Foreign population increase good for RE market says NLI Research Institute


The NLI Research Institute released a report comparing the Japanese citizen population decline to the increase in foreign immigration and found that existing foreign immigration rates is slowing the population decline by almost half.


This is specifically beneficial to real estate say NLI.

Deriving their data from that taken from statistics compiled by the Ministry of Internal Affairs and Communications, the NLI Research institute says the gap between Japanese citizen population declines and foreign immigration increases is rapidly widening.


Specifically, in 2016, the number of Japanese people decreased to 300,000 from the previous year. In the same year the number of foreigners in Japan increased 140,000. In short, increased immigration almost halved the population decline of Japan as a whole in 2016.

As the foreign population increases then naturally so does the total population of Japan. In 2000, foreigners made up only 1.03% of the population but in 2016 that percentage grew to 1.51%.

The number of households that include foreigners naturally grew as well. In 2016, households with one or more foreign person grew 123,000 which was a 7.8% increase compared to the previous year. This growth accounted for 23.4% of total household growth in 2016.

Measuring forward from 2017, the population of Japan is estimated to decline by 1.21 million people from by 2020, 3.99 million by 2025 and then further decline by 7.41 million people by 2030.

However, if the foreign population continues to increase at this rate this would greatly slow the overall population decline.

Foreign people in Japan pay the same taxes and contribute to the same social benefit programs as Japanese people; programs that will take a direct hit in financial capability should the current population continue to decline without any measures to encourage further immigration.

The NLI specifically points to real estate as a sector that can benefit greatly from increased foreign immigration.

Source: NLI Research Institute

Read more news on Housing Japan 360 – our cultivated mainstream news source discussing all thing real estate in Tokyo.