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While the debate still rages over whether it’s safe to hold the Tokyo Olympics, investors in the capital’s real estate sector may be saying the games must go on.

That’s according to one analyst who sees the event as providing a “show window” for Tokyo’s real estate, whether spectators are allowed or not. The approaching games, as well as the increasing pace of Japan’s COVID-19 vaccination campaign, is helping to fuel expectations for Japan’s real estate investment trusts (J-REITs).

“Should the Olympics and Paralympics move forward with the help of vaccines, it’s highly likely that money will flow into J-REITs globally — even if the games are held without spectators,” Daiwa Securities Co. analyst Eiji Kinouchi wrote in a note.

With the games starting in less than 50 days, the debate around the merits of the event continues. The country’s vaccine rollout, which was initially slow and has weighed on Japanese stocks for months, is now picking up momentum, giving hope to those who want to see the publicly unpopular games go forward.

While foreign spectators won’t be attending the games, the global TV audience for the Olympics is estimated to top 3 billion — dwarfing the 600,000 foreign visitors who had been expected to attend before the pandemic hit, postponing the event from 2020. That audience provides an opportunity for Tokyo’s booming real estate sector to display its wares to the world.

“Historically, countries that host the Olympics and Paralympics see their REIT indexes gain for two years, starting from the year they host the games,” Kinouchi wrote. He sees the same time window for gains to accrue in Japan. “It could be due to a ‘show window effect,’ as investors worldwide see the city rebuilt beautifully on screen,” he said.

The Tokyo Stock Exchange REIT Index has been on a winning streak, booking gains every month this year. The index extended that advance on Thursday, closing the trading session at highest level since the pandemic-led crash last February. That has taken its advance in 2021 up to 18%, well above the 8.2% rise in the benchmark Topix index.

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