Is it worth it buying property in Kyoto in 2025?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Kyoto. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Kyoto, Tokyo, and Osaka. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What kinds of properties can you actually buy in Kyoto in 2025?

Kyoto offers five main property types for foreign buyers in 2025, each with distinct characteristics and price points.

Modern apartments range from studios to multi-bedroom units, primarily located in central wards. New builds are rare in historic areas due to strict preservation rules but can be found in suburbs or redeveloped districts. A typical city center apartment costs around ¥87,000 per square meter as of September 2025.

Detached houses vary from compact city homes (60-120 square meters) to larger suburban properties. A representative example is a 4LDK house with 117 square meters, built in 2025, listed at ¥54.8 million. These properties offer more space and privacy compared to apartments.

Traditional machiya townhouses represent Kyoto's classic wooden architecture, especially concentrated in historic neighborhoods. Renovated machiya command premium prices due to their cultural significance and limited supply, while non-renovated ones cost less but require substantial renovation work.

Old and rural homes (kominka) in outlying districts can cost less than ¥10 million, offering large properties for budget-conscious buyers willing to accept longer commutes to the city center.

Is it generally better to buy or rent if you plan on living there?

The decision between buying and renting in Kyoto depends on your timeline, financial goals, and lifestyle preferences.

Renting offers significant advantages including flexibility for relocation, no maintenance responsibilities, protection from property depreciation risks, and simpler bureaucracy especially for short-term stays. Monthly rent for a one-bedroom apartment in the city center ranges from ¥80,000 to ¥100,000.

Buying makes financial sense if you plan to stay 7-10 years or longer, want to own a unique historic property, or seek long-term cultural immersion in Japanese society. Property ownership also provides potential capital appreciation, particularly in central and historic areas.

Current rental yields in Kyoto are modest at 2-3% gross for long-term rentals. Short-term vacation rentals can earn more but face strict regulations and seasonal demand fluctuations. The break-even point typically occurs after 7-10 years of ownership, making buying more suitable for long-term residents rather than short-term investors.

It's something we develop in our Japan property pack.

What's the current price range for different types of properties, and how does it compare to a few years ago?

Kyoto property prices have experienced substantial growth since 2020, with most categories increasing by 25-40% over five years.

Property Type	2020 Price	2025 Price	5-Year Growth
City Center House	¥48 million	¥60 million	+25%
Luxury Home (Prime Area)	¥96 million	¥135 million	+40%
3BR Suburban House	¥38 million	¥52 million	+37%
City Center Apartment/sqm	¥65,000	¥87,000	+34%
Traditional Machiya	¥55 million	¥75 million	+36%

What do forecasts say about property prices in Kyoto over the next few years?

Property price forecasts for Kyoto through 2027 indicate continued moderate growth driven by tourism recovery, limited supply, and sustained foreign buyer interest.

Market analysts predict 3-5% annual price increases in city center properties through 2027. This translates to city center houses reaching ¥66-69 million, luxury homes in prime areas climbing to ¥147-155 million, and apartment prices hitting ¥95-100,000 per square meter by 2027.

Traditional neighborhoods show the strongest appreciation potential as foreign demand continues rising and supply remains constrained by heritage protection laws. Gion, Arashiyama, and historic machiya properties represent the hottest segments with limited future availability.

Risk factors include Japan's aging population, strict renovation and zoning regulations, and potential market corrections if tourism patterns shift. Non-rebuildable properties in outer suburbs face particular vulnerability to slower growth or price stagnation.

What are the main trends in Kyoto's real estate market right now?

Kyoto's real estate market in 2025 is characterized by five major trends reshaping buyer behavior and property values.

Growing foreign buyer interest, especially in traditional neighborhoods, has intensified competition for heritage properties. International buyers are drawn to Kyoto's cultural significance and limited supply of authentic traditional homes.

Severely limited inventory due to strict urban policies and heritage protections has created a supply-demand imbalance. New construction is restricted in historic areas, while existing properties face strict renovation guidelines that limit modernization options.

Renovated machiya townhouses with modern amenities command premium prices as buyers seek authentic traditional architecture with contemporary comfort. These properties often sell quickly despite high price points.

Up-and-coming districts like Shimogyo and Yamashina are attracting both investors and new residents due to relative affordability, growth potential, and improved transit connections. Shimogyo has experienced approximately 8% annual growth in recent years.

Strong price appreciation near cultural landmarks continues, but buyers face strict short-term rental enforcement and conservative long-term rental yields of 2-3%, limiting pure investment strategies.

How exactly does the buying process work step by step for a foreigner?

Foreign property purchases in Kyoto follow a structured eight-step process with no ownership restrictions but specific documentation requirements.

1. **Find a foreign-friendly broker:** Choose multilingual agencies or Kyoto-specialist brokers experienced with international clients to navigate language barriers and local regulations.2. **Initial search and property visits:** View properties online and in-person, discussing renovation potential, land status (freehold vs leasehold), and local zoning restrictions.3. **Submit letter of intent and negotiate:** Present formal offer with price and conditions, engaging in negotiation process typical in Japanese real estate transactions.4. **Contract signing and deposit:** Pay 5-10% deposit upfront with contract execution in Japanese (request English translation for clarity).5. **Due diligence period:** Conduct legal document checks and building inspections, particularly important for older properties and machiya homes. Verify "non-rebuildable" status and review all property disclosures.6. **Arrange financing:** Transfer funds internationally or arrange Japanese bank financing if eligible (most foreigners purchase with cash due to lending restrictions).7. **Settlement and registration:** Pay remaining balance, transfer title ownership, and file required government notifications for foreign property ownership.8. **Property handover:** Receive keys, update utilities accounts, and begin any approved renovation work.

Required documentation includes passport, signature certificates, and potentially power of attorney if not physically present in Japan. Non-residents must report purchases unless the property serves as primary residence.

Where should you look for properties—what are the best real estate agencies or platforms?

Several specialized platforms and agencies cater to foreign buyers seeking properties in Kyoto, each offering different strengths and property types.

Realestate.co.jp provides comprehensive listings with English support covering all property types from budget options to luxury homes. The platform offers detailed property information and connects buyers with bilingual agents.

Hachise specializes specifically in machiya and Kyoto's unique traditional housing stock, making it ideal for buyers seeking authentic historic properties with cultural significance.

Japan-Property.jp features extensive listings across price ranges and connects international buyers with experienced bilingual real estate agents familiar with foreign purchase requirements.

Koryoya focuses on traditional homes and rural properties, including some Kyoto region listings for buyers interested in countryside or heritage properties.

Heritage Homes Japan operates as a boutique agency specializing in heritage-focused properties, particularly suitable for central location buyers and families seeking unique traditional homes.

Global agencies like Expatis and Blackship Realty offer luxury properties and pan-Japan services for high-end buyers or those considering multiple markets simultaneously.

What kind of properties can you realistically get depending on different budget levels?

Kyoto property budgets determine both location and property type, with clear tiers defining realistic expectations for different investment levels.

¥10-20 million budget provides access to older houses in countryside areas, small city apartments, or properties with non-rebuildable status requiring significant renovation work.

¥20-40 million opens opportunities for renovated machiya townhouses in secondary locations or small houses in suburban areas with reasonable commute times to central Kyoto.

¥45-60 million range delivers good family homes in desirable areas, mid-sized city apartments with modern amenities, or partially renovated traditional properties in historic neighborhoods.

¥60-120 million budget allows purchase of larger machiya in prime locations, modern luxury central homes, or spacious suburban properties with extensive land.

¥120+ million provides access to high-end properties in prestigious areas, landmark homes with exceptional heritage value, or luxury modern developments in central Kyoto with premium amenities and locations.

It's something we develop in our Japan property pack.

Which neighborhoods are best to consider—affordable, up-and-coming, or upscale—and what are the pros and cons of each?

Kyoto neighborhoods fall into distinct categories offering different investment profiles, lifestyle benefits, and growth potential for property buyers.

Area Type	Example Wards	Pros	Cons
Upscale	Higashiyama, Gion, Sakyo	Heritage value, prestige, top rental demand	Expensive, strict renovation rules
Up-and-coming	Shimogyo, Yamashina	Growth potential, new developments, lower entry cost	Less historic character, some areas transitional
Affordable/Suburban	Kameoka City, Fushimi-ku	Cheaper prices, bigger lots, family-oriented	Lower yields, slower growth potential
Countryside	Uji, Tango, Ayabe	Very affordable, large properties	Long commute, resale liquidity issues

What is daily life like as an expat in Kyoto, including cost of living?

Expat life in Kyoto offers a unique blend of traditional Japanese culture and modern convenience, with living costs varying significantly based on lifestyle choices and housing decisions.

A family of four typically spends approximately ¥480,000 per month on living expenses, while single expatriates budget around ¥210,000-¥215,000 monthly. These figures include housing, food, transportation, utilities, and entertainment but exclude major purchases or international travel.

Housing represents the largest expense component, with city center one-bedroom apartments renting for ¥80,000-¥100,000 monthly. Suburban options cost significantly less but require longer commutes to central business districts.

Daily life benefits include exceptional public safety, excellent public transportation systems, comprehensive healthcare coverage, and rich cultural experiences. Kyoto's pace remains slower than Tokyo, appealing to expatriates seeking traditional Japanese lifestyle with cultural immersion.

Challenges include language barriers in daily transactions, cultural adaptation requirements, and limited English-speaking services compared to Tokyo or Osaka. International schools and English-speaking medical facilities exist but with fewer options than major metropolitan areas.

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.

If you rent long-term, which areas should you target, who are the typical tenants, what do they look for, and how much rental income and yield can you expect?

Long-term rental properties in Kyoto attract diverse tenant profiles seeking proximity to universities, transportation, and cultural amenities, with yields remaining modest but stable.

Target areas include neighborhoods near major universities like Sakyo and Shimogyo, central wards for business professionals, and well-connected suburban areas for families seeking larger spaces at lower costs.

Typical tenants consist of local Japanese families, university students, working professionals, and some expatriate residents. These tenants prioritize proximity to train stations, schools, shopping centers, and cultural sites when selecting rental properties.

Tenant preferences include modern appliances, efficient heating and cooling systems, adequate storage space, and convenient access to public transportation. Many also value traditional architectural elements when combined with modern convenience.

Rental yields average 2-3% gross in city center locations, with slightly better returns possible in up-and-coming areas experiencing growth and development. Properties near universities or business districts tend to maintain higher occupancy rates and stable tenant demand.

Monthly rental income varies by property size and location, with one-bedroom apartments generating ¥80,000-¥100,000 monthly, while larger family homes can command ¥150,000-¥250,000 depending on location and amenities.

If you rent short-term, what areas work best, what type of guests will you attract, how much can you earn, what's the yield, and what are the regulations you need to know about?

Short-term rentals in Kyoto offer higher yields than long-term options but face strict regulations limiting operating flexibility and requiring careful compliance management.

Prime areas for vacation rentals include historic districts near Gion and Higashiyama, city center locations within walking distance of major temples and attractions, and traditional neighborhoods offering authentic cultural experiences.

Guest demographics primarily include international tourists seeking cultural immersion, remote workers requiring temporary housing, and cultural enthusiasts interested in traditional Japanese architecture and lifestyle.

Average annual revenue reaches approximately ¥5 million (US$35,000) with monthly revenue averaging ¥462,000. Occupancy rates average 83% annually, operating approximately 303+ nights per year when properly licensed and legal.

Seasonal demand peaks during spring cherry blossom season and autumn foliage periods, requiring strategic pricing and marketing to maximize revenue during high-demand periods.

Regulatory requirements include strict 180-day annual operating limits for private short-term rentals, mandatory safety equipment installation, detailed reporting requirements, and visible signage displaying license numbers in all advertisements.

Many residential zones restrict short-term rentals entirely, while historic areas may allow limited operations under specific conditions. License registration is mandatory before advertising, and enforcement has increased significantly in recent years.

It's something we develop in our Japan property pack.

Is it really worth buying property in Kyoto in 2025—for living, for renting out, or for buying and selling later at a higher price?

Property investment viability in Kyoto depends heavily on your specific goals, timeline, and risk tolerance across three main strategies.

**Buying for personal residence** makes strong sense for long-term residents planning 7+ years in Kyoto, those valuing cultural immersion and unique traditional architecture, or buyers seeking to own heritage properties with limited future supply. Historic properties offer intangible benefits beyond financial returns.

**Buying for rental income** presents challenges with long-term yields averaging only 2-3% gross, making pure investment returns modest compared to other markets. Short-term rentals offer higher yields but face increasingly strict regulations and 180-day annual limits that restrict full-time operation.

**Buying for capital appreciation** shows promise in central historic neighborhoods and traditional properties where limited supply meets growing international demand. However, outer suburban and countryside properties may remain illiquid with weaker growth prospects.

Overall assessment suggests Kyoto property purchases work best for buyers combining lifestyle goals with investment objectives, particularly those seeking long-term residence or unique traditional properties. Pure investment strategies face regulatory hurdles and modest yields that may not justify the complexity and costs involved.

Success requires careful market research, understanding of strict renovation and rental regulations, and realistic expectations about returns and property management requirements in this culturally significant but highly regulated market.

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.

Sources

1. Realestate.co.jp - Kyoto Property Listings
2. Hachise - Traditional Kyoto Properties
3. BambooRoutes - Kyoto Property Analysis
4. Old Houses Japan - Kyoto Properties
5. Airbtics - Kyoto Airbnb Revenue Data
6. BambooRoutes - Japan Rental Market
7. E-Housing - Japan House Prices
8. BambooRoutes - Kyoto Real Estate Forecasts
9. BambooRoutes - Kyoto Neighborhood Guide
10. Matcha - Real Estate Agencies Japan