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As of September 2025, the average rent in Kyoto varies significantly by property type and location, with studios ranging from ¥58,500 to ¥74,000 per month in central areas and family houses commanding ¥120,000 to ¥180,000 monthly.
The Kyoto rental market shows clear patterns across different neighborhoods, with central wards like Nakagyo commanding premium rents while outlying districts like Fushimi offer more affordable options. Understanding these variations is crucial for both investors seeking rental yields and individuals planning to relocate to Japan's former capital.
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Kyoto rental prices in 2025 range from ¥58,500 for central studios to ¥203,900 for premium three-bedroom apartments in Nakagyo ward.
Total monthly costs including utilities and fees typically add ¥15,000-¥26,500 to base rent, while rental yields vary from 2-3% in oversupplied areas to 6-8% for short-term rentals in tourist zones.
| Property Type | Size Range | Central Kyoto Rent | Outer Districts Rent | Typical Yield |
|---|---|---|---|---|
| Studio (1R) | 9-20 m² | ¥58,500-¥74,000 | ¥49,400 | 4-5% |
| 2-bedroom (2LDK) | 45-60 m² | ¥120,000-¥150,000 | ¥95,000 | 4-6% |
| 3-bedroom (3LDK) | 70-90 m² | ¥162,100-¥203,900 | ¥120,000-¥170,000 | 3-5% |
| Family House | 80-120 m² | ¥120,000-¥180,000+ | ¥100,000 | 4-8% (short-term) |
| Short-term Rental | Varies | ¥462,462/month (Gion) | Lower demand | 6-8% |
What's the current average rent in Kyoto for different property types?
As of September 2025, Kyoto rental prices show clear differentiation across property types and locations.
Studios (1R type) in central neighborhoods range from ¥58,500 to ¥74,000 per month for 9-20 square meters, with prices dropping to around ¥49,400 in outlying districts.
Two-bedroom apartments (2LDK) typically cost between ¥120,000 and ¥150,000 monthly in desirable areas, while three-bedroom apartments (3LDK) command higher premiums ranging from ¥162,100 per month in Shimogyo-ku to ¥203,900 per month in the premium Nakagyo-ku ward.
Family houses in suburban areas start around ¥120,000 to ¥180,000 per month, though properties in central locations or those featuring traditional Japanese architecture command significantly higher rents.
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How does rent vary across Kyoto's neighborhoods and districts?
Kyoto's rental market displays significant geographical variation, with central wards commanding premium prices.
The most expensive areas include Nakagyo-ku, Shimogyo-ku, Higashiyama-ku, and Kamigyo-ku, where proximity to major temples, shopping districts, and transportation hubs drives higher demand and rental rates.
Nakagyo-ku stands out as the premium district, with three-bedroom apartments averaging ¥203,900 monthly, while the historic Gion area commands exceptional premiums for its cultural significance and tourist appeal.
Outlying districts like Fushimi and Ukyo offer substantially lower rents, providing better value for families and long-term residents willing to trade location for affordability.
Kamigyo Ward currently faces an oversupply of rental units, which is driving down both rents and yields compared to other central wards, creating opportunities for budget-conscious renters.
What's the typical rent per square meter in Kyoto?
Kyoto's rent per square meter varies considerably based on location and property quality as of September 2025.
Central wards including Inner North and Inner East districts command approximately ¥4,450 per square meter, representing the premium tier of the market.
Outer districts offer more affordable rates at around ¥3,600 per square meter, making them attractive for cost-conscious renters and investors seeking better yield potential.
Luxury properties and traditional houses in prime locations may exceed these standard rates, particularly those featuring unique architectural elements or exceptional proximity to cultural landmarks.
These per-square-meter rates help investors calculate potential returns and compare properties across different size categories and neighborhoods effectively.
What's the total monthly cost including all fees and utilities?
The total monthly housing cost in Kyoto extends well beyond base rent, requiring careful budgeting for additional expenses.
Management and maintenance fees typically add ¥5,000 to ¥14,000 monthly, depending on the building type and amenities provided.
Utility costs for a single person in a studio or small apartment average ¥10,500 to ¥12,500 monthly, covering electricity, water, internet, and gas services. Water alone costs approximately ¥2,000 monthly, while gas averages ¥4,000 monthly.
Additional expenses include one-time cleaning fees of ¥22,000 to ¥30,000 upon move-out, and optional services like rental bedding and amenities can add ¥3,000 monthly.
For short-term stays, accommodation taxes range from ¥200 to ¥1,000 per night, with luxury properties facing increases up to ¥10,000 per night after March 2026.
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What are the property ownership costs affecting net returns?
Property ownership in Kyoto involves several recurring and one-time costs that significantly impact net investment returns.
| Cost Type | Rate/Amount | Frequency |
|---|---|---|
| Fixed Asset Tax | 1.4% of assessed value | Annual |
| City Planning Tax | 0.3% of assessed value | Annual |
| Real Estate Acquisition Tax | 3-4% of property value | One-time |
| Registration Tax | 0.4-2% of property value | One-time |
| Property Insurance | ¥10,000-¥30,000 | Annual |
How do mortgage payments compare with rental income?
The mortgage-to-rent ratio in Kyoto remains favorable due to Japan's persistently low interest rate environment as of September 2025.
A typical ¥30 million property generates monthly mortgage payments between ¥100,000 and ¥135,000, often comparable to or slightly exceeding rental income from the same property.
However, substantial upfront costs including down payments, acquisition taxes, and registration fees create significant initial capital requirements that must be factored into investment calculations.
This alignment between mortgage payments and rental rates makes Kyoto attractive for owner-occupiers but requires careful analysis for pure investment strategies.
The low interest rate environment continues to support property investment viability, though investors should prepare for potential rate increases in future years.
What's the difference between short-term and long-term rental returns?
Kyoto's rental market offers distinctly different risk-return profiles for short-term versus long-term rental strategies.
Short-term rentals, particularly in tourist areas like Gion, generate significantly higher yields of 6-8% annually, with median monthly revenues reaching ¥462,462 and occupancy rates of 80% or higher over 292-303 nights per year.
Long-term rentals provide more stable income streams with yields typically ranging from 4-5% in most areas, though some oversupplied districts like Kamigyo see yields compressed to 2-3%.
Short-term rentals involve higher operational costs including frequent cleaning, property management, compliance with tourism regulations, and variable seasonal demand patterns.
Long-term rentals offer lower operational burden, more predictable cash flows, and simpler regulatory compliance, making them suitable for hands-off investors seeking steady returns.
Can you provide example rental prices for different property sizes?
Specific rental examples across Kyoto demonstrate the range of housing options and their associated costs as of September 2025.
A typical studio apartment of 15 square meters in central Kyoto rents for approximately ¥65,000 monthly, suitable for students or young professionals seeking proximity to work and entertainment.
Two-bedroom apartments of 50 square meters in desirable neighborhoods command around ¥135,000 monthly, appealing to couples or small families wanting modern amenities and central access.
Three-bedroom family apartments of 80 square meters in premium areas like Nakagyo cost approximately ¥185,000 monthly, offering space and convenience for established families.
Suburban family houses of 100 square meters typically rent for ¥150,000 monthly in outer districts, providing more space and traditional living environments at lower per-square-meter costs.
What types of tenants typically rent in Kyoto?
Kyoto's rental market serves diverse tenant categories, each with distinct housing preferences and rental patterns.
University students represent a significant portion of the rental market, primarily seeking studios and small apartments near major institutions like Kyoto University, driving demand in specific neighborhoods.
Young working professionals, including an increasing number of international expatriates, prefer central 1LDK and 2LDK apartments with modern amenities and convenient transportation access.
Family tenants typically choose larger suburban houses and apartments that provide good value while maintaining reasonable access to the city center for work and education.
Short-term renters and tourists, representing 82% of Airbnb guests, dominate the vacation rental market in central Kyoto, particularly in culturally significant areas.
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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.
What are the current vacancy rates across different areas?
Vacancy rates in Kyoto vary significantly between central tourist areas and residential suburbs as of September 2025.
Central Kyoto districts, particularly those popular with short-term rentals and tourists, maintain low vacancy rates with occupancy consistently around 80-83% for well-positioned properties.
The Gion area and other culturally significant neighborhoods show particularly strong occupancy due to sustained international tourism demand and limited supply of traditional properties.
Kamigyo Ward faces higher vacancy rates due to oversupply of rental units, creating downward pressure on both rents and investment yields in this area.
Suburban areas generally maintain moderate vacancy rates, though properties offering good value and transportation access perform better than those in more isolated locations.
What are current rental yields and how have they changed?
Kyoto rental yields in September 2025 reflect a market that has evolved significantly over the past five years, showing both opportunities and challenges.
Current yields range from 2-3% in oversupplied areas like Kamigyo Ward to 6-8% for well-positioned short-term rentals in central tourist districts, with traditional long-term rentals averaging 4-5%.
Over the past five years, apartment rents have increased approximately 14% since the pandemic recovery, with overall rent growth averaging 2% annually since 2020.
The market has seen increased differentiation between central and outer wards, with tourist-oriented properties significantly outperforming suburban long-term rentals in terms of yield generation.
Short-term rental yields have particularly strengthened due to the recovery of international tourism and limited supply of suitable properties in prime cultural areas.
What's the forecast for Kyoto rents and yields over the next decade?
The outlook for Kyoto's rental market through 2035 suggests continued growth driven by multiple favorable factors.
One-year forecasts indicate continued slow but steady increases in rents and property prices, with strong short-term rental yields in tourist zones offset by softening yields in oversupplied residential areas.
Five to ten-year projections show Kyoto maintaining above-average rent and price growth compared to regional peers, supported by sustained international tourism, ongoing urban infrastructure investment, and stable demand from both residents and expatriates.
Japan's aging population and continued low interest rate environment are expected to keep mortgage payments aligned with rental costs, supporting investment viability throughout the forecast period.
Compared to Tokyo, Kyoto offers approximately half the purchase and rental costs while maintaining comparable or slightly better yields in central districts due to robust tourism-driven demand and the city's unique cultural positioning.
Relative to Osaka, Kyoto demonstrates greater market stability, lower volatility, and stronger appeal to international short-term renters, making it an attractive alternative for investors seeking steady appreciation with tourism upside.
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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 rental market in 2025 offers compelling opportunities for both investors and residents, with clear differentiation between central tourist areas commanding premium rents and suburban districts providing better value.
The combination of stable long-term rental yields, strong short-term rental performance in cultural districts, and favorable mortgage conditions creates multiple pathways for successful property investment in Japan's former capital.
Sources
- Real Estate Japan - Kyoto Rent Listings
- J-Stay Kyoto Housing
- BambooRoutes - Kyoto Real Estate Market
- Remax Apex - Kyoto Property Market
- Expatica - Cost of Living Japan
- BambooRoutes - Kyoto Price Forecasts
- BambooRoutes - Kyoto Real Estate Trends
- Global Property Guide - Japan Price History
- Airbtics - Kyoto Airbnb Revenue
- Aberdeen Investments - APAC Real Estate Outlook