- Located in Tokyo’s Toshima Ward, Ikebukuro Station is the second busiest railway hub in the world, hosting eight train lines and recording around 2.7 million passengers each day.
- Toshima Ward is rebuffing expectations of population decline and Ikebukuro is redefining its image as both a business and residential hub.
- Retail activity in the submarket has been largely concentrated amongst department stores integrated within the station and owned by railway operators. However, new, mixed-use developments and entertainment complexes are drawing large footfalls outside of the station.
- Ikebukuro is home to a number of institutions of higher education and a new international campus is in the pipeline. Notwithstanding the immediate impacts of COVID-19, demand for compact housing and student accommodation should increase over the mid-tolong term.
- New offices in the area offer a 40% discount over comparable properties in Shibuya. Given its affordability and robust railway access, Ikebukuro should become a popular target for satellite offices in the “new normal”.
Post-COVID potential for a diamond in the rough
Ikebukuro is a late bloomer in the current cycle, undergoing large-scale redevelopment for the first time in 40 years. This may be well-timed as, with nearly 3 million commuters passing through the station on a daily basis, the surrounding area could be a prime location for satellite offices.
Savills Research & Consultancy