Do property investments in the world’s fifth-largest economy add up for foreigners after visa fee hikes and a tightened monetary policy?
3-MIN READ3-MINCheryl ArcibalPublished: 9:00am, 28 Jun 2026With Japan imposing higher visa fees for tourists from July while moving away from an ultra-loose monetary policy, foreign investors must prepare themselves for both direct and indirect impacts on their real estate assets, according to agents and analysts.There is a dearth of data on the total number of homes bought by non-residents in Japan, but agents said the two main reasons for purchasing were to either use them as a primary base while they explored the country’s tourist destinations, or as an investment to be rented out on short- and long-term leases.
For now, rising interest rates in Japan could have a bigger impact on investors, as it applies to individuals in the residential property sector as well as institutional investors in commercial real estate.
Kohei Kawai, a research senior director at Colliers International Japan, said that BOJ’s effort to normalise its monetary policy by raising interest rates had narrowed the advantage of a wide yield gap – the spread between property yields and borrowing costs.
The tightening monetary policy also comes amid the government’s closer scrutiny of foreign investment in property.
