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Yes, the analysis of Kyoto's property market is included in our pack
Kyoto's residential property market shows steady growth with average apartment prices at ¥615,000 per square meter in central districts as of September 2025.
(The city's property values have risen 25% over five years, driven by tight supply, strong foreign investment, and limited new construction due to historic preservation policies. Current rental yields average 2.9-3.1% in central areas, below Japan's national average but reflecting the city's premium positioning.)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.
Kyoto's property market demonstrates consistent growth with prices increasing 3-4% annually and strong foreign buyer interest.
The market faces supply constraints due to historic preservation rules while student population and tourism recovery maintain demand stability.
| Metric | Current Value (2025) | Trend |
|---|---|---|
| Average apartment price (central) | ¥615,000 per m² | +3-4% annually |
| Average house price | ¥60 million | +25% over 5 years |
| Rental yield (central) | 2.9-3.1% | Stable |
| Days on market | 30-50 days | Quick sales |
| Vacancy rate | 4-5% | Tight supply |
| Mortgage rates | 1.76-1.96% | Low but rising |
| Foreign buyer share | 10-15% (premium areas) | Record highs |
What's the current average price per square meter for residential property in Kyoto, and how has it changed over the last 12 months?
As of September 2025, residential apartments in Kyoto's central districts average ¥615,000 per square meter.
Property prices in Kyoto have increased by 3-4% over the past 12 months, with land in historic districts seeing even stronger growth of 4-5%. This steady appreciation reflects continued demand pressure against limited supply in the city's most desirable areas.
The price increase is particularly pronounced in traditional neighborhoods like Gion and Higashiyama, where foreign buyers and domestic investors compete for limited inventory. Average house prices now stand at ¥60 million, representing approximately $430,000 at current exchange rates.
Market dynamics show that central Kyoto properties command premium pricing due to strict development regulations that preserve the city's historic character while constraining new supply.
How do Kyoto property prices compare today with five years ago, both in absolute terms and percentage growth?
Kyoto property prices have experienced substantial growth over the five-year period from 2020 to 2025.
In absolute terms, average house prices have risen from ¥48 million in 2020 to ¥60 million in 2025, representing an increase of ¥12 million per property. Apartments in premium wards have seen price increases ranging from 5.6% to over 20% depending on specific location and property type.
The percentage growth tells an even more compelling story, with typical houses appreciating 25% over the five-year period. Luxury and traditional homes in prime locations have performed even better, with appreciation rates reaching 36-40% in some cases.
This growth significantly outpaces Japan's general economic growth and reflects Kyoto's unique position as both a cultural destination and investment magnet. The combination of limited supply, UNESCO heritage restrictions, and growing international interest has created a market where quality properties consistently appreciate above national averages.
What's the current rental yield in Kyoto for apartments and houses, and how does it compare with other Japanese cities?
Rental yields in Kyoto are relatively modest compared to other major Japanese cities, reflecting the premium property prices in this historic city.
| City | Central Area Yield | Outside Center |
|---|---|---|
| Kyoto | 2.9-3.1% | 2.2-2.3% |
| Tokyo | 2.5-5.2% (avg 3.4%) | ~4% |
| Osaka | 4.5-7% | ~5% |
| Fukuoka | 6-8% | 6-8% |
| Japan National Average | 4.2% | 4.2% |
How many residential property transactions have been recorded in Kyoto this year, and is that figure higher or lower than last year?
Specific transaction volume data for Kyoto city is not publicly available at the municipal level as of September 2025.
However, Kyoto's transaction patterns generally follow national trends, which have shown moderate increases in residential property sales throughout 2025. The Japan real estate market overall has experienced steady transaction volumes despite some cooling in overheated segments.
Local real estate agents report consistent activity levels, particularly in central districts where properties typically sell within 30-50 days. The combination of domestic buyers seeking lifestyle properties and foreign investors maintains steady transaction flow.
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What's the current average time a property stays on the market in Kyoto before being sold?
Properties in Kyoto's central wards typically remain on the market for 30-50 days before selling, reflecting strong demand and limited supply.
This relatively quick turnaround time indicates a seller's market, especially for well-located apartments and houses in historic districts. Properties near major universities, tourist attractions, or transportation hubs tend to sell even faster.
Traditional homes and unique properties may take longer to find the right buyer, but quality properties in prime locations rarely stay available for more than two months. The combination of domestic lifestyle buyers and international investors creates multiple buyer pools for most properties.
Market velocity remains strong despite higher prices, as buyers recognize Kyoto's limited supply dynamics and long-term value proposition.
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How much new housing supply is expected to be completed in Kyoto over the next two years, measured in units or square meters?
New housing supply in Kyoto will remain extremely limited over the next two years due to strict development regulations aimed at preserving the city's historic character.
Current projections suggest new completions may actually decrease by up to 33% in some categories, dropping from approximately 30,000 units to 20,000 units annually across Kyoto Prefecture. This reduction reflects increasingly stringent planning approvals and height restrictions in central areas.
The limited new supply is intentional policy, as Kyoto authorities prioritize cultural preservation over development. Large-scale residential developments face significant regulatory hurdles, particularly in UNESCO buffer zones and traditional districts.
This supply constraint is a key factor driving continued price appreciation, as demand from students, lifestyle buyers, and investors far exceeds the minimal new inventory entering the market.
What's the current mortgage interest rate in Japan, and how does it affect affordability for Kyoto buyers?
Current mortgage interest rates in Japan range from 1.76% to 1.96% for 20-year fixed-rate loans, with Kyoto properties typically at the upper end of this range.
While these rates remain historically low by international standards, they have risen modestly and are beginning to impact affordability. The Bank of Japan's gradual policy normalization has contributed to this upward pressure on lending rates.
Affordability challenges in Kyoto are more significantly driven by high property prices relative to local incomes rather than interest rates alone. Kyoto residents generally earn less than their Tokyo counterparts, making the price-to-income ratio particularly challenging for younger and first-time buyers.
Foreign buyers with access to international financing often have more flexibility, while domestic buyers increasingly require dual incomes or family financial support to purchase in central Kyoto areas.
How many foreign buyers are currently active in the Kyoto property market, and what percentage of transactions do they represent?
Foreign buyer activity in Kyoto has reached record levels, particularly for luxury and historic district properties.
While official statistics are not published at the city level, industry estimates suggest foreign buyers account for 10-15% of transactions in Kyoto's premium districts, though the citywide percentage is lower. International buyers are especially active in traditional neighborhoods and properties with tourist rental potential.
Foreign buyers are considered a major driver behind recent price increases, particularly in the luxury and historic property segments. Their willingness to pay premium prices for unique cultural properties has elevated market benchmarks across similar property types.
This international interest spans various buyer profiles, from investors seeking rental income to lifestyle buyers wanting second homes in Japan's cultural capital. The trend shows no signs of slowing as Japan's tourism recovery continues.
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.
What are the vacancy rates for residential and commercial properties in Kyoto right now, and how have they shifted in the past year?
Kyoto maintains tight occupancy rates across both residential and commercial property sectors as of September 2025.
Residential vacancy rates stand at 4-5% citywide, with particularly low vacancy in student areas where occupancy rates exceed 95%. This tight supply situation has remained stable over the past year, with minimal seasonal fluctuation.
Commercial and office properties historically maintained vacancy rates under 1%, though detailed current figures are not publicly available. The office market likely shows slight softening post-pandemic but remains significantly tighter than major international cities.
The consistently low vacancy rates reflect Kyoto's unique position as both a university city and tourist destination, creating multiple demand sources that maintain high occupancy levels across property types.
How do population growth and demographic changes in Kyoto impact housing demand?
Kyoto's demographic trends present a mixed picture for housing demand, with some positive factors offsetting broader national population decline trends.
The city's population remains essentially stable or shows slow decline in line with Japan's national demographic patterns. However, Kyoto's status as a major university city creates consistent student inflows that maintain rental demand in specific neighborhoods and property types.
The aging population trend reduces long-term demand for larger family homes while increasing demand for smaller units and senior-appropriate housing. This demographic shift is gradually changing the mix of properties in highest demand.
Tourism recovery post-pandemic has also restored demand for short-term rental properties, adding another layer of housing demand beyond traditional residential needs. The combination of students, aging residents, and tourism creates a complex but generally supportive demand environment.
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What's the forecasted annual growth rate for Kyoto property prices over the next five years?
Property price forecasts for Kyoto show continued steady appreciation through 2030, with annual growth rates expected to range from 3-5%.
Central districts are projected to experience growth at the upper end of this range, potentially reaching 5% annually due to their limited supply and premium positioning. If current trends persist, average house prices could reach ¥69-73 million by 2030.
This growth projection assumes continuation of current market dynamics: limited new supply, steady foreign buyer interest, tourism sector recovery, and Japan's accommodative monetary policy. Supply constraints will likely remain the primary driver of price appreciation.
The forecast growth rate positions Kyoto property as a steady wealth preservation asset rather than a high-growth investment, appealing to buyers seeking stable returns in a culturally significant location.
What major infrastructure or development projects in Kyoto are expected to influence property values, and by how much?
Several infrastructure and development initiatives are expected to support continued property value growth in Kyoto through 2030.
Ongoing public transport improvements, tourism-related infrastructure investments, and selective hotel and apartment developments in central wards are maintaining positive price pressure. These projects particularly benefit properties around Kyoto Station and in the Gion and Higashiyama districts.
Infrastructure improvements and tourism sector recovery are contributing to modest but consistent upward pressure on property prices. Some central locations have experienced double-digit annual increases in recent years, though this level of growth is not sustainable long-term.
The combination of transport connectivity improvements and cultural district enhancements creates a supportive environment for property values, particularly for properties near major tourist attractions and transportation hubs.
It's something we develop in our Japan property pack.
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.
Kyoto's property market demonstrates the characteristics of a mature, supply-constrained market with steady appreciation potential rather than explosive growth.
For investors, the combination of cultural significance, limited supply, and international buyer interest creates a stable long-term investment environment, though rental yields remain modest compared to other Japanese cities.
Sources
- Kyoto Price Forecasts - BambooRoutes
- Kyoto Property Market Analysis - BambooRoutes
- Kyoto Real Estate Market Overview - BambooRoutes
- Japan Residential Land Price Change Kyoto Prefecture - Statista
- Property Investment Comparison Tokyo vs Kyoto - Numbeo
- Property Investment in Kyoto - Numbeo
- Real Estate Market Cap Japan - Real Estate Market Cap
- Japan Rental Yields - Global Property Guide
- Average Rent Japan - BambooRoutes
- 2025 Japan Property Market Insights - E-Housing