Japan business bankruptcies rise in real estate and fitness sectors

Japan is seeing a rise in bankruptcies across the real estate brokerage and fitness club sectors, driven by rising operational costs and shifting consumer behaviors.

In the real estate brokerage sector, Teikoku Databank reports that 86 bankruptcies occurred between January and August 2026. While the total number of real estate practitioners continues to grow, the debt involved in these bankruptcies has increased significantly, rising 66.6% compared to the same period last year. Analysts suggest that a gap is widening between large firms utilizing digital transformation (DX) and smaller businesses struggling to invest in technology.

Similarly, the fitness club industry is facing a sharp increase in failures. Tokyo Shoko Research noted that 26 fitness club bankruptcies occurred from January to August 2026, a 160% increase from the previous year. Key drivers include soaring utility costs, the rising price of imported equipment due to the weak yen, and increased labor costs. Additionally, consumers are increasingly reviewing their subscription services to cut costs, leading to a decline in membership revenue for low-cost, unmanned gym models.