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Everything you need to know before buying real estate is included in our Japan Property Pack
Japan remains one of the most open major markets for foreign residential property buyers, with no blanket restrictions on ownership and a transparent legal framework that has attracted record international investment in recent years.
In early 2026, the market is defined by two realities: global-city Japan (Tokyo, Osaka, Fukuoka) where prices remain firm and liquidity is high, and depopulating rural Japan where bargains come with serious resale risk.
We constantly update this blog post as the market evolves, so you always have access to the freshest neighborhood-level data and analysis.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Japan.
What's the Current Real Estate Market Situation by Area in Japan?
Which areas in Japan have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in Japan are Minato-ku (particularly Akasaka, Azabu, and Aoyama), Chiyoda-ku (especially the Bancho district from Ichibancho to Rokubancho), and Shibuya-ku (notably Ebisu, Daikanyama, and Hiroo).
In these prime Tokyo neighborhoods, typical condominium prices range from around 1.6 million to 3.0 million yen per square meter, with trophy properties in Minato-ku sometimes exceeding even that upper bound.
What drives these exceptional prices varies by neighborhood:
- Azabu and Moto-Azabu (Minato-ku): embassy concentration creates an international enclave with premium international schools nearby.
- Bancho district (Chiyoda-ku): historic prestige from proximity to the Imperial Palace and extremely limited new supply.
- Daikanyama and Hiroo (Shibuya-ku): boutique retail, walkable streets, and a design-conscious lifestyle that attracts high-net-worth buyers.
- Toranomon (Minato-ku): massive redevelopment including Azabudai Hills has repositioned this area as a vertical city for global business.
Which areas in Japan have the most affordable property prices in 2026?
As of early 2026, the most affordable areas in Japan with meaningful tenant demand and resale liquidity include Kita-Senju and Ayase in Adachi-ku, Kanamachi and Kameari in Katsushika-ku, Kasai and Koiwa in Edogawa-ku, and parts of Itabashi-ku such as Narimasu and Tokiwadai.
In these Tokyo commuter neighborhoods, typical condominium prices range from approximately 450,000 to 850,000 yen per square meter, depending on building age and exact distance from the nearest station.
The main trade-off in these lower-priced areas is flood risk exposure: Edogawa-ku, Katsushika-ku, and Adachi-ku sit in Tokyo's eastern lowlands (the "zero-meter zone") where official hazard maps show potential inundation depths of 3 to 5 meters in worst-case scenarios, which affects both insurance costs and long-term resale confidence.
You can also read our latest analysis regarding housing prices in Japan.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. 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.
Which Areas in Japan Offer the Best Rental Yields?
Which neighborhoods in Japan have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods with the highest gross rental yields in Japan include Kita-Senju in Adachi-ku (around 4.5% to 5.5%), Fukushima-ku in Osaka (around 5% to 6%), Hakata-ku near Hakata Station in Fukuoka (around 5% to 6.5%), and Kasai in Edogawa-ku (around 4.5% to 5%).
Across Japan's major metros, typical gross rental yields in 2026 range from around 2% to 3.5% in prime central Tokyo locations up to 5% to 6.5% in strong commuter wards and regional cities like Osaka and Fukuoka.
What makes these high-yield neighborhoods deliver better returns varies by area:
- Kita-Senju (Adachi-ku): major train interchange station with strong student and young worker demand keeps vacancy low.
- Fukushima-ku (Osaka): spillover demand from Umeda's central business district pushes rents higher while purchase prices stay moderate.
- Hakata Station area (Fukuoka): deep tenant pool from corporate relocations and redevelopment projects.
- Kasai and Nishi-Kasai (Edogawa-ku): commuter depth from families seeking affordable space near central Tokyo.
Finally, please note that we cover the rental yields in Japan here.
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Which Areas in Japan Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Japan perform best on Airbnb in 2026?
As of early 2026, the top-performing Airbnb neighborhoods in Japan are Asakusa and Ueno in Taito-ku (occupancy around 70% to 80%), Shinjuku around Kabukicho and Nishi-Shinjuku (average daily rates around 27,000 yen), Namba and Shinsaibashi in Osaka's Chuo-ku (occupancy around 75% to 85%), and Shibuya near Shibuya Station (average daily rates around 19,000 to 20,000 yen).
Top-performing short-term rental properties in these Tokyo and Osaka neighborhoods typically generate between 300,000 and 600,000 yen per month in gross revenue, though the legal 180-day annual cap under Japan's minpaku law effectively limits total yearly earnings to around 3 to 5 million yen for most operators.
What drives short-term rental success differs across these areas:
- Asakusa (Taito-ku): iconic Senso-ji Temple draws consistent tourist foot traffic year-round.
- Shinjuku (Shinjuku-ku): nightlife, shopping, and transport hub status create demand from business and leisure travelers alike.
- Namba and Shinsaibashi (Osaka Chuo-ku): food culture and shopping attract domestic and international tourists seeking authentic Osaka experiences.
- Shibuya (Shibuya-ku): youth culture, fashion, and the famous Shibuya Crossing make it a must-visit destination.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Japan.
Which tourist areas in Japan are becoming oversaturated with short-term rentals?
The three tourist areas in Japan showing clear signs of short-term rental oversaturation are Kyoto's central Higashiyama-ku and Shimogyo-ku districts, Osaka's Namba-Shinsaibashi corridor in Chuo-ku, and Tokyo's Shinjuku-ku and Taito-ku wards.
In Kyoto's Higashiyama area alone, the concentration of licensed minpaku properties and hotels targeting the same Gion-adjacent tourist base has created intense competition, while Shinjuku-ku in Tokyo has over 13,000 registered short-term rental units competing for the same pool of visitors.
The clearest sign of oversaturation is revenue growth stagnation: in these areas, average nightly rates have flattened or declined despite rising tourist numbers, indicating that supply has caught up with demand and operators are competing on price rather than scarcity.
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.
Which Areas in Japan Are Best for Long-Term Rentals?
Which neighborhoods in Japan have the strongest demand for long-term tenants?
The neighborhoods with the strongest long-term rental demand in Japan are Toyosu and the bay-side family belt in Koto-ku, Bunkyo-ku around Hongo and Myogadani, Musashi-Kosugi in Kawasaki's Nakahara-ku, and Tenjin and its surroundings in Fukuoka's Chuo-ku.
In these high-demand neighborhoods, vacancy rates typically stay below 5% and well-located units rent within two to four weeks of listing, compared to six weeks or more in less popular areas.
The tenant profiles driving demand vary by neighborhood:
- Toyosu (Koto-ku): young families attracted by new towers, waterfront parks, and proximity to major employers.
- Bunkyo-ku (Hongo, Myogadani): university students and academics near Tokyo University and medical institutions.
- Musashi-Kosugi (Kawasaki): dual-income couples seeking value with direct access to both Tokyo and Yokohama.
- Tenjin (Fukuoka Chuo-ku): corporate transferees and young professionals drawn by redevelopment and lifestyle amenities.
What ties these areas together is a combination of strong transit access, nearby employers or universities, and building stock that matches what tenants actually want: modern finishes, reasonable unit sizes, and walkable retail.
Finally, please note that we provide a very granular rental analysis in our property pack about Japan.
What are the average long-term monthly rents by neighborhood in Japan in 2026?
As of early 2026, average monthly rents in Japan's main neighborhoods range from around 95,000 yen for a 30 square meter unit in strong commuter areas up to 260,000 yen or more for the same size in prime central Tokyo districts like Azabu or Aoyama.
For entry-level apartments in affordable neighborhoods like Kita-Senju, Kasai, or Nerima, typical rents in 2026 run from approximately 95,000 to 140,000 yen per month for a 30 square meter unit and 160,000 to 240,000 yen for a 50 square meter unit.
In mid-range neighborhoods like Nakameguro, Jiyugaoka, or Toyosu, monthly rents for a 30 square meter apartment typically fall between 130,000 and 180,000 yen, while 50 square meter units range from 220,000 to 320,000 yen.
In the most expensive neighborhoods such as Akasaka, Azabu-Juban, Ebisu, and the Bancho district, 30 square meter apartments rent for 180,000 to 260,000 yen per month, while 50 square meter units can reach 300,000 to 500,000 yen depending on building quality and exact location.
You may want to check our latest analysis about the rents in Japan here.
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Which Are the Up-and-Coming Areas to Invest in Japan?
Which neighborhoods in Japan are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods attracting the most investor attention due to gentrification and repositioning are the Takanawa Gateway and Shinagawa corridor in Minato-ku, Kita-Senju in Adachi-ku, Toyosu and Shinonome in Koto-ku, and Fukushima-ku in Osaka.
These gentrifying neighborhoods in Japan have experienced annual price appreciation of around 5% to 8% over recent years, outpacing the broader market average of 3% to 5% as redevelopment projects attract higher-income residents and improve neighborhood perception.
Which areas in Japan have major infrastructure projects planned that will boost prices?
The areas in Japan with major infrastructure projects expected to boost property prices include the Shinagawa and Takanawa Gateway corridor (Minato-ku), the Yaesu 2-chome area near Tokyo Station (Chuo-ku), and Tenjin in Fukuoka's Chuo-ku.
The specific projects driving these areas are Takanawa Gateway City (a 1.25 million square meter development by JR East that opened its first phase in March 2025), the Shinagawa Station District redevelopment (including future maglev terminal), and Fukuoka's Tenjin Big Bang urban renewal program.
Historically, major infrastructure completions in Tokyo have driven price increases of 10% to 20% in immediately adjacent areas over the three to five years following project completion, though the effect diminishes rapidly beyond a ten-minute walk from the new facilities.
You'll find our latest property market analysis about Japan here.
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.
Which Areas in Japan Should I Avoid as a Property Investor?
Which neighborhoods in Japan with lots of problems I should avoid and why?
The neighborhoods in Japan that present the most significant risks for property investors are river-adjacent zones in Edogawa-ku, Katsushika-ku, and Adachi-ku (flood risk), parts of Arakawa-ku especially Machiya (highest earthquake vulnerability rating), thin-demand rural municipalities nationwide (liquidity risk), and Kyoto's central tourist districts (regulatory friction for short-term rental investors).
The specific problems affecting each area include:
- Eastern Edogawa-ku (along Edogawa River): official hazard maps show potential inundation depths of 3 to 5 meters with drainage taking over two weeks.
- Machiya in Arakawa-ku: ranked as Tokyo's highest earthquake risk neighborhood due to old wooden housing density and soft soil.
- Low-lying Katsushika-ku (Kameari, Shin-Koiwa): sits in the "zero-meter zone" with high liquefaction and fire spread risk.
- Central Kyoto (Higashiyama-ku, Shimogyo-ku): minpaku restrictions and community pushback make short-term rental math unreliable.
For these areas to become viable investment options, Edogawa and Katsushika would need major flood defense upgrades and rezoning to reduce insurance premiums, Arakawa would need systematic rebuilding of old wooden housing stock, and Kyoto would need regulatory reform that seems unlikely given current community sentiment.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Japan.
Which areas in Japan have stagnant or declining property prices as of 2026?
As of early 2026, the areas with stagnant or declining property prices in Japan are primarily non-metropolitan municipalities across outer prefectures, distant Tokyo suburbs with poor transit access, and aging resort towns outside peak season demand.
Many of these areas have experienced flat or negative price growth of 0% to minus 3% annually over the past five years, with some rural municipalities seeing even steeper declines as population outflows accelerate.
The underlying causes of price stagnation differ by area:
- Outer Tokyo suburbs (car-dependent areas far from stations): demographic shift toward central living has hollowed out demand.
- Regional municipalities (many non-metro prefectures): population decline creates a self-reinforcing cycle of fewer services, fewer jobs, fewer residents.
- Single-season resort areas (some ski and beach towns): off-season vacancy crushes annual returns and limits buyer appetite.
- Areas with high vacancy rates (rural and semi-rural towns): Japan's 4+ million vacant "akiya" houses are concentrated here, depressing values.
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Which Areas in Japan Have the Best Long-Term Appreciation Potential?
Which areas in Japan have historically appreciated the most recently?
The areas in Japan that have appreciated most over the past five to ten years are Tokyo's Central 5 Wards (Chiyoda, Chuo, Minato, Shibuya, and Shinjuku), Osaka's Kita-ku and Chuo-ku, Fukuoka's Chuo-ku around Tenjin, and the Toyosu waterfront area in Tokyo's Koto-ku.
The approximate appreciation rates achieved by these top-performing areas include:
- Minato-ku (Azabu, Akasaka, Roppongi): cumulative appreciation of 50% to 70% over the past decade, driven by international demand.
- Osaka Kita-ku (Umeda area): land prices up around 7% in 2025 alone, with residential values following commercial momentum.
- Fukuoka Chuo-ku (Tenjin): sustained appreciation of 5% to 8% annually as Tenjin Big Bang redevelopment transforms the district.
- Toyosu (Koto-ku): family-oriented development pushed values up 40% to 60% over the past decade from a lower base.
The main driver of above-average appreciation in these areas has been constrained supply meeting structural demand growth: central Tokyo faces land scarcity and building height limits, while Osaka and Fukuoka benefit from in-migration and corporate relocations that sustain tenant demand even as prices rise.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Japan.
Which neighborhoods in Japan are expected to see price growth in coming years?
The neighborhoods in Japan expected to see the strongest price growth in the coming years are the Takanawa Gateway and Shinagawa corridor, Toranomon and its redevelopment edges, Kita-Senju as it continues to gentrify, and Fukushima-ku in Osaka as Umeda spillover intensifies.
The projected annual price growth for these high-potential neighborhoods includes:
- Takanawa Gateway corridor (Minato-ku): 5% to 8% annually as the full Takanawa Gateway City development reaches completion in 2026.
- Toranomon (Minato-ku): 4% to 7% annually as Azabudai Hills and surrounding projects mature and attract tenants.
- Kita-Senju (Adachi-ku): 3% to 5% annually as improved perception and transit convenience draw higher-income renters.
- Fukushima-ku (Osaka): 4% to 6% annually as Umeda's growth spills into adjacent affordable areas.
The single most important catalyst driving future price growth in these neighborhoods is infrastructure completion: Takanawa Gateway City's full opening, the future maglev terminal at Shinagawa, and Osaka's continued development ahead of post-Expo momentum all create measurable demand triggers.
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.
What Do Locals and Expats Really Think About Different Areas in Japan?
Which areas in Japan do local residents consider the most desirable to live?
The areas that local Japanese residents consistently rank as most desirable to live include Kichijoji in Musashino-shi, Jiyugaoka on the Meguro and Setagaya border, Ebisu and Daikanyama in Shibuya-ku, and Omiya in Saitama-shi for those seeking value with excellent access.
What makes these areas desirable to locals includes:
- Kichijoji (Musashino-shi): walkable shopping streets, Inokashira Park, and a village-like atmosphere within easy reach of Shinjuku.
- Jiyugaoka (Meguro-ku and Setagaya-ku): boutique retail, cafe culture, and family-friendly streets with top-rated local schools.
- Ebisu (Shibuya-ku): sophisticated dining scene, Yebisu Garden Place, and a mature neighborhood feel without Shibuya's chaos.
- Omiya (Saitama-shi): Shinkansen access, affordable space, and a self-contained city center with major retail and parks.
The typical residents in these locally-preferred areas tend to be established professionals, dual-income families, and long-term Tokyo residents who prioritize livability over flashy addresses.
Local preferences in Japan often diverge from foreign investor targets: locals prioritize walkability, greenery, and school quality, while foreign buyers often focus on central business district proximity and international brand recognition, creating different demand profiles for similar properties.
Which neighborhoods in Japan have the best reputation among expat communities?
The neighborhoods with the best reputation among expat communities in Japan are Azabu-Juban and Moto-Azabu in Minato-ku, Hiroo on the Shibuya and Minato border, Nakameguro in Meguro-ku, and the Umeda area of Kita-ku in Osaka.
What makes expats prefer these neighborhoods includes:
- Azabu-Juban and Moto-Azabu (Minato-ku): embassy proximity, international schools, English-speaking services, and housing stock designed for larger units.
- Hiroo (Shibuya-ku and Minato-ku): walkable streets, international supermarkets, and a quieter atmosphere than nearby Roppongi.
- Nakameguro (Meguro-ku): design-forward retail, the Meguro River, and a younger expat demographic seeking lifestyle over convenience.
- Umeda area (Osaka Kita-ku): corporate expat concentration, international-standard apartments, and direct access to Kansai Airport.
The typical expat profile in these neighborhoods skews toward corporate transferees with families, embassy staff, and high-income professionals in finance or consulting who prioritize English-language services and international school access over rental cost.
Which areas in Japan do locals say are overhyped by foreign buyers?
The areas that locals commonly say are overhyped by foreign buyers include central Kyoto's tourist districts (Higashiyama-ku, parts of Nakagyo-ku), some Niseko ski resort properties in Kutchan, and certain bay-side tower developments in Koto-ku that prioritize views over livability.
The reasons locals consider these areas overvalued include:
- Central Kyoto (Higashiyama-ku, Gion area): minpaku restrictions cap rental income while purchase prices assume unrestricted Airbnb potential.
- Niseko (Kutchan, Hirafu): spectacular ski access commands premium prices, but off-season vacancy and thin resale liquidity make annual returns challenging.
- Some bay-side towers (Koto-ku waterfront): marketed heavily to overseas buyers with impressive views, but locals note flood risk and distance from daily amenities.
What foreign buyers typically see in these areas that locals do not value as highly is "destination appeal": the excitement of owning property in a famous location that looks impressive on paper or to friends abroad, versus the practical reality of year-round livability, tenant demand, and regulatory constraints that locals understand intuitively.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Japan.
Which areas in Japan are considered boring or undesirable by residents?
The areas that Japanese residents commonly consider boring or undesirable include far outer suburbs with long multi-transfer commutes, car-dependent residential sprawl far from train stations, and some industrial-adjacent neighborhoods that feel disconnected from urban amenities.
What makes residents find these areas unappealing includes:
- Distant suburbs requiring 60+ minute commutes: lack of evening retail, limited dining options, and the exhaustion of daily travel.
- Car-only residential zones far from rail: isolation from Tokyo's transit-centered lifestyle that defines urban convenience.
- Industrial-adjacent blocks (even in otherwise popular wards): truck traffic, limited pedestrian infrastructure, and a "forgotten" feeling despite being technically close to attractions.
- Aging housing estates (danchi) with limited renovation: outdated floor plans, declining building maintenance, and an aging resident population.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Japan, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| MLIT Land Market Value Publication (Koji Chika) | Japan's official annual land-value benchmark assessed as of January 1 each year. | We used it to anchor where Japan's most expensive and fastest-rising land is located. We also cross-checked transaction and broker data when ranking prime neighborhoods. |
| MLIT Real Estate Information Library (REINFOLIB) | Official MLIT platform aggregating price, planning, and hazard datasets. | We used it to triangulate neighborhood-level transaction patterns. We also cross-checked risk layers for flood and landslide before recommending residential districts. |
| Savills Japan Research | Major global real estate consultancy with transparent methodology. | We used it for consistent, comparable rent benchmarks across Tokyo submarkets. We also verified whether "hot" neighborhoods are actually seeing rent growth. |
| AirDNA MarketMinder | Widely used short-term rental dataset based on observed listing behavior. | We used it to quantify occupancy, average daily rates, and revenue realities. We also identified where STR markets are getting crowded. |
| Statistics Bureau of Japan | Core official statistics producer for population, households, and migration. | We used it to ground long-term rental demand analysis. We also avoided speculation by checking which cities can actually keep absorbing renters. |
| MLIT Tourism Agency Minpaku FAQ | Official regulator guidance on Japan's short-term rental framework. | We used it to explain what's legally possible for Airbnb-style rentals. We flagged places where STR returns look good on paper but are structurally capped at 180 days. |
| Tokyo Metropolitan Government Flood Hazard Maps | Tokyo's official gateway to ward-level flood and inundation assumptions. | We used it to identify micro-areas where flood depth is material to resale and insurance. We also steered recommendations toward safer micro-locations. |
| Tokyo Statistical Yearbook | Tokyo's official statistical compilation for housing, population, and economics. | We used it to cross-check demographic and housing-stock trends in the 23 wards. We also validated expat hotspots with official population structure data. |
| Nishimura & Asahi Law Firm Real Estate Primer | Top-tier Japanese law firm summarizing legal framework for investors. | We used it to confirm the baseline that Japan allows foreign ownership of land and buildings. We also explained title and ownership structure in plain language. |
| JNTO Tourism Statistics Portal | Official tourism statistics source used across the industry. | We used it to tie STR demand to verified tourism volumes. We kept Airbnb potential grounded in real travel flows rather than speculation. |
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