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Property prices in Kyoto are rising steadily as of June 2025, with the average house price reaching ¥60 million ($430,000).
As we reach mid-2025, Kyoto's residential property market continues its upward trajectory, driven by a combination of tourism recovery, limited supply in historic districts, and strong foreign investor interest. The city has experienced consistent price growth of 3-4% annually over the past year, with luxury properties and traditional machiya houses seeing even steeper increases.If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.
Property prices in Kyoto have increased by 3-4% in the past year, with the average house price now at ¥60 million ($430,000). Luxury and traditional properties are experiencing the strongest growth, rising 5-7% annually, while central historic districts like Higashiyama and Gion are seeing double-digit increases.
The market is supported by tourism recovery, limited land supply, foreign investment due to the weak yen, and ongoing infrastructure improvements. However, rising interest rates and Japan's aging demographics pose potential risks to future growth.
| Metric | Current Value (June 2025) | Trend |
|---|---|---|
| Average House Price | ¥60 million ($430,000) | +3-4% annually |
| Apartment Price per m² | ¥615,000 (central) | +4-5% annually |
| Luxury Properties | ¥120-150 million | +5-7% annually |
| Traditional Machiya | ¥75 million average | +36% over 5 years |
| Fastest Growing Areas | Higashiyama, Gion | +11.7% annually |
| Rental Occupancy Rate | 95% (student districts) | Stable high demand |
| Foreign Investment Impact | Record highs | Strong due to weak yen |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current average property prices in Kyoto as of June 2025?
The average house price in Kyoto City stands at approximately ¥60 million ($430,000) as we reach mid-2025.
In central wards like Nakagyo and Shimogyo, apartment prices per square meter range from ¥585,000 to ¥615,000, reflecting the premium location and high demand in these historic districts. These areas have maintained their appeal due to proximity to major temples, shopping districts, and excellent public transportation connections.
Luxury properties in prime locations such as Gion and Higashiyama command significantly higher prices, ranging from ¥120 million to ¥150 million ($860,000-$1.07 million). These properties often feature traditional architectural elements combined with modern amenities, attracting both domestic and international high-net-worth buyers.
Suburban areas offer more affordable options, with typical 3-bedroom houses averaging ¥52 million ($370,000). Areas like Ukyo-ku and Fushimi-ku provide good value for families seeking more space while maintaining reasonable access to central Kyoto.
The rental market has also strengthened, with average apartment rents in Kyoto City surpassing ¥83,500 per month ($760) in 2024, indicating robust demand across both purchase and rental segments.
How much have property prices increased in Kyoto over the past 12 months?
Residential property prices in Kyoto have risen by 3-4% on average over the past year, continuing a steady growth trend.
According to recent market data, land prices in Kyoto's historic districts specifically grew by 4-5% in 2024 compared to the previous year. This growth rate is notably higher than the national average, reflecting Kyoto's unique position as a cultural and tourist destination.
The second-hand property market has shown even stronger performance, with prices increasing from ¥2,915 million to ¥3,350 million between August 2023 and August 2024, representing a substantial 15% increase. This surge in the resale market indicates strong underlying demand and limited supply of quality properties.
Since 2020, Kyoto has maintained an annual growth rate of 4-5% for citywide averages, demonstrating remarkable consistency despite global economic uncertainties. The residential land price index for Kyoto Prefecture rose by 2.0% in 2025, with Kyoto City showing slightly higher increases than surrounding areas.
This sustained growth pattern positions Kyoto as one of Japan's more stable and attractive property markets for both investors and homebuyers.
Which neighborhoods in Kyoto are experiencing the fastest price growth in 2025?
| Neighborhood | 2025 YoY Price Increase | Key Growth Drivers |
|---|---|---|
| Higashiyama Ward | +11.7% | Proximity to Kiyomizu-dera temple, strong tourism demand, luxury developments |
| Gion (Central Kyoto) | +10-12% | Traditional machiya houses, foreign buyer interest, cultural significance |
| Arashiyama | +8-10% | Scenic location, heritage property renovations, extremely limited supply |
| Kamigyo Ward | +7-9% | Gentrification, new transport links, proximity to Kyoto Imperial Palace |
| Kyoto Station Area | +5-7% | Mixed-use redevelopment projects, improved infrastructure, business district growth |
| Fushimi Ward | +5-6% | Eco-friendly housing projects, family-oriented developments, good schools |
| Minami Ward | +4-5% | Infrastructure improvements, hotel development boom, young family influx |
Are luxury properties outperforming the general market in Kyoto?
Luxury and traditional-style properties in Kyoto are significantly outpacing the broader market, with annual growth rates of 5-7% compared to 3-4% for standard properties.
Traditional machiya townhouses have experienced remarkable appreciation, with average prices rising from ¥55 million in 2020 to ¥75 million in 2025, representing a 36% increase over five years. These properties appeal to buyers seeking authentic Japanese architecture combined with modern renovations.
Luxury homes in prime areas have shown even stronger performance, increasing from ¥96 million in 2020 to ¥135 million in 2025, a remarkable 40% gain. This segment benefits from extremely limited supply and strong demand from both domestic and international high-net-worth individuals.
The premium segment's outperformance is driven by several factors including the scarcity of land in historic districts, strict building regulations preserving traditional aesthetics, and growing interest from foreign investors attracted by the weak yen. Many luxury properties in areas like Gion and Higashiyama are being purchased as second homes or investment properties.
It's something we develop in our Japan property pack, which provides detailed analysis of luxury market trends and investment opportunities.
What are the property price forecasts for Kyoto through 2026 and beyond?
Property prices in Kyoto are projected to continue growing at 3-5% annually through 2027, with central and historic districts likely to see the upper end of this range.
Based on current market dynamics, if the 3-4% annual growth rate continues, the average house price in Kyoto could reach ¥69-73 million ($495,000-$520,000) by 2030. This represents a conservative forecast assuming stable economic conditions and continued tourism recovery.
Looking further ahead to 2035, central Kyoto properties could potentially reach ¥80-95 million ($570,000-$680,000) if current trends persist. However, these longer-term projections carry more uncertainty due to potential demographic shifts and policy changes.
The luxury and traditional property segments are expected to maintain their outperformance, potentially achieving 5-7% annual growth through 2026. Prime areas like Higashiyama and Gion may see even stronger appreciation due to their irreplaceable locations and cultural significance.
However, increased construction of affordable housing units and potential interest rate rises could moderate overall market growth, particularly in suburban areas where land is more readily available for development.
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How do current Kyoto property prices compare to five years ago?
Kyoto property prices have increased by approximately 25% over the past five years, demonstrating sustained market strength.
The average house price has risen from ¥48 million in 2020 to ¥60 million in 2025, reflecting consistent annual appreciation. This growth has been particularly pronounced in central areas, where limited supply and high demand have created a competitive market environment.
Apartment prices per square meter in premium wards like Nakagyo have grown by 5.6% over five years, while Kamigyo and Higashiyama Wards have experienced growth exceeding 20%. These variations reflect the different development patterns and demand drivers across Kyoto's diverse neighborhoods.
The luxury segment has shown even more impressive gains, with traditional machiya properties increasing 36% and high-end homes in prime locations appreciating by 40% since 2020. This outperformance underscores the premium that buyers place on unique, culturally significant properties.
Looking at specific examples, a property in Gion that was valued at ¥50 million in 2020 would likely be worth between ¥65-70 million today, illustrating the substantial wealth creation opportunities in Kyoto's real estate market.
How does Kyoto's property market compare to other major Japanese cities in 2025?
Kyoto's average house price of ¥60 million positions it as more expensive than Osaka but significantly more affordable than Tokyo.
Tokyo's residential properties average ¥91.4 million in the broader metropolitan area, with central Tokyo properties exceeding ¥120 million. This makes Kyoto approximately 35-50% more affordable than Japan's capital, offering better value for buyers seeking cultural amenities and lifestyle benefits.
Compared to Osaka, where average house prices are around ¥55 million, Kyoto commands a roughly 10% premium. This price differential reflects Kyoto's unique cultural heritage, tourist appeal, and more limited development opportunities due to preservation regulations.
Other major cities like Fukuoka (¥56 million average) and Sapporo (¥51.5 million) offer similar or slightly lower prices than Kyoto, but lack the cultural significance and international recognition that drive Kyoto's property values.
However, rental yields in Kyoto at 2-3% are lower than Osaka's 5-6%, indicating that Kyoto properties are more valued for capital appreciation and lifestyle factors rather than pure rental income potential.
What impact is tourism recovery having on Kyoto property prices in 2025?
Tourism recovery is significantly boosting Kyoto property values, with hotel occupancy rates and tourist arrivals returning to pre-pandemic levels.
Hotel occupancy rates in Kyoto have doubled since 2023, creating strong demand for short-term rental properties in tourist-friendly areas. This surge in visitor numbers is particularly benefiting properties in historic districts like Higashiyama and Gion, where tourists seek authentic cultural experiences.
The rental market for properties suitable for short-term letting has strengthened considerably, with many investors converting traditional houses into boutique accommodations. Properties with proper minpaku (short-term rental) licenses in prime locations are achieving premium prices and high occupancy rates.
Urban development around Kyoto Station's south side is accelerating due to increased tourist traffic, with new hotels and mixed-use developments driving up surrounding residential property values. The city's 2025 urban plan specifically emphasizes sustainable tourism infrastructure, which is expected to support long-term property appreciation.
This tourism-driven demand is reflected in our Japan property pack, which analyzes investment opportunities in tourist-heavy districts.
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.
How are Bank of Japan policies affecting Kyoto property prices in 2025?
The Bank of Japan's shift away from negative interest rates in March 2024 has had a moderate impact on Kyoto's property market.
Mortgage rates have risen slightly following the policy change, but remain historically low by global standards. This has maintained affordability for most buyers while slightly cooling speculative demand. The gradual nature of rate increases has prevented any sharp market corrections.
Despite rising rates, the fundamental supply-demand imbalance in Kyoto continues to support price growth. Limited land availability in desirable areas and steady buyer demand have offset any negative effects from higher borrowing costs.
First-time buyers face slightly reduced purchasing power due to higher mortgage rates, but this has been partially offset by government support programs and competitive lending practices among banks. The overall impact has been a moderation in price growth rather than any decline.
Market analysts expect that even with continued gradual rate increases through 2025 and 2026, Kyoto's property market will remain resilient due to its unique characteristics and sustained demand from both domestic and international buyers.
What effect is the weak yen having on foreign investment in Kyoto properties?
The weak yen has made Kyoto properties substantially more affordable for foreign buyers, driving record levels of international investment.
A ¥100 million property that would have cost $909,000 at ¥110/USD now costs only $769,000 at ¥130/USD, representing a 15% discount purely from currency movements. This currency advantage has attracted buyers from Singapore, Hong Kong, Taiwan, and Western countries seeking value in Japan's stable property market.
Foreign investment in Japanese residential real estate reached ¥740 billion in 2024, an 18% year-on-year increase, with Kyoto capturing a significant share due to its cultural appeal. Traditional properties and luxury homes in historic districts have been particularly popular among international buyers.
The combination of currency benefits and Kyoto's unique cultural offerings has created a perfect storm for foreign investment. Many international buyers view Kyoto properties as both lifestyle investments and currency diversification plays.
This trend shows no signs of slowing in 2025, with continued yen weakness expected to maintain foreign buyer interest through the year and potentially beyond.
What new developments or infrastructure projects are impacting Kyoto property values?
Several major infrastructure and development projects are enhancing Kyoto's property values in 2025.
The Kyoto Tourism Promotion Plan 2025 is driving significant infrastructure improvements, including enhanced public transportation, pedestrian-friendly zones, and sustainable tourism facilities. These improvements are particularly benefiting properties near major tourist sites and transport hubs.
The comprehensive redevelopment of the Kyoto Station area continues to transform the southern district, with new mixed-use projects combining retail, office, and residential spaces. This is creating a modern urban center that complements Kyoto's traditional areas.
The Kyoto City Basic Plan 2025 emphasizes environmental sustainability and cultural preservation while improving urban connectivity. New transport links in developing neighborhoods like Nishijin and Fushimi are making these areas more attractive to buyers.
Green building initiatives and eco-friendly development projects are adding premium value to new constructions, particularly in family-oriented districts. Properties with solar panels, energy-efficient systems, and proximity to green spaces command higher prices.
These infrastructure investments are creating long-term value appreciation potential, which we analyze in detail in our Japan property pack.
What risks could potentially impact Kyoto property prices going forward?
While Kyoto's property market remains strong, several risk factors could moderate future price growth.
Rising interest rates represent the most immediate risk, potentially reducing buyer affordability if the Bank of Japan continues its tightening cycle. While rates remain low by historical standards, further increases could dampen demand, particularly from highly leveraged buyers.
Japan's aging population and declining birthrate pose long-term challenges, potentially reducing housing demand in non-central areas. However, Kyoto's appeal to younger generations and international residents partially mitigates this demographic risk.
Increased supply of affordable housing units, as promoted by government initiatives, could moderate price growth in the mid-market segment. Several large-scale residential developments are planned for suburban areas, which may ease supply constraints.
Strict regulations on short-term rentals could limit investment returns for buyers targeting the tourist accommodation market. Recent enforcement actions have made it more difficult to operate minpaku properties without proper licenses.
Global economic uncertainties, including potential recessions or geopolitical tensions, could impact both tourism and foreign investment flows, two key drivers of Kyoto's property market strength.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes, property prices in Kyoto are definitively going up as of June 2025. The market has shown consistent growth of 3-4% annually, with luxury and traditional properties experiencing even stronger appreciation of 5-7% per year.
The combination of tourism recovery, limited supply in historic districts, strong foreign investment driven by the weak yen, and ongoing infrastructure improvements all support continued price growth. While risks exist from rising interest rates and demographic challenges, Kyoto's unique cultural appeal and scarcity of developable land in prime areas suggest the upward trend will continue through 2026 and beyond.
Sources
- Kyoto Property Market Analysis 2025
- Property Price Forecasts for Kyoto 2025
- Kyoto Real Estate Market Report
- 13 Statistics for the Kyoto Real Estate Market in 2025
- Japan Residential Real Estate Market Analysis 2025
- Japan's 2025 Real Estate Market Trends
- 19 Strong Forecasts for Real Estate in Kyoto in 2025
- Residential Land Price Growth Kyoto Prefecture 2024