Japan Plans to Build 10k Homes for Digital Nomads as Statistics Reach 1bn by 2035

• Sommana Yan
• 2 January 2024
• Uncategorized
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In a groundbreaking initiative, Mitsubishi Estate has announced its vision to provide accommodation for the growing wave of digital nomads in Japan, aiming to operate 10,000 rental homes by 2030. The real estate giant has recently entered into a licensing agreement with the U.S.-based peer, Blueground Holdings, renowned for its specialised housing services, marking the first introduction of such offerings in Japan, according to Nikkei Asia dated 31 December 2023.

Under a wholly-owned subsidiary of Mitsubishi Estate, the service will kick off by subletting and furnishing rental properties, predominantly in the Tokyo metropolitan area. The homes will be curated to cater to the needs of foreigners seeking stays ranging from one month to a year. The company, leveraging Blueground’s expertise, plans to streamline the rental process online in English through the Blueground reservation system, ensuring a seamless experience for its clientele.

Initially targeting central Tokyo areas such as Shibuya and Shinjuku, known hubs for international visitors, the rental prices are anticipated to fall within the range of 300,000 yen to 500,000 yen per month, aligning with the upscale services provided.

Mitsubishi Estate has been progressively expanding its footprint in the rental housing sector, primarily targeting young foreigners since the inception of its rental condominium business in 2019, currently managing approximately 700 homes. The collaboration with Blueground seeks to diversify its offerings, targeting a broader age range and culminating in a total of 10,000 homes by 2030. The ambitious venture is expected to generate sales of 20 billion yen with an operating profit of 3 billion yen.

Recognising the increasing demand from digital nomads, Mitsubishi Estate aims to tap into this dynamic demographic, which encompasses individuals leveraging information technology to work remotely and transiently. With an estimated 35 million digital nomads worldwide, and projections indicating a potential surge to 1 billion by 2035, the race to attract this globally mobile workforce is fierce, especially in the residential servicing sector.

• Technology and Engineering
• Digital and Smart City