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
Where are the best places to invest in Kyoto right now? Is the historic Higashiyama district still the top pick, or are areas like Arashiyama, Fushimi, and Kamigyo gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with local real estate agents, property managers, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Kyoto and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Kameoka City near Kyoto is gaining interest for its affordable land and remote work trend allowing flexible living locations
Kameoka City, just outside Kyoto, is becoming a real estate hotspot due to its affordable land prices and the growing trend of remote work, which allows for more flexible living locations.
While places like Onna Village in Okinawa have seen a 29.0% rise in land value, Kameoka remains a budget-friendly alternative. This affordability is a major draw for those looking to escape the high costs of central Kyoto. The city's proximity to Kyoto means you can enjoy the cultural richness of the area without the hefty price tag.
The rise of remote work in Japan is another reason Kameoka is gaining attention. In 2023, a survey by MailMate found that 27.4% of working professionals were already working remotely, with over half having the option to do so. This shift in work culture means people are no longer tied to living near their offices, opening up possibilities for more flexible living arrangements.
Suburban living is becoming increasingly popular among remote workers. The same MailMate survey showed that more than 60% of respondents preferred a work style that includes remote work, and 61.2% favored a hybrid or flexible work arrangement. This trend is likely driven by the desire for a better work-life balance and lower living costs, making Kameoka an attractive option.
For those seeking a quieter lifestyle without sacrificing convenience, Kameoka offers the best of both worlds. The city provides a peaceful environment with easy access to Kyoto's bustling city life, making it ideal for families and individuals alike.
As remote work continues to grow, Kameoka's appeal is only expected to increase. The combination of affordable land, a flexible work culture, and a desirable location makes it a prime choice for potential homebuyers and investors.
Sources: Prefectural Land Price Survey 2024, Remote Work Statistics in Japan
2) Shimogyo Ward is gaining interest for its central location and revitalized commercial spaces
Shimogyo Ward is catching the eye of real estate enthusiasts because of its prime location in Kyoto and the buzz around its commercial spaces.
Property values here are climbing at an impressive rate, with an annual increase of about 8%, outpacing the rest of Kyoto. This makes Shimogyo Ward a hot spot for both investors and those looking to settle down.
Real estate transactions are picking up, and companies like Heritage Homes Japan are pointing out the strong rental yields and growth potential in the area. This uptick in activity shows that more people are seeing Shimogyo as a smart place to invest.
Development projects are popping up all over Shimogyo Ward, adding to its charm. While details are scarce, the general vibe is that these investments are boosting property values and drawing in more buyers.
The government is also playing a role, with plans to revitalize commercial areas in central wards like Shimogyo. This adds another layer of attraction for those considering a move or investment here.
With all these factors in play, Shimogyo Ward is becoming a magnet for real estate interest, offering promising returns and a vibrant community feel.
Sources: Heritage Homes Japan, CBRE Japan Market Outlook 2025, Tokyo Portfolio
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.
3) Higashiyama Ward is popular for its traditional architecture and high tourist traffic, ideal for short-term rental investments
Higashiyama Ward in Kyoto is a hotspot for short-term rental investments thanks to its charming traditional architecture and bustling tourist scene.
In 2023, Kyoto saw a record-breaking 75.18 million tourists, surpassing even pre-pandemic numbers. This surge highlights the strong demand for accommodations, especially in culturally rich areas like Higashiyama Ward.
Visitors flock to Kyoto for its traditional allure, with many surveys showing that tourists are captivated by the city's cultural and historical treasures. Higashiyama Ward, with its famous temples and shrines, stands out as a prime destination for these culture enthusiasts.
The real estate market in Kyoto is on the rise, with property values climbing due to the area's popularity among tourists. This trend indicates that investing in short-term rentals in Higashiyama Ward could be a lucrative opportunity.
Imagine owning a property nestled among the iconic streets of Higashiyama, where the blend of old-world charm and modern convenience attracts a steady stream of visitors. The area's high tourist foot traffic makes it an ideal spot for short-term rental ventures.
With its unique blend of tradition and tourism, Higashiyama Ward offers a compelling case for property investment, promising both cultural richness and financial rewards.
Sources: Japan News, Statista, E-Housing, Mainichi
4) Yamashina Ward is gaining interest for its convenient transport links and lower entry prices than central Kyoto
Yamashina Ward is catching the eye of property buyers for a couple of compelling reasons.
One major draw is its convenient transportation links. Living in Yamashina means you can easily commute to central Kyoto and other parts of the city. This is perfect for those who work or study in the bustling city but crave a quieter home base.
Another appealing factor is the lower entry prices for properties here compared to central Kyoto. Imagine snagging a 100-sqm resale house in Yamashina for much less than you'd pay in the city center. This affordability is a big win for first-time buyers and investors looking to get more bang for their buck.
Real estate market reports are buzzing about Yamashina Ward as an emerging area. This means more folks are eyeing it for property purchases. The mix of affordable prices and easy transportation makes it a smart pick for many.
For those in the know, Yamashina offers a sweet spot between city life and suburban peace. It's a place where you can enjoy the perks of Kyoto without the hefty price tag.
Sources: Hachise Co. Ltd., Real Estate Japan, Wikipedia
5) Fushimi Ward is attracting interest with affordable prices and high rental yields near Kyoto and Osaka
Fushimi Ward is catching eyes for its affordable property prices compared to other Kyoto areas.
Back in 2023, you could snag a 100-square-meter resale house for about ¥18,310,000, or roughly $170,000. This price is significantly lower than in other wards, making it a hot spot for potential buyers looking for a deal.
Fushimi Ward isn't just about low prices; it also promises high rental yields. While specific numbers for Fushimi aren't handy, properties outside Tokyo's 23 Wards, including Kyoto, are known for offering better returns. This is thanks to their lower purchase prices and potential high demand, which can boost your investment returns.
Location is another big win for Fushimi Ward. It's strategically placed near both Kyoto and Osaka, two bustling cities full of opportunities and amenities. This means you get easy access to urban life without the hefty property costs usually found in these cities.
Living in Fushimi Ward gives you the best of both worlds: affordable living with the perks of being close to major city centers. This makes it an attractive choice for those seeking convenience without breaking the bank.
Sources: Average Listing Price of Resale House in Kyoto by Ward, Gross Rental Yields in Japan, Average Yield for an Investment Property in Japan
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6) Minami Ward is gaining interest with its industrial redevelopment projects boosting property values and rental demand
Minami Ward is buzzing with excitement over its industrial redevelopment projects.
One standout project is the LOGI'Q Minami-Ibaraki, a logistics facility completed in January 2024. This facility is strategically located near major routes like the Meishin expressway and Senrioka station, making it a hub for easy access and attracting labor. The area is becoming a magnet for businesses and workers alike.
Government investment is pouring into infrastructure and public amenities, aligning with the urban development trend in Kyoto. This means a better living environment, making Minami Ward more appealing to residents and businesses. The buzz around rising property transactions in Kyoto, including Minami Ward, signals a stable rental income potential, drawing in investors.
Minami Ward is also home to big names like Nintendo and Kyocera, creating a high demand for rental properties aimed at business professionals. This business activity hints at new opportunities and expansions, further enhancing the area's charm. Improved transportation links, especially around Kyoto Station, are part of the redevelopment, making the area even more attractive.
With these developments, Minami Ward is not just a place to live but a thriving community with growing opportunities. The combination of industrial projects, government investment, and corporate presence is setting the stage for a vibrant future.
For those considering property investment, Minami Ward offers a promising landscape with its strategic location and ongoing enhancements. The area's transformation is a testament to its potential for increased property values and rental demand.
Sources: Savills Asia, Axross Japan, Heritage Homes Japan
7) Kamigyo Ward is gaining attention for its historical charm and rising interest in boutique hotels and guesthouses
Kamigyo Ward is quickly becoming a real estate hot spot thanks to its unique blend of history and modern appeal.
Imagine living near the Kyoto Imperial Palace or the Kitano Tenmangu Shrine, where history whispers through every street. This area is a magnet for those who cherish tradition and culture, making it a prime location for property investment.
In the past few years, Kamigyo Ward has seen a surge in boutique hotels and guesthouses. These places are not just about a bed to sleep in; they offer an experience, with high ratings for their cleanliness and prime locations. The Kagan Hotel, for instance, is a unique spot that combines living spaces with a gallery and café, attracting young artists and travelers.
Media buzz has also put Kamigyo Ward on the map. Articles and guides frequently spotlight its traditional culture, from tea ceremonies to Nishijin textiles, making it a must-visit for culture enthusiasts. This kind of exposure has naturally led to more people eyeing the area for real estate opportunities.
With its growing popularity, Kamigyo Ward is not just a place to visit but a place to invest in. The blend of historical allure and modern conveniences makes it a unique spot for those looking to buy property in Kyoto.
Sources: Airbnb, Study Kyoto, Star Advertiser
8) Nakagyo Ward is thriving with its vibrant city life and strong rental market attracting young professionals and students
Nakagyo Ward is a magnet for young professionals and students thanks to its lively city vibe and strong rental market.
With its bustling streets and vibrant atmosphere, Nakagyo Ward offers an urban lifestyle that many crave. The demand for rental properties here is sky-high, largely because it's close to universities and educational institutions. This makes it a prime spot for students and young professionals who want to be near their schools and workplaces.
What really sets Nakagyo Ward apart is its cultural scene and nightlife. Festivals like Aoi Matsuri and Gion Matsuri are huge attractions, offering entertainment and cultural experiences that are a hit with the younger crowd. These events add to the area's dynamic environment, making it a lively place to live.
Accessibility is another big plus. The ward boasts excellent public transportation links, making it easy for residents to get around. This convenience is a major draw for those who value connectivity and want to explore the city without hassle.
Living in Nakagyo Ward means being part of a community that's always on the move. The area's proximity to educational hubs not only attracts a younger demographic but also keeps the local scene fresh and exciting. It's a place where there's always something happening, whether it's a new café opening or a street festival.
Sources: Wikipedia, RE/MAX Apex, E-Housing
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.
9) Sakyo Ward is gaining interest for its blend of traditional and modern homes, with strong appreciation potential from its cultural significance and university presence
Sakyo Ward in Kyoto is a prime spot for property investors due to its unique mix of traditional and modern housing.
Over the past few years, property values in Sakyo Ward have surged, thanks to its rich cultural significance and the presence of major educational institutions like Kyoto University. This area is buzzing with students and academics, which has driven up the demand for housing.
Living near these educational hubs is a big draw, offering great opportunities for both short-term and long-term rentals. Investors are finding that rental income is strong, making Sakyo Ward a smart choice for real estate investment.
The area is also home to several cultural landmarks, which add to the charm and desirability of properties here. Both domestic and international buyers are keen on Sakyo Ward, attracted by the stability and appreciation potential of its assets.
What really sets Sakyo Ward apart is its blend of traditional and modern architecture. Traditional-style homes with modern amenities are in high demand, making them particularly appealing to investors looking for something unique.
With its cultural heritage and educational presence, Sakyo Ward offers a promising mix of appreciation potential and rental income, making it a hotspot for savvy investors.
Sources: Japan Property, Realestate
10) Kita Ward is gaining popularity for its scenic views and rising property values, attracting families seeking a quieter residential area
Kita Ward is becoming a hot spot for families who crave scenic views and a quieter lifestyle.
In recent years, property prices in Kita Ward have been climbing steadily, with expectations of a 1% to 3% annual increase. This surge is fueled by both local and international investors who see the area's growth potential.
The demand for homes here is so strong that major price drops are unlikely. Families and investors are drawn to Kita Ward's natural beauty and serene environment, making it a top choice for those looking to settle down.
As more families move in, the need for family-friendly amenities is on the rise. New parks and community centers are popping up, enhancing the area's appeal and quality of life.
Media stories and resident reviews often highlight Kita Ward's peaceful vibe and family-friendly atmosphere, boosting its reputation as a prime residential area.
With its scenic views and increasing property values, Kita Ward is a magnet for families seeking tranquility and investors eyeing growth.
Sources: Real Estate Japan, E-Housing Japan
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.