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Nagoya's rental market offers attractive opportunities for both tenants and investors, with average rents ranging from ¥41,000 for studios to ¥164,400 for larger family homes. The city delivers competitive rental yields of 3.5-4.4% while maintaining lower property prices compared to Tokyo and Osaka.
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As of September 2025, Nagoya presents a balanced rental market with studios averaging ¥41,000 monthly and family homes reaching ¥164,400, offering investors solid yields between 3.5-4.4%.
The city's rental market shows steady growth with 3-5% annual rent increases and manageable vacancy rates of 3.89%, making it an attractive alternative to more expensive Tokyo and Osaka markets.
| Property Type | Average Monthly Rent | Typical Area |
|---|---|---|
| Studio (1R) | ¥41,013 | 20-25 sqm |
| 1K/1DK | ¥43,875 | 25-30 sqm |
| 1LDK/2K/2DK | ¥58,594 | 35-45 sqm |
| 2LDK/3K/3DK | ¥84,081 | 50-65 sqm |
| 3LDK/4K/4DK | ¥99,244 | 70-85 sqm |
| 4LDK+ | ¥164,400 | 90+ sqm |
| Detached Homes | ¥131,000 | 100+ sqm |
What are the different average rents depending on the type of property in Nagoya?
Nagoya's rental market shows clear pricing tiers based on property types, with studios starting at ¥41,013 monthly and luxury family homes reaching ¥164,400.
Studio apartments (1R) average ¥41,013 per month, making them the most affordable option for single residents. One-room apartments with separate kitchens (1K/1DK) command slightly higher rents at ¥43,875 monthly.
Mid-range properties include 1LDK/2K/2DK units averaging ¥58,594, which appeal to young professionals and couples seeking more space. Two-bedroom apartments (2LDK/3K/3DK) average ¥84,081 monthly, targeting small families and sharing arrangements.
Larger family properties start with 3LDK/4K/4DK units at ¥99,244 monthly, while premium four-bedroom apartments and houses (4LDK+) average ¥164,400. Single-family detached homes command an average of ¥131,000 monthly, positioning them between mid-range and luxury apartment segments.
City-center one-bedroom apartments typically reach ¥89,000 monthly, reflecting the premium for central locations and proximity to major business districts.
How does the rent vary across the main neighborhoods and districts in Nagoya?
Nagoya's rental prices fluctuate significantly based on location, with central districts commanding premiums of 20-40% over suburban areas.
Nagoya Station and Naka Ward represent the premium rental zone, where studios range from ¥60,000-80,000 monthly and 1LDK units exceed ¥90,000. These areas attract business professionals seeking convenience and transport connectivity.
Chikusa Ward, known as the educational district, sees 1K/1DK apartments ranging from ¥55,000-65,000 monthly, with higher rents near subway stations. This area appeals particularly to university students and academic professionals.
Showa Ward offers quieter residential living with moderate pricing, making it popular among solo renters seeking peaceful neighborhoods while maintaining reasonable commute times to central business areas.
Suburban districts like Nakagawa and Minato provide the most affordable options, with studios and 1K apartments often priced below ¥50,000 monthly. Larger apartments in these areas typically cost ¥10,000-20,000 less than comparable central properties.
What is the average rent per square meter for different property sizes?
Nagoya's rent per square meter varies significantly with property size, showing economies of scale for larger units.
| Property Size | Average Monthly Rent | Estimated Rent per sqm |
|---|---|---|
| Under 30 sqm | ¥59,727 | ¥2,390 |
| 30-50 sqm | ¥79,410 | ¥1,985 |
| 50-70 sqm | ¥97,794 | ¥1,630 |
| Over 70 sqm | ¥148,386 | ¥1,690 |
| City Center Avg | Varies | ¥365,000-500,000 (purchase price) |
What is the typical total rent including management fees, maintenance, and other charges?
Total rental costs in Nagoya extend beyond base rent, with additional monthly charges typically adding ¥28,000-35,000 to your housing expenses.
Management and maintenance fees range from ¥3,000-10,000 monthly, representing either 3-5% of rent for agency management or fixed fees for building cleaning and common area maintenance. These fees cover services like security, cleaning, and basic repairs.
Condominium owners face repair reserve fund contributions averaging ¥17,830 monthly, which accumulates for major building renovations and structural maintenance over time.
For landlords, total monthly outlays include base rent collection minus management fees, maintenance costs, and reserve fund contributions. Property management companies typically charge 3-5% of gross rental income for full-service management.
Tenants should budget for the base rent plus ¥20,000-30,000 in additional monthly charges, while landlords should expect net rental income to be 15-20% below gross rent after all fees and maintenance costs.
What taxes and legal costs should a landlord account for when renting out a property?
Landlords in Nagoya face several tax obligations that significantly impact net rental returns, particularly for non-resident investors.
Rental income tax applies at 20.42% for non-resident landlords on net rental income after deductible expenses including property management, maintenance, and depreciation. Resident landlords face progressive income tax rates depending on their total income bracket.
Capital gains tax ranges from 20-40% depending on property holding period, with lower rates for properties held over five years. This tax applies when selling investment properties.
Consumption tax of 10% applies to commercial rental properties but typically exempts residential leases, making residential investment more tax-efficient for most landlords.
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Legal costs include property registration fees, contract preparation, and potential dispute resolution expenses, typically adding 1-2% annually to total property ownership costs.
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How do mortgage costs compare to potential rental income in Nagoya?
Nagoya's mortgage market offers favorable conditions for property investors, with rental yields typically exceeding mortgage interest costs by comfortable margins.
Average mortgage rates range from 1.6-2.1% for fixed-rate loans as of mid-2025, making borrowing costs relatively low compared to rental yields of 3.5-4.4% gross annually.
This spread of 1.5-2.8% between rental yields and mortgage rates creates positive cash flow opportunities for leveraged investors, assuming standard loan-to-value ratios of 70-80%.
For a ¥30 million property generating 4% annual rental yield (¥1.2 million annually), mortgage interest on a ¥24 million loan at 2% would cost ¥480,000 annually, leaving substantial positive cash flow before other expenses.
Investors should factor in additional costs including management fees, taxes, and maintenance when calculating net returns, but the fundamental spread between borrowing costs and rental income remains favorable in Nagoya's current market.
What are the average rents for short-term rentals versus long-term rentals?
Short-term rentals in Nagoya command premium rates of 25-50% above comparable long-term lease properties, reflecting higher operational complexity and guest services.
Airbnb and similar platforms typically achieve monthly equivalent rents 25-50% higher than standard residential leases for similar property types and locations. A ¥60,000 monthly apartment might generate ¥75,000-90,000 monthly through short-term bookings.
Long-term rentals follow standard market rates as outlined above, providing steady income with lower management requirements and tenant turnover costs.
Short-term rental success depends heavily on location proximity to tourist attractions, business districts, and transport hubs, with central Nagoya and areas near major hotels showing strongest performance.
Investors should consider additional costs for short-term rentals including cleaning services, utility variations, platform fees, and higher vacancy periods between bookings when comparing total returns.
Can you give example rental prices for studios, 1LDKs, 2LDKs, and larger family homes?
Nagoya's rental market offers clear pricing examples across property types, with significant variation based on location and building quality.
| Property Type | Outer Wards | Central/Near Station | Luxury/Premium |
|---|---|---|---|
| Studio/1K | ¥41,000-50,000 | ¥60,000-80,000 | ¥80,000+ |
| 1LDK | ¥58,000-70,000 | ¥70,000-90,000 | ¥90,000-120,000 |
| 2LDK | ¥80,000-100,000 | ¥100,000-120,000 | ¥120,000-150,000 |
| 3LDK Family | ¥99,000-130,000 | ¥130,000-164,000 | ¥164,000-200,000+ |
| Detached Home | ¥110,000-150,000 | ¥131,000-180,000 | ¥200,000+ |
What are the typical renter profiles in Nagoya, and what do they usually look for?
Nagoya attracts diverse renter demographics, each with specific housing preferences that drive demand across different property segments.
Singles and young professionals represent the largest renter group, preferring 1K studios and compact apartments in central areas. They prioritize transport convenience, building security, modern amenities, and proximity to entertainment districts.
University students concentrate in Chikusa and Imaike areas for university access, typically seeking affordable 1K apartments with basic furnishing and good public transport connections to campus areas.
Families require 2LDK+ units in suburban areas or larger central apartments, valuing auto-lock security systems, parking spaces, quiet neighborhoods, and proximity to quality schools and family services.
International expats often target Naka and Chikusa wards for lifestyle amenities and international community access, seeking modern apartments with English-speaking management and proximity to international schools and hospitals.
Each demographic drives specific demand patterns, with singles and professionals supporting central area premiums while families and students create steady demand in residential and educational districts.
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What is the current vacancy rate across different property types and neighborhoods?
Nagoya maintains healthy vacancy rates of 3.89% overall as of September 2025, indicating balanced supply-demand conditions across most property segments.
The overall vacancy rate of 3.89% represents a year-over-year decrease, suggesting strengthening rental demand and market stability. This rate compares favorably to national averages and indicates healthy market conditions for landlords.
New buildings show higher vacancy rates at 22.96% due to fresh supply outpacing immediate absorption, creating temporary opportunities for tenants seeking modern amenities at competitive rates.
Residential properties in popular areas typically maintain vacancy rates below 5%, while commercial and office spaces show Grade A vacancy rates between 1.4-2.5%, reflecting strong business demand in central districts.
Suburban areas and older buildings may experience slightly higher vacancy rates, but overall market conditions remain favorable for property investors seeking stable rental income streams.
What are the average rental yields today, and how have rents and yields changed compared to one year ago and five years ago?
Nagoya's rental yields currently range from 3.54-4.4% gross annually, showing recent compression from 4.2% in 2024 due to faster property price appreciation than rental growth.
| City | 2025 Yield | 2024 Yield | 2020-2025 Rent Change |
|---|---|---|---|
| Tokyo | 3.2-3.5% | 3.44% | +7-12% |
| Osaka | 4.2% | 4.5% | +5-10% |
| Nagoya | 3.54-4.4% | 4.2% | +3-5% annually |
| Fukuoka | 4.1-4.5% | 4.22% | +6-7% |
Rental rates have increased 3-5% annually since 2020, driven primarily by central neighborhoods and properties near subway lines experiencing strongest growth.
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What are the smartest property investment choices in Nagoya right now, and how do rents and yields compare with other major Japanese cities like Osaka, Kyoto, or Fukuoka, including forecasts for 1, 5, and 10 years?
Central Nagoya properties near subway lines represent the smartest investment choices, offering superior value compared to Tokyo and Osaka with healthy yields and steady appreciation potential.
Naka, Chikusa, and Sakae districts provide the best combination of stable rental demand and premium appreciation, with properties showing 6-7% annual price growth while maintaining consistent occupancy rates.
Subway-proximate units deliver the strongest performance metrics, combining transportation convenience that tenants value with infrastructure investments that support long-term property appreciation.
Nagoya's 4.4% rental yield competes favorably with Osaka (4.2%) and Fukuoka (4.5%) while significantly exceeding Tokyo's 3.2% returns, making it attractive for yield-focused investors seeking better returns than Japan's most expensive markets.
Forecasts indicate steady growth over 1, 5, and 10-year periods supported by Nagoya's strong manufacturing economy, limited land supply, and ongoing infrastructure development. Rental yields should stabilize around 4-4.5% with rents and property values projected to increase 3-5% annually barring major economic disruptions.
Key investment advantages include lower entry costs than Tokyo or Osaka, manageable vacancy rates, steady rental demand from diverse tenant demographics, and mortgage rates well below rental yields creating favorable leverage opportunities.
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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.
Nagoya's rental market presents compelling opportunities for both investors and tenants, with competitive yields and steady growth prospects positioning it as an attractive alternative to more expensive Japanese markets.
The combination of affordable entry costs, healthy rental yields, and stable economic fundamentals makes Nagoya particularly appealing for property investors seeking sustainable returns in Japan's secondary cities.
Sources
- Japan's 2025 Single Family Detached Home Rental Market Guide
- Average Rent in Nagoya Guide
- Nagoya Rental Market Information
- Nagoya Property Market Analysis
- Nagoya Neighborhood Rental Guide
- Nagoya Price Forecasts
- Cost of Living in Japan
- Japan Property Taxes and Costs
- Japan Real Estate Market Report
- Japan Rental Yields Analysis