11
" Some foreigners may find the required documents and procedures for serviced apartments in Japan cumbersome , but this is due to the need for a lease agreement that supports “ living ” rather than “ staying ”." growth of Japan ’ s accommodation market . Another recent trend is the growing preference for oneand two-bedroom units in areas slightly outside central Tokyo , where rents are lower , as remote work becomes more common .
2 . Legislative landscape : overview of Japan ’ s rental regulations
Serviced apartments in Japan are typically operated under the Ministry of Land , Infrastructure , Transport and Tourism ’ s regulations , which require stays of at least one month and formal lease agreements rather than standard hotel contracts . Some foreigners may find the required documents and procedures for serviced apartments in Japan cumbersome , but this is due to the need for a lease agreement that supports “ living ” rather than “ staying .”
Japan ’ s 2018 Minpaku Law allows licensed properties to offer short-term stays of up to 180 days per year , provided they meet specific conditions and obtain special licenses . Rules vary by municipality , and recent demand for medium- and long-term stays among expatriates and business travellers has prompted an increase in serviced apartments with hotel licenses to maximize revenue .
3 . Growth and market opportunities : rise of high-end developments
Mori Living , Japan ’ s leading serviced apartment provider , has spearheaded the growth of premium serviced apartments like the Azabudai Project , catering to executives , high-net-worth individuals , and domestic business leaders . These properties offer not only highquality living spaces but also premium amenities such as concierge services and spa facilities .
Credit : Mori Living
The Azabudai Project ’ s 160 units , with a variety of studio and two-bedroom layouts , are designed to meet the diverse needs of global clientele . The scale and ambition of this project reflect Mori Building ’ s confidence in Tokyo ’ s continued appeal as an international business hub .
The Hyatt House Tokyo Shibuya , which opened in March 2024 , and lyf Shibuya , set to open in November 2024 , also illustrate the diversification of the serviced apartment market . Hyatt House provides a hotelstyle apartment with full kitchens and spacious living areas , ideal for business travellers and long-term tourists . Lyf Shibuya ’ s co-living design , with its vibrant shared spaces , is geared toward younger , creative professionals , offering a new option in Japan ’ s serviced apartment sector .
4 . Future predictions and challenges : adapting to competition and economic changes
Tokyo ’ s serviced apartment market is expected to remain active for some time , but challenges persist . Competition among domestic and international operators is intensifying as the market expands . Rising costs for utilities , materials , and labour are additional concerns , and continuing to offer highquality services and facilities will be key to maintaining a competitive edge .
Currency fluctuations also impact corporate budgets , and further monitoring of exchange rates will be essential for companies managing expatriate housing costs .