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Yes, the analysis of Kyoto's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Gion? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Arashiyama or Fushimi where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Kyoto Property Pack.
Will property prices increase in Kyoto in 2025?
Yes, property prices in Kyoto are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Kyoto remains one of the most attractive cities in Japan for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind Kyoto’s price growth remain strong.
Demand, especially in the historic and culturally significant areas, continues to outpace supply, making any major price declines unlikely. Additionally, Kyoto's status as a cultural and educational hub continues to attract buyers from around the world.
Signals pointing to a property price increase in Kyoto
Here are some factors suggesting prices could increase:
The limited availability of land for new developments in Kyoto, particularly in the central and historic districts, is expected to keep supply tight, driving up property prices as demand remains steady.
Kyoto's appeal as a major tourist destination is expected to rebound strongly by 2025, increasing interest in short-term rental properties and boosting property values in popular tourist areas.
The city's ongoing efforts to preserve its cultural heritage and enhance urban infrastructure are likely to make Kyoto even more attractive to both domestic and international buyers, supporting property price growth.
Kyoto's universities and educational institutions continue to attract students and academics from around the world, maintaining a steady demand for rental properties and supporting property prices.
The trend of remote work and digital nomadism is expected to continue, with Kyoto being a desirable location for those seeking a blend of traditional culture and modern amenities, further driving demand for housing.
Signals pointing to a property price decrease in Kyoto
Here are some factors suggesting prices could fall:
Rising inflation and living costs in Japan could put pressure on household budgets, potentially reducing the purchasing power of local buyers and impacting demand for properties.
Higher mortgage interest rates could make it more difficult for buyers to secure affordable financing, particularly affecting first-time homebuyers and those looking to invest in second homes.
Economic uncertainties, both domestically and globally, could lead to cautious spending and investment behaviors, potentially dampening demand for real estate in Kyoto.
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If property prices go up in Kyoto, how much would they increase by?
If real estate prices in Kyoto were to rise in 2025, the increase would likely be below 3% of their 2024 values.
Typically, real estate in stable, mature markets like Kyoto appreciates by approximately 1% to 3% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom machiya townhouse in Gion for 50,000,000 yen today, don't be surprised if it's priced between 50,500,000 and 51,500,000 yen this time next year.
To give you a better understanding, here is a table that shows 7 types of Kyoto real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 1%, 2%, and 3%.
| Type of Property | Average Price in 2024 (¥) | Price in 2025 (1% increase) | Price in 2025 (2% increase) | Price in 2025 (3% increase) |
|---|---|---|---|---|
| Machiya Townhouse (60 sqm / 646 sqft) | ¥60,000,000 | ¥60,600,000 | ¥61,200,000 | ¥61,800,000 |
| Modern Apartment (75 sqm / 807 sqft) | ¥80,000,000 | ¥80,800,000 | ¥81,600,000 | ¥82,400,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | ¥150,000,000 | ¥151,500,000 | ¥153,000,000 | ¥154,500,000 |
| Studio (30 sqm / 323 sqft) | ¥30,000,000 | ¥30,300,000 | ¥30,600,000 | ¥30,900,000 |
| Loft (80 sqm / 861 sqft) | ¥100,000,000 | ¥101,000,000 | ¥102,000,000 | ¥103,000,000 |
| Traditional House (150 sqm / 1,615 sqft) | ¥200,000,000 | ¥202,000,000 | ¥204,000,000 | ¥206,000,000 |
| Investment Property (50 sqm / 538 sqft) | ¥40,000,000 | ¥40,400,000 | ¥40,800,000 | ¥41,200,000 |
Everything you need to know is included in our Property Pack for Kyoto
If real estate prices go up in Kyoto, which areas are likely to see the biggest increases?
Today, people who want to move to Kyoto seek the traditional charm of the city, but they also desire modern conveniences and vibrant cultural scenes, which Gion delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Shijo-Kawaramachi has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Kyoto market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Gion | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Arashiyama | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in scenic areas. |
| Nishijin | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Kyoto Station Area | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Fushimi | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Higashiyama | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Shijo-Kawaramachi | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Katsura | Medium-High | Its proximity to central Kyoto, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Kamigyo | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Kibune | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Nijo | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Kyoto
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Kyoto?
In 2025, Kyoto real estate trends focus on traditional-style homes with modern amenities, properties near cultural landmarks, eco-friendly buildings, and homes with gardens—all driving higher demand and prices. Here is a summary.
- Traditional-Style Homes with Modern Amenities:
Kyoto's unique blend of history and modernity makes traditional-style homes with updated features highly sought after. These properties appeal to both locals and international buyers looking for a cultural experience with modern comforts.
- Properties Near Cultural Landmarks:
Proximity to Kyoto's famous temples, shrines, and historical sites significantly boosts property value. These areas attract tourists and residents who value cultural heritage, making them prime investment opportunities.
- Eco-Friendly Buildings with Low Carbon Footprints:
Kyoto's commitment to preserving its natural beauty and reducing environmental impact is driving demand for eco-certified buildings. Properties that align with these sustainability goals are increasingly valued by buyers.
- Homes with Gardens:
In a city known for its beautiful gardens, properties that offer private outdoor spaces are highly desirable. These features provide a serene escape and are likely to enhance property values in Kyoto's urban landscape.
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