Why do Tokyo and Tokyo real estate attract foreigners? Why do foreign investors decide to invest in Tokyo properties after living a few years in Tokyo? 
According to the Tokyo Bureau of General Affairs, Statistics Division, the number of foreign residents at the end of January 2020 was 577,329.  Since 2013, the number of registered foreigners has been increasing year over year. For the past  15 years, I have been directly involved with investors in their desire to lease, purchase and sell real estate in the Tokyo area. Over the years, I have found that there were 3 common themes that attracted these investors to the Tokyo real estate market. 

Sense of Security 

One of the most compelling reasons my investor/clients decided to invest in, or/ purchase, Tokyo real estate was the Sense of Security.  Japan’s public safety security is recognized is as one of the best in the world.  My clients often remark that, when they see young children riding the train alone, a single woman can walk late at night unaccompanied, or students enjoying the entertainment centers throughout Tokyo, they sense there is a mutual sense of respect and support for one another’s safety.  

Spirit of Omotenashi 

The word often mentioned as second reason is the “Omotenashi” spirit is the second reason.  You might know this word since it became very famous when Japan made the bid for the 2020 Tokyo Olympics 2020.  “Omotenashi” refers to the spirit of providing hospitality, service, and entertainment to customers with all their hearts.  You can experiment with the  “Omotenashi” spirit in your daily life in Japan. For instance, when you use subways or trains, there are “best boarding and alighting position maps” situated strategically on the platform.  The maps, show the best car to board so that you can alight closest to the most convenient exit at your best boarding entrance for your destination station.  The maps are also useful for it helps parents many mothers with strollers and elderly people in wheelchairs who need to use an elevator.   
Another aspect of “Omotenashi” that comes in as the second most widely held popular opinion is “punctuality”.  For example, trains on the JR Yamanote Line, which is the most popular train line in Tokyo, the run comes every 3 minutes with no delay.  Another example is that most of the repairmen will call you if they will be late more than 10 minutes late for their appointment, etc.   

The charm of Japanese Culture 

Thirdly, there is a common thread among my Investors/clients ….it is their love of all things related to Japanese culture.  Of course, many of them are inspired by such Japanese food such as “Sushi”, “Soba”, and  “Ramen”, etc.  But, they all say that it’s the healthiness of Japanese cuisine that makes them want to learn more about it.  They are very healthy so they would like to learn more about Japanese food.  
Another fact of Japanese culture that they admire is “cleanliness” as exemplified by Japan’s tradition of bathing, specifically the “Onsen” (hot spring).  Since many foreigners do not have the habit of taking a bath naked with others, they are uncomfortable at first.  Yet, once my investors and clients understood the traditions, etiquettes, practices, and expectations of Onsen bathing, taking a bath in Japanese style became a part of their daily ritual and routine. 

The “3A” areas

Let’s now focus more on Tokyo real estate now.  Have you ever heard of the “3A” area” of Tokyo real estate where asset values do not decline in Tokyo real estate?
There is an ultra-luxury enclave area called the “3A” in Minato Ward.  The 3 districts forming the acronym are those places are “Azabu”, “Aoyama” and “Akasaka.”  Tokyo real estate within each acronym is called the “3A” area and is expected to continue to maintain a high asset value and be high into the future.  The price of the real property here is a few times higher than the average, and it is unlikely that the supply will exceed the demand in the future due to its desirability.

Then, why is the 3A area very popular with both the Japanese and foreigners?  Let me explain.  One of the allures of  “Azabu” is the mysterious atmosphere that harmonizes the noble ambiance atmosphere and with the warmth of its people.  You will find there is a high-class residential area in the Moto-Azabu subdistrict.  At the same time, you will also find about 300 shops and eateries of all types in the Azabu-Jjuban subdistrict where you can feel the vibes of Japanese downtown admit full of humanity.  
In Addition to it, there are many embassies from around the world here due to the historical background of the first US legation embassy, which dates back to 1859.  Even if you look around Azabu, you can see the streets that are somewhat reminiscent of Europe.  The average market price in 2021 for real estate in the Azabu–jJuban area is 1.27 million yen/m2, according to the land general information system operated by Japan’s ministry of land, infrastructure, transport, and tourism (MLIT). 

“Aoyama” is attractive thanks to because of the coexistence of diverse values.  This area has been drawing attracting attention as a locus place disseminating sending out the latest lowdown information on lifestyle, such as “fashion”, “beauty”, and “gourmet”.  However, if you step into the alleys from the major street, they open up to a quiet residential area where locals go about where you can live your daily life. 
Another charm of “Aoyama” is that within a 10–minute walking distance if you walk about 10 minutes, you will find the “National Stadium,” which was the ere a venue is for the opening ceremony of the Tokyo Olympics 2020, and the “Meiji Jingu Gaien”, an urban oasis famed for its ginkgo tree boulevard where you can find abundant greenery.  Aoyama is also very attractive to the entertainment industry. There are places that are used to film popular TV drama series and motion picture films too.  The average market price of pre-owned apartments and condominiums in Minami Aoyama in 2021 is 1.75 million yen/m2.  This was an increase of ere was 11.5% increase of price since last year. 

“Akasaka” is located on the west side of Central Tokyo.  This area has developed as a residential area for the “Samurai” class during residence since the Edo period.  “Akasaka” has continued to evolve, which has been developing since the Edo period, eagerly taking has always taken in new trends and concepts and has evolved.  There are many embassies including the American Embassy; numerous luxury hotels where businessmen from an overseas stay in high-end restaurants run by celebrity chefs and major TV stations.

One of the allures of “Akasaka” is the convenience of transportation.  There are three subway stations in the area which create a hub of subway lines. You can easily reach Tokyo Station but also many surrounding wards areas without changing trains.  It can be said that this is a city where you can truly enjoy a satisfying urban the city lifestyle.  According to the Land General Information System, the average market price for pre-owned condominiums and apartments in Akasaka, Tokyo in 2021 is 1.72 million yen/ m2. 
Other than the above “3A” areas, there are other popular districts in Tokyo real estate, such as “Hiroo”, “Ebisu”, and “Nakameguro”.  Located in Shibuya Ward, the “Hiroo” area borders the Azabu area.  is next to Shibuya, Ebisu, and Roppongi where there is plenty of upscale housing and shops that attract and cater to foreigners.  It is also nice to have high-end supermarkets, “National Azabu” and “Meijdi–ya Store,” where expart can find and sells myriad plenty of international foods.  Some of my clients’ customers were so relieved and impressed that they could go to the “National Azabu” for ingredients to and make recreate and cook comfort food from their homeland at any time. 

“Arisugawa Memorial Park,” located in front of Hiroo station, is an indispensable attraction in the Hiroo area, which is popular as a green oasis in Hiroo.  There are “Tokyo Metropolitan Central Library” is inside the park so that many neighbors often visit the park.  It is also great to see you may find Japanese and foreign children playing together in the park. 

“Ebisu” also in Shibuya Ward, is famous as a place where you can enjoy the latest trends. It was such as the birthplace of Japan’s first gourmet restaurant that has been imported from overseas.  This popular area is frequently visitable by many entertainers and celebrities.  I recommend the east side of “Ebisu” station because it is well-lit that lots of lights at night and even a woman would feel safe so that you can feel even safer for a woman to walk the street alone. 

“Nakameguro” is a city in Meguro Ward that is known for its a high level of convenience and stylish environment.  In June 2018, the local government, with the participation of local residents, started a town planning campaign called the “Nakame Style” to improve the living environment.  There will be many other events, in addition to the more than “Nakameguro Sakura Matsuri” and “Nakameguro Light Up” planned for in the future.  These days many select shops, fashionable boutique shops, eclectic restaurants and avant-garde galleries are gathered along the Meguro river, which itself is famous for the cherry blossoms.  

Recently, there is an area in Tokyo that is gradually becoming popular with investors/clients. It is the Konan area of Shinagawa ward.  The Konan area covers the waterfront location on the Tokyo Bay that spreads out on the eastern side of the Shinagawa Station. When Shinagawa became one of the stations for the Tokaido Bullet Train in 2003, various high-rise buildings and apartments, such as “World City Towers” and “Shinagawa V Tower”, were constructed in the Konan area.  A new JR station called “Takanawa Gateway” is opened in March 2020, and the development of a new town is planned around the new station for opening in 2024.

One of the allures of the Konan area is its waterfront location.  High-rises located overlooks a panoramic views of Tokyo Bay and the city of Tokyo is second to none.  It’s next to major JR terminal, at the Shinagawa station, a great advantage. If you live in the Konan area, you can use Shinagawa Station, which provides easy access to major cities all over Japan.  Another convenient station is “Tennozu Isle” station, which offers gives you easy access to other Tokyo cities, “Shinjuku”, “Shibuya” and “Ebisu” etc.

The average market price for pre-owned condominiums and apartments in Konan, in 2021 is 1.19 million yen/ m2.  This was an increase of, which is about 9.5% increase compared to last year. There is an expectation for further increase in expectations for further development in the area goes as planned.