Authored by the expert who managed and guided the team behind the Japan Property Pack
Everything you need to know before buying real estate is included in our Japan Property Pack
Where are the best places to invest in Japan right now? Is Tokyo still the top pick, or are cities like Osaka, Fukuoka, and Sapporo gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with real estate agents, developers, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Japan and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
How this content was created 🔎📝
1) Kobe’s Sannomiya area is booming with its central location and urban renewal projects driving real estate interest
The Sannomiya area in Kobe is buzzing with a real estate boom.
In 2024, the average price for new condos in the Kinki region, which includes Kobe, hit ¥57.50 million per unit. This rise in prices shows that more people are eager to invest in this area. The demand is not just a fluke; it's a sign of Sannomiya's growing appeal.
In May 2024, the first-month contract rate for properties in the Kinki region was a solid 68.7%. This high percentage indicates that homes are being snapped up quickly, reflecting the area's desirability. Sannomiya's central location is a big draw, offering convenience and a vibrant lifestyle.
The Kobe Municipal Government is also playing a big role by pushing forward urban renewal projects in Sannomiya. These initiatives are all about making the area more lively and attractive. They're focusing on pedestrian-friendly spaces, better transportation, and boosting commercial and cultural spots, which makes living and working here even more appealing.
These urban renewal efforts are transforming Sannomiya into a modern urban hub. The area is becoming more pedestrian-friendly, with improved transport links and enhanced commercial and cultural amenities. This transformation is making Sannomiya a top choice for both residents and businesses.
Sources: E-Housing Japan, City of Kobe, MF Realty, City of Kobe Future Vision
2) Naha in Okinawa is booming with real estate interest from its growing tourism and limited land availability
Naha in Okinawa is seeing a real estate boom thanks to its thriving tourism and limited land.
In 2023, Okinawa welcomed 2.5 million international visitors, bouncing back from pandemic lows. Tourists mainly come from Taiwan, the United States, and South Korea, making Okinawa a global hotspot.
With this influx of tourists, there's a growing need for more hotels and accommodations, especially in Naha. Investments in these areas are on the rise, fueled by the local government's efforts to boost tourism. They're enhancing the international terminal at Naha Airport, which means more flights and better facilities, drawing even more visitors.
Another key factor is the limited availability of new land for development in Naha. Okinawa's unique geography doesn't offer much extra space to build on. This scarcity, combined with high demand from tourists and new residents, is pushing property prices up.
In places like Onna Village and Miyakojima, land prices have seen significant increases, reflecting the overall trend in Okinawa. This makes Naha a hot spot for real estate investment.
Sources: Road Genius, Eaves Japan, JTB Corp
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.
3) Fukuoka's Tenjin area is booming with redevelopment projects, driving up property values and attracting investors
The Tenjin area in Fukuoka is buzzing with excitement due to its major redevelopment projects.
At the heart of this transformation is the Tenjin Big Bang project, which has introduced sleek new commercial spaces and office buildings like the Tenjin Business Center. This has turned Tenjin into a magnet for both local and international investors, eager to capitalize on the area's growth.
Fukuoka's special district status, granted by the Japanese government, offers support measures for startups, breathing new life into the city's business districts. This has bolstered Fukuoka's image as a business and innovation hub, pushing property prices up, especially in Tenjin.
The media can't get enough of Tenjin's makeover, often spotlighting it as a thriving startup hub and a haven for digital nomads. This buzz has only increased its allure, pulling in more investors and businesses.
New businesses and international startups are popping up all over, adding to the vibrant real estate market in Tenjin. The area is alive with commercial activity, making it a dynamic place to invest.
Sources: Fukuoka Startup City, Jones Lang LaSalle, Fukuoka Jisho
4) Kumamoto City is attracting interest with its affordable housing and potential for appreciation as infrastructure improves
Kumamoto City is catching eyes for its affordable housing and growth potential as infrastructure gets a boost.
In recent years, housing prices in Kumamoto City have been much lower than in Tokyo, making it a hot spot for those seeking budget-friendly real estate. This affordability is drawing in both homebuyers and investors eager for a good deal.
Big changes are happening in Kumamoto Prefecture, with new infrastructure like a JR station and a large mall near TSMC's factory. These developments are expected to hike up land and property demand, potentially raising prices and making the area even more appealing for investment.
The Kumamoto Semiconductor Industry Promotion Vision is also in play, aiming to boost the semiconductor supply chain and related industries. This plan includes improving transportation, which should help regional growth and property values. The buzz around TSMC and other semiconductor companies is putting Kumamoto City on the map as a rising real estate market.
Historically, areas with better infrastructure see a jump in property values, as they become more attractive for living and working. Kumamoto City is no exception, with its ongoing developments likely to enhance its appeal.
With all these factors, Kumamoto City is gaining visibility and interest among potential investors and homebuyers. The presence of major companies like TSMC is a key driver in this newfound attention.
Sources: Japan's Land Price Surge | TSMC Drives Kumamoto Up by 24%, Kumamoto Semiconductor Industry Promotion Vision, 2025 Japan Property Market Insights
5) Hiroshima’s Yokogawa district is gaining attention for its blend of traditional and modern living, attracting young professionals and boosting property prices
Hiroshima's Yokogawa district is becoming a hotspot for young professionals due to its unique mix of traditional and modern living spaces.
In recent years, especially in 2023 and 2024, property prices in Yokogawa have noticeably increased. This surge is not just a fluke; it's backed by data from Yokogawa Electric Corporation, which shows a rise in sales and operating income, hinting at a growing demand for properties in the area.
Across Japan, there's a shift towards co-living spaces, which are particularly attractive to young professionals. These spaces offer affordability, social connections, and flexibility, making them a hit in urban spots like Hiroshima. The influx of young professionals is driving the demand for modern living spaces that fit their lifestyle.
Media and social media have played a big role in putting Yokogawa on the map. The district's blend of traditional and modern elements in its living spaces is often highlighted, drawing more young professionals. Plus, new businesses and cultural events are popping up, catering to this crowd and boosting the area's lifestyle appeal.
Yokogawa's charm lies in its ability to offer a lifestyle that balances the old with the new, making it a magnet for those looking to enjoy both worlds. The district is not just about living spaces; it's about a lifestyle that resonates with the young and dynamic.
As more young professionals move in, the district is evolving, with property prices reflecting this newfound popularity. It's a place where tradition meets modernity, creating a vibrant community that's hard to resist.
Sources: Yokogawa Electric Corporation's Financial Results for Fiscal Year 2023, Japan Residential Real Estate Market Analysis 2024, Hiroshima Reconstruction Planning
Get to know the market before you buy a property in Japan
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Sapporo's Odori Park area is gaining interest as a tech startup hub, boosting rental yields
Sapporo's Odori Park area is buzzing with tech startups, making it a prime spot for property investment.
Thanks to the city's push to grow its IT industry, venture companies and IT firms are flocking to Sapporo. This influx is largely driven by initiatives like Sapporo Techno Park, which have significantly boosted the local tech job market.
With the tech scene booming, rental properties near Odori Park are in high demand. While exact rental prices aren't available, the trend of rising property prices in major Japanese cities, including Sapporo, indicates that rental yields are climbing.
Real estate agents are noticing a spike in interest for tech-friendly apartments, which is further fueling demand. Local government efforts, such as Startup City Sapporo, are also playing a key role by offering resources and support to startups, making the area even more appealing to tech professionals.
These professionals often prefer living close to tech hubs for convenience and career opportunities, leading to higher occupancy rates for rentals around Odori Park. This reflects the area's growing allure as a tech hotspot.
Sources: Startup Blink, Explore City Life, E-Housing, Sapporo Step, JP Tech Jobs
7) Kanazawa's Higashi Chaya district is gaining interest for its historical charm and rising tourist traffic, boosting property values
Kanazawa's Higashi Chaya district is gaining popularity for its rich historical charm and increasing tourist foot traffic.
Known for its traditional buildings and cultural heritage, Higashi Chaya is a must-visit for anyone interested in Japan's traditional culture. This cultural allure is a big draw for visitors. The district's appeal is part of a larger trend in Kanazawa, where places like Kenrokuen garden saw an 8.6% rise in visitors during the cherry blossom season in 2024 compared to the previous year.
While we don't have specific numbers for Higashi Chaya, its reputation as a tourist hotspot is well established. The district's charm is further enhanced by initiatives like the Kanazawa Culture and Tourism Revitalization Project. This project aims to attract digital nomads and tourists, adding to the area's growing appeal.
In 2024, Japan introduced a Digital Nomad Visa, encouraging global remote workers to experience Kanazawa's cultural heritage. This move is expected to boost the district's reputation even more. The combination of historical allure and modern initiatives makes Higashi Chaya a unique destination.
As more tourists flock to the area, property values are likely to rise, making it an attractive option for potential buyers. The district's blend of history and modernity offers a unique living experience. If you're considering buying property in Japan, Higashi Chaya's increasing popularity and potential for growth make it worth a look.
Sources: TTG Asia, Travel and Tour World, Guide to Sightseeing Higashi Chaya District
8) Kagoshima City is gaining interest for its strategic location as a gateway to southern Japan and enhanced transport links
Kagoshima City is quickly becoming a real estate hot spot in Japan.
Its strategic location as a gateway to southern Japan makes it appealing for businesses and tourists. The city is enhancing this advantage by improving its transport links, offering a wide network of land, sea, and air routes. This means easier access for everyone, whether you're flying in from Tokyo or taking a ferry to nearby Sakurajima.
Recent investments in transport infrastructure are a big part of this transformation. Kagoshima now boasts air routes to major cities both in Japan and overseas, making travel more convenient. The improved connections to places like Fukuoka and Tokyo are a major draw for businesses and residents. Plus, the quick 15-minute ferry ride to Sakurajima adds to the city's appeal.
Tourism is another key factor driving real estate interest. Kagoshima aims to attract 800,000 foreign tourists by 2026, a significant jump from 22,000 in 2022. This surge in visitors will likely boost demand for housing and commercial properties, as more tourists mean more need for accommodations and services. The local government's initiatives, like the “Inbound V-shaped Recovery Project,” are designed to create new tourism products and attract travelers from Asia.
These efforts are expected to lead to increased real estate activity in the city. As Kagoshima becomes more accessible and tourist-friendly, the demand for property is likely to rise. This makes it an exciting time for potential buyers looking to invest in a city on the rise.
Sources: Fukuoka Now, City of Kagoshima, Japan Property Market Insights
We made this infographic to show you how property prices in Japan 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.
9) Sendai’s Aoba Ward is gaining interest for its strong rental market fueled by a growing student population and new business developments
Sendai's Aoba Ward is catching the eye of investors due to its booming rental market.
At the heart of this growth is Tohoku University, one of Japan's top institutions, nestled right in Aoba Ward. With rising enrollment numbers, there's a surge in demand for student housing. The proximity to Sendai Station, the city's largest transport hub, makes it a magnet for students and young professionals.
But it's not just students flocking to Aoba Ward. The area is buzzing with new business developments. Companies are snapping up office spaces near Sendai Station, drawn by the area's strategic location. The Sendai City Center Reconstruction Project is transforming the landscape, replacing old buildings and making it a prime spot for corporate offices.
Rental prices here are higher than in other parts of Sendai, a testament to the strong rental market. The vacancy rate is impressively low, below the national average, signaling a stable environment for property investments. Local government initiatives, like the reconstruction project, are key in luring both businesses and residents.
Investors are particularly interested in Aoba Ward because of its low vacancy rates and the continuous influx of students and professionals. The area's infrastructure improvements are not just cosmetic; they're enhancing its appeal and functionality, making it a top choice for new businesses.
With a mix of educational institutions and business opportunities, Aoba Ward is a vibrant community. The combination of a growing student population and new business developments is creating a dynamic rental market that's hard to ignore.
Sources: Real Estate Investment Opportunities in Sapporo, Sendai, Hiroshima, and Fukuoka, Office Space for Rent in Sendai, Real Estate Investment Opportunities in Sendai, the Largest City in Tohoku
10) Matsuyama in Ehime Prefecture is attracting interest for its affordable real estate and growth potential as a regional economic center
Matsuyama in Ehime Prefecture is gaining attention for its affordable real estate and potential as a regional economic center.
Unlike bustling Tokyo, Matsuyama offers budget-friendly property options, making it a smart choice for those looking to invest without overspending. The city is not just about affordability; it's also about opportunity. With a wave of new businesses opening, Matsuyama is buzzing with potential. This growth is part of a larger revitalization effort, which includes enhancements in medical care, welfare, and education, creating a nurturing environment for both businesses and residents.
The local government is playing a pivotal role in this transformation. They're actively working on initiatives to boost regional economic development in Ehime Prefecture. By focusing on industrial revitalization and human resource development, the government is laying the groundwork for Matsuyama to emerge as a key economic hub. This commitment to growth is evident in the city's evolving landscape, attracting more investors and residents alike.
For those considering a move or investment, Matsuyama offers a unique blend of affordability and opportunity. The city's strategic initiatives and supportive environment make it an appealing choice for anyone looking to be part of a growing community. With its promising path to economic growth, Matsuyama is not just a place to live but a place to thrive.
As the city continues to evolve, it's clear that Matsuyama is positioning itself as a regional powerhouse. The combination of government support, business growth, and community development is creating a vibrant atmosphere that is hard to ignore. For potential buyers, this means not just a home, but a stake in a city on the rise.
Sources: Japan Residential Real Estate Market Analysis 2024, Cooperation With Companies, National And Local Governments, 2025 Japan Property Market Insights: Trends, Opportunities, and Challenges
11) Nagoya’s Sakae neighborhood is booming with its vibrant commercial scene driving up residential and commercial property values
Nagoya's Sakae neighborhood is buzzing with energy, making it a hot spot for property investment.
One major draw is the upcoming Landmark Nagoya Sakae, a massive mixed-use complex set to open in 2026. This project will feature offices, a hotel, a cinema, and shops, all designed to boost the area's appeal. It's part of the "SAKAE URBAN FABRIC" initiative, which aims to breathe new life into the neighborhood. This development is expected to significantly enhance Sakae's competitiveness.
The area is also seeing a surge in businesses and retail outlets, which is attracting more foot traffic and consumer spending. Even during economic slowdowns, sectors like grocery and dollar stores have thrived, showing that consumer activity in Sakae is on the rise. This trend is making Sakae an increasingly attractive commercial hub.
The Nagoya city government is actively promoting urban development plans focused on Sakae, drawing both domestic and international investors. These efforts, along with expanded public transportation and infrastructure projects, are improving accessibility and convenience. Such initiatives are making Sakae a prime location for investment.
With projections indicating a growth rate of 2.88% from 2024 to 2032, the real estate market in Sakae is on an upward trajectory. This growth is largely driven by the increasing demand for both residential and commercial properties. The vibrant commercial scene is a key factor in this trend.
Investors are taking note of Sakae's potential, thanks to its dynamic environment and strategic developments. The combination of new projects, increased consumer activity, and government support is creating a perfect storm for property value appreciation. Sakae is becoming a must-watch area for savvy investors.
Sources: MJD Projects, DFD News, E-Housing Japan, Parco Development
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.