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The average house price in Kyoto stands at ¥60 million (approximately $430,000) as of mid-2025. Property prices in the ancient capital have increased by 25% over the past five years, with luxury homes in prime areas commanding ¥120-150 million ($860,000-$1.1 million) while suburban three-bedroom houses typically range from ¥45-60 million ($320,000-$430,000).
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Kyoto's property market shows steady growth with central areas commanding premium prices while suburban districts offer more affordable options.
Foreign buyers can purchase property freely but face stricter mortgage requirements, with additional costs including taxes, agent fees, and potential renovation expenses for traditional machiya properties.
| Property Type | Average Price | Price per m² |
|---|---|---|
| Central House | ¥60 million ($430,000) | ¥87,000 ($620) |
| Luxury Property | ¥120-150 million ($860k-$1.1M) | ¥100,000+ ($715+) |
| Suburban House | ¥45-60 million ($320-430k) | ¥65,000 ($465) |
| Traditional Machiya | ¥30-75 million ($215-540k) | ¥500,000-750,000 ($3,600-5,400) |
| City Center Apartment | ¥35-50 million ($250-360k) | ¥87,000 ($620) |
| Fushimi/Yamashina | ¥18-25 million ($130-180k) | ¥45,000 ($320) |
| Higashiyama District | ¥80-120 million ($575-860k) | ¥110,000 ($790) |
How much does a typical house cost in Kyoto today?
A typical house in Kyoto costs ¥60 million (approximately $430,000) as of June 2025.
Luxury homes in prime central districts command significantly higher prices, ranging from ¥120 million to ¥150 million ($860,000 to $1.1 million). These premium properties are typically located in historic neighborhoods like Higashiyama or near major landmarks.
Suburban three-bedroom houses in areas like Fushimi or Yamashina offer more affordable options, with prices ranging from ¥45 million to ¥60 million ($320,000 to $430,000). These properties provide better value for families seeking larger living spaces while maintaining reasonable access to Kyoto's city center.
The price variation depends heavily on location, property age, and proximity to transportation hubs and cultural sites. Properties within walking distance of major temples, shrines, or train stations typically command premium prices.
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How do prices vary between different neighborhoods in Kyoto?
Kyoto's property prices show significant variation across neighborhoods, with historic central districts commanding the highest premiums.
| Neighborhood | Price Level | Characteristics |
|---|---|---|
| Higashiyama | Premium (¥80-120M) | Historic district, tourist attractions, temples |
| Shijo-Kawaramachi | High (¥70-100M) | Urban regeneration, excellent transport |
| Nijo | High (¥65-95M) | Restoration projects, cultural significance |
| Kibune | High (¥70-110M) | Luxury developments, scenic mountain location |
| Sakyo/Kamigyo | Medium (¥45-70M) | Gentrifying areas, cultural projects |
| Katsura | Medium-High (¥50-75M) | Good transport links, new developments |
| Fushimi/Yamashina | Affordable (¥18-35M) | Suburban areas, emerging neighborhoods |
The most expensive areas include Higashiyama, known for its preserved historic architecture and proximity to famous temples like Kiyomizu-dera, and Nijo, which benefits from ongoing restoration projects and cultural initiatives.
Upcoming and more affordable neighborhoods like Fushimi and Yamashina offer opportunities for buyers seeking value, with these areas benefiting from improved transportation infrastructure and urban development projects.
What's the average cost per square meter for houses, apartments, and traditional machiya?
The average cost per square meter in Kyoto varies significantly by property type and location as of mid-2025.
Houses and apartments in the city center both average ¥87,000 per square meter (approximately $620), reflecting the premium placed on central locations with easy access to cultural sites and transportation.
Traditional machiya properties command unique pricing structures, with total costs ranging from ¥30 million for smaller, less central options to ¥75 million for prime locations. A typical 100-150 square meter machiya in a desirable area costs around ¥75 million total.
Suburban properties offer better value per square meter, typically ranging from ¥45,000 to ¥65,000 ($320 to $465) depending on the specific ward and proximity to transportation hubs.
Premium areas like Higashiyama can reach ¥110,000 per square meter ($790), while emerging neighborhoods like Fushimi offer opportunities at around ¥45,000 per square meter ($320).
How much do you need to budget for additional fees when buying property in Kyoto?
Additional fees when purchasing property in Kyoto typically add 8-12% to the total purchase price, making proper budgeting essential for buyers.
Major fees include:
- Real estate agent fees: approximately 3% of purchase price plus ¥60,000
- Real Estate Acquisition Tax: 3% of assessed value for residential properties
- Registration and License Tax: 2% of assessed value for both land and buildings
- Consumption Tax: 10% of building price (land is exempt)
- Stamp Duty: ¥10,000 to ¥60,000 depending on property value
Ongoing annual costs include Fixed Asset Tax at 1.4% of assessed value, which property owners must factor into long-term ownership calculations.
Renovation costs for traditional machiya can be substantial, with full renovations often requiring ¥10-20 million additional investment. Basic renovations like wallpaper cost around ¥1,000 per square meter, while tatami flooring replacement ranges from ¥10,000 to ¥70,000 per mat.
Foreign buyers should also budget for translation services and legal consultation fees, which can add ¥200,000 to ¥500,000 to the transaction costs.
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What are recent example prices of properties sold in Kyoto across different districts?
Recent property sales in Kyoto demonstrate the significant price variations across different districts as of 2025.
| District | Sale Price | Property Details |
|---|---|---|
| Shimogyo | ¥22.8 million ($164,000) | 75 m² renovated machiya, guesthouse potential |
| Kamigyo | ¥34.6 million ($249,000) | Standard house, resale property |
| Higashiyama | ¥41.8 million ($300,000) | Standard house in historic district |
| Fushimi | ¥18.3 million ($131,000) | Suburban house, family-oriented area |
| Sakyo | ¥38.5 million ($277,000) | Modern house near university district |
| Nijo | ¥52.0 million ($374,000) | Renovated property near castle |
| Yamashina | ¥21.7 million ($156,000) | Suburban family home, good transport links |
These examples highlight how location significantly impacts property values, with historic central districts like Higashiyama commanding substantial premiums over suburban areas like Fushimi and Yamashina.
Renovated machiya properties in Shimogyo demonstrate strong investment potential, particularly those suitable for guesthouse operations, reflecting Kyoto's tourism appeal.
How have average house prices changed compared to 5 years ago and 1 year ago?
Kyoto's property market has shown remarkable growth over both short and long-term periods, significantly outpacing inflation and general economic growth.
Over the five-year period from 2020 to 2025, city center houses experienced a 25% price increase, rising from ¥48 million to ¥60 million. This growth reflects Kyoto's increasing appeal as both a residential destination and investment opportunity.
Luxury homes showed even stronger appreciation, increasing by 40% from ¥96 million in 2020 to ¥135 million in 2025. This premium segment benefited from limited supply and strong demand from affluent domestic and international buyers.
Suburban three-bedroom houses saw substantial growth of 37%, rising from ¥38 million to ¥52 million, demonstrating that price appreciation extended beyond central areas to more affordable districts.
Apartments showed consistent growth with a 34% increase in price per square meter, from ¥65,000 to ¥87,000 over the five-year period. More recently, residential land prices increased by 2% in the past year, while second-hand property prices rose by 3-4% from 2024 to 2025.
What are the price forecasts for Kyoto real estate over the next 1, 5, and 10 years?
Kyoto's real estate market is expected to continue its upward trajectory with moderate but steady growth across all timeframes.
Short-term forecasts for 2025-2027 predict annual growth of 3-5% in central areas, driven by continued tourism recovery, urban regeneration projects, and limited housing supply in historic districts.
The five-year outlook remains positive, with experts anticipating sustained demand from both domestic buyers seeking cultural lifestyle options and international investors attracted to Kyoto's unique heritage appeal.
Long-term projections over the next decade suggest continued moderate appreciation, particularly in historic and central districts. However, government affordable housing initiatives may moderate price growth rates compared to the rapid increases seen in recent years.
Emerging neighborhoods like Fushimi and Yamashina are expected to see above-average growth as infrastructure improvements and urban development projects enhance their attractiveness to buyers seeking value.
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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.
How do Kyoto's property prices compare with other similar cities in Japan?
Kyoto occupies a unique position in Japan's property market, commanding premiums over most comparable cities while remaining more affordable than Tokyo.
| City | Average House Price | Price per m² (Apartments) |
|---|---|---|
| Tokyo (23 Wards) | ¥91.4 million ($657,000) | ¥819,000 ($5,880) |
| Kyoto | ¥60 million ($430,000) | ¥87,000 ($620) |
| Fukuoka | ¥56 million ($402,000) | ¥300-600,000 ($2,150-4,300) |
| Osaka | ¥55 million ($395,000) | ¥477,000 ($3,430) |
| Sapporo | ¥51.5 million ($370,000) | ¥350,000 ($2,515) |
| Yokohama | ¥58 million ($417,000) | ¥520,000 ($3,735) |
| Kobe | ¥48 million ($345,000) | ¥380,000 ($2,730) |
Kyoto's pricing reflects its status as a cultural capital with unique heritage value, positioning it above purely commercial centers like Osaka while remaining significantly below Tokyo's premium levels.
The city's apartment prices per square meter are notably competitive compared to other major Japanese cities, making it attractive for investors seeking exposure to a prestigious market without Tokyo's extreme costs.
What are the best options if you want to buy a house to live in Kyoto long-term?
Long-term residents should prioritize location, lifestyle preferences, and practical considerations when selecting property in Kyoto.
Central Kyoto districts like Higashiyama, Sakyo, and Kamigyo offer optimal long-term living for those seeking cultural immersion. These areas provide walkable access to temples, traditional neighborhoods, restaurants, and cultural events that define the Kyoto experience.
Suburban options in Fushimi, Ukyo, and Yamashina suit families prioritizing affordability, larger living spaces, and modern amenities. These neighborhoods offer better value while maintaining reasonable access to central Kyoto via public transportation.
Traditional machiya properties appeal to buyers seeking authentic Japanese living experiences, but require careful consideration of renovation costs, maintenance requirements, and modern comfort adaptations.
Proximity to transportation hubs becomes crucial for daily convenience, with properties near major train stations and bus routes commanding premiums but offering superior connectivity to other Japanese cities.
Modern apartments in developments near universities or business districts provide contemporary amenities and professional property management, ideal for busy professionals or those preferring low-maintenance living.
What kind of properties are best for rental investment in Kyoto?
Rental investment success in Kyoto depends on understanding distinct market segments and regulatory environments for short-term versus long-term rentals.
Short-term rental properties (Airbnb-style) perform best in tourist-heavy areas like Higashiyama, Gion, and Kamigyo, where international visitors seek authentic Japanese experiences. However, strict regulations limit operations to maximum 60 days per year in many zones, requiring careful compliance planning.
Renovated machiya properties command premium short-term rental rates due to their unique appeal to foreign tourists seeking traditional Japanese accommodation experiences. These properties often justify higher renovation investments through superior rental income potential.
Long-term rental investments show strongest performance near universities and business districts in areas like Shimogyo and Sakyo, where students and working professionals provide stable tenant demand throughout the year.
Modern apartments and houses with contemporary amenities attract long-term tenants more reliably than traditional properties requiring cultural adaptation. Properties with parking, modern kitchens, and efficient heating systems command higher rents and experience lower vacancy rates.
Rental yields in Kyoto's city center typically range from 2-3% gross, which is lower than cities like Osaka or Fukuoka but reflects the premium nature of the market and potential for capital appreciation.
What are the smartest investment choices today in Kyoto for future resale?
Strategic investment choices in Kyoto should focus on scarcity, cultural significance, and emerging development trends for optimal future resale potential.
Properties in central historic districts near major landmarks like Kiyomizu-dera, Nijo Castle, and the Philosopher's Path offer the strongest appreciation potential due to limited supply and permanent cultural significance that attracts both domestic and international buyers.
Renovated or well-preserved machiya properties represent particularly smart investments, combining high demand with limited supply and unique appeal that cannot be replicated in other Japanese cities. These properties benefit from both cultural tourism trends and buyer preference for authentic experiences.
Emerging neighborhoods like Kamigyo, Katsura, and parts of Sakyo present opportunities in gentrifying areas benefiting from infrastructure investment and cultural development projects. These districts offer better entry prices with strong upside potential as development progresses.
Properties near planned infrastructure improvements, including transportation upgrades and urban regeneration projects, position investors to benefit from increased accessibility and neighborhood enhancement.
Mixed-use properties that can serve both residential and commercial purposes provide flexibility for future buyers and adapt to changing market conditions, particularly in transitioning neighborhoods.
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Can you get a mortgage as a foreigner in Japan, and what does the financing process look like?
Foreign buyers can freely purchase property in Japan, but obtaining mortgages requires navigating more complex requirements than domestic buyers face.
Permanent residents or foreigners married to Japanese citizens have significantly better mortgage access, but some banks including Suruga, Aeon, Prestia, and Tokyo Star offer loans to non-permanent residents with stable Japanese income.
Typical requirements include stable taxed income in Japan (usually exceeding ¥2 million annually), employment history of 1-2 years, age between 20-65 with loan repayment completed by age 65-70, and larger down payments often ranging from 20-35% for non-permanent residents.
Japanese language skills may be required for application processes and ongoing communication with lenders, though some international banks offer services in English.
The financing process follows these steps:
- Pre-qualification assessment and document preparation including income verification, employment certificates, and tax records
- Property selection and formal purchase offer submission
- Formal loan application with detailed financial documentation and property appraisal
- Loan approval and contract signing with legal review of all terms
- Payment of fees, taxes, and completion of property registration and ownership transfer
Interest rates for foreign buyers typically range from 1-3% depending on the lender, loan amount, and borrower qualifications, with terms usually extending up to 35 years for qualified applicants.
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's real estate market continues to demonstrate resilience and growth potential, making it an attractive destination for both lifestyle and investment purposes.
With proper research, realistic budgeting for additional costs, and understanding of local market dynamics, both domestic and international buyers can find suitable opportunities in this culturally rich city.