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
Are you considering investing in a city rich with culture and history? Wondering if Kyoto's real estate market is the right choice for your future? Curious about the benefits of owning property in one of Japan's most iconic cities?
We will lay down recent insights, providing you with compelling reasons to make a purchase. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Japan Property Pack
1) Kyoto's mix of traditional and modern architecture boosts property demand from tourists and residents alike
Kyoto's unique mix of traditional and modern architecture is a magnet for tourists and residents, boosting property demand.
In 2023, Kyoto welcomed a staggering 4.91 million visitors in March alone, underscoring its allure as a travel hotspot. This influx is largely due to its 17 UNESCO World Heritage Sites, like the famous Kinkaku-ji and Kiyomizu-dera Temples, which draw millions annually. The city's charm lies in its ability to blend the old with the new, offering a rich cultural experience that captivates visitors.
Looking ahead to 2025, Kyoto's real estate market is buzzing with interest in traditional-style homes equipped with modern amenities. Properties near cultural landmarks are particularly in demand, as they offer a slice of history with the comforts of today. This trend is pushing property prices up, reflecting the city's unique appeal.
There's also a noticeable shift towards eco-friendly buildings and homes with gardens, showing a growing preference for sustainable living. Kyoto's residents and potential buyers are increasingly valuing green spaces and environmentally conscious designs, which align with the city's harmonious blend of nature and urban life.
With a population of 1.47 million, Kyoto often finds itself outnumbered by tourists, highlighting its desirability as a place to live. The city's successful integration of traditional and modern styles not only attracts visitors but also makes it a sought-after residential destination.
Sources: Statista, Inside Kyoto, Kyoto Price Forecasts, Go With Guide
2) Kyoto's mix of tradition and innovation draws entrepreneurs and boosts housing demand
Kyoto's unique mix of traditional crafts and modern innovation is drawing in entrepreneurs, boosting housing demand.
With tech startups like Baseconnect and Exawizards offering competitive salaries and exciting opportunities, professionals are flocking to the city, needing places to live. This influx is pushing up the demand for housing as more people seek to settle in Kyoto.
Kyoto's educational institutions are also a big draw, attracting students and professionals who need accommodation. The city's reputation as an innovation hub makes it a prime spot for learning and working, naturally increasing housing needs. Government initiatives, such as the Nishijin Business Incubation Center, further support this vibrant ecosystem, making Kyoto a nurturing ground for startups.
Tourism is another key player, with 50 million visitors annually leading to a boom in short-term rentals. This tourist influx not only boosts the local economy but also spikes demand for both short-term and long-term housing options.
The rise of coworking spaces and business hubs, like Impact Hub Kyoto, creates a welcoming environment for professionals, further adding to the housing demand. These spaces offer a community feel and resources that attract more people to live and work in the city.
Kyoto's blend of tradition and innovation is a powerful magnet, drawing in a diverse crowd and steadily increasing the need for housing. Entrepreneurs and professionals alike find the city an appealing place to set roots, thanks to its supportive environment and vibrant culture.
Sources: Highest Paying Tech Companies in Japan, Sustainable Tourism and Cultural Heritage, Best Coworking Spaces in Kyoto
Everything you need to know is included in our Property Investment Pack for Kyoto
3) Kyoto's unique seasons draw tourists all year boosting the hospitality industry
Kyoto's distinct seasons make it a magnet for tourists all year round.
Spring is a magical time in Kyoto, with the cherry blossoms drawing over 2.7 million visitors annually. Imagine strolling through the Fushimi Inari Shrine, surrounded by the soft pink of sakura, in the mild weather that's perfect for exploring. It's no wonder people from all over the globe come to experience this.
Then comes autumn, when the city transforms into a canvas of vibrant reds and oranges. The autumn foliage captivates tourists, offering breathtaking views that are a photographer's dream. In March 2023, Kyoto saw a record-breaking 4.91 million tourists, a testament to its seasonal allure.
All this tourism is a boon for Kyoto's hospitality sector. In October 2023, hotels were bustling with an 82.9% occupancy rate, showing just how much people love visiting. This demand has sparked a wave of investment, with hotels expanding and upgrading to meet the needs of eager travelers.
International visitors are spending more too, with a 68.6% increase in spending in 2024 compared to 2019. This surge in spending is a big boost for the local economy, as tourists indulge in Kyoto's rich culture and hospitality.
Sources: Statista, Travel Voice, Go With Guide
4) Kyoto's cultural festivals drive strong demand for short-term rentals
Kyoto's festivals and events are a major draw for tourists worldwide, boosting short-term rental opportunities.
In 2022, when travel restrictions eased, Kyoto welcomed 71.28 million visitors, many flocking to experience its vibrant cultural festivals. This surge in tourists during festival seasons means a high demand for places to stay, especially short-term rentals.
Take the Gion Matsuri and Aoi Matsuri, for example. During these major festivals, short-term rental prices can skyrocket. While the average daily rate is JPY18,504, some properties can fetch up to JPY46,575 per day during peak times, offering a golden opportunity for property owners.
Occupancy rates for these rentals also climb during festival periods. Typically, the median occupancy rate hovers around 80%, but it spikes as festivals draw in large crowds. The Gion Matsuri parade in July, for instance, attracts international attention, leading to higher occupancy rates for nearby rentals.
For property owners, this means a chance to tap into a lucrative market. With the influx of tourists eager to experience Kyoto's cultural richness, short-term rentals become a hot commodity.
So, if you're considering buying property in Kyoto, these festivals offer more than just cultural experiences; they present a unique investment opportunity. Owning a rental property here could be particularly rewarding during these bustling times.
Sources: Airbtics, Go With Guide, Japan Forward
5) Kyoto's UNESCO status boosts its global appeal and investment potential
Kyoto's charm as a UNESCO World Heritage site makes it a hot spot for tourists and investors alike.
In 2022, over 71.28 million tourists flocked to Kyoto, eager to soak in its rich cultural and historical vibes. This massive influx of visitors underscores the city's magnetic pull, especially for those keen on diving into its unique heritage.
With so many people visiting, it's no surprise that hotel occupancy rates hit 82.9% in 2023. This high demand for places to stay near UNESCO sites not only boosts the hospitality sector but also pushes up property prices and rental yields. Investors are eyeing these areas for the potential of premium pricing and solid returns from short-term vacation rentals.
Tourism isn't just about numbers; it packs a punch economically too. In Kyoto, tourism contributes around 12% to the city's GDP. This economic lift is backed by government efforts to preserve and promote Kyoto's cultural treasures, which in turn enhances its global brand appeal.
These strategic moves by the government, combined with the buzz from increased tourism and media spotlight, make Kyoto a prime spot for both tourists and investors. The city's allure is not just in its past but in its vibrant present and promising future.
For those considering property investment, Kyoto offers a unique blend of cultural richness and economic opportunity. The city's status as a UNESCO World Heritage site is a key factor in its global appeal and investment potential.
Sources: Go With Guide, Outlook Travel Magazine, Kyoto Travel
Make a profitable investment in Japan
Better information leads to better decisions. Save time and money. Download our guide.
6) Kyoto's shopping and entertainment boost its lifestyle appeal for potential residents
Kyoto is a city where shopping and entertainment options truly enhance the lifestyle for those considering a move here.
In the heart of Kyoto, the Shijo Kawaramachi and Gion districts buzz with energy, offering everything from high-end international brands to unique Japanese boutiques. This lively atmosphere makes it a vibrant place to call home.
Recently, Kyoto has welcomed a wave of international and luxury brands like tk.TAKEO KIKUCHI and Aesop, which seamlessly blend traditional Japanese craftsmanship with modern design. This fusion offers residents a shopping experience that's both culturally rich and contemporary.
Kyoto's entertainment scene is also on the rise, with the city being a hub for Manga culture, centered around the Kyoto International Manga Museum. This adds a unique cultural layer to the city's offerings.
Adding to the excitement, Kyoto hosts numerous cultural festivals, with the Gion Festival being a standout. These events create a festive atmosphere, providing residents with a variety of activities year-round.
Sources: World Travel Guide, SJMC Japan, Enjoy Kyoto
7) Kyoto's universities ensure a constant demand for rentals from students and faculty
Kyoto is a vibrant city with several top universities, including the renowned Kyoto University.
With 22,426 students enrolled as of May 2023, the demand for housing around Kyoto University remains strong. This steady student population means there's always a need for rental properties nearby.
Not just students, but a significant number of faculty members also call Kyoto home. Professors and researchers prefer living close to their workplace, further boosting the rental market.
Looking ahead, property prices in Kyoto are expected to rise in 2025 due to high demand and limited supply, especially in areas popular with students. This makes the rental market even more attractive for potential investors.
Neighborhoods around universities are particularly appealing, as they offer a steady stream of potential tenants year-round. This is largely driven by the academic calendar and the influx of new students each year.
For those considering investing in Kyoto, the city's educational institutions provide a reliable foundation for rental income. The presence of these universities ensures a consistent demand for housing.
Sources: Kyoto University Facts and Figures 2023-2024, Kyoto's Property Price Forecasts
8) Kyoto's low crime rate attracts families and boosts stable property values
Kyoto is a top choice for families because of its remarkably low crime rate.
In 2023 and 2024, Kyoto's Crime Index was 14.02, much lower than Tokyo's 24.68 and Osaka's 33.09. This makes Kyoto significantly safer than these bustling cities, offering peace of mind to those who call it home.
The Safety Scale for Kyoto stands at 85.98, reflecting a very low level of crime. Families can feel secure here, knowing that violent crimes like assault and armed robbery are rare, with a score of just 8.77, compared to Tokyo's 21.71 and Osaka's 30.19.
Safety is often a top priority for families when choosing a place to live, and Kyoto's low crime rate makes it an attractive option. This sense of security contributes to the stability of property values, which is a key factor for families looking to invest in real estate.
Historical data shows that areas with low crime rates tend to have more stable property values, and Kyoto is no exception. This stability is appealing to families who want to ensure their investment is sound.
Sources: Crime Statistics, Crime Comparison Kyoto vs Osaka
Everything you need to know is included in our Real Estate Pack for Kyoto
9) Kyoto's culinary fame draws food lovers boosting demand for local accommodations
Kyoto is a food lover's paradise, thanks to its impressive number of Michelin-starred restaurants.
In 2023 and 2024, the Kyoto Osaka MICHELIN Guide spotlighted 389 restaurants, with 41 new additions, including fresh Two-Star and One-Star spots. This growing list of top-tier dining experiences makes Kyoto a must-visit for anyone who loves high-quality cuisine.
Tourists are flocking to Kyoto not just for its historical sites but specifically for its food. A significant number of international tourists visited Kyoto in 2022, with many coming from the United States, South Korea, and Taiwan. This trend is expected to continue, as food tourism is projected to be the fastest-growing segment of luxury travel between 2024 and 2030.
Kyoto's culinary appeal is further enhanced by its vibrant food-related events and festivals. The Jidai Festival, one of the city's largest, takes place in November and draws tourists interested in both culinary and cultural experiences. Other events, like the Tenjin San Flea Market and Toji Market, showcase local specialties and attract food enthusiasts year-round.
With such a strong focus on food, it's no surprise that accommodations near popular dining districts are in high demand. In October 2023, Kyoto's hotel occupancy rate was 82.9%, reflecting the city's popularity among tourists eager to explore its culinary scene.
Sources: Go With Guide, MICHELIN Guide, Hotelbeds, World of Mouth
10) Kyoto's strong community and traditions create a stable welcoming environment for newcomers
In Kyoto, community spirit shines brightly through vibrant local festivals like the Gion Festival.
This festival, a tradition for over a millennium, sees dedicated community involvement in its year-round planning and execution. Such dedication not only keeps cultural practices alive but also fosters a strong sense of belonging among residents.
Kyoto's low crime rate compared to other major Japanese cities makes it a stable and welcoming place for newcomers. This stability is bolstered by neighborhood associations that work tirelessly to maintain community welfare, ensuring that everyone feels at home.
The city is a master at blending tradition with modernity, as seen when the Gion Festival's music troupe successfully crowdfunded a float. This innovative approach highlights how Kyoto preserves its rich heritage while embracing new ideas.
Programs designed to teach newcomers about Kyoto's traditions and customs are key to helping them feel integrated. These initiatives allow newcomers to understand and appreciate local culture, making their transition smoother and more enjoyable.
Kyoto's strong sense of community and local traditions create a stable and welcoming environment for newcomers, fostering a deep sense of connection and continuity.
Sources: Zenbird Media, Wikipedia, City of Kyoto
11) Kyoto's rich history and culture attract expatriates seeking unique experiences
Kyoto is a magnet for expatriates, thanks to its rich history and cultural heritage.
In recent years, the city has seen a surge in international visitors, with over 71.28 million tourists in 2022. This influx underscores Kyoto's global appeal as a cultural hotspot, drawing people eager to experience its unique offerings.
Expatriates are increasingly drawn to Japanese culture, evident in the rising enrollment in international schools and cultural exchange programs in Kyoto. These programs offer immersive experiences in traditional arts like tea ceremonies and silk-weaving, providing a deep dive into local culture.
Kyoto's vibrant festivals, such as the Aoi Matsuri, attract global attention and give expatriates a chance to engage with the city's traditions. These events, coupled with media coverage, highlight Kyoto as a top cultural destination, reinforcing its reputation as a hub for unique experiences.
The city's blend of historical attractions, educational opportunities, and lively festivals makes it an attractive place for expatriates seeking a rich cultural life. Whether it's exploring ancient temples or participating in local traditions, Kyoto offers a wealth of experiences.
For those looking to immerse themselves in a new culture, Kyoto provides a unique opportunity to learn and experience something new. The city's allure lies in its ability to offer both historical depth and vibrant cultural activities.
Sources: Go With Guide, Pasadena City College, Insured Nomads
Get fresh and reliable information about the market in Japan
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
12) Kyoto's arts scene draws creatives boosting demand for homes
Kyoto's vibrant arts scene is a magnet for creative professionals, leading to a noticeable increase in demand for residential spaces.
In 2024, Art Collaboration Kyoto (ACK) featured 69 local and international galleries, with 33 participating for the first time. This highlights a growing interest in the city's art scene. Events like the Kyoto Experiment festival show the city's commitment to interdisciplinary arts, making it a cultural hotspot.
Around Kyoto Station, the creative community is thriving. New co-working spaces and initiatives like Kyoto Makers Garage and KAGANHOTEL are popping up, proving the city's appeal as a hub for creative talent. The relocation of staff from Tokyo to Kyoto, backed by Japan’s Agency for Cultural Affairs, signals a shift in cultural capital, drawing more artists and creatives to the city.
Property prices are rising in artistic communities, reflecting the increased demand for residential spaces. This is driven by the arts scene's popularity. Creative professionals are drawn to Kyoto's unique blend of traditional heritage and contemporary art, making it a desirable place to live.
Testimonials from artists emphasize Kyoto's allure as a place where tradition meets modernity. This unique blend makes it a magnet for those in the creative fields. The city's vibrant arts scene is not just about galleries and festivals; it's about a lifestyle that attracts and retains talent.
With more creative professionals moving in, the demand for residential spaces continues to grow. This trend is reshaping the real estate market, making Kyoto an exciting place for potential property buyers interested in the arts.
Sources: Artnet News, The Art Newspaper, World Bank, The Theatre Times, Artsy
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.