Goldman Sachs is raising a Japan-focused real estate fund targeting about $500m, as private equity and alternative investors increase exposure to one of the most active property markets globally.

The fund will pursue a value-add strategy, focusing on data centres, logistics, residential, and hospitality assets. Goldman is aiming for a first close by the end of March, according to people familiar with the matter cited in a Bloomberg report.

Japan has drawn sustained interest from global real estate investors due to comparatively low borrowing costs and a weak yen, which has boosted returns for dollar-based funds. Investment volumes in the country rose sharply in 2025, outpacing many other developed markets.

Goldman’s fundraising effort comes amid heightened competition from peers, including Morgan Stanley, KKR, and Blackstone, which have all committed significant capital to Japanese real estate.

The push highlights how private equity firms are deploying capital into markets offering relative value as financing conditions remain tighter elsewhere.

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