Japanese real estate is enjoying a surge in popularity this year -- particularly in Tokyo, with the metropolis's hotels, office space and residential properties being some of the most desired by international investors.

About US$2.2 billion have been invested in Japanese properties so far in 2010. On top of this amount, foreign private equity groups, REITs and brokers have allocated another $6.6 billion for investments in Asia, particularly in Japanese assets and property debts.

Though it was not hit by the financial crisis, Japan is now benefiting from it. After going through its own economic slump and property market crash throughout the 1990s, it now has the opportunity to grow along with its neighbours, assisted by trending investments in distressed and marked-down residential and commercial assets. The bottoming out of property prices and a recovery of the debt market are drawing investors to the country.

Source: Overseas Property Mall