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Japanese (NIKKEI) Real Estate Sector Analysis

UpdatedDec 24, 2025
DataAggregated Company Financials
Companies168
  • 7D0.5%
  • 3M6.0%
  • 1Y29.9%
  • YTD28.0%

The Real Estate industry has stayed flat over the last week. As for the the longer term, the industry is up 30% over the past 12 months. As for the next few years, earnings are expected to grow by 3.7% per annum.

Sector Valuation and Performance

Has the Japanese Real Estate Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Dec 2025JP¥42.6tJP¥21.8tJP¥2.5t17.7x17.2x2x
Sat, 22 Nov 2025JP¥41.7tJP¥21.7tJP¥2.5t16.8x16.8x1.9x
Mon, 20 Oct 2025JP¥39.7tJP¥21.4tJP¥2.4t17.4x16.3x1.9x
Wed, 17 Sep 2025JP¥40.6tJP¥21.4tJP¥2.4t17.6x16.6x1.9x
Fri, 15 Aug 2025JP¥38.9tJP¥21.4tJP¥2.4t17.6x16x1.8x
Sun, 13 Jul 2025JP¥35.9tJP¥21.1tJP¥2.4t17.3x14.9x1.7x
Tue, 10 Jun 2025JP¥36.0tJP¥21.5tJP¥2.4t16.9x14.8x1.7x
Thu, 08 May 2025JP¥36.4tJP¥21.2tJP¥2.3t16.8x15.7x1.7x
Sat, 05 Apr 2025JP¥34.6tJP¥21.1tJP¥2.3t16.2x15x1.6x
Mon, 03 Mar 2025JP¥34.6tJP¥21.3tJP¥2.3t17.2x14.9x1.6x
Wed, 29 Jan 2025JP¥35.4tJP¥21.1tJP¥2.2t17.4x16x1.7x
Fri, 27 Dec 2024JP¥33.9tJP¥21.0tJP¥2.2t16.8x15.4x1.6x
Sun, 24 Nov 2024JP¥33.8tJP¥20.9tJP¥2.2t17.3x15.5x1.6x
Tue, 22 Oct 2024JP¥34.5tJP¥20.8tJP¥2.2t17.5x15.4x1.7x
Thu, 19 Sep 2024JP¥34.8tJP¥20.6tJP¥2.2t17.5x15.6x1.7x
Sat, 17 Aug 2024JP¥35.5tJP¥20.8tJP¥2.2t18.3x16x1.7x
Mon, 15 Jul 2024JP¥36.1tJP¥20.4tJP¥2.1t19.3x16.8x1.8x
Wed, 12 Jun 2024JP¥35.4tJP¥20.4tJP¥2.1t18.6x16.6x1.7x
Fri, 10 May 2024JP¥37.1tJP¥20.1tJP¥2.2t19.5x17.2x1.8x
Sun, 07 Apr 2024JP¥36.6tJP¥20.1tJP¥2.1t19.1x17.1x1.8x
Tue, 05 Mar 2024JP¥34.3tJP¥20.1tJP¥2.1t18.9x16x1.7x
Thu, 01 Feb 2024JP¥34.9tJP¥20.0tJP¥2.2t18.3x16.2x1.7x
Sat, 30 Dec 2023JP¥33.8tJP¥20.0tJP¥2.1t18.1x15.9x1.7x
Mon, 27 Nov 2023JP¥34.2tJP¥19.9tJP¥2.1t17.8x16x1.7x
Wed, 25 Oct 2023JP¥32.4tJP¥19.6tJP¥2.1t17.9x15.6x1.7x
Fri, 22 Sep 2023JP¥33.8tJP¥19.6tJP¥2.1t17.8x16.3x1.7x
Sun, 20 Aug 2023JP¥32.0tJP¥19.6tJP¥2.1t17.6x15.5x1.6x
Tue, 18 Jul 2023JP¥31.6tJP¥19.4tJP¥2.0t16.5x15.5x1.6x
Thu, 15 Jun 2023JP¥31.8tJP¥19.4tJP¥2.0t16.3x15.7x1.6x
Sat, 13 May 2023JP¥30.8tJP¥19.1tJP¥1.9t16x16x1.6x
Mon, 10 Apr 2023JP¥29.3tJP¥19.0tJP¥1.9t15.6x15.3x1.5x
Wed, 08 Mar 2023JP¥30.0tJP¥19.0tJP¥1.9t16.8x15.8x1.6x
Fri, 03 Feb 2023JP¥29.5tJP¥18.8tJP¥1.9t16.8x15.5x1.6x
Sun, 01 Jan 2023JP¥30.1tJP¥18.8tJP¥1.9t16.8x15.8x1.6x
Price to Earnings Ratio

15.8x


Total Market Cap: JP¥30.1tTotal Earnings: JP¥1.9tTotal Revenue: JP¥18.8tTotal Market Cap vs Earnings and Revenue0%0%0%
Japanese Real Estate Sector Price to Earnings3Y Average 15.8x202320242025
Current Industry PE
  • Investors are relatively neutral on the Japanese Real Estate industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 15.8x.
  • The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 2.0x.
Past Earnings Growth
  • The earnings for companies in the Real Estate industry have grown 9.3% per year over the last three years.
  • Revenues for these companies have grown 5.0% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Japanese Real Estate sector?

JP Market1.62%
Real Estate0.51%
Industrial REITs1.82%
Hotel and Resort REITs1.74%
Residential REITs1.13%
REITS0.99%
Health Care REITs0.70%
Retail REITs0.64%
Real Estate0.22%
Office REITs0.12%
Industry PE
  • Investors are most optimistic about the Industrial REITs industry which is trading above its 3-year average PE ratio of 26.2x.
    • Analysts are expecting annual earnings growth of 5.1%, which is higher than its past year's earnings growth of 1.0% per year.
  • Investors are most pessimistic about the Real Estate industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 12.6x.
Forecasted Growth
  • Analysts are most optimistic on the Real Estate industry, expecting annual earnings growth of 5.4% over the next 5 years.
  • However this is lower than its past earnings growth rate of 20% per year.
  • In contrast, the Retail REITs industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
8802 Mitsubishi EstateJP¥3.82k1.2%
+JP¥57.0b		76.3%PE23.5x
3003 HulicJP¥1.74k2.7%
+JP¥34.2b		26.7%PE12.2x
8804 Tokyo TatemonoJP¥3.62k3.4%
+JP¥24.7b		41.6%PE12.6x
8830 Sumitomo Realty & DevelopmentJP¥7.90k0.6%
+JP¥23.2b		63.4%PE18.3x
3231 Nomura Real Estate HoldingsJP¥965.002.2%
+JP¥18.1b		25.4%PE13x

Latest News

3283
JP¥93,600.00
Nippon Prologis REIT
7D
1.7%
1Y
26.9%

3283: Modestly Higher Discount Rate Will Shape Fair Outlook For REIT

Analysts have modestly raised their fair value estimate for Nippon Prologis REIT from ¥94,770 to ¥96,000, citing slightly faster expected revenue growth and a higher justified earnings multiple. These positives are partially offset by a marginally lower profit margin and a higher discount rate.
8951
JP¥143,100.00
Nippon Building Fund
7D
-0.3%
1Y
15.3%
3003
JP¥1,739.00
Hulic
7D
2.7%
1Y
26.7%
8804
JP¥3,619.00
Tokyo Tatemono
7D
3.4%
1Y
41.6%
1925
JP¥5,169.00
Daiwa House Industry
7D
-1.1%
1Y
8.0%

Daiwa House Industry's (TSE:1925) Dividend Will Be Increased To ¥100.00

Dec 21
Daiwa House Industry's (TSE:1925) Dividend Will Be Increased To ¥100.00
3289
JP¥1,440.00
Tokyu Fudosan Holdings
7D
1.3%
1Y
52.2%
8972
JP¥176,100.00
KDX Realty Investment
7D
-0.3%
1Y
20.5%
8802
JP¥3,819.00
Mitsubishi Estate
7D
1.2%
1Y
76.3%
3309
JP¥88,200.00
Sekisui House Reit
7D
3.2%
1Y
15.7%
3475
JP¥1,206.00
Good Com Asset
7D
-4.1%
1Y
40.7%
8801
JP¥1,775.00
Mitsui Fudosan
7D
-0.9%
1Y
42.0%

8801: Share Buybacks And Dividend Policy Will Shape Returns Into 2026

Analysts have raised their price target on Mitsui Fudosan from ¥1,857 to ¥1,920, citing slightly faster expected revenue growth and a modestly lower discount rate that together more than offset a marginal cut to long term profit margin assumptions. What's in the News Board approves a new share repurchase program of up to 60,000,000 shares, or 2.16% of outstanding stock excluding treasury shares, for a total of ¥57,000 million.
3231
JP¥965.00
Nomura Real Estate Holdings
7D
2.2%
1Y
25.4%

3231: Revenue Outlook And Lower Dividend Will Shape Balanced Return Profile

Analysts have nudged their price target on Nomura Real Estate Holdings higher to approximately ¥1,024 from about ¥1,005, citing slightly faster expected revenue growth and a modestly richer future P/E multiple. These factors more than offset a small reduction in projected profit margins and a higher discount rate.
3498
JP¥7,520.00
Kasumigaseki CapitalLtd
7D
-4.1%
1Y
19.2%

We Think That There Are Issues Underlying Kasumigaseki CapitalLtd's (TSE:3498) Earnings

Dec 09
We Think That There Are Issues Underlying Kasumigaseki CapitalLtd's (TSE:3498) Earnings
8830
JP¥7,897.00
Sumitomo Realty & Development
7D
0.6%
1Y
63.4%

Sumitomo Realty & Development's (TSE:8830) Upcoming Dividend Will Be Larger Than Last Year's

Dec 09
Sumitomo Realty & Development's (TSE:8830) Upcoming Dividend Will Be Larger Than Last Year's
1878
JP¥3,000.00
Daito Trust ConstructionLtd
7D
-0.3%
1Y
-14.6%
5078
JP¥5,350.00
CEL
7D
-9.5%
1Y
32.4%