The 2024 cherry blossom season is projected to generate an economic impact of ¥1.39 trillion ($9 billion), the highest ever recorded in Japan, according to an annual report by Kansai University economist Katsuhiro Miyamoto. This represents a 22.2% increase from previous years and is attributed to increased tourism and a weaker yen.
Domestically, hanami is a cherished tradition, with each resident spending an average of ¥7,119 ($47) per person. In 2021, the economic impact was ¥181.5 billion, with 97.5% of attendees being locals. However, this year's hanami is expected to see a significant increase in foreign attendees, with more than a quarter of hanami-goers coming from abroad. This rise in both foreign and domestic attendees is projected to boost revenue across various sectors, including food, drinks, souvenirs, and transportation.
Hanami's impact on Japan's real estate market
The economic boost during peak season offers significant opportunities for the real estate market. Property owners can benefit from increased demand for short-term accommodations, leading to higher rental yields and occupancy rates. Additionally, properties in prime locations near seasonal attractions will likely experience increased value and investment potential. The overall economic growth will also encourage investment and development in the commercial real estate sector.
Why now is the best time to invest in Japan's real estate market
The real estate market, especially in areas with cherry blossom festivals, will be positively impacted by the hanami season this year. Property owners and investors will see positive returns due to the influx of tourists and the continued weakening of the yen. It's a great time to buy property in Japan, invest in a vacation rental, or capitalize on seasonal tourism, whether you're looking to buy property in Japan or invest in a vacation rental.
Source: Japan Today
