Real estate deal activity in Japan has been among the strongest in the world this year, buoyed by its interest rate policy that has been widely credited for keeping its real estate resilient.

Investors deployed $8.9 billion into the country’s commercial real estate sector in the first quarter of the year, up 43% from the year earlier, according to JLL data.

A major driver was the burgeoning appetite of foreign investors, who almost doubled their investment from a year ago to $2 billion in the quarter.

“Foreign investors have been actively trying to enter Japan because of its favorable interest rate differentials over other key markets,” says Koji Naito, Research Director, Capital Markets, Japan, JLL. While the weak yen has been a boon for investment, “Japan’s strong fundamentals remain the primary appeal for investors injecting capital into the country.”

Japan’s standout performance this quarter has contrasted with the rest of the world. Investment volumes in the Americas region and Europe declined 61% and 58% year-over-year to $66 billion and $35 billion, respectively, according to data from JLL’s Global Real Estate Perspective.

Among the bright spots has been Japan’s office sector, where transaction activity has gained momentum. One notable deal in the first quarter was the acquisition of Osaka’s Kitahama Nexu building for 24.85 billion yen ($180 million) by Singaporean sovereign wealth fund GIC.

Office investment volumes in Japan rose more than 110% year-on-year to reach $4.5 billion in the first quarter as investors make the most of the sector’s resilience and robust demand. Offices were also the top destination for investment, making up half of total investment volumes, JLL data show.

Meanwhile, activity outside the office sector has cooled, although recent transactions point toward improving sentiment. “Logistics and multifamily assets in Japan remain highly sought-after by offshore investors seeking exposure to the market,” says Naito.

In April, private equity giant Blackstone sold a six-warehouse portfolio in Japan to GIC for $800 million. More recently, U.S. developer Hines acquired five multifamily properties in Tokyo and Kyoto as part of its strategy to scale up to $1 billion of asset value in five years.