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What is happening in Hiroshima’s real estate market? Are prices on the rise or decline? Is Hiroshima still attracting attention from international investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Hiroshima and beyond. Maybe you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Hiroshima real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
1) Foreign buyers will increasingly target Hiroshima’s luxury property market due to favorable exchange rates
The Japanese yen is losing value, making it a great time for foreign buyers to consider purchasing property in Japan.
In 2023, foreign investment in Japan's real estate market surged to $10.2 billion, a significant increase from the previous year. This was largely driven by the weak yen, with the first half of 2023 alone seeing a 45% rise in foreign investment. Investors are clearly taking advantage of these favorable exchange rates.
Hiroshima is becoming a hot spot for luxury real estate, thanks to new developments like the Hilton Hiroshima and The Ritz-Carlton, which opened in late 2022 and early 2023. These hotels have attracted more foreign visitors, including potential real estate investors. The upcoming "JR Hiroshima New Station Building," set to open in spring 2025, is expected to further boost the city's allure.
Real estate agencies are noticing a spike in inquiries from foreign clients. The weak yen has made Japanese properties more affordable, drawing in more international buyers. This currency advantage is frequently highlighted in the media, positioning Japan as a prime destination for real estate investment.
Foreign buyers are particularly interested in Hiroshima's luxury market, where they can get more for their money due to the favorable exchange rates. The city's growing appeal, combined with the depreciating yen, makes it an attractive option for those looking to invest in high-end properties.
With the yen's depreciation, foreign buyers are finding that their money goes further in Japan, especially in cities like Hiroshima. This trend is expected to continue, making it a prime time to explore real estate opportunities in the country.
Sources: Wise, Japan Property, National Mortgage Professional
2) High-end residential property prices in Hiroshima will rise quickly due to limited supply
In Hiroshima, land for new developments is scarce, especially in central areas like Minami and Nishi Wards.
This limited availability means high-end residential properties are more valuable because there just aren't many of them. Affluent buyers are driving up demand for luxury housing, thanks to the city's high private rental rate and its many educational institutions and large companies.
Historically, high-end properties in Hiroshima have appreciated faster than average ones. For instance, in November 2023, the average price of new condominiums in Hiroshima jumped by 42.5%, a much bigger increase than in other regions.
Rising construction costs make it tough to develop new luxury projects, which further limits supply. Plus, foreign investors are eyeing Hiroshima due to the yen's depreciation, adding to the demand for premium locations and amenities.
Hiroshima's economic growth is boosting residents' disposable incomes, which can lead to more demand for luxury housing. This economic stability, along with a growing number of high-income residents, supports the idea that prices for high-end properties will keep rising.
With limited land and rising demand, the price of high-end residential properties in Hiroshima is expected to rise faster than the average. The combination of these factors makes investing in luxury housing here a potentially lucrative opportunity.
Sources: Japan Property, Global Property Guide
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.
3) Foreign investment in Hiroshima’s residential properties will grow as international companies expand in the area
Hiroshima is catching the eye of foreign investors looking to buy residential properties, thanks to the influx of international companies setting up shop in the area.
One standout example is the collaboration between Hiroshima Prefecture, Sumitomo Corporation, and Mahindra Industrial Park Chennai Limited, which highlights the growing interest in international business partnerships in Hiroshima. This trend is not just a flash in the pan; it's part of a broader movement of foreign direct investment (FDI) in Japan.
In 2023, FDI in Japan hit $10.2 billion, and while Tokyo and Osaka often steal the spotlight, Hiroshima is also benefiting. The weak yen is a big factor here, making it more attractive for foreign investors. Plus, the Japanese government is rolling out the red carpet with incentives like consultation services and support for inspection visits to India, making it easier for businesses to expand in Hiroshima.
Hiroshima's appeal doesn't stop at business. The expatriate population in Japan is growing by about 200,000 foreign residents annually, which means more people are looking for places to live. This surge in demand is a golden opportunity for property investors.
Infrastructure is another big draw. Developments like the JR Hiroshima New Station Building and Central Park Square are turning heads internationally. These projects are not just about convenience; they are making Hiroshima a more attractive place to live and invest.
With these developments, it's clear that Hiroshima is becoming a hotspot for foreign investment in residential properties, driven by international business expansion and a growing expatriate community.
Sources: Sumitomo Corporation, MDPI, City of Hiroshima, Japan Property
4) Foreign buyers will increasingly seek vacation homes in Hiroshima as it grows in popularity as a tourist destination
Hiroshima is becoming a hot spot for tourists, and this is sparking interest in vacation homes from international buyers.
In recent years, Japan has seen a boom in international tourism, with over 3 million visitors arriving in March 2024 alone. While Kyoto has been a favorite, Hiroshima is catching up, thanks to its unique attractions.
Hiroshima's gems like Hiroshima Castle, Shukkeien Garden, and Miyajima Island are getting more buzz in travel guides and media. The city is also lively with events like the Flower Festival and Hiroshima Port Dream Fireworks Festival, which are organized by the Hiroshima Convention & Visitors Bureau to draw in more visitors.
Foreign investors are eyeing Japan's real estate, especially with the yen being weak. In 2023, there was a 45% jump in foreign investment in Japanese properties during the first half of the year, making it a prime time for international buyers to consider Hiroshima.
Hiroshima's property prices are on the rise, signaling a strong demand for real estate. This trend is fueled by the city's growing popularity and the affordability of Japanese properties for foreign buyers.
As Hiroshima continues to attract more tourists, the demand for vacation homes is expected to grow, making it an exciting time for potential buyers to explore opportunities in this vibrant city.
Sources: World Bank, Trip.com, Hiroshima Convention & Visitors Bureau
5) Hiroshima's city center properties will attract foreign buyers for their convenience and amenities
Foreign buyers are increasingly drawn to Hiroshima's city center properties for their convenience and amenities.
In 2022, Hiroshima's land prices rose, with residential areas up by 1.4% and commercial land by 2.6%, showing a growing interest in the city center. This trend is fueled by the presence of international real estate agencies actively promoting these properties, indicating a rising demand for urban living among expatriates.
New developments like the Hilton Hiroshima hotel, which opened in October 2022, highlight the appeal of city center amenities for foreign buyers. These projects not only enhance the city's allure but also cater to the lifestyle preferences of international residents.
The Hiroshima Support Center for International Students plays a crucial role in fostering cross-cultural understanding and local revitalization. This growing expatriate community is likely to prefer city center living for its convenience and amenities, further boosting demand.
Central Park Square in the Naka Ward is set to become the new home base for the Sanfrecce Hiroshima football team, showcasing ongoing development and investment in the city center. This development is a testament to the city's commitment to enhancing its urban landscape.
With these factors in play, it's clear that foreign buyers will continue to focus on Hiroshima's city center properties, drawn by the vibrant community and modern conveniences.
Sources: Japan Property, Hiroshima International Plaza, Hiroshima Support Center for International Students
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6) Hiroshima will update zoning laws to permit more mixed-use developments
Hiroshima is updating its zoning laws to allow for more mixed-use developments.
There's a growing buzz around urban revitalization in Hiroshima, with a focus on creating vibrant, livable spaces. This isn't just a local idea; the World Bank emphasizes mixed-use developments as key in rebuilding cities after conflicts. Hiroshima is taking this to heart, aiming to blend residential, commercial, and public spaces seamlessly.
People in Hiroshima are increasingly drawn to walkable neighborhoods. This trend took off when the city transformed riverbeds into lively public areas. The Motomachi district's makeover, which saw locals actively involved, shows a clear preference for projects that mix living, working, and leisure spaces. It's all about making the city more pedestrian-friendly and community-focused.
Hiroshima's government has a history of backing mixed-use projects. The Hiroshima Peace City Construction Law paved the way for building homes and civic spaces, setting a strong example for future initiatives. This kind of zoning isn't just about convenience; it boosts the local economy by cutting down on long commutes and bringing more people to shop and dine in commercial areas.
Sources: World Bank Blog, World Bank, Washington University
7) Hiroshima’s affordable housing prices will rise slightly as demand from younger buyers increases
Young homebuyers are increasingly flocking to Hiroshima, drawn by the city's vibrant urban life.
Hiroshima is becoming a hotspot for young professionals, thanks to its booming economy and job opportunities. This economic growth makes the city an attractive place to settle, fueling the demand for housing as more young people look to plant roots here.
In popular areas of Hiroshima, the limited housing supply is pushing prices up. When there aren't enough homes to meet the demand, prices naturally climb, especially in the city center where rent is noticeably higher than in the outskirts.
Reports from the real estate market show a gradual increase in property prices in Hiroshima. This trend is closely tied to the influx of younger buyers eager to own a piece of the city, intensifying competition for available homes.
As more young people are drawn to Hiroshima, the competition for housing intensifies, nudging prices upward. This is particularly evident in the city center, where the demand is highest.
Sources: Social Desa, ABFER, Numbeo
8) Hiroshima’s property prices will rise moderately with ongoing infrastructure development
Hiroshima's residential property prices are on the rise as the city invests heavily in infrastructure.
With ongoing improvements in public transportation, Hiroshima is becoming more accessible and appealing. These changes are not just about convenience; they make the city a magnet for new residents and businesses. Urban renewal projects in key districts are also transforming the cityscape, enhancing livability and boosting property values.
Hiroshima's redevelopment efforts are catching the eye of potential buyers. Media coverage of the city's ambitious plans is sparking interest, which in turn is driving up demand for homes. Government policies are also playing a crucial role in this upward trend, focusing on urban development to make the city more attractive for living and investment.
These policies are not just about building roads or railways; they aim to improve the overall quality of life. As Hiroshima becomes a more desirable place to live, the demand for residential properties is expected to grow. This combination of factors is likely to lead to a moderate increase in property prices.
For those considering buying property in Hiroshima, now might be a good time to act. The city's development plans are not just about infrastructure; they are about creating a vibrant, livable environment. As the city continues to evolve, property values are expected to follow suit.
Hiroshima's transformation is a testament to its commitment to growth and improvement. With each new project, the city is becoming a more attractive place to call home. Investing in Hiroshima's real estate market could be a wise decision as the city continues to develop.
Sources: World Bank Blog, E-Housing Japan
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Luxury apartment rental yields in Hiroshima will increase as international executives look for high-quality accommodations
Hiroshima is becoming a prime spot for international businesses, drawing in a wave of foreign companies.
By 2023, over 200 foreign companies had set up shop in Hiroshima, bringing in international executives who need top-notch places to live. The city has stepped up its game with improved infrastructure and support for expats, like the Hiroshima International Schools and YMCA International Kindergarten, making it a magnet for a growing expatriate community.
Thanks to the Japanese government's push to attract foreign investment and talent, Hiroshima is even more appealing to international executives. As more businesses move in, the demand for luxury rentals is on the rise, mirroring trends seen in other major Japanese cities.
Hiroshima's booming industries, especially auto manufacturing, are a big draw for international executives. This influx of professionals is driving up the need for high-quality living spaces, similar to what's happening in Tokyo and Yokohama, where luxury rental yields are climbing.
With the city's growth and the increasing presence of international executives, rental yields for luxury apartments in Hiroshima are set to rise. This trend is fueled by the demand for high-quality accommodations from executives seeking comfort and convenience.
As Hiroshima continues to attract more international talent, the city's real estate market is poised for growth, offering lucrative opportunities for property investors looking to tap into the luxury rental sector.
Sources: All Japan Relocation, IMHDS Annual Report, Global Property Guide
10) Rental yields for older Hiroshima properties will drop as tenants favor modern amenities
Renters today crave modern amenities like high-speed internet and shared workspaces.
In cities like Hiroshima, older properties are struggling to meet these new demands. They often come with higher maintenance costs and lack the features that renters now expect, making them less appealing. As a result, tenants are gravitating towards newer homes that offer these conveniences.
This shift is causing vacancy rates in older buildings to rise. Across Japan, there's a clear trend of tenants moving to properties with the latest amenities. The real estate market is responding by focusing on new constructions that cater to these preferences, which further diverts attention from older properties.
Investors are noticing that rental yields for older properties in Hiroshima are decreasing. This is because tenants are increasingly choosing modern amenities over traditional charm. The demand for newer, well-equipped homes is reshaping the market landscape.
Real estate developers are capitalizing on this trend by building more properties that align with renters' evolving priorities. This means that older properties are losing their competitive edge as they fail to offer what modern tenants desire.
For potential buyers, it's crucial to understand that the appeal of older properties is waning in favor of modern conveniences. This shift in renter preferences is a key factor to consider when investing in the property market.
Sources: NMHC and Grace Hill Survey Report, Real Estate Japan, Japan Property Market Insights
11) Hiroshima's central rental yields will rise as young professionals seek city living
Rental yields in Hiroshima's central areas are on the rise as young professionals flock to city life.
In cities like Tokyo, rental prices have surged, and Hiroshima is catching on to this trend. Young professionals are drawn to the hustle and bustle of urban living, seeking vibrant lifestyles and career opportunities. Hiroshima's central business districts are buzzing with new workers, hinting at a growing job market that could attract even more young talent.
The Japanese government is also playing a part by revitalizing urban centers with improved infrastructure, making cities like Hiroshima even more appealing. As the cost of owning a home climbs, more people are opting to rent, which is driving up demand for rental properties in these urban hotspots.
Hiroshima is not just about work; it's about lifestyle too. The city offers a mix of cultural experiences, dining, and entertainment that appeals to young professionals. This vibrant atmosphere is a magnet for those looking to balance work and play, further boosting the city's allure.
With more young professionals choosing to rent, landlords in Hiroshima's central areas are likely to see increased rental yields. The demand for city living is growing, and Hiroshima is well-positioned to benefit from this shift.
As more young people move to the city, the rental market is expected to thrive, making it a promising time for property investors. The combination of a strong job market, government initiatives, and a vibrant lifestyle makes Hiroshima an attractive option for young professionals.
Sources: Japan Times, OMFIF
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12) Older property prices in Hiroshima will drop as buyers favor newer, energy-efficient homes
In Hiroshima, there's a noticeable shift towards newer, energy-efficient homes.
This change is largely due to the increasing construction of energy-efficient housing in the area. While the total number of new homes slightly dipped in 2023, the focus is clearly on sustainable living. The Japanese government is pushing this trend by rolling out policies that encourage energy-saving measures in buildings.
By 2025, all new buildings, whether residential or not, will need to meet mandatory energy conservation standards. This includes Zero Energy Houses and Buildings, which are set to become the standard as building codes are updated. These changes are not just about regulations; they reflect a broader shift in what people want in a home.
People are becoming more aware of the environmental impact and cost savings that come with energy-efficient homes. Even if we don't have specific surveys from Hiroshima, the trend across Japan shows a strong preference for homes that offer these benefits. This shift is evident in the declining sales of older properties, especially in big markets like Tokyo.
In Tokyo, for instance, sales of existing condo units and detached houses dropped significantly in 2023. This suggests that buyers are increasingly looking for modern, efficient homes rather than older ones. The trend is expected to continue as more people prioritize sustainability and cost-effectiveness in their housing choices.
Sources: Global Property Guide, Rethink Tokyo, Baker McKenzie Resource Hub
13) Hiroshima's suburban rental yields will dip slightly as more people choose city-center living
Hiroshima City is becoming increasingly popular as more people choose to live in the bustling city center.
With a private rental housing rate of 37.5%, Hiroshima ranks among Japan's top cities for city-center living, just behind Tokyo, Osaka, and Nagoya. This high demand is fueled by the city's robust economy and stable job market, making it a magnet for those looking to settle in a vibrant urban environment.
In areas like Minami Ward, average rents are notably higher compared to other parts of Hiroshima. This trend highlights the willingness of residents to pay a premium for the perks of city life, such as being close to work, enjoying cultural events, and having easy access to social amenities.
Hiroshima's appeal is further boosted by its excellent transportation infrastructure, with Hiroshima Station providing convenient access to various parts of the city. This makes commuting a breeze and adds to the allure of living in the city center.
As more people flock to the heart of Hiroshima, suburban rental yields are expected to dip slightly. This shift reflects a growing preference for the convenience and excitement of urban living over suburban tranquility.
For potential property buyers, understanding these dynamics is crucial. The trend towards city-center living in Hiroshima offers both opportunities and challenges, depending on your investment goals.
Sources: Macrotrends, Japan Property, Axross JP
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.