April 17, 2017

Changes in the Use of Real Estate Over Time

How real estate is used changes over time due to various factors including economic trends, industrial structure, lifestyle changes, and government policies. The source of such changes is the developments of each property, such as the replacement of aged buildings with new ones (re-building), conversion of existing buildings into new usages, or construction of new buildings on vacant land.

Although we can sense that the use of real estate has changed, which changes the impression of the streets, there are few surveys that "visualizes" the change in concrete figures. Therefore, Xymax Real Estate Institute (hereinafter, "Xymax REI") carried out a survey of central Osaka where change in real estate use has been seen in recent years due to the surge in inbound tourism demand and large-scale developments.

We hope these basic data on real estate use help many people, including not only individual owners, users, and investors of property but also policy-makers, in thinking of the future use of real estate.

Key Findings
In central Osaka, buildings have become larger and used more for purposes other than office. Many of the newly built office buildings are located north of Honmachi, mainly in Umeda, indicating that the center of offices is shifting north. There has been a return of population to the central areas due to a surge in the construction of condominiums. Commercial and accommodation facilities are increasing on the back of inbound tourism.

Key Findings

In central Osaka, buildings have become larger and used more for purposes other than office.
Many of the newly built office buildings are located north of Honmachi, mainly in Umeda, indicating that the center of offices is shifting north.
There has been a return of population to the central areas due to a surge in the construction of condominiums.
Commercial and accommodation facilities are increasing on the back of inbound tourism.