Published on and written by Cyril Jarnias
The upheavals caused by the Covid-19 pandemic have profoundly reshaped Japan’s real estate landscape, prompting many buyers to rethink their priorities. As telecommuting became commonplace, Japanese families began to favor larger living spaces, often outside densely populated metropolises, fueling a resurgence of interest in once-overlooked residential areas. The appeal of single-family homes with private gardens and multifunctional spaces intensified, reflecting a growing desire for comfort and flexibility in the face of persistent uncertainty. Consumer preferences, marked by a quest for security and well-being, reveal a significant transformation of traditional housing aspirations in this dynamically cultural country.
Lasting impact of covid on Japanese real estate
Persistent impact of COVID-19 on the Japanese real estate market
COVID-19 has caused shifts in preferences among buyers and renters in the Japanese real estate market, which continue to have lasting effects.
- The widespread adoption of working from home and telecommuting has strengthened the desire to move away from urban centers
- Demand has notably increased for spacious homes in suburbs or regions, equipped with a home office space
- Properties with outdoor spaces (such as single-family homes with gardens) have become popular
- The focus on the natural environment is more pronounced than ever
Regional differences in price and land variations
Land prices show regional differences:
| Region | Price trend | Influencing factors |
|---|---|---|
| Urban areas | Stable | Low interest rate policies |
| Osaka region | Stable | Balanced demand |
| 23 wards of Tokyo | Strong recovery | Sales of luxury homes |
| Commercial real estate | Not recovered | High vacancy rates |
Demand for new construction and renovations and future outlook
Although the number of housing starts has gradually stabilized since 2022:
- The renovation market has become active as a measure to adapt to the new lifestyle
- Demand for renovation work to adapt homes for telecommuting or improve energy efficiency has increased
- Funds continue to flow into specific-use properties, such as logistics facilities
Good to know:
COVID-19 has profoundly influenced real estate buyer preferences in Japan, boosting demand for properties located outside urban centers, driven by an increased desire for telecommuting in more spacious homes with dedicated home offices. This trend is accompanied by a preference for residences offering outdoor spaces, such as gardens or balconies. According to a 2023 study, property prices saw an average increase of 5% in suburban areas while they stagnate or decline in overcrowded urban centers. This has influenced new construction, prompting developers to consider designs incorporating these new priorities, and marking a notable increase in renovations to adapt homes to post-pandemic living requirements. Looking ahead, the Japanese real estate market may be characterized by a continuation of these trends, with growing importance placed on quality of life as well as socio-economic changes, notably an aging demographic that could reshape investment priorities.
Evolution of preferences for telecommuting in Japan
Impact of the COVID-19 pandemic on work styles and the real estate market in Japan
Spread of telecommuting and its trends
The COVID-19 pandemic rapidly accelerated the adoption of telecommuting in Japan. In July 2024, 22.6% of full-time employees were telecommuting, with higher proportions in large companies. However, at the start of 2025, the overall telecommuting rate fell to 14.6%, a historically low level.
| Sector | Telecommuting rate (2024) | 2025 trend |
|---|---|---|
| IT industry | 35% | Stable |
| Financial services | 28% | Slight decline |
| Retail | 12% | Marked decline |
| Manufacturing | 8% | Stable |
Shift in real estate buyer priorities
The change in lifestyles due to the rise of telecommuting has also influenced real estate buyer expectations:
- Increased demand for a space to work comfortably from home
- Growing interest in homes with a home office or larger floor area
- Increase in moves to suburbs or rural areas
Good to know:
Since the COVID-19 pandemic, telecommuting has become a more widespread work style in Japan, with a notable 20% increase in employees working from home according to a 2023 survey. The technology and service sectors have particularly adopted this practice, and Tokyo, often congested, has seen growing interest in properties located in quieter residential suburbs. Buyers now seek homes with an extra room for a home office, which has driven up prices in peripheral areas. A recent case study reveals that 35% of respondents moved in search of better living spaces suited to telecommuting. These trends demonstrate a redefinition of residential priorities in Japan, transforming the buyer profile in the post-pandemic real estate market.
New buyer criteria in post-covid Japan
Post-COVID purchase criteria in the Japanese real estate market
Increased demand for telecommuting spaces and homes with private gardens
Following the lifestyle changes induced by the novel coronavirus, in Japan there is growing demand for:
- Additional spaces for telecommuting
- Leisure rooms (such as tiny houses installed in gardens)
- Homes with large plots or private gardens
Hygiene and safety awareness and interest in environmental and medical infrastructure
| Criterion | Importance | Examples |
|---|---|---|
| Safety/hygiene | High | Contactless services, supply storage |
| Environment | Growing | Energy-efficient fixtures |
| Technology | Medium to high | Smart home, IoT |
| Location | Variable | Proximity to medical facilities |
Good to know:
In post-covid Japan, real estate buyers now prioritize homes suited to telecommuting, with dedicated rooms and private gardens for a better work-life balance. Health concerns drive the search for properties near medical facilities, while interest in eco-friendly and sustainable construction increases. Additionally, technology plays a crucial role, with growing demand for high-quality internet connectivity and smart home equipment. Younger generations, often more mobile, prefer urban areas with these infrastructures, while families tend to settle in rural areas where space and proximity to nature are more accessible. These trends, accentuated by demographic and cultural changes, are shaping a rapidly evolving real estate market in Japan.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
