Market Size of Japan Commercial Construction Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.70 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
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Japan Commercial Construction Market Analysis
During the time frame of the forecast, it is expected that the market for commercial construction in Japan will register a CAGR of more than 6.7%.Even though some parts of the building industry are having trouble right now, Japan's medium- to long-term growth story is still strong.Over the upcoming four quarters, the Japanese building sector is anticipated to expand steadily.
- Government spending and subsidies for a housing program, as well as the government's anticipated focus on significant infrastructure projects, will aid in Japan's market growth.
- Since the economic bubble burst in the 1990s, the Japanese construction industry has been stuck for a long time. But in the last 10 years, it has started to grow again. Rebuilding efforts after the Great East Japan Earthquake in 2011 helped the area get back on its feet. The 2021 Tokyo Olympic Games served as a major demand generator in recent years. Both the Chuo Shinkansen maglev line's development and other building projects slated for the Osaka World Expo 2025 are anticipated to have a similar effect.
- For instance, in 2022, In the "Jingumae 6-chome District Type 1 Urban Redevelopment Project," which is being constructed in Harajuku, Tokyo, Tokyu Land Corporation and Kanroku Redevelopment have stated that they will start a business there in the spring of 2024. A building with a total floor area of about 19,940 square meters, consisting of 9 floors above ground and 3 floors below ground, will be built on the site of the former Olympia Annex Building at the intersection of Omotesando and Meiji Dori, along with commercial facilities, public amenities, and railroads. Parking area, substation building, etc. The structure is expected to be finished in August 2023.
- Even though things are calm now, the COVID-19 pandemic had a negative effect on the building industry. It caused many construction projects to temporarily stop and move more slowly. In contrast to many other countries, Japanese law did not give the government "strict" authority to impose steps, like a city-wide "lockdown," to stop the occurrence or spread of COVID-19.
