels of nearly JPY227,000 per traveller in 2024, equating to a 43% increase from 2019 levels, and the total expenditure by foreign tourists amounted to JPY8.1 trillion in 2024, 53% higher than in 2023, though still well below 1.5% of GDP, according to the Japan Tourism Agency (JTA).
The number of inbound tourists has already exceeded 10 million in Q1/2025, an increase of approximately 23% compared to Q1/2024, according to Japan National Tourism Organization (JNTO). Notably, Chinese tourists appear to have made a meaningful return, with 2.4 million arrivals recorded in Q1/2025, an annual increase of 78%, partly driven by the recently relaxed visa application requirements for Chinese nationals.
Furthermore, the successful opening of the Expo 2025 in Osaka has been attracting a wave of inbound visitors. Organisers aim to draw 28 million attendees, further supporting the ongoing rise in inbound tourism to Japan. Elsewhere, domestic spending has also been firm, and continued strong wage growth is expected to further support a positive retail market outlook.