Promote people to move to rural areas

Promote people to move to rural areas
Project Summary

Encouraged major real estate companies to promote “Moving to rural areas “, thereby supported the planning and projects execution assisting business for reginal revitalization of local governments. The agreement was concluded between multiple companies including our clients and the municipality. They are to engage in joint town development under public and private partnership.

Reduction in rental housing demand in rural areas due to declining population
Japan Policy Council led by Hiroya Masuda, the former Minister of Internal Affairs and Communications (MIC), raised a cautionary note in the “Stop Declining Birthrate / Regional Revitalization Strategy” (so-called “Masuda Report”), that 896 municipalities might disappear by 2040. This built a momentum. After this, there was a rising voices calling for countermeasures against the declining population in rural areas and the centralization of the major cities. Under these circumstances, major real estate businesses that operate mainly in local cities were in the condition where they thought they had to reduce their business size due to the declining demand for rental housing impacted from declining population.

Promote “Moving to rural districts” through attractive “corporate housing”
We studied rental housing demand in local cities and took notice of the fact that approximately 30% of the people who are moving to rural areas are doing so because of their job. We then complied a model which was designed to encourage people to move from cities to local areas. This model was developed as part of the corporate benefit program where companies prepare appealing corporate housing to woo employees working in the big cities and people who are looking to change jobs.

Support to conclude partnership agreements with local governments
For execution support, we selected the local government that was happy to do the Proof of Concept (POC) of this business model. We also added in our recommendations to develop stations into attractive areas. As a result and agreement was concluded with this local government and multiple companies including our client. They are to engage in joint town development under public and private partnership.

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