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Best areas to buy and invest in property in Kyoto

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property investment Kyoto

Yes, the analysis of Kyoto's property market is included in our pack

The question of 'the best neighborhood to buy a property in Kyoto' does not have a one-size-fits-all answer.

Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.

That’s why the article below is covering every intent.

At BambooRoutes, when we write a blog post or when we update our our property pack for Japan, we want to bring solutions and cover different aims in a clear and organized way.

Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.

To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Kyoto into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.

Make a profitable investment in Kyoto

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buying property in Kyoto

How is the real estate market in Kyoto?

The real estate market in Kyoto is a fascinating blend of history and modernity, making it a unique destination for property buyers.

One of the standout strengths of Kyoto is its rich cultural heritage, exemplified by its numerous temples, shrines, and traditional townhouses (machiya). These features are unique to Kyoto, steeped in a history that you won't find in any other city.

This cultural richness is a significant draw for people who want to buy property here, especially those interested in owning a piece of Japan's historic legacy.

Another unique aspect of Kyoto's real estate market is the strong interest from foreigners. This can be attributed to the city's global reputation as a center of traditional Japanese culture.

For many, owning property in Kyoto is not just an investment in real estate but also an investment in a culturally rich lifestyle. This international appeal has contributed to the dynamism of the market.

For instance, the demand for traditional Kyoto townhouses by foreign buyers has remained consistently high, underlining the city's global appeal.

A particularly unique and positive feature of properties in Kyoto is the integration of traditional Japanese architectural elements, such as tatami mats, sliding doors (fusuma), and inner gardens (tsubo-niwa).

These elements are not just aesthetically pleasing but also embody a deep sense of Japanese tradition and craftsmanship, which is highly valued.

Looking to the future, properties in Kyoto are poised to gain value due to several factors.

Firstly, the city's ongoing commitment to preserving its cultural landmarks ensures that the historical value of the properties is maintained, which is a significant draw for buyers.

Additionally, Kyoto continues to be a popular tourist destination, fueling a demand for short-term rental properties. This tourism sector's strength suggests a steady demand for real estate, contributing to property value appreciation.

Top neighborhoods in Kyoto to consider for living

Areas in Kyoto that are budget-friendly

If you're looking to buy property in Kyoto on a budget, there are a few neighborhoods you might want to consider.

Here is a summary table. Below, we will give more details.

Neighborhood Average Price per Sqm Type of Properties Demographics Strengths Weaknesses
Yamashina Lower than central Kyoto Apartments, Single-family homes Families, Professionals Peaceful, Growing accessibility Less nightlife and culture
Fushimi Competitive Townhouses, Modern apartments Locals, Culture enthusiasts Cultural richness, Community feel Less bustling city atmosphere
Nagaokakyo Lowest in Kyoto region Single-family homes, Apartment complexes Families, Older residents Tranquility, Potential for growth Far from central Kyoto


Yamashina is a great option for budget-conscious property buyers in Kyoto.

It's more affordable because it's slightly away from the city center, which typically means lower property prices. However, it's on the rise in terms of value, thanks to improved transportation links and its proximity to central Kyoto, making it a wise investment.

You'll find a mix of apartments and single-family homes in Yamashina, with the average price per square meter being notably lower than in central Kyoto. The area is predominantly residential, attracting both families and professionals who appreciate the quieter environment.

Its strengths lie in its peaceful setting and growing accessibility. However, the downside is that it doesn't have the vibrant nightlife or cultural offerings of more central districts.


Fushimi is another budget-friendly area in Kyoto, known for its historical sites and sake breweries.

The lower cost of properties here is partly due to its more industrial and less central nature. However, with the growing interest in cultural tourism and the area's rich history, property values have the potential to increase. In Fushimi, there's a variety of properties available, including traditional townhouses and modern apartments.

The average price per square meter in Yamashina is competitive, offering good value for money. The area is popular among locals and those interested in a more authentic Kyoto experience.

The strengths of Fushimi include its cultural richness and community feel, but it may not appeal to those seeking a bustling city atmosphere.


Located a bit further out, Nagaokakyo is an excellent choice for those looking for affordability in the Kyoto area.

Its distance from the city center keeps property prices low, but with Kyoto's expanding urban area, Nagaokakyo is becoming increasingly desirable. The types of properties available range from single-family homes to newer apartment complexes.

The average price per square meter in Nagaokakyo is one of the lowest in the Kyoto region, making it very attractive for first-time buyers or investors. The demographic is a mix of families and older residents, valuing the area's tranquility and community spirit.

Nagaokakyo's strengths are its peaceful environment and potential for growth, though its distance from central Kyoto might be a drawback for some.

Don't lose money on your property in Kyoto

100% of people who have lost money in Japan have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

invest real estate in Kyoto

Areas in Kyoto that are popular and upscale

When looking to buy property in Kyoto, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.

Neighborhood Average Price/sqm Resident Profile Strengths Weaknesses
Gion High Wealthy, Cultural Enthusiasts Cultural Heritage, Traditional Atmosphere Tourist Crowds
Arashiyama Varied Diverse, Nature Lovers Natural Beauty, Tranquility Seasonal Tourist Rush
Higashiyama High History Buffs, Affluent Historic Charm, Cultural Sites Tourist Crowds, Old Housing Challenges


Gion is one of the most upscale neighborhoods in Kyoto, known for its traditional wooden machiya houses and the presence of geisha.

Properties in Gion are quite expensive due to the area's historical significance and cultural appeal. The average price per square meter in Gion is high, reflecting the area's exclusivity.

Residents are often well-to-do individuals who appreciate the cultural richness of Kyoto. Gion's strengths lie in its unparalleled traditional atmosphere and cultural heritage.

However, it can be quite crowded with tourists, which might be a downside for some. Given its historical importance, Gion is expected to remain a highly sought-after area.


Located in the western part of Kyoto, Arashiyama is known for its scenic beauty, including the famous bamboo grove.

This area has a mix of expensive traditional properties and more modern housing. It attracts a diverse group of residents, from wealthy individuals seeking traditional homes to those preferring modern living.

The average price per square meter in Arashiyama is on the higher side, but varies depending on the proximity to key attractions.

Arashiyama is likely to remain popular due to its natural beauty and tranquil environment, although it can get busy with tourists during peak seasons.


This area is known for its beautiful streets lined with temples and traditional shops.

Property prices in Higashiyama are quite high, reflecting its popularity and cultural significance. The area mainly offers traditional Japanese houses, attracting buyers who are interested in a culturally rich lifestyle.

Residents tend to be those who value the historical aspects of Kyoto. Higashiyama's strength lies in its historic charm and proximity to many of Kyoto's famous temples.

However, the area can be quite touristy, and living in a traditional house may come with some practical challenges. Higashiyama is expected to continue to be a prime area for property buyers.

Make sure you understand the real estate market in Kyoto

Don't rush into buying the wrong property in Japan. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Kyoto

Areas in Kyoto that emerge as new hotspots

Let's explore these emerging neighborhoods in Kyoto that, according to our local partners and our customers, are getting quite a bit of buzz lately.

Neighborhood Evolution Resident Profile Strengths Weaknesses
Nishijin Textile District to Trendy Area Younger Crowd, Artists Blend of Old and New, Creative Vibe Lacks Some Amenities
Fushimi Quiet to Culturally Rich Families, Young Professionals Affordable, Scenic Beauty Developing Urban Amenities
Kamigyo Historical to Residential Locals, Cultural Enthusiasts Authentic Atmosphere, Quiet Lacks Tourist Vibrancy


Originally a textile district, Nishijin is slowly transforming into a trendy neighborhood.

Initially known for its traditional weaving industries, it has started attracting a younger crowd due to its blend of old and new. Cafes and small boutiques have begun popping up, adding a contemporary vibe.

Property prices in Nishijin are somewhat lower than in the more popular areas, making it an appealing option for younger buyers and artists. In the coming years, prices are expected to rise as the area gains popularity.

Nishijin combines the charm of old Kyoto with a fresh, creative energy, although it still lacks some of the amenities found in more established areas.


Known for the Fushimi Inari Shrine, this area is gaining attention for its more affordable housing options and scenic beauty.

Initially a quiet neighborhood, it's becoming popular among those who want to enjoy Kyoto's charm without the hefty price tag.

The area has a mix of traditional and modern housing, attracting a diverse group of residents, from families to young professionals. The strengths of Fushimi include its cultural sites and natural surroundings.

However, it's still developing in terms of urban amenities. Prices in Fushimi are expected to rise as it becomes more popular.


Kamigyo, with its mix of historical sites and residential areas, is becoming an attractive option for those looking for a quieter, yet culturally rich neighborhood.

It offers a blend of traditional machiya houses and modern apartments at relatively lower prices compared to the more famous districts. The area is popular among locals and is slowly attracting foreign interest.

Kamigyo's strengths lie in its authentic Kyoto atmosphere and quieter living environment.

However, it might lack the vibrancy of more tourist-centric areas. Prices in Kamigyo are likely to increase as it gains recognition.

Make a profitable investment in Kyoto

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buying property in Kyoto

Top neighborhoods in Kyoto to invest in property

Areas in Kyoto with a strong rental demand

If you're considering buying real estate in Kyoto for renting it out, these neighborhoods with high demand for rentals should be considered.

Neighborhood Tenant Demographics Property Type Average Rental Income Rental Yield Tips Weaknesses
Shimogyo-ku Working professionals, students Apartments, small houses ¥80,000 - ¥100,000/month 5-6% Near station or business districts Competition from new developments
Higashiyama-ku Tourists, expatriates Machiya, modern apartments ¥150,000 - ¥200,000/month 4-5% Near tourist spots, unique features High maintenance costs, crowded
Fushimi-ku Families, professionals Family-sized apartments, houses ¥120,000 - ¥150,000/month 6-7% Near schools, transportation Less central, slower value appreciation


Shimogyo-ku is popular due to its proximity to Kyoto Station, making it a hub for working professionals and students who prioritize convenience and accessibility.

The area is characterized by a mix of modern and traditional properties, attracting a diverse tenant base. Most renters seek apartments or small houses in Shimogyo-ku, ideal for single or dual occupancy.

The average rental income for a one-bedroom apartment in Shimogyo-ku is around ¥80,000 to ¥100,000 per month. The rental yield in Shimogyo-ku hovers around 5-6%. Investors should consider properties close to the station or key business districts to minimize vacancy rates.

However, the area faces competition from new developments, potentially impacting rental stability.


Known for its historic and cultural significance, Higashiyama-ku attracts tourists and expatriates who seek a more traditional living experience.

Tenants often look for machiya (traditional townhouses) or well-appointed modern apartments. Rental incomes for a renovated machiya in Higashiyama-ku can range from ¥150,000 to ¥200,000 per month, with yields around 4-5%.

Properties near popular tourist spots or with unique traditional features are more likely to command higher rents.

However, maintenance costs for older properties can be high, and the area can be crowded during peak tourist seasons.


Fushimi-ku, known for its sake breweries, is increasingly popular among young families and professionals seeking a quieter lifestyle away from the city center.

Demand in Fushimi-ku is high for family-sized apartments and houses. The rental income for a three-bedroom house ranges from ¥120,000 to ¥150,000 per month in Fushimi-ku, with a rental yield of approximately 6-7%.

Properties near good schools or transportation links are particularly attractive.

However, the area is less central, which might not appeal to all tenant demographics, and there is the potential for slower property value appreciation.

Don't lose money on your property in Kyoto

100% of people who have lost money in Japan have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

invest real estate in Kyoto

Areas in Kyoto where property prices might increase in the future

In these areas in in Kyoto you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.

Neighborhood Tenant Demographics Property Type Average Price per Night Tips Weaknesses
Gion International tourists Ryokan, machiya ¥20,000 - ¥30,000 Traditional aesthetics, near attractions Crowded, rental license restrictions
Arashiyama Tourists seeking nature Guesthouses, apartments ¥15,000 - ¥25,000 Scenic views, unique experiences Removed from city center
Kyoto Central Tourists, business travelers Modern apartments ¥10,000 - ¥20,000 Near train stations, popular streets High competition, pricing challenges


Gion is a prime location for short-term rentals due to its status as a major tourist destination.

The area is famous for its traditional architecture and geisha culture, attracting a large number of international tourists. They typically prefer traditional-style accommodations like ryokan or machiya. Amenities like Wi-Fi, close proximity to cultural sites, and authentic Japanese experiences are highly valued.

The average price for one night in a machiya can be around ¥20,000 to ¥30,000. Investing in properties with traditional Japanese aesthetics or near popular tourist attractions can yield higher returns.

However, the area can be quite crowded, and there might be restrictions on new short-term rental licenses.


Known for its scenic beauty, Arashiyama is a sought-after area for short-term rentals, especially among tourists seeking a peaceful retreat.

Properties with views of the bamboo forest or near the river are particularly popular. Guests often look for amenities like traditional tatami rooms and easy access to nature spots.

The average nightly rate for a small guesthouse or apartment in Arashiyama is about ¥15,000 to ¥25,000. Properties offering unique experiences or scenic views can command higher prices.

However, the area is somewhat removed from the city center, which could deter guests who wish to explore other parts of Kyoto extensively.

Kyoto Central

The central area of Kyoto, encompassing districts like Kawaramachi and Karasuma, is ideal for short-term rentals due to its accessibility and proximity to major shopping and dining areas.

Tourists and business travelers alike seek accommodations here. Modern apartments with good amenities like kitchenettes and laundry facilities in Kyoto Central are in demand.

Average nightly rates in Kyoto Central range from ¥10,000 to ¥20,000. Investing in properties near major train stations or popular streets can increase occupancy rates.

However, the competition is high in this area, and pricing must be competitive to attract guests.

Make sure you understand the real estate market in Kyoto

Don't rush into buying the wrong property in Japan. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Kyoto