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Kyoto's real estate market is experiencing steady growth, with average house prices reaching ¥60 million (~$430,000) as of September 2025.
Property prices in Kyoto vary significantly depending on location, with central historic districts commanding premium prices while suburban areas offer more affordable options. The market has shown consistent appreciation of 3-4% annually, driven by tourism demand, limited supply in historic zones, and Kyoto's unique cultural appeal.
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The average house price in Kyoto is ¥60 million ($430,000) as of September 2025, with central apartments costing ¥585,000-¥615,000 per square meter.
Historic districts like Gion and Higashiyama command the highest prices, while suburban areas like Fushimi offer more budget-friendly options.
| Property Type | Average Price (2025) | Location |
|---|---|---|
| Central Apartment (50m²) | ¥29-31 million | Nakagyo, Shimogyo |
| Suburban House (100m²) | ¥52 million | Fushimi, Ukyo |
| Luxury Property | ¥120-150 million | Gion, Higashiyama |
| Traditional Machiya | ¥75 million | Historic districts |
| Budget Apartment (50m²) | ¥17-23 million | Outer wards |
| Central Premium (70m²) | ¥41-43 million | Central wards |
| Investment Property | ¥38-52 million | Various areas |
What's the current average house price in Kyoto?
The average house price in Kyoto stands at ¥60 million (~$430,000) as of September 2025.
Property prices in Kyoto have been steadily increasing at 3-4% per year over the past 12 months. This represents a significant 25% increase compared to five years ago, reflecting the city's growing appeal as both a residential and investment destination.
Central apartments in Kyoto command between ¥585,000 and ¥615,000 per square meter, which translates to roughly $4,200-4,400 per square meter. A typical 50-square-meter central apartment costs approximately ¥29-31 million.
Suburban homes offer more affordable options, with a typical 3-bedroom house in outer areas like Fushimi and Ukyo averaging around ¥52 million ($370,000). These properties typically range from 100-120 square meters in size.
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How do prices differ between apartments, single-family homes, and luxury properties?
Property prices in Kyoto vary significantly based on the type and location of the property.
Central apartments are priced at ¥615,000 per square meter for newer or luxury buildings, with entry-level central apartments starting around ¥585,000 per square meter. Single-family suburban homes average ¥52 million for properties of 100-120 square meters, equivalent to Tokyo or Yokohama-sized family homes.
Luxury properties command substantially higher prices, ranging from ¥120 million to ¥150 million ($860,000-$1.07 million). These high-end properties are typically found in prestigious areas like Gion and Higashiyama, featuring large land plots or exceptional views.
Traditional machiya houses represent a unique category, averaging ¥75 million for properties ranging from 35-200 square meters. These historic properties are usually located in Kyoto's traditional districts and offer buyers a piece of the city's cultural heritage.
Which neighborhoods are the most expensive, which ones are budget-friendly, and which are considered up-and-coming?
Kyoto's real estate market is clearly segmented by neighborhood prestige and location.
| Category | Neighborhoods | Price Growth (YoY) |
|---|---|---|
| Most Expensive | Higashiyama, Gion, Nakagyo | 10-12% |
| Budget-Friendly | Fushimi, Minami, Parts of Ukyo | 3-4% |
| Up-and-Coming | Kamigyo (near Imperial Palace) | 5-7% |
| Up-and-Coming | Kyoto Station Area | 6-8% |
| Up-and-Coming | Arashiyama | 5-6% |
| Family-Oriented | Sakyo (near universities) | 4-5% |
| Tourist Areas | Gion vicinity | 11.7% |
What are the typical purchase prices for example properties in these areas?
Property prices vary dramatically across Kyoto's different neighborhoods and property types.
In central Higashiyama, a renovated machiya house of 90 square meters costs between ¥75-100 million, while a 50-square-meter apartment averages ¥31 million (~$222,000). The premium locations in this historic district command the highest prices due to their cultural significance and tourist appeal.
Fushimi, an outer ward, offers more affordable options with modern 100-square-meter houses ranging from ¥38-52 million depending on build quality. Older apartments in this area can be found for ¥17-23 million for 50 square meters, making it attractive for budget-conscious buyers.
Luxury properties in Gion and Nakagyo represent the top tier of Kyoto's market. A 180-square-meter townhouse or penthouse in these prestigious areas commands ¥130-150 million, reflecting the exclusivity and prime location of these properties.
How do prices vary depending on the size and surface area of the property?
Property pricing in Kyoto follows a clear pattern based on location and size, with central areas commanding premium rates per square meter.
Central city apartments are priced between ¥585,000 and ¥615,000 per square meter. For a 70-square-meter apartment in central Kyoto, buyers can expect to pay ¥41-43 million.
Suburban houses offer better value per square meter, typically ranging from ¥430,000 to ¥520,000 per square meter. This makes suburban properties attractive for families seeking more space at lower per-unit costs.
Luxury properties can exceed ¥800,000 per square meter in prime locations like Gion and select central addresses. These premium rates reflect the scarcity and desirability of properties in Kyoto's most prestigious neighborhoods.
The size premium becomes more apparent in central areas, where larger properties command disproportionately higher prices due to land scarcity and zoning restrictions.
What's the total cost of buying, including fees, taxes, and other charges?
The total cost of buying property in Kyoto extends well beyond the purchase price, with additional fees and taxes adding 6-8% to the overall cost.
Agent commission typically amounts to 3% plus ¥60,000 plus tax, effectively totaling approximately 3.3-3.5% of the sale price. Acquisition tax adds another 3-4% of the sale price, representing one of the largest additional costs.
Registration and title fees account for approximately 0.5-1% of the purchase price. Stamp duty, notary fees, and judicial scrivener costs add several tens of thousands of yen per transaction.
For most buyers, the total transaction cost estimate ranges from 6-8% of the purchase price. On a ¥60 million property, buyers should budget an additional ¥3.6-4.8 million for all fees, taxes, and charges.
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What would a typical mortgage look like for an average buyer in Kyoto right now?
Mortgage options in Kyoto offer competitive rates for qualified buyers, with both fixed and variable rate options available.
As of September 2025, fixed 35-year rates through the Flat 35 program stand at 1.95%. Variable rates are available at 0.525-0.73% for highly qualified buyers, though these rates can fluctuate with market conditions.
Down payment requirements vary based on residency status. Standard down payment is 20% for residents, while non-residents or those without permanent residency typically need 30-50% down payment.
For a typical ¥60 million property with a 35-year fixed mortgage at 1.95%, the monthly payment would be approximately ¥178,800 for principal and interest, before taxes and fees. This calculation assumes an 80% loan-to-value ratio for qualified resident buyers.
Foreign buyers should expect stricter requirements and may need to demonstrate stable income and employment in Japan to qualify for favorable rates.
What are the smartest buying choices today if you want to live there yourself?
Owner-occupiers should focus on properties that balance lifestyle benefits with long-term value retention.
- Mid-sized family homes priced between ¥45-60 million offer reasonable appreciation potential while remaining affordable. These properties are often located in transport-accessible suburban areas like Ukyo, parts of Sakyo, and Fushimi.
- Modern apartments in Nakagyo and Shimogyo provide convenience and are likely to hold value due to their proximity to the city center and universities.
- Renovated machiya houses appeal to those seeking unique Kyoto culture, but buyers should conduct thorough due diligence on rebuild restrictions and renovation history.
- Properties with good transport connections to central Kyoto and major employment centers offer both livability and resale value.
- Avoid non-rebuildable houses unless the location or character is exceptional and the price reflects the limitation.
What are the best strategies if you want to rent out — short-term versus long-term?
Rental strategies in Kyoto must navigate local regulations while maximizing returns from the city's tourism appeal.
Long-term rentals offer steady returns with yields of 2-3% gross in city center locations. Occupancy rates remain high, particularly in Sakyo (due to student demand), Shimogyo, and Fushimi (attracting families). These areas provide reliable rental income with minimal regulatory complications.
Short-term rentals (minpaku) present higher income potential but face significant restrictions. Current regulations limit short-term rentals to 60 days per year in most central zones, making them viable only in specifically permitted districts.
Legal compliance, proper licensing, and professional management are crucial for short-term rental success. Properties near Gion or Kyoto Station in permitted districts can be lucrative, but owners must factor in licensing costs, management fees, and the seasonal nature of tourism demand.
The regulatory environment for short-term rentals remains strict, making long-term rentals a more stable investment strategy for most property owners.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What makes sense if your plan is to buy and then resell at a higher price later?
Successful resale strategies in Kyoto focus on scarcity, location, and long-term appreciation potential.
Central historic areas like Higashiyama, Gion, and Nakagyo offer the best appreciation prospects due to limited supply and strong demand. These neighborhoods have demonstrated consistent growth and appeal to both domestic and international buyers.
Renovated or well-maintained properties in tourist and UNESCO zones have shown exceptional growth, with 36-40% appreciation over five years. Properties with cultural significance or unique architectural features command premium prices from buyers seeking authentic Kyoto experiences.
Buyers should avoid non-rebuildable properties unless purchased at significant discounts. These properties face limitations that can impact future resale value and financing options for potential buyers.
Properties near major tourist attractions, transport hubs, or cultural sites tend to appreciate faster than generic residential properties. The key is identifying areas where tourism growth and urban development converge with limited supply.
How have average prices changed compared to one year ago and five years ago?
Kyoto's property market has experienced consistent growth over both short and long-term periods.
Over the past year, Kyoto property prices have increased by 3-4% citywide. Historic districts have significantly outperformed this average, with areas like Higashiyama and Gion seeing growth of 10-12% year-over-year.
The five-year growth story is even more impressive, with citywide average prices rising 25% since 2020. Luxury and traditional properties have performed exceptionally well, with some segments experiencing 34-40% appreciation over the five-year period.
Historic properties, including machiya houses in Gion and Higashiyama, have been the star performers due to their scarcity and unique appeal to both investors and owner-occupiers seeking authentic Kyoto living experiences.
This growth pattern reflects Kyoto's increasing recognition as a premier destination for cultural tourism and its limited supply of developable land in central areas.
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What are the forecasts for prices in one year, five years, and ten years, and how do Kyoto's prices compare with other similar major cities?
Kyoto's property market outlook remains positive across all time horizons, though growth rates may moderate from recent peaks.
| Time Period | Projected Growth | Expected Average Price |
|---|---|---|
| 1 Year (2026) | 3-5% overall | ¥62-63 million |
| 1 Year (luxury/traditional) | 5-7% | ¥126-128 million |
| 5 Years (2030) | 3-5% annually | ¥69-73 million |
| 10 Years (2035) | 2-4% annually | ¥80-95 million |
| Central properties (10-year) | Higher growth potential | Subject to regulatory risk |
| Suburban areas (10-year) | Steady appreciation | Following city average |
| Historic districts (5-year) | Premium growth | Limited supply benefits |
Compared to other major Japanese cities, Kyoto offers a middle ground between affordability and appreciation potential. Tokyo averages ¥91.4 million for houses, making Kyoto approximately 35% more affordable than the capital.
Kyoto commands higher prices than Osaka and Sapporo but offers unique cultural appeal that these cities cannot match. While rental yields are lower than Osaka or Fukuoka, Kyoto's stronger appreciation potential and international recognition make it attractive for long-term investors.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Kyoto represents a unique opportunity in Japan's real estate market, combining cultural heritage with modern investment potential.
Whether buying for residence or investment, success requires understanding local regulations, neighborhood dynamics, and long-term market trends specific to this historic city.