Authored by the expert who managed and guided the team behind the Japan Property Pack
Yes, the analysis of Kyoto's property market is included in our pack
Kyoto's property market in 2026 sits at an interesting crossroads, shaped by strong tourism demand, strict building controls, and rising interest rates that are changing how buyers approach the market.
We constantly update this blog post to reflect the latest housing prices in Kyoto, so you're always getting fresh data and analysis.
Whether you're looking at a central condo near Kawaramachi or a traditional machiya in Higashiyama, understanding the current market dynamics is essential before making your move.
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 Kyoto.
So, is now a good time?
As of January 2026, our assessment is "rather yes" for buying property in Kyoto, but only if you're selective about what and where you buy.
The strongest signal supporting this view is Kyoto's structural supply constraint, where strict height and design controls prevent the kind of rapid building that could flood the market and push prices down.
Another major factor is the city's two-engine demand, with both local residents and strong tourism-linked buyers competing for limited central properties, as confirmed by Kyoto City's own tourism surveys showing sustained visitor volumes.
On the cautionary side, mortgage rates have clearly shifted higher in January 2026 (Flat 35 fixed rates are well above the ultra-low era), which means affordability is tighter and average properties face more negotiation pressure.
The best strategies right now include targeting prime condos in Nakagyo, Shimogyo, or Sakyo wards with good transit access for long-term holds, or straightforward detached houses near stations if you want to rent out, while being cautious with machiya projects where renovation costs and short-term rental caps (180 days nationally) can complicate the math.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase decision.
Is it smart to buy now in Kyoto, or should I wait as of 2026?
Do real estate prices look too high in Kyoto as of 2026?
As of January 2026, Kyoto property prices are elevated but not in obvious bubble territory, largely because the city has genuine structural factors (like strict height controls and tourism demand) that justify higher valuations compared to cities where developers can build freely.
One on-the-ground signal worth watching is that average listings in Kyoto are seeing longer time-on-market and more price negotiations, especially for older condos or homes in less convenient locations, which suggests some softness at the middle and lower end of the market.
However, prime properties near stations like Karasuma, Shijo, or Demachiyanagi still move relatively quickly, showing that the "stretched" feeling is concentrated in average stock rather than across the board.
You can also read our latest update regarding the housing prices in Kyoto.
Does a property price drop look likely in Kyoto as of 2026?
As of January 2026, the likelihood of a sharp property price crash in Kyoto appears low, though a modest softening of 5% to 10% for average properties over the next 12 months would not be surprising given rising mortgage costs.
The plausible range for Kyoto property prices over the coming year is roughly flat to slightly negative for typical homes, while prime central properties could still see small gains if tourism stays strong.
The single most important factor that could push prices lower is a continued rise in borrowing costs, as the Bank of Japan has signaled it will keep raising interest rates, and this directly affects how much buyers can afford.
This rate pressure is quite likely to persist through 2026, as BOJ Governor Ueda has publicly stated the intention to continue hiking, so buyers should stress-test their budgets rather than assuming rates will fall back.
Finally, please note that we cover the price trends for next year in our pack about the property market in Kyoto.
Could property prices jump again in Kyoto as of 2026?
As of January 2026, the likelihood of a renewed broad price surge across Kyoto is medium at best, though localized jumps in prime neighborhoods remain quite possible if tourism and fixed-rate borrowing conditions stay favorable.
The plausible upside for Kyoto property prices over the next 12 months is around 5% to 8% for the best-located condos and renovated machiya, while average properties are more likely to stay flat.
The single biggest demand-side trigger that could push prices higher is sustained inbound tourism combined with stable or slightly easing mortgage rates, which would bring both lifestyle buyers and investors back into competition for limited central Kyoto stock.
Please also note that we regularly publish and update real estate price forecasts for Kyoto here.
Are we in a buyer or a seller market in Kyoto as of 2026?
As of January 2026, Kyoto sits in a selective buyer's market where purchasers have more negotiating power on average properties, but sellers of prime, well-located homes still hold leverage due to genuine scarcity.
Kyoto does not publish a simple months-of-inventory figure, but based on REINS transaction patterns, central areas with tight supply still behave like a 3 to 4 month market (favoring sellers), while outer areas act more like a 6 month or longer market (favoring buyers).
The share of Kyoto listings seeing price reductions has been rising for mid-tier properties, especially older condos and renovation-heavy houses, which tells us that sellers without location or condition advantages are losing leverage in the current higher-rate environment.
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.
Are homes overpriced, or fairly priced in Kyoto as of 2026?
Are homes overpriced versus rents or versus incomes in Kyoto as of 2026?
As of January 2026, Kyoto homes appear modestly overpriced when judged purely by rental income, but arguably fairly priced for buyers who value the lifestyle and scarcity factors that Kyoto uniquely offers.
Kyoto's price-to-rent ratio for central condos often runs in the 25 to 30 range, which is above the 15 to 20 benchmark for a clearly balanced investment market, meaning you are paying for more than just the rent you could collect.
When comparing Kyoto prices to local incomes, the picture looks stretched as well, with central properties often costing 10 times or more the median Kyoto household income, though this is partly explained by buyers coming from outside the city (including Tokyo and overseas).
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Kyoto.
Are home prices above the long-term average in Kyoto as of 2026?
As of January 2026, Kyoto property prices sit above their long-term average in nominal terms, but this needs context because Kyoto's structural supply limits mean it can sustainably trade above "generic city" norms.
The recent 12-month price movement in Kyoto has been roughly flat to slightly positive for prime areas, which is a slowdown compared to the stronger gains seen in 2021 to 2023, suggesting the market is cooling but not crashing.
In inflation-adjusted (real) terms, Kyoto prices are near or slightly below their prior cycle peak, meaning buyers today are not paying dramatically more in real purchasing power than buyers at the last high point, which is reassuring for long-term holders.
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What local changes could move prices in Kyoto as of 2026?
Are big infrastructure projects coming to Kyoto as of 2026?
As of January 2026, Kyoto does not have a single mega-infrastructure project (like a new subway line or major airport expansion) on the immediate horizon, so buyers should not expect a big infrastructure-driven price catalyst in the near term.
Instead, Kyoto's infrastructure story focuses on station-area upgrades, visitor management improvements, and transport crowding fixes driven by tourism volumes, which are more incremental than transformative for property values.
For the latest updates on the local projects, you can read our property market analysis about Kyoto here.
Are zoning or building rules changing in Kyoto as of 2026?
Kyoto's existing height and design controls are already among the strictest in Japan, and no major relaxation of these rules is currently being discussed, which means the city's supply constraint will remain in place.
As of January 2026, this stability in zoning rules actually supports property values, especially in central wards like Nakagyo and Shimogyo, because new supply cannot easily dilute the scarcity that makes those areas desirable.
The areas most affected by Kyoto's strict rules are the historic core and scenic corridors (like Higashiyama and areas around temples), where even modest development requires careful design review, keeping these neighborhoods especially supply-constrained.
Are foreign-buyer or mortgage rules changing in Kyoto as of 2026?
As of January 2026, Japan has no foreign-buyer ban or major new restrictions in the pipeline, so international purchasers can still buy Kyoto property freely, though mortgage access for non-residents remains limited to specialized lenders.
The more significant rule change affecting Kyoto buyers is not about foreign ownership but about borrowing costs, as the Bank of Japan's ongoing rate hikes mean that Flat 35 fixed mortgage rates in January 2026 are meaningfully higher than they were in the ultra-low era, squeezing affordability for everyone.
For short-term rental investors, the national 180-day cap under Japan's minpaku law remains firmly in place, and Kyoto layers its own local enforcement on top, so anyone counting on Airbnb income should budget conservatively.
You can also read our latest update about mortgage and interest rates in Japan.
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.
Will it be easy to find tenants in Kyoto as of 2026?
Is the renter pool growing faster than new supply in Kyoto as of 2026?
As of January 2026, Kyoto's renter demand appears to be keeping pace with or slightly outpacing new rental supply in central areas, thanks to the city's universities, young professionals, and tourism-linked workforce that keep the tenant pool steady.
The most reliable signal of renter demand in Kyoto comes from its large student population (multiple major universities including Kyoto University, Doshisha, and Ritsumeikan) plus early-career workers and relocation transfers, all of whom need rental housing near transit.
On the supply side, new rental completions in central Kyoto are constrained by the same height and design rules that limit all development, so landlords in well-located buildings benefit from a market that cannot easily be flooded with new competing units.
Are days-on-market for rentals falling in Kyoto as of 2026?
As of January 2026, days-on-market for Kyoto rentals is generally short in central, transit-accessible locations (often under two weeks for clean apartments near stations), while suburban or renovation-heavy properties can sit for a month or longer.
The difference between best areas and weaker areas is significant: a modern one-bedroom near Karasuma or Demachiyanagi might rent within days, while a larger detached house far from rail could take several weeks or require price adjustments.
A common reason rentals move quickly in Kyoto's best areas is genuine under-supply combined with seasonal demand peaks (especially March and April when students and new employees relocate), so timing your listing well can make a real difference.
Are vacancies dropping in the best areas of Kyoto as of 2026?
As of January 2026, vacancy rates in Kyoto's best rental areas (Nakagyo around Karasuma-Shijo, Shimogyo near Kyoto Station, Sakyo near major universities, and select Higashiyama pockets) are tighter than the prefecture-wide 13.1% headline vacancy figure suggests.
That 13.1% overall vacancy rate for Kyoto Prefecture includes many homes that are not actually competing in the active rental market (old vacant houses, seasonal homes, properties under renovation), so the "usable rental vacancy" in prime areas is much lower in practice.
One practical sign that Kyoto's best areas are tightening first is that landlords in Nakagyo and near Demachiyanagi are increasingly able to hold asking rents firm without offering move-in incentives, while landlords in outer areas still need to offer free months or reduced deposits to attract tenants.
By the way, we've written a blog article detailing what are the current rent levels in Kyoto.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Kyoto as of 2026?
Is for-sale inventory shrinking in Kyoto as of 2026?
As of January 2026, we cannot point to a single clean "Kyoto-only inventory time series," but based on Kinki REINS data and our own tracking, prime central inventory appears structurally tight while non-prime stock has loosened somewhat as higher mortgage rates make sellers more willing to list.
For well-located condos and straightforward detached homes in central wards, the market often behaves like a 3 to 5 month supply environment (below the 6-month balanced benchmark), meaning buyers still face competition for the best properties.
The main reason prime inventory stays tight is that existing homeowners with low legacy mortgage rates have little incentive to sell into a higher-rate market, preferring to hold their favorable financing rather than trade up at today's costs.
Are homes selling faster in Kyoto as of 2026?
As of January 2026, homes in Kyoto are selling faster if they are prime (central, good condition, near transit) and slower if they are average, so the overall picture is a widening gap rather than a uniform trend.
Year-over-year, median days-on-market for Kyoto resale properties has likely increased modestly for mid-tier homes (up perhaps 10% to 20% compared to 2024), while top-quality listings have held steady or even improved their absorption speed.
Are new listings slowing down in Kyoto as of 2026?
As of January 2026, new for-sale listings in prime Kyoto areas do appear to be running below normal levels, likely because homeowners locked into low mortgage rates see little reason to sell and buy again at today's higher rates.
Kyoto's seasonal pattern typically sees more listings in spring (March to May) as families prepare to move, so January is normally a quieter month, but even accounting for seasonality, prime central listings feel unusually scarce heading into 2026.
The most plausible reason for this slowdown is the "rate lock-in" effect: a Kyoto homeowner with a sub-1% variable mortgage from 2020 faces a real financial penalty if they sell and take out a new loan at today's 2% or higher rates, so many simply stay put.
Is new construction failing to keep up in Kyoto as of 2026?
As of January 2026, new housing construction in central Kyoto consistently fails to match demand, primarily because the city's strict height and design controls make it difficult to add units quickly in the areas people most want to live.
Looking at Kansai-wide data from the Real Estate Economic Institute, new condo supply remains active regionally, but Kyoto City itself sees limited new project launches in the historic core due to planning constraints that don't affect Osaka or suburban areas.
The single biggest bottleneck for new construction in Kyoto is the combination of height limits and design review requirements, which add time, cost, and uncertainty to development, discouraging builders from pursuing central Kyoto sites when easier projects exist elsewhere.
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.
Will it be easy to sell later in Kyoto as of 2026?
Is resale liquidity strong enough in Kyoto as of 2026?
As of January 2026, resale liquidity in Kyoto is reasonably strong for condos and standard houses in good locations, but noticeably weaker for niche properties like machiya that require specialized buyers willing to navigate renovation and compliance complexities.
Median days-on-market for resale homes in well-located Kyoto areas typically runs around 30 to 60 days for realistically priced properties, which is within the "healthy liquidity" range where sellers can expect a sale without excessive waiting.
The property characteristic that most improves resale liquidity in Kyoto is proximity to a major train or subway station (within a 10-minute walk of Karasuma Line, Tozai Line, or JR stops), because this is the one feature that consistently attracts the broadest buyer pool.
Is selling time getting longer in Kyoto as of 2026?
As of January 2026, selling time in Kyoto has extended modestly compared to last year for average properties, with mid-tier homes now taking roughly 10% to 20% longer to sell than they did in 2024.
The current median days-on-market in Kyoto ranges widely: prime condos near stations can sell in 20 to 40 days, while older condos in less convenient locations or houses needing work might take 60 to 90 days or longer.
The main reason selling time is lengthening in Kyoto is affordability pressure from higher mortgage rates, which makes buyers more selective and forces sellers of average properties to either wait longer or accept price cuts.
Is it realistic to exit with profit in Kyoto as of 2026?
As of January 2026, the likelihood of exiting a Kyoto property with profit is medium to high if you hold for five years or more, buy in a supply-constrained location, and avoid overpaying at purchase.
The minimum holding period that typically makes a profitable exit realistic in Kyoto is around five to seven years, which gives you time to absorb transaction costs and benefit from the city's structural price support.
Total round-trip transaction costs in Kyoto (buying plus selling, including agent fees, registration taxes, and other expenses) typically run around 8% to 12% of the property value, which translates to roughly 4 million to 6 million yen on a 50 million yen home (about 25,000 to 40,000 USD or 23,000 to 37,000 EUR at current exchange rates).
The factor that most increases your profit odds in Kyoto is buying in a genuinely supply-constrained area (central wards with height limits and strong transit access), because these locations have historically held value better than areas where new supply can easily compete with your resale.
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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 Kyoto, 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 |
|---|---|---|
| Kyoto City Tourism Survey 2024 | It's the city's official measurement of visitor volumes and tourism behavior. | We used it to quantify how strong tourism demand is in Kyoto going into 2026. We also used it to reality-check claims about crowding and visitor-driven property demand. |
| Kyoto City Landscape/Height Guidelines | It explains Kyoto's unique height controls and planning approach in official detail. | We used it to explain why central Kyoto supply cannot expand quickly. We also used it to frame why prices in prime areas have structural support. |
| Kinki REINS Market Reports | It's a government-designated network collecting listing and transaction data from brokers. | We used it to anchor buyer-versus-seller market indicators like inventory and transaction speed. We also used it as our main resale-market reference for Kansai. |
| JHF Flat 35 Rate Table | It's the official national reference for Japan's major long-term fixed mortgage product. | We used it to quantify what fixed-rate borrowing costs in January 2026. We also used it to build realistic payment stress tests for buyers. |
| Reuters (BOJ Policy Coverage) | Reuters is a top-tier wire service that reliably reports central bank actions and quotes. | We used it to anchor the rate regime shift as of January 2026. We also used it to explain why buyers should stress-test mortgage costs more than before. |
| MLIT Minpaku FAQ | It's the national regulator's own explanation of Japan's short-term rental framework. | We used it to ground short-term rental income assumptions in the national 180-day rule. We also used it to explain why Kyoto Airbnb math differs from long-term renting. |
| Kyoto Prefecture Vacancy Analysis | It's Kyoto Prefecture's own interpretation of official housing survey data. | We used it to pin down a confident vacancy-rate reference (13.1%) for Kyoto Prefecture. We also used it to separate vacant homes from rentable vacancy. |
| Kyoto City Housing Report 2023 | It's Kyoto City summarizing official survey results specifically for the city area. | We used it to keep our Kyoto-specific claims honest, especially around housing structure. We also used it to avoid treating prefecture-wide numbers as central-Kyoto truth. |
| Real Estate Economic Institute Kansai Report | It's a long-running Japanese research publisher for new-build condo supply and pricing. | We used it to estimate new condo pricing in Kyoto's broader market context. We also used it to judge whether new supply is coming in hot or cooling. |
| Japan Statistics Bureau Housing Survey | It's the national source for housing stock, tenure, and vacancy statistics. | We used it to ground Japan-wide vacancy context and avoid cherry-picking local claims. We also used it as backbone for Kyoto vacancy cross-checks. |
| Japan Statistical Yearbook 2025 | It's an official compilation of Japan's core macro and household statistics. | We used it as a general macro cross-check for households, wages, and inflation context. We also used it to support income-versus-prices framing. |
| DMO Kyoto Data Yearbook 2024 | It's the city's recognized tourism body and a primary publisher of visitor-market datasets. | We used it to triangulate the tourism story with an independent Kyoto institution. We also used it to support rental-demand logic in tourist-adjacent neighborhoods. |
| CEIC Japan House Price Index | It's a widely used data platform that republishes standardized international series. | We used it only as a triangulation layer to place Japan's affordability cycle in a longer-run frame. We did not treat it as Kyoto-specific data. |
| Kyoto City Accommodation Tax | It's the official rulebook for what Kyoto actually charges visitors and when. | We used it to confirm that Kyoto is actively tightening tourism-related policy. We also used it to date-stamp rule changes as approved by the city. |
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.
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