- Average 1F asking rents in Tokyo contracted by 10.6% half-year-on-half-year (HoH), primarily due to the absorption of higher-priced units, which brought down the overall average. Achieved rents, especially for prime units, remain elevated.
- In regional markets, average 1F asking rents saw a slight uptick of 0.2% over the past half-year. Major regional submarkets continue to experience limited availability in prime areas, which should support elevated rental levels.
- While demand for luxury goods remains elevated, growing demand for branded footwear and eyewear retailers has intensified competition with luxury brands for prime spaces on main streets.
- Inbound tourism figures continue to witness growth in key regional cities. As inbound visitors continue to seek out more unique cultural experiences, secondary regional retail markets should continue to grow in parallel.
- Retail investment volumes exceeded JPY1 trillion in 2025, roughly 2.0% higher than 2024 figures, demonstrating resilience in the retail sector.
Prime retail strengthens amid heightened competition
Prime main-street retail corridors continue to outperform, while improvement continues to broaden across the wider retail market, supported by shifting consumer demand for lifestyle products, cultural goods, and experiential services.
Savills Research & Consultancy