The appeal of Japan as a key commercial real estate investment destination is indisputable. Japan not only provides global investors with the breadth and depth of liquidity to diversify their portfolio across sectors but also resilience and durability of income to mitigate risks across cycles. The living sector has in recent years gained increasing interest as a target asset class among institutional investors. The demographic proposition for the senior living sector across key regional capital cities is especially alluring: structural demand buoyed by an ageing society with strong affordability but limited by the low provision rate and fragmentation among operators. As the landscape for senior homes in Japan continues to evolve with deeper institutional penetration, liquidity and pricing margin will expand, positioning this asset class for attractive long-term performance.

Demographic tailwinds to drive growing demand

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