Is buying a property in Akasaka a good investment?

Last updated on December 20, 2023

Yes, the analysis of Tokyo's property market is included in our pack

If you've embraced the modern skyscrapers and cosmopolitan vibe of Akasaka, you might have thought about making this chic Tokyo precinct your elegant and sophisticated residence.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Japan, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Akasaka?

Akasaka, nestled in the heart of Tokyo, has gradually transformed into a highly sought-after location for property buyers.

What sets Akasaka apart from other real estate markets in Tokyo, and indeed in Japan, is a unique blend of urban convenience and a touch of tranquility – a rare find in a bustling metropolis like Tokyo.

One of the key attractions of Akasaka is its strategic location. Situated near the government district of Nagatacho and the business hubs of Roppongi and Toranomon, it offers unparalleled access to some of the city's most significant economic and political areas.

This proximity to major centers makes Akasaka ideal for professionals who value minimal commute times and want to stay connected to the pulse of the city.

What's interesting about Akasaka's rise in popularity is that it wasn't always a top choice for property buyers. It's a relatively recent phenomenon, gaining momentum over the past two decades.

This shift can be attributed to several factors, including the development of modern residential and commercial buildings and the enhancement of local amenities and transportation links.

As Tokyo continues to evolve, areas like Akasaka, which offer a balance of modernity and accessibility, are increasingly in demand.

Another draw of Akasaka is its cultural and recreational appeal. The area is home to a variety of dining options, ranging from high-end restaurants to local izakayas, as well as numerous cultural sites like the Hie Shrine. This blend of modern living and cultural richness is something you won't find in every Tokyo neighborhood.

The demographic attracted to Akasaka is diverse, but there's a noticeable trend towards working professionals, expatriates, and affluent individuals. These groups are drawn to the area's convenience, the quality of life it offers, and its status as a prestigious address in Tokyo.

However, like any location, Akasaka has its drawbacks. The cost of living and property prices are notably high, reflecting its desirability and central location. This aspect might deter some buyers, particularly those looking for more affordable options.

Additionally, while Akasaka offers a quieter atmosphere compared to neighboring areas like Shibuya or Shinjuku, it might still be too bustling for those seeking a more laid-back or suburban environment.

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Why is Akasaka a nice place to live?

Living in Akasaka offers a unique experience, balancing the vibrancy of city life with the comforts and amenities that make it a desirable place to call home.

The lifestyle and culture in Akasaka are marked by a blend of traditional Japanese elements and a modern, cosmopolitan vibe. This area is known for its upscale dining options, ranging from traditional Japanese cuisine to international fare, reflecting the diverse tastes of its residents.

The expat community in Akasaka is quite prominent, thanks to the area's proximity to key business districts and government offices. This international presence adds to the area's cosmopolitan feel, with many expats drawn to the high standard of living and the convenience of being close to work and cultural hotspots.

Living in Akasaka, however, does come with a higher cost. Property prices and the cost of living are on the upper end, reflecting the area's status as a prime location in central Tokyo. This means that accommodation, dining out, and general expenses might be higher than in other parts of the city.

Safety is a hallmark of Akasaka, as it is with much of Tokyo. The area is well-regarded for its low crime rate, making it a secure place for both families and single professionals. The strong sense of community and the efficient local governance contribute to this safe environment.

When it comes to amenities and facilities, Akasaka doesn't disappoint. The area boasts several top-rated schools, including international options like the Nishimachi International School, catering to the expat community.

Healthcare facilities are also top-notch, with hospitals like the Sanno Hospital and the Japanese Red Cross Medical Center providing excellent medical care.

For shopping and leisure, residents have access to numerous shopping centers, including Akasaka Sacas, which houses a variety of shops and restaurants.

The quality of infrastructure in Akasaka is exemplary. Roads are well-maintained, utilities are reliable, and internet connectivity is among the best in the world, offering high-speed access. This robust infrastructure supports both the residential and business communities in the area.

Akasaka's accessibility is another of its strengths. It is well-connected to other parts of Tokyo and major transport hubs. The area is served by several subway lines, including the Chiyoda, Marunouchi, and Ginza lines, making it easy to navigate to different parts of the city.

For travel beyond Tokyo, the proximity to Tokyo Station means that Shinkansen (bullet train) services are readily accessible.

Public transportation options in Akasaka are extensive. Apart from the subway, there are numerous bus routes that connect Akasaka to other neighborhoods. The area's pedestrian-friendly streets also make walking a pleasant and often preferred option for getting around locally.

How much does it cost to buy real estate in Akasaka?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Japan.

Buying property in Akasaka is an investment that comes with a variety of options and a price range that reflects its status as a prime location in one of the world's most prominent cities.

The types of residential properties available in Akasaka are diverse, including apartments, condominiums, and, to a lesser extent, standalone houses.

Luxury properties, particularly high-end apartments and condominiums, are particularly sought after in this area, catering to a market that values central location, modern amenities, and prestigious addresses.

In Akasaka, the demand is particularly high for modern apartments and condominiums. This preference is due to several factors.

Including the limited availability of land, the desire for modern amenities and security features, and the lifestyle convenience these types of properties offer. Houses and larger properties are less common and thus are in high demand when they do appear on the market.

The real estate market in Akasaka is a mix of both new developments and resale properties. New developments are highly prized, often featuring the latest in building technology and interior design, but the availability of such properties can be limited due to the mature nature of the neighborhood and the scarcity of undeveloped land.

Regarding pricing, Akasaka stands at the higher end of Tokyo's property market. Prices per square meter can vary significantly based on the property type, age, and amenities, but it's not uncommon to see prices ranging significantly.

For a general idea, apartments in Akasaka can command prices well above the average for central Tokyo, reflecting the area's desirability and status.

The property values in Akasaka have shown a trend of steady growth over recent years. This trend is driven by the area's constant high demand, its reputation as a prestigious and convenient location, and the overall strength of Tokyo's property market. While fluctuations are always possible, the historical trend has been one of resilience and growth.

Looking ahead, there are several factors and potential developments that could influence property values in Akasaka. Any new developments, whether residential or commercial, can have a significant impact.

For example, the redevelopment of nearby areas or the introduction of new transportation links can increase the attractiveness of the neighborhood.

Additionally, city planning changes that enhance infrastructure or quality of life can also play a role in boosting property values.

Predicting the future of the real estate market is always a complex task, especially in a dynamic city like Tokyo.

However, Akasaka's consistent popularity, its status in Tokyo, and ongoing urban development suggest that the area will likely continue to be a sought-after location.

Potential investors should look for properties that offer unique features, such as modern amenities, proximity to transportation, or exceptional design, as these factors are likely to contribute to a property's enduring value and appeal.

Where is the best area to buy a property in Akasaka?

Choosing the best area to buy a property in Akasaka depends on a variety of factors, including your personal preferences, lifestyle needs, and budget.

Akasaka is a diverse neighborhood with distinct areas that offer different atmospheres, property types, and price ranges.

One of the most prominent parts of Akasaka is the area near Akasaka Station and the Akasaka Sacas complex. This area is known for its vibrant atmosphere, with a mix of commercial and residential properties.

Here, you'll find modern condominiums and high-rise apartments. The proximity to shopping, dining, and entertainment options makes it a popular choice for those who enjoy an active urban lifestyle.

However, properties in this area tend to be on the higher end of the price spectrum due to their modern amenities and central location.

Moving away from the central commercial district, the atmosphere becomes more subdued and residential. Areas like Moto-Akasaka offer a quieter living environment while still being conveniently close to the heart of Akasaka.

In these areas, you might find a mix of older and newer properties, ranging from small apartments to larger homes. Prices can be somewhat more moderate compared to the central part of Akasaka, but they are still relatively high given the overall desirability of the neighborhood.

For buyers looking for up-and-coming areas within Akasaka, it's worth exploring the edges of the neighborhood. These areas might offer more competitive pricing while still providing good access to the amenities and lifestyle that Akasaka is known for. However, these areas might not have the same immediate access to metro stations or the same concentration of shops and restaurants as the central parts.

When considering where to look for a property in Akasaka, areas around key metro stations like Akasaka-Mitsuke and Tameike-Sanno can be particularly appealing.

These locations offer excellent transport links, making it easy to commute around Tokyo. They also tend to be well-served by amenities like supermarkets, restaurants, and other essential services.

On the other hand, areas that are farther from metro stations or main commercial hubs might be less advisable for those who prioritize convenience and accessibility.

While these areas can offer more tranquil settings and sometimes more space, they might not provide the same level of convenience in terms of transportation and daily amenities.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Japan.

Area	Atmosphere	Property Types	Price Range	Proximity to Metro
Akasaka Station & Akasaka Sacas	Vibrant, Urban	Modern Condominiums, High-rise Apartments	High	High
Moto-Akasaka	Quieter, Residential	Mix of Older and Newer Properties	Moderate to High	Medium
Edges of Akasaka	More Subdued	Varied, Potential Up-and-Coming Areas	More Competitive	Varies
Near Akasaka-Mitsuke & Tameike-Sanno Stations	Convenient, Well-served	Range of Properties	High	High

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Is there a strong rental demand in Akasaka?

In Akasaka there is indeed a strong rental demand, shaped by the area's central location, its blend of commercial and residential spaces, and its status as a desirable place to live.

The rental market in Akasaka tends to lean more towards long-term rentals, although there is a market for short-term rentals as well, particularly among business travelers and tourists seeking a premium location.

The target demographic for rentals in Akasaka is quite diverse. It includes professionals working in the nearby business districts, expatriates, and, to a lesser extent, families. These potential tenants typically look for modern apartments or condominiums that offer convenience and a high standard of living.

Properties that are in high demand are those with modern amenities, good security, and proximity to public transportation, particularly metro stations.

In terms of specific areas within Akasaka, the vicinity of key metro stations like Akasaka-Mitsuke and Tameike-Sanno is particularly popular. These areas offer easy access to the rest of Tokyo, making them ideal for professionals and expatriates who need to commute.

Additionally, properties close to the central business areas or cultural hotspots within Akasaka are also in high demand.

Certain amenities can significantly help reduce vacancy rates in rental properties. These include features like high-speed internet, modern appliances, fitness centers, and security services. Properties that offer a comfortable, convenient, and secure living experience are particularly appealing to the target demographic in Akasaka.

Regarding the potential returns on investment, properties in Akasaka can offer attractive yields, though this depends on several factors like property type, location, and the state of the real estate market.

Generally, rental yields in central Tokyo areas like Akasaka are competitive, particularly for well-located and well-maintained properties. While specific numbers can vary, investors can expect a solid return, especially if they cater to the high-end rental market.

Lately, there's a growing demand for properties that offer something extra, be it a great view, unique architectural design, or smart home features.

Apartments and condominiums that stand out in terms of design and amenities are increasingly sought after and could potentially provide better yields.

As the work culture evolves and more people seek a balance between work and personal life, properties that cater to these lifestyle needs, such as those with home office spaces or proximity to leisure activities, are also becoming more popular.

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Is it easy to buy a property as foreigner in Akasaka?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Japan.

Buying property as a foreigner in Akasaka, Tokyo, is relatively straightforward, especially when compared to some other countries that impose strict regulations on foreign property ownership.

In Japan, there are no specific laws or regulations that outright prohibit foreigners from buying property, there are certain aspects of the process and local market conditions that foreign buyers need to be aware of.

Firstly, while there are no legal restrictions on foreign ownership of property in Japan, navigating the purchasing process can be challenging without a good understanding of the local market and legal system.

One of the primary risks associated with property investment in Akasaka, as with any major city, is the potential for market fluctuations. Property values in prime locations like Akasaka have historically been quite stable, but they can still be affected by broader economic factors.

A classic pitfall for foreign buyers in Japan is underestimating the importance of understanding local property laws and customs.

For example, the concept of 'key money' (reikin), a non-refundable payment made to a landlord upon renting a property, is unique to Japan and can be confusing for foreigners.

While more common in rental agreements, it's indicative of the unique aspects of the Japanese property market that foreigners need to be aware of.

Working with a local real estate agent or lawyer is highly advisable for foreigners looking to buy property in Akasaka. A local expert can provide valuable insights into the market, assist with language barriers, and ensure that all legal requirements are met.

They can also help navigate the complexities of property transactions in Japan, such as the property registration system and the tax implications of buying and selling property.

Common exit strategies for property investors in Akasaka include selling the property for capital gains or renting it out. The rental market in Akasaka is robust, thanks to the area's popularity among expats and professionals, which can provide a steady income stream for investors.