Why buying a house or land in Japan is so popular with foreigners

Japan is a country where foreigners can own houses and land just like Japanese people.
Furthermore, they can own real estate without any rules or restrictions such as permanent residency, nationality, or visas.
Japan is the only country in the world where foreigners can own real estate without restrictions.
In this article, we will take a deeper look into why Japanese housing and land are so popular with foreigners.

To begin with, what are the great things about Japan from a foreigner’s point of view?

Most of you probably have a good image of Japan when it comes to owning land in Japan.
Due to the current world situation, you would think that prices in Japan are low because of the rapid depreciation of the yen against the U.S. dollar.
Therefore, in recent years, when the global outbreak of the coronavirus has calmed down, we often see foreigners visiting Japan as tourists in the city.

Many of them come to Japan to buy many things.
And in restaurants, the “spirit of hospitality,” or “service spirit,” which is unique to Japan, is highly appreciated.
I believe that people feel better about their image of Japan when they can eat out more cheaply than in other countries and still receive service with a high level of service spirit.

Other reasons for Japan’s high ranking in the list of “Great things about Japan” are its good image in terms of its history and tourist attractions.
In October 2023, Condé Nast Traveller, an American travel magazine, ranked Japan as the most attractive country in the world.
I believe that Japan’s popularity will continue to grow worldwide, including historical buildings, seasonal attractions, history, and Japanese food culture.

This increase in the number of foreigners who find Japan as a whole attractive suggests that the number of foreigners residing in Japan has been growing rapidly in recent years.

Why can foreigners freely buy real estate in Japan?

While other countries have many regulations, foreigners in Japan can freely buy real estate with almost no restrictions.
First, let us discuss the advantages for Japan.

Japan has shown a liberal stance regarding the buying, selling, and ownership of land and buildings.
By making them free, foreigners who want to invest in land and buildings can conduct transactions without restrictions, making it easier for foreign companies to set up operations in Japan.
This will enhance the Japanese economy by allowing them to set up factories, shopping centers, or buy condominiums.

Why is Japanese real estate so popular overseas?

The first and most important reason is that land prices in Japan are lower than in other countries.
There are ways to not only reside in it, but also to turn it into your own asset.

Buying land in Japan is cheaper than in other countries.
But the average rent in Japan is relatively high, so you can fund it with a good yield.
The frequency of vacancies in Japan is also lower than in other countries, so you can earn stable rents.

As explained in the previous sentence, foreigners can buy real estate in Japan with almost no restrictions, making it easy to conduct this type of business.
Japan as a whole is also said worldwide to be safe from conflicts, international connections, and social aspects, so you can do business with peace of mind.

The next thing I will mention is the “weak yen.
There is a clear reason for the sudden depreciation of the yen.
Japan and the U.S. have been easing their monetary policies toward each other, but as the U.S. tightened its monetary policy in 2022, the interest rate gap between Japan and the U.S. opened up, and many investors began to sell yen to buy dollars, creating a weak yen situation.
In this situation, many foreign investors felt that buying Japanese real estate was undervalued.

Conclusion

Unlike other countries, Japan has almost no visa or permanent residency requirements, and real estate can be acquired in the same way as Japanese people.
This makes it an attractive proposition for many investors, and also makes Japan a relatively safe place to invest in terms of security, politics, and safety in the country.

In addition, Japan can broaden its field of business by attracting foreign companies and investors, and the relationship can be mutually beneficial.
With this in mind, it can be said that foreigners are becoming more popular to purchase real estate in Japan.