The weaker yen in the first half of 2026 has driven up construction costs, while shortages of skilled workers have become more severe and changes in the sources of investment have become increasingly pronounced. Investment in data centers and semiconductors is expected to continue expanding, against a backdrop that also includes supply chain restructuring and a shift back to domestic production.
In the first half of 2026, the weaker yen increased upward pressure on construction costs. In addition to price increases for materials with high import dependence, such as steel products and equipment, energy prices and logistics costs have remained elevated, affecting project profitability and investment decisions.
A serious shortage of construction resources is cited as a factor driving the market higher. In addition to shortages of skilled workers and specialist tradespeople, many subcontractors are operating close to the limits of their construction capacity, and supply continues to fall short of demand. As a result, a market environment favorable to construction companies has become established, affecting both construction schedules and costs.
Investment demand itself, however, has not declined, and the sources of investment are changing. Investors whose primary objective is real estate investment tend to review and extend their plans because rising construction costs have reduced yields, while operating companies, particularly manufacturers, continue to invest actively. Data centers, semiconductors, life sciences, infrastructure and headquarters offices are expected to remain firm.
Over the next 6 months, strong investment demand is also expected to continue in Japan in areas including data centers, manufacturing and semiconductors, life sciences, infrastructure, hotels and headquarters offices. This is closely linked to socioeconomic changes such as digitalization, shifts in industrial structures and efforts to strengthen supply chain resilience.