What are the rental yields for apartments in Kyoto? (2026)

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Neighborhoods and apartment rental yields in the 2026 Kyoto apartment market

This table compares apartment rental yields in Kyoto by neighborhood and apartment type.

For each area, the table shows estimated purchase price, estimated monthly rent, gross rental yield, and net rental yield for studios, 1-bedroom apartments, and 2-bedroom apartments.

Finally, please note you'll find much more detailed data in our real estate pack about Kyoto.

We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Which neighborhoods offer the best net yield among areas people actually want to live in Kyoto?

The best net-yield neighborhoods among areas people actually want to live in Kyoto are Kyoto Station, Gojo, Nijo, and Omiya.

These areas combine central access, realistic tenant demand, and net yields mostly around 3.3% to 4.0% for smaller apartments.

Kyoto Station is the clearest example. A studio is estimated at ¥15,900,000 with monthly rent around ¥73,000, giving a 5.5% gross yield and about 4.0% net yield.

Gojo is slightly less transport-dominant but still central. A studio at about ¥16,400,000 and ¥70,000 monthly rent gives a 5.1% gross yield and 3.7% net yield.

Nijo also works well because it is less tourist-saturated than Gion or Kawaramachi but still practical for daily life. A 1-bedroom apartment at about ¥27,400,000 and ¥105,000 rent gives a 4.6% gross yield and 3.3% net yield.

Omiya is the more budget-conscious central choice. It is not as prestigious as Karasuma Oike or Shijo Karasuma, but it has useful access, local shops, and lower purchase prices. That gives studios an estimated 3.8% net yield, stronger than the prime core.

The trade-off is image and resale depth. Shijo Karasuma and Karasuma Oike are more liquid and more prestigious, but their net yields are closer to 2.2% to 3.0%.

Where can I find apartments with above-average yields and below-average entry prices in Kyoto?

The best Kyoto areas for above-average yields and below-average entry prices are Yamashina, Fushimi, Katsura, Omiya, Nishijin, and Kyoto Station studios.

These areas generally offer entry prices below the central Kyoto premium while keeping rents strong enough to support the yield.

Yamashina has the lowest entry price in the table. A studio costs about ¥10,600,000 and rents for about ¥49,000, giving a 5.5% gross yield and 3.9% net yield.

Fushimi is another value area. Studio apartments are estimated around ¥12,300,000, with rent around ¥54,000, producing a 3.8% net yield.

Omiya is more central than Yamashina or Fushimi but still cheaper than Shijo Karasuma. A studio at about ¥14,800,000 and ¥65,000 rent gives a 5.3% gross yield and 3.8% net yield.

Nishijin is a value option for buyers comfortable with older buildings. Its estimated 3.6% net yield for studios is supported by lower purchase prices, but repair reserve quality matters more than in newer central towers.

The trade-off is that cheaper Kyoto areas are cheaper for a reason. Yamashina and Fushimi are less prestigious for foreign buyers, Katsura is more suburban, and Nishijin can involve older stock.

Where does the rent level justify the purchase price most clearly in Kyoto?

The rent level most clearly justifies the purchase price in Kyoto Station, Gojo, Omiya, Nijo, and Yamashina.

These neighborhoods show the most rational rent-to-price relationship in the table.

Kyoto Station has the strongest ratio in a central location. A studio at ¥15,900,000 renting for ¥73,000 produces a 5.5% gross yield, while a 1-bedroom at ¥27,300,000 renting for ¥112,000 gives 4.9% gross.

Gojo is also rational because it captures central Kyoto rents without full prime-core pricing. Its 1-bedroom estimate of ¥28,600,000 and ¥112,000 rent gives a 4.7% gross yield and 3.4% net yield.

Omiya is similar. It is close enough to the center for renters but cheaper for buyers, which is exactly the combination rental-income investors need.

Yamashina looks rational numerically, especially for studios and 1-bedroom apartments. However, its rent-to-price ratio is high partly because prices are discounted for weaker prestige and less foreign-buyer demand.

We have actually built the our real estate pack about Kyoto to make sure you won’t buy in the wrong area. Check it out.

Where is the best place to buy if I want stable rental income rather than maximum yield in Kyoto?

The best Kyoto neighborhoods for stable rental income rather than maximum yield are Karasuma Oike, Shijo Karasuma, Nijo, Demachiyanagi, and Kyoto Station.

They are not always the highest-yielding areas, but their tenant pools are deeper and easier for a beginner landlord to understand.

Karasuma Oike and Shijo Karasuma are the safest central professional-renter markets. Their studio net yields are only around 2.8% to 3.0%, but the locations are extremely convenient for subway access, offices, shopping, restaurants, and daily life.

Nijo is a better yield-stability compromise. It has estimated studio net yield of 3.7% and 1-bedroom net yield of 3.3%, while offering calmer residential streets and strong access to central Kyoto.

Demachiyanagi is stable because of Kyoto University and the wider academic corridor. That supports durable demand for small apartments from students, researchers, and academic workers.

Kyoto Station is stable for a different reason: transport depth. It has business travelers, workers, students, service-sector tenants, and commuters, so rental liquidity is stronger than the area’s visual charm might suggest.

The trade-off is yield versus sleep-at-night quality. Yamashina may offer a higher headline yield, but Karasuma Oike, Shijo Karasuma, Nijo, Demachiyanagi, and Kyoto Station are usually easier to rent and resell.

Which apartment type gives the best return for the lowest total investment in Kyoto?

The best apartment type for the lowest total investment in Kyoto is usually the studio apartment.

Studios have the lowest purchase price and often the highest rent per square meter, which makes them efficient for apartment rental yields in Kyoto.

Across the table, studios usually produce the strongest yields. Kyoto Station studios show about 4.0% net yield, Yamashina studios about 3.9%, Omiya studios about 3.8%, and Gojo and Nijo studios about 3.7%.

The reason is local demand. Kyoto has students, young workers, single professionals, service-sector employees, and some foreign residents who prefer compact, well-located apartments near transport or universities.

1-bedroom apartments are the safer middle product. They cost more than studios but attract couples, higher-income singles, and longer-stay tenants.

In Kyoto Station, a 1-bedroom still gives about 3.5% net yield, which is strong for Kyoto. A 2-bedroom rents for about ¥152,000, but the purchase price is around ¥39,200,000, bringing net yield to about 3.4%.

We give you more details in the our real estate pack about Kyoto.

Which neighborhoods offer strong rental income with the lowest vacancy risk in Kyoto?

The best Kyoto neighborhoods combining strong rental income with low vacancy risk are Kyoto Station, Shijo Karasuma, Karasuma Oike, Nijo, and Demachiyanagi.

These areas have broad tenant pools rather than relying on one narrow renter group.

Kyoto Station has strong rents and strong tenant depth. Estimated rents are ¥73,000 for studios, ¥112,000 for 1-bedroom apartments, and ¥152,000 for 2-bedroom apartments.

Shijo Karasuma and Karasuma Oike have lower yields but lower practical vacancy risk. They are convenient, central, and easy for renters to understand.

Nijo offers a calmer residential alternative with attractive income. It has estimated 1-bedroom rent of ¥105,000 and net yield of 3.3%, while still giving access to central Kyoto.

Demachiyanagi benefits from university-linked demand. Student, researcher, and academic demand is less seasonal than tourist demand, which helps income stability.

The honest interpretation is that the lowest-vacancy neighborhoods are not the cheapest. A buyer who wants stability should accept a slightly lower yield to avoid thin demand, weak resale, or long vacancy periods.

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.

Which areas look overpriced relative to their rental income in Kyoto?

The Kyoto areas that look most overpriced relative to rental income are Gion, Karasuma Oike, Shijo Karasuma, Kawaramachi, and Okazaki.

These are excellent places to own or live, but the rental-income case is weaker.

Gion is the clearest example. A 1-bedroom costs about ¥48,800,000 but rents for about ¥134,000, giving only 3.3% gross yield and 2.3% net yield.

Karasuma Oike is highly liquid but expensive. A 2-bedroom at about ¥67,800,000 and ¥178,000 rent gives about 3.2% gross and 2.2% net.

Shijo Karasuma is similar. It is central, convenient, and desirable, but the purchase price rises faster than long-term rent. The 1-bedroom net yield is estimated at only 2.5%.

Okazaki is livable, green, cultural, and prestigious. But a 1-bedroom at ¥37,600,000 and ¥112,000 rent gives only about 2.5% net.

The trade-off is important: overpriced for yield does not mean bad. These areas may work for lifestyle, capital preservation, scarcity, or personal use, but they are weaker for a beginner whose main goal is rental income.

Which neighborhoods should I avoid even if the rental yield looks attractive in Kyoto?

A beginner should be cautious with Yamashina, parts of Fushimi, parts of Nishijin, and poorly located Katsura apartments, even when the yield looks attractive.

The risk is not always rent level. It is vacancy, resale, building quality, and tenant depth.

Yamashina has strong headline yields, including about 3.9% net for studios and 3.6% net for 1-bedroom apartments. But the reason yields are high is lower purchase prices, weaker prestige, and less central Kyoto resale demand.

Fushimi can work near major rail stations, but weaker pockets are more difficult. A studio may show 3.8% net yield, but tenant demand depends heavily on exact access to rail links.

Nishijin has value, with studio net yield around 3.6%, but many apartment buildings are older. Repair reserves, earthquake standards, and management quality matter more here.

Katsura works for family renters, but it is more suburban. Studios can be harder if the location is not close to Hankyu access or local amenities.

These neighborhoods are not automatic avoids. They are buy-carefully areas where the unit, station distance, building condition, and management records matter more than the headline yield.

Which neighborhoods look risky even though the rental yield is high in Kyoto?

The high-yield but riskier Kyoto neighborhoods are Yamashina, Fushimi, Katsura, and some parts of Nishijin.

Their yields look good because prices are lower, not because rents are exceptionally high.

Yamashina has the strongest headline numbers. A studio has estimated 5.5% gross yield and 3.9% net yield, but that comes with weaker prestige and thinner resale demand than central Kyoto.

Fushimi has attractive yields, especially studios and 2-bedroom apartments at around 3.4% to 3.8% net. The risk is location dispersion because Fushimi is large and demand is much stronger near rail corridors.

Katsura has decent family-rental logic, but it is not a central investor market. A 2-bedroom net yield of about 3.3% is useful, but resale demand may be narrower than Nijo or Kyoto Station.

Nishijin has a good price-rent balance but more building-age risk. A high yield can disappear if repair costs rise or if the building has weak reserves.

The safer alternative is to accept slightly lower yields in Nijo, Gojo, or Kyoto Station. Those areas give better tenant depth and easier resale while still offering reasonable income returns.

What neighborhoods should I avoid when buying a rental apartment in Kyoto?

For a beginner Kyoto rental-apartment investor, avoid poorly connected Yamashina, non-station Fushimi, older Nishijin buildings with weak reserves, and overpriced Gion units bought purely for yield.

These are not necessarily bad neighborhoods, but they are risky entry points.

Avoid weak Yamashina locations if the only attraction is a high yield. The yield can be above 3.5% net, but vacancy and resale risk are higher away from convenient rail access.

Avoid Fushimi apartments far from strong transport. Fushimi can be good value, but Kyoto renters are very sensitive to commute convenience.

Avoid Nishijin buildings with poor maintenance records. The neighborhood has value, but older apartment stock can turn a decent yield into a repair-cost problem.

Avoid Gion for income-only investing. A 1-bedroom net yield around 2.3% is too low for a beginner whose goal is rental return.

The recommendation is not to avoid these places completely. Avoid them as beginner default choices unless the unit is well located, well maintained, realistically priced, and matched to a clear renter group.

Which neighborhoods are seeing rental demand weaken, and why, in Kyoto?

Rental demand is most likely to weaken in tourist-heavy but expensive areas, older poorly connected pockets, and areas where rents have moved beyond local budgets.

In Kyoto, this points to parts of Gion, Kawaramachi, Yamashina, and older non-prime Nishijin stock.

Gion and Kawaramachi are still desirable, but long-term rental demand can weaken when purchase prices and asking rents become too high for ordinary residents. A Gion 1-bedroom at ¥134,000 rent may be rentable, but the tenant pool is narrower than in Kyoto Station or Nijo.

Tourism supports Kyoto’s economy, but tourism does not automatically support long-term residential rent. Tourist-heavy neighborhoods can have prestige without giving a strong residential yield.

Yamashina demand can soften when renters prefer more central locations or newer buildings. The area remains affordable, but affordability alone does not create deep demand.

Older Nishijin buildings can face demand weakness if they compete with newer small apartments near better transport nodes. Kyoto renters may accept small units, but they are less forgiving about poor bathrooms, weak insulation, or inconvenient layouts.

The weakness is not citywide structural decline. Kyoto remains a deep rental market, but weaker buildings and overpriced tourist-adjacent assets should be monitored carefully.

Which neighborhoods are seeing new developments that could create stronger rental demand in Kyoto?

The Kyoto neighborhoods most likely to benefit from development-led rental demand are Kyoto Station, Gojo, Nijo, and parts of Yamashina and Fushimi near transport nodes.

These are areas where infrastructure, business, hotels, retail, or mixed-use activity can deepen the renter pool.

Kyoto Station benefits most directly from transport and commercial concentration. Even when development is hotel-led, it creates service-sector jobs, supplier demand, and convenience that can support residential rentals.

Gojo benefits from spillover from the central business and hotel corridor. It is cheaper than Shijo Karasuma but close enough to capture renters who want central access at a lower rent.

Nijo benefits from practical urban living. It is not a pure tourist district, which is good for long-term rental stability. Supermarkets, transport, and calmer streets make it attractive to residents rather than only visitors.

Yamashina and Fushimi can benefit near rail nodes, but the investor must separate demand-creating development from supply-heavy development. New apartments alone can increase competition, while better transport, retail, offices, schools, or hospitals create deeper tenant demand.

The timing matters. Kyoto Station and Gojo are already visible rental-demand stories. Outer-node improvements in Yamashina and Fushimi are more price-sensitive and should be bought only when the discount is clear.

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

Which neighborhoods have become less attractive for apartment investors over the last 12 months in Kyoto?

The neighborhoods that have become less attractive for rental-income investors are Gion, Karasuma Oike, Shijo Karasuma, Kawaramachi, and some older outer-area stock.

The main issue is price rising faster than sustainable long-term rent.

Gion remains prestigious, but rental yield is weak. A 2-bedroom at about ¥72,000,000 and ¥190,000 rent gives only 3.2% gross and 2.2% net.

Karasuma Oike and Shijo Karasuma are still good locations, but expensive entry prices mean the investor is buying stability and liquidity more than income.

Kawaramachi has lifestyle appeal, but crowds, central pricing, and thin apartment stock can complicate the long-term rental case. The estimated 1-bedroom net yield is only 2.5%.

Older outer-area stock has a different problem. The purchase price can look cheap, but the investor may face a weak building, thin tenant demand, and repair costs that cut into the yield.

The recommendation is not to avoid these areas completely. They are still investable at the right price, but they are less attractive for a beginner buying primarily for rental income in May 2026.

Which apartment types are becoming harder to rent in Kyoto, and in which neighborhoods?

The apartment types becoming harder to rent in Kyoto are overpriced 2-bedroom apartments in prime areas, weak studios in poorly connected outer areas, and older units with dated layouts.

The problem is not the apartment type alone. It is the match between unit, location, and renter budget.

Prime-area 2-bedroom apartments are hardest when the rent becomes too high for normal long-term tenants. In Gion, a 2-bedroom may rent for around ¥190,000, but the buyer pays about ¥72,000,000, leaving only 2.2% net yield.

Studios remain strong in Kyoto Station, Gojo, Omiya, Nijo, and Demachiyanagi. But studios are weaker in outer areas if they are far from stations, universities, or employment corridors.

1-bedroom apartments remain the most liquid middle product. They work for singles, couples, young professionals, foreign residents, and longer-stay renters.

2-bedroom apartments work best in family-oriented or practical areas such as Katsura, Nijo, and parts of Fushimi, but they are less efficient in expensive prestige neighborhoods.

The simple rule for Kyoto is this: buy studios only where single-renter demand is deep, buy 1-bedroom apartments for flexibility, and buy 2-bedroom apartments only where family or higher-income tenant demand is proven.

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.