Japanese investors are increasingly interested in India's real estate market, drawn by the potential for long-term growth and returns. Several major Japanese companies, including Mitsui Fudosan, Mitsubishi Corporation, Sumitomo Corporation, and Genkai Capital, are looking to invest or increase their investments in the Indian real estate sector.
1. Key Investments:

• Mitsui Fudosan: Partnered with RMZ Corp to develop a $1 billion commercial project in India.
• Mitsubishi Corporation: Invested around ₹180 crore in a residential project developed by Shriram Properties in Chennai.
• Sumitomo Corporation: Acquired a three-acre land parcel in Mumbai's Bandra Kurla Complex for ₹2,238 crore.
  2. Why Japanese Investors are Attracted:
  Long-term capital: Japanese investors offer long-term capital, typically with an investment horizon of 8-12 years.
• Risk appetite: They have a risk appetite for equity transactions across various asset classes in real estate.
• Expected returns: Japanese investors are looking for Internal Rate of Return (IRR) of around 18% on their investments. 

3. Government Support:
The Comprehensive Economic Partnership Agreement (CEPA) between India and Japan has facilitated stronger bilateral ties, making it easier for Japanese investors to operate in the Indian real estate market

SOURCE: Mint 8th June 2025 Publishing.