Buying real estate in Daegu?

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14 strong reasons to buy property in Daegu in 2025

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Authored by the expert who managed and guided the team behind the South Korea Property Pack

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Why is Daegu emerging as a prime location for property investment in 2025? Is it the city's robust economic growth, the increasing demand for rental properties, or the competitive pricing compared to other major cities in South Korea? What makes Daegu particularly appealing to investors?

We frequently encounter these questions because we're actively engaged in the local market, collaborating with developers, real estate agents, and investors like you. Given the growing interest in Daegu, we've decided to compile our insights into a comprehensive article for everyone's benefit.

Our aim is to present a compelling case for investing in Daegu's real estate market, supported by our firsthand experience and in-depth market knowledge.

If you feel we've overlooked an important aspect or wish to learn more, please don't hesitate to reach out (we respond very quickly). Your feedback enhances the quality of our content.

Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.

How this content was created 🔎📝

At BambooRoutes, we study the Daegu real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

Our process started with insights drawn from these conversations and what we observed firsthand. Then, to make our points more solid, we turned to trusted sources like the Ministry of Economy and Finance, Daegu Government, and Invest Korea (among many others).

We only include reasons to invest that are backed by credible sources, solid context, and clear information.

If we can’t find enough supporting data or context, we leave it out. There’s no point in presenting vague claims or overly optimistic assumptions that don’t hold up to scrutiny. Our goal is to provide you with a reliable and well-researched analysis of why this market is a smart choice for property investment—not just a list of unsupported ideas.

Every source and citation is clearly listed because we believe in transparency and want you to have the tools to dig deeper if you wish (we always encourage you to conduct your own research).

We also use a bit of AI during the writing process. This ensures that our explanations are clear and free from grammar or syntax errors, giving you content that’s easy to read and understand.

To make the information even more engaging, our team has crafted bespoke infographics that aggregate, summarize, and visualize key market trends. These visuals highlight why this market is such a strong investment opportunity. We hope you’ll find them useful! All additional illustrations and media were designed in-house to ensure the highest quality and relevance.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) In Daegu, you can find more affordable entry points for property investment than in Seoul

Daegu's property market offers a more affordable entry point for investors compared to Seoul.

In 2024, the average sale price per square meter in Daegu was about 7.76 million won, which is significantly lower than Seoul's 20 million won per square meter. This means you can get more property for your money in Daegu, making it a smart choice for those looking to invest.

Historically, Daegu has shown slower but steadier price increases. In 2024, house prices in Daegu rose by 7.12%, a big jump from the previous year's 1.4% increase. Meanwhile, Seoul experienced an 18.41% drop in residential property prices, highlighting its volatility.

With lower property prices, rental yields in Daegu are likely higher, offering better returns for investors. The government is also rolling out initiatives to boost Daegu's economy and infrastructure, like lowering the loan-to-value ratio for homes, which could further attract investment.

Living in Daegu is 24% less expensive than in Seoul, making it a more budget-friendly option for both residents and investors. This affordability, along with a growing interest from investors and an influx of businesses, positions Daegu as a rising investment hotspot.

Sources: MK Real Estate, Living Cost, Global Property Guide

2) Daegu’s strong textile industry means stable jobs, which supports the local property market

Daegu's textile industry is a major player in keeping the local real estate market thriving by providing stable employment opportunities.

With 5,376 textile fashion businesses in Daegu, the city boasts a significant portion of the manufacturing industry, which means plenty of jobs and economic stability. This strong presence is a backbone for the local economy.

The Daegu Policy Institute has big plans, aiming to nurture 50 textile fashion companies with annual sales of 50 billion won by 2030. This could potentially create jobs for 30,000 people, showing how the industry can keep employment levels high and support the real estate market.

Back in the 1970s, Daegu was the heart of Korea's textile industry, home to the country's top companies. This boom likely boosted real estate values, proving that a thriving textile scene can lead to a strong property market.

Today, Daegu's textile industry makes up 30.1% of the manufacturing sector in terms of the number of firms and 24.7% in terms of employment. This highlights its massive impact on the local economy.

For anyone considering buying property in Daegu, the city's textile industry offers a sense of economic security, thanks to its long-standing influence on the job market and real estate.

Sources: MK News, PolyU Repository, Karyiuwong Conference Paper

infographics comparison property prices Daegu

We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

3) With more expats in Daegu, there’s a rising demand for diverse housing options

Daegu is seeing a surge in demand for diverse housing due to its growing expatriate community.

In 2023, Korea's long-term foreign residents hit nearly 2.5 million, with a significant number settling in Daegu. This city has become a magnet for expatriates, thanks to multinational companies like Korea Delphi Automotive Systems and TK Chemical. These firms attract international employees who need housing that suits their lifestyle, boosting the demand for varied living spaces.

Daegu's universities are also drawing more international students, with an 8.9% increase compared to last year. These students are looking for modern housing options, adding to the city's need for diverse accommodations. The influx of students and workers is reshaping the housing market, making it more dynamic and varied.

New residential projects are popping up, specifically targeting international residents. These developments often feature amenities like international schools and cultural facilities, catering to the needs of expatriates. The city is actively working to attract foreign talent, offering incentives like accommodation vouchers for non-metropolitan areas, which further fuels the demand for diverse housing.

Daegu's government initiatives are making the city more appealing to foreigners, creating a vibrant community that requires a range of housing options. The presence of international companies and educational institutions is a key driver in this transformation, as they bring in a steady stream of expatriates and students.

With these changes, Daegu is becoming a hub for international residents, and the housing market is evolving to meet their needs. The city's efforts to attract and accommodate foreign talent are paying off, as seen in the growing demand for diverse living spaces.

Sources: Korea Times, Ministry of Economy and Finance, Invest Korea

4) Daegu’s location as a transport hub makes it easy to connect with other major South Korean cities

Daegu is a transportation powerhouse, making it easy to reach other major cities in South Korea.

Hop on the KTX, and you can zip from Daegu to Busan in just about 40 minutes, or head to Seoul in roughly 1 hour and 30 minutes. This high-speed rail service is a game-changer for anyone looking to travel quickly and comfortably.

Besides the trains, Daegu is strategically placed near the Gyeongbu Expressway, which makes road trips to cities like Busan and Gwangju a breeze. Driving is straightforward and efficient, thanks to these well-connected expressways.

Flying in and out of Daegu is also a cinch with Daegu International Airport offering a range of domestic and some international flights. This adds another layer of convenience for travelers and residents alike.

For businesses, Daegu's logistics capabilities are impressive. The city is linked to major ports like Busan, Ulsan, Pohang, and Masan, all within a one-hour drive. This makes it a prime spot for freight and shipping activities.

Daegu's involvement in regional and national transportation plans, including KTX network expansions, ensures it remains a key player in South Korea's connectivity landscape. Seamless travel is a reality here, whether you're moving goods or just getting around.

Sources: Korea Trains, Invest Korea

5) Daegu’s tech and innovation scene draws young professionals, boosting demand for modern homes

Daegu is becoming a hotspot for young professionals thanks to its focus on technology and innovation.

In recent years, the city has seen a boom in tech startups and innovation hubs, with companies like Social Infratech and PlattyX setting up shop here. This influx of tech firms is creating a vibrant job market, drawing in young talent eager to dive into cutting-edge industries.

The local government is also stepping up its game. In 2023, they launched the Daegu Digital Innovation Promotion Agency to back startups and push forward technologies like AI, Big Data, and Blockchain. These efforts are not just about creating jobs; they make Daegu a magnet for young professionals looking to climb the tech career ladder.

With more young professionals flocking to Daegu, there's a noticeable uptick in demand for modern housing. The real estate market is buzzing, with higher sales and rental prices for sleek, modern apartments. This surge is fueled by a desire for smart housing solutions that fit the tech-savvy lifestyle of these newcomers.

Daegu's focus on technology and innovation is not just about business; it's reshaping the city's living spaces. Young professionals are looking for homes that offer smart features and modern amenities, aligning with their digital lifestyles.

As the city continues to grow as a tech hub, the demand for modern housing is expected to rise even further. This trend is a clear indicator of how Daegu's tech-driven environment is transforming the real estate landscape, making it a prime spot for property investment.

Sources: Korea Tech Desk, Drone Life

Don't buy the wrong property, in the wrong area of Daegu

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6) Daegu’s rise in medical tourism boosts demand for short-term rentals

Daegu is becoming a hotspot for medical tourism, drawing in a growing number of international visitors.

In 2023, over 600,000 international patients visited Korea, with many choosing Daegu as their destination. This is a huge leap from the 248,000 visitors in 2022, highlighting a strong upward trend in medical tourism. The city's efforts to market itself as a medical hub, like the 'Medicity Daegu Global Medical Special Zone' initiative, have really paid off.

These initiatives have not only boosted Daegu's brand value but also increased the demand for short-term rental properties near medical facilities. This is great news for property investors looking to tap into the growing market of medical tourists who need convenient places to stay.

Daegu is home to about 3,700 medical institutions that cater to international patients, offering top-notch services. This includes five major hospitals and specialized medical schools, making it an ideal spot for medical tourists. The presence of these facilities means there's a constant flow of visitors needing nearby accommodations.

For those considering investing in property, Daegu's rise as a medical tourism destination is a promising opportunity. The city's growing reputation is not just about healthcare; it's about creating a thriving ecosystem that supports both patients and investors.

With the increasing number of international patients, the demand for short-term rentals is expected to keep rising. This trend is a clear indicator of the potential for property investment in Daegu, especially for those looking to capitalize on the medical tourism boom.

Sources: K-Health, Airbtics, K-Health

7) Daegu’s smart city initiatives promise advanced and efficient urban living

Daegu City is making waves with its smart city initiatives, promising a leap in urban living.

By 2023, Daegu had poured a hefty 965 billion won into smart city tech, zeroing in on transportation, safety, and urban management. This hefty investment is paving the way for innovative solutions that are set to boost residents' quality of life. Imagine a city where your daily commute is not just a routine but a smooth, predictable experience.

One of the coolest projects is the AI-powered smart intersections that have revamped traffic management and safety at 250 intersections. Plus, with 250 IoT networks in place, data collection for transportation, environment, and urban facilities is a breeze, making city management a whole lot smarter.

Daegu's digital infrastructure is a magnet for tech companies, turning the city into a buzzing hub of innovation. Take Suseong Alpha City, for example, which is home to 243 ICT/SW companies. This tech boom is not just a boost for the local economy but also a catalyst for rolling out more smart city solutions.

With these advancements, Daegu is not just keeping up with the times; it's setting the pace. The city's focus on smart city initiatives is a game-changer, leading to advanced and efficient urban living. It's a place where technology and daily life blend seamlessly, offering a glimpse into the future of urban living.

For anyone considering a move to the country, Daegu's smart city transformation is a compelling reason to take a closer look. It's not just about living in a city; it's about being part of a forward-thinking community that's shaping the future.

Sources: Smart City Korea, Smart City Korea

8) Daegu’s mild climate offers year-round comfort, making it a great place to live in Korea

Daegu's mild climate makes it a comfortable place to live year-round.

With an average annual temperature of 12.8°C (55.0°F), Daegu is slightly warmer than Seoul, which averages around 11.8°C (53.2°F). This small difference means Daegu offers a more temperate climate, making it a cozy spot for residents.

Daegu also sees fewer extreme weather events compared to other parts of Korea. While heavy rain has become more common nationwide, Daegu remains stable, as noted in the G20 Climate Risk Atlas. This means fewer disruptions and a more predictable environment for those living in the city.

Looking at historical climate records, Daegu experiences fewer temperature fluctuations than other regions. January, the coldest month, averages 0.6°C (33°F), while August, the warmest, hits 26.4°C (80°F). This stability adds to the overall comfort of living in Daegu.

Residents enjoy a climate that is not only mild but also predictable and stable, making it easier to plan daily activities without worrying about sudden weather changes.

For those considering a move, Daegu's climate offers a pleasant balance of warmth and stability, making it an attractive option for potential homeowners.

Sources: Wikipedia, G20 Climate Risk Atlas, UNFCCC

infographics map property prices Daegu

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

9) Living in Daegu means easy access to mountains and parks for recreation

Daegu is a fantastic place for nature lovers, thanks to its close proximity to scenic mountains and parks.

Imagine spending your weekends exploring Palgongsan Mountain or the Daegu Arboretum, which are hugely popular with millions of visitors each year. These spots are perfect for outdoor activities like hiking and biking, which have really taken off recently.

Daegu has been busy developing new hiking and biking trails, making it even easier for residents to enjoy the great outdoors. This effort not only boosts the city's charm but also encourages a healthier, more active lifestyle among locals.

The government is investing in these natural areas, ensuring they remain top-notch for everyone to enjoy. This commitment plays a big part in keeping Daegu's recreational scene vibrant and thriving.

Daegu's love for the outdoors is also seen in its lively events and festivals, like the famous Daegu Chimac Festival. These gatherings draw tourists and bring the community together, all while showcasing the city's beautiful landscapes.

Both residents and visitors rave about Daegu's natural beauty, making it a must-visit destination for recreation. The positive buzz around these attractions highlights their appeal.

Sources: Statista, The Backpacking Housewife, Visit Korea, Wanderlog

10) The local government's support for start-ups attracts young talent by fostering an entrepreneurial environment

Daegu is becoming a hotspot for young entrepreneurs thanks to strong local government support for start-ups.

The Ministry of SMEs and Startups (MSS) has rolled out a massive support plan for 2023 and 2024, with a budget of KRW 3.294 trillion. This funding is a game-changer, giving start-ups the resources they need to innovate and grow. It's like a financial safety net that encourages risk-taking and creativity.

Daegu is also home to innovation hubs and co-working spaces, like those from Regus, which offer modern workspaces and networking opportunities. These spaces are buzzing with energy, perfect for young entrepreneurs who thrive in dynamic environments. They’re not just offices; they’re places where ideas come to life.

Local universities are teaming up with start-ups in the Daegu Special Urban Convergence Zone, creating a powerful synergy for research and development. This partnership fuels innovation and keeps the local economy vibrant. Young professionals are drawn to these opportunities, eager to dive into groundbreaking projects.

Daegu’s supportive infrastructure is a magnet for young talent, offering everything from financial backing to collaborative spaces. The city is crafting an ecosystem where start-ups can flourish, making it an attractive destination for those looking to make their mark.

With all these elements in place, Daegu is not just a city; it’s a launchpad for the next generation of entrepreneurs. The local government’s initiatives are paving the way for a thriving start-up culture, ensuring that the city remains a beacon for innovation and growth.

Sources: Regus, Korea Tech Desk, Daegu Government

11) Daegu’s focus on green spaces makes its residential areas more attractive

Daegu's government is making residential areas more appealing by promoting green spaces.

In 2023 and 2024, the city put a lot of money into urban green projects, with KRW 480.9 billion set aside for 2024. This isn't just about making the city prettier; it's about boosting the economy and creating a place where businesses want to set up shop, which naturally makes homes in the area more attractive.

The Daegu Metropolitan City Smart City Plan is a big part of this, focusing on expanding parks and recreational areas. By improving riverfront spaces and cultural plazas, the city is making these spots more desirable for people to live near. This kind of development often means property values go up because people love living close to green spaces.

Take the Dongseong-ro commercial district, for example. The neighborhood has seen a real boost thanks to green space development. These projects don't just make the area look nicer; they also increase foot traffic and business activity, which makes the nearby residential areas more lively and appealing.

Residents are noticing these changes, and it's not just about aesthetics. The increase in green spaces is making neighborhoods more vibrant, and people are willing to pay more to live in these improved areas. It's a win-win for the city and its residents.

Daegu's focus on green spaces is a smart move, enhancing both the quality of life and the economic prospects of the city. These initiatives are transforming urban living, making Daegu a more attractive place to call home.

Sources: Daegu Metropolitan City, World Economic Forum

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12) Daegu’s rich history and landmarks draw both local and international tourists

Daegu's historical landmarks are a major attraction for both local and international tourists.

One of the highlights is the Daegu Modern History Street, which features 12 official stops that delve into the city's rich past. Visitors can explore Daegu's role during the Korean War and the Japanese Occupation, making it a must-visit for history buffs. This street alone draws many eager to uncover the layers of history Daegu offers.

Another gem is the Yangyeongsi Oriental Medicine Museum, established in 1985. It not only preserves the tradition of oriental medicine but also offers interactive experiences. This unique blend of history and hands-on learning makes it a fascinating spot for those interested in cultural heritage.

In 2023, Daegu experienced a significant rise in foreign tourists, with numbers reaching 360,000, a fourfold increase from the previous year. This surge is largely due to enhanced marketing efforts and improved tourism services, highlighting the appeal of historical sites.

The increase in international flights to Daegu International Airport, with 91,000 foreigners arriving in 2023, further supports the city's growing allure. This uptick in visitors underscores the city's efforts to make Daegu more accessible and attractive to international travelers.

Daegu's historical significance and landmarks continue to captivate visitors, offering a unique blend of past and present that is hard to resist. The city's rich history, combined with modern conveniences, makes it a compelling destination for anyone looking to explore South Korea's cultural heritage.

Sources: Emieyes, MK, Wanderlog

13) With Daegu’s efficient transport, residential areas are more desirable

Daegu's public transportation system makes commuting a breeze and boosts the appeal of its residential areas.

With two standard metro lines and an elevated monorail, Daegu offers extensive coverage, ensuring residents can easily access different parts of the city. The city is even planning a new fourth line, which will further enhance connectivity.

Regular and express buses add to the system's efficiency, offering unified fares and transfer benefits within 30 minutes. This setup allows people to travel around the city without worrying about high costs or long waits, making daily commutes much more manageable.

The public transport services have expanded to nine cities and counties, showing high demand and satisfaction among residents. This expansion not only simplifies commuting but also likely increases property values near transit hubs, a trend seen in other cities with efficient public transport.

Living near a transit hub in Daegu means you can enjoy the perks of a well-connected city, with easy access to work, schools, and leisure activities. This convenience is a major draw for potential property buyers.

Daegu's efficient public transportation system is a key factor in making commuting easy and increasing the desirability of residential areas.

Sources: Rail Journal, Daegu Official Website, MK News

14) New infrastructure projects in Daegu are set to boost property values

Daegu's new infrastructure projects are set to boost property values.

The city is investing heavily in infrastructure, including subway line 4 and new metropolitan roads. These developments will make Daegu more accessible, attracting both residents and businesses.

Exciting new transportation links, like the Urban Air Mobility (UAM) initiative, are on the horizon. This could transform Daegu into a model city, increasing demand for properties near these projects.

Historically, in South Korea, infrastructure improvements often lead to higher property values. As Daegu enhances local production and reduces import reliance, economic growth is expected, further boosting property values.

With these changes, Daegu is not just improving its infrastructure but also positioning itself as a hub for innovation and growth. This makes it an attractive option for potential property buyers.

Investing in Daegu now could mean benefiting from future property value increases as the city continues to develop and expand.

Sources: Daegu Metropolitan City, Business Wire, Invest Korea

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.