Is it worth it buying property in Hiroshima in 2025?

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Hiroshima. If you'd like to learn more about us, you can check our presentation page.

What types of properties are available in Hiroshima in 2025?

Hiroshima's property market in 2025 offers five main categories of real estate for buyers and investors.

Modern apartments represent the most popular option, ranging from studio units to family-sized three-bedroom apartments. These properties are concentrated in central wards like Naka and Minami, featuring energy-efficient designs and smart home technology. Prices typically range from ¥25 million to ¥50 million ($170,000 to $350,000) for quality units in desirable locations.

Traditional detached houses cater to families seeking more space and privacy. You'll find both older homes that may require renovation and newer builds throughout urban and suburban areas. These properties offer gardens and multiple floors, with prices varying significantly based on age, condition, and location.

Land for development is commonly available in suburban wards such as Aki and Saeki, suitable for custom builds and investment projects. This option appeals to buyers wanting to construct their ideal home or investors planning residential or commercial developments.

Investment and commercial properties include office spaces, retail units, and small apartment blocks. These properties target investors seeking steady rental income from business tenants or multiple residential units.

Traditional "kominka" and akiya (vacant rural houses) offer unique opportunities in outer areas, with significantly lower prices starting from $10,000 to $50,000. These properties require more renovation work but provide authentic Japanese architecture and substantial value potential.

Is it better to buy or rent in Hiroshima right now?

Buying property in Hiroshima currently offers superior long-term value compared to renting, especially for those planning to stay more than three years.

Property purchase provides excellent value with prices approximately 80% lower than Tokyo levels, making homeownership accessible to a broader range of buyers. The Hiroshima residential market shows moderate price appreciation, particularly in central and redeveloping areas, protecting your investment against inflation. Rental yields of 4-5.5% are achievable for investors, and foreign buyers face no ownership restrictions.

Buying works best for long-term residents, investors seeking rental income, and those wanting housing stability without landlord constraints. The purchase process is straightforward, and mortgage options are available for qualified foreign buyers.

Renting offers flexibility and lower upfront costs, making it suitable for short-term stays, expats unsure about long-term plans, or those wanting to test different neighborhoods before committing to purchase. However, rental costs can accumulate significantly over time, especially in popular districts where monthly rents for quality apartments reach ¥80,000 to ¥150,000 ($550 to $1,050).

As of September 2025, the buying market strongly favors purchasers due to stable interest rates, steady price appreciation, and strong rental demand that supports investment returns.

How have property prices changed in Hiroshima over the past few years, and what is the forecast for the next few years?

Hiroshima property prices have experienced significant growth in recent years, with central areas leading the appreciation trend.

New condominium prices in central Hiroshima rose by 42.5% in 2023, while existing condominiums increased by 9%. This substantial growth reflects urban redevelopment projects, improved infrastructure, and a shift in buyer preference toward urban core locations with better amenities and transportation access.

The price increases have been most pronounced in prime locations like Naka Ward and areas near major transportation hubs. Traditional detached houses in suburban areas have seen more modest appreciation, with some outer areas experiencing price stagnation due to population migration toward city centers.

The forecast for 2025-2027 indicates continued moderate price growth in central and redeveloping neighborhoods. Infrastructure improvements, economic stability, and limited supply of new developments will likely drive appreciation rates of 3-7% annually in prime locations. Areas benefiting from urban redevelopment projects and new transportation links should see the strongest price performance.

Suburban and outer areas may experience stagnant or slightly declining prices due to ongoing urbanization trends and reduced demand as residents prefer central locations with better job opportunities and amenities.

It's something we develop in our Japan property pack.

What are the current real estate market trends in Hiroshima, and how are they expected to evolve?

The Hiroshima real estate market in 2025 is characterized by strong demand for central properties and ongoing urban transformation.

Central areas experience high demand and strong price appreciation due to limited land supply for new developments. The concentration of jobs, entertainment, and transportation in these areas creates sustained buyer interest and rental demand. New construction focuses on high-quality, energy-efficient buildings that command premium prices.

The rental market remains robust with diverse tenant profiles including students, professionals, families, and expats. University proximity and major employer presence ensure steady rental demand, particularly for one and two-bedroom apartments near transit stations.

Infrastructure investment continues to add significant value to surrounding properties. Major projects including transportation improvements and commercial developments boost neighborhood appeal and attract both residents and businesses. These investments create positive spillover effects that benefit property values in expanding radius.

Urbanization trends show outskirts losing appeal as residents migrate to central neighborhoods. This shift concentrates demand in prime locations while creating opportunities for value investors in transitional areas that may benefit from future development.

Future evolution through 2027 will likely intensify these trends, with central properties becoming increasingly premium while suburban areas require strategic selection based on development plans and transportation access.

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What is the process of buying property in Hiroshima, from start to finish?

The property buying process in Hiroshima follows a structured seven-step approach that typically takes 30-60 days to complete.

Step one involves finding your property through local agencies, online portals, or international real estate platforms. Use established listing sites like Japan-Property and Real Estate Japan, or work with bilingual agents who can navigate language barriers and explain local market conditions.

Step two requires submitting a Letter of Purchase Intent that outlines your offer price and basic terms. This document initiates negotiations with the seller and demonstrates serious buying intent. Price negotiations are common and acceptable in the Hiroshima market.

Step three involves paying earnest money, typically 5-10% of the purchase price, to secure the property and prevent other buyers from acquiring it during your due diligence period.

Step four includes signing the final purchase contract and paying any remaining deposit required by the agreement. This legally binding document should be thoroughly reviewed, preferably with bilingual legal assistance.

Step five encompasses due diligence activities including bank appraisal, personal property inspection, and verification of zoning regulations and legal status. This critical phase protects buyers from hidden problems or legal complications.

Step six covers purchase completion where you pay the final balance, register the property in your name, and settle all taxes and fees. Property registration establishes legal ownership and protects your investment.

Step seven allows you to move in or begin ownership activities. Foreign buyers can purchase freely without residency requirements, though working with bilingual agents is recommended for those not fluent in Japanese.

Where can you find properties for sale in Hiroshima, and which real estate agencies are recommended?

Hiroshima property listings are available through multiple channels, each serving different buyer preferences and property types.

Online listing portals provide the broadest selection and easiest browsing experience. Japan-Property offers comprehensive listings with English language support and detailed property information including photos, floor plans, and neighborhood data. Real Estate Japan specializes in properties suitable for foreign buyers and provides bilingual customer service.

Specialized platforms serve unique property types and buyer interests. Old Houses Japan focuses on traditional and historical properties including kominka and renovated traditional homes. AllAkiyas specializes in vacant houses and renovation projects, offering significant value opportunities for buyers willing to invest in property improvements.

Top recommended agencies combine local market knowledge with international buyer experience. 良和ハウス (Ryowa House) and 東邦ハウジング (Toho Housing) are established local agencies with strong Hiroshima market presence and extensive property networks. Japan-Property and Real Estate Japan provide bilingual services and specialize in foreign buyer needs. Sumitomo Real Estate Sales offers nationwide coverage and professional service standards.

Working with bilingual agents is particularly valuable for foreign buyers navigating contract terms, legal requirements, and cultural aspects of Japanese real estate transactions. These professionals can explain market conditions, negotiate effectively, and ensure all documentation is properly completed.

It's something we develop in our Japan property pack.

Which types of properties are available for different budgets in Hiroshima?

What are the common mistakes to avoid when buying property in Hiroshima?

Property buyers in Hiroshima frequently make seven critical mistakes that can result in financial losses or legal complications.

Not understanding land versus building value represents the most significant error. In Japan, houses depreciate while land typically retains or increases value. Buyers should focus on properties where land value constitutes the majority of the purchase price, particularly in central locations with limited supply.

Overlooking renovation needs on older homes can lead to unexpected expenses. Many traditional properties require significant updates to electrical, plumbing, or structural systems. Always conduct thorough inspections and budget 20-40% additional costs for renovation projects on properties over 20 years old.

Failing to check restrictions on renovation, use, or zoning can prevent intended property modifications. Some areas have strict building codes, historical preservation requirements, or use restrictions that limit rental or commercial activities. Verify all regulations before purchase.

Inadequate due diligence on title, taxes, or flood risk creates legal and financial vulnerabilities. Ensure clear title ownership, understand ongoing tax obligations, and check flood zone maps and earthquake risk assessments for the specific location.

Signing contracts without full translation or explanation can result in misunderstood obligations or unexpected costs. Use bilingual legal assistance to review all documents and ensure complete understanding of terms, conditions, and responsibilities.

Not budgeting for purchase taxes, agent fees, and ongoing costs often strains finances unexpectedly. Factor in acquisition tax (3-4%), agent commissions (3%), legal fees, and annual property taxes when calculating total investment requirements.

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 is the cost of living in Hiroshima, and how does it compare to other cities in Japan?

Hiroshima offers exceptional cost of living value, with expenses approximately 46% lower than Tokyo across all major categories.

Housing costs show the most dramatic difference, with downtown one-bedroom apartments renting for $350 monthly compared to $821 in Tokyo. Purchase prices follow similar patterns, with quality condominiums in central Hiroshima costing 80% less than equivalent Tokyo properties.

Daily living expenses remain consistently affordable. Single person monthly costs average $923 including rent, while families of four spend approximately $2,231 monthly. Food, transportation, and utilities all cost significantly less than major Japanese cities while maintaining high quality standards.

Transportation costs are particularly attractive, with monthly public transit passes costing $50-70 compared to $100-150 in Tokyo. The city's compact size and efficient tram and bus systems make car ownership optional for many residents.

Quality of life benefits include less congestion, shorter commutes, excellent public transportation, strong safety records, and access to both urban amenities and natural areas. Healthcare costs remain low while maintaining Japan's high medical standards.

Compared to other Japanese cities, Hiroshima ranks among the most affordable major urban areas while offering cultural attractions, international connectivity, and economic opportunities that smaller cities cannot match.

Which are the best areas to buy property in Hiroshima, and what are the strengths and weaknesses of different neighborhoods?

What's it like living in Hiroshima as an expat, and are there particular challenges to consider?

Living in Hiroshima as an expat offers a high quality of life with unique cultural experiences and practical advantages, though certain challenges require preparation and adaptation.

Positive aspects include exceptional affordability with costs 46% below Tokyo levels, outstanding safety records with minimal crime, excellent public transportation connecting all city areas, quality healthcare with reasonable costs, and vibrant cultural and leisure opportunities. The city provides access to both urban amenities and natural beauty including nearby mountains and coastal areas.

Language barriers present the primary challenge for many expats. While younger residents and service staff in tourist areas may speak some English, daily activities like banking, healthcare, and government services typically require Japanese language skills. Essential documents, contracts, and official communications are primarily in Japanese.

The expat community in Hiroshima is smaller compared to Tokyo or Osaka, which can limit social networking opportunities and English-speaking support services. However, this creates a more intimate international community where connections are often stronger and more meaningful.

Rental processes can be strict, requiring guarantors and extensive documentation. Some landlords prefer Japanese tenants, though this is becoming less common as international awareness increases. Working with bilingual real estate agents helps navigate these requirements.

Cultural adaptation involves understanding social etiquette, business practices, and traditional customs that remain important in daily life. Food preferences may require adjustment, though international restaurants and grocery stores are available in central areas.

Overall, expats who embrace cultural learning and invest time in basic Japanese language skills typically find Hiroshima highly livable and welcoming.

If you're looking to rent out a property long-term, which areas should you target, what type of tenants can you expect, and what rental yields can you achieve?

Long-term rental investment in Hiroshima targets specific areas with consistent tenant demand and achieves solid rental yields of 4-5.5% in central locations.

Target areas for optimal rental performance include Naka Ward for business professionals and tourists, Minami Ward for families and young professionals, and Nishi Ward for students and budget-conscious tenants. Properties near major train stations, universities, and employment centers command premium rents and experience lower vacancy rates.

Tenant types in Hiroshima's rental market include local Japanese professionals working for major corporations, university students from across Japan and internationally, corporate housing tenants on temporary assignments, and a growing number of expats choosing Hiroshima for its quality of life and affordability. Each tenant category has specific preferences for property size, location, and amenities.

Expected rental yields range from 4% in prime central locations to 5.5% in emerging areas with high demand. One-bedroom apartments in central areas typically rent for ¥60,000-¥100,000 monthly ($420-$700), while family-sized properties command ¥100,000-¥180,000 monthly ($700-$1,260). These yields significantly exceed those available in Tokyo or Osaka.

The best rental investment strategy focuses on properties with excellent transport access, proximity to educational institutions or major employers, and modern amenities that appeal to quality-conscious tenants. Properties in wards with ongoing infrastructure development often experience both rental income growth and capital appreciation.

It's something we develop in our Japan property pack.

What about renting out a property short-term—what are the regulations, and how does that compare to long-term rental income?

Short-term rental in Hiroshima operates under strict regulations that require licensing and compliance with minpaku (vacation rental) laws, though potential returns can exceed long-term rentals for well-managed properties.

Current regulations mandate proper licensing for Airbnb and other short-term rentals, with specific requirements for safety, insurance, and guest management. As of September 2025, Hiroshima has 648 active short-term rental listings, indicating a controlled but viable market.

Performance metrics show average occupancy rates of 65% and annual income averaging $18,000 per property. The most successful listings achieve full booking for approximately 237 nights per year, with May typically being the most lucrative month due to tourism and business travel patterns.

Operational requirements include regular property maintenance, guest communication often in multiple languages, cleaning between stays, and compliance with local noise and safety regulations. Many successful operators hire professional management companies to handle day-to-day operations.

Compared to long-term rentals, short-term properties can generate higher monthly income during peak periods but face greater operational complexity and regulatory burden. The income is also more variable, depending on tourism trends, seasonal patterns, and local events.

Long-term rentals offer stable, predictable income with lower management requirements and fewer regulatory complications. The choice between short and long-term rental strategies depends on investor preferences for hands-on management versus passive income, risk tolerance, and available time for property management activities.

Is it worth buying property in Hiroshima in 2025?

Buying property in Hiroshima in 2025 represents an excellent opportunity across all three major investment objectives: personal use, rental income, and capital appreciation.

For personal use, Hiroshima property purchases offer exceptional value with prices 80% below Tokyo levels while maintaining high quality of life, excellent infrastructure, and access to cultural and natural amenities. Long-term residents benefit from housing stability, no landlord restrictions, and protection against future rent increases in an appreciating market.

For rental income purposes, Hiroshima delivers attractive yields of 4-5.5% in central and emerging areas. Strong demand from diverse tenant groups including students, professionals, families, and expats provides stable occupancy rates. The rental market shows consistent growth potential as the city continues attracting residents and businesses.

For capital appreciation and resale potential, moderate growth is expected in central and redeveloping areas driven by infrastructure investments and limited new development supply. Properties in strategic locations with transportation access and development projects offer the highest appreciation potential through 2027.

Foreign buyers benefit from no ownership restrictions, straightforward purchase processes, and access to the same market opportunities as domestic buyers. Working with English-capable agents ensures smooth transactions and proper legal compliance.

The combination of affordability, solid returns, livability, and growth potential makes Hiroshima particularly attractive for investors who value urban amenities, steady appreciation, and reasonable entry costs. The city offers a compelling alternative to expensive major markets while maintaining the infrastructure and opportunities of a significant urban center.

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.

Sources

1. BambooRoutes - Hiroshima Property Guide
2. Old Houses Japan - Hiroshima Properties
3. AllAkiyas - Traditional Houses Hiroshima
4. Japan Property - Hiroshima Real Estate Blog
5. BambooRoutes - Hiroshima Real Estate Trends
6. BambooRoutes - Hiroshima Real Estate Forecasts
7. Real Estate Japan - Buying Guide for Foreigners
8. Black Ship Realty - Japan Property Purchase
9. Matcha Japan - Real Estate Information
10. Real Estate Japan - Agent Directory