Buying property in Kyoto: is it worth it?

Last updated on August 26, 2025

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

Buying property in Kyoto offers significant potential for both personal residence and investment, with prices ranging from ¥500,000 to ¥1,200,000 per square meter depending on location and property type.

The ancient capital combines cultural heritage with modern urban conveniences, creating a unique real estate market where traditional machiya houses compete with contemporary condominiums. Central districts near temples and cultural sites command premium prices, while suburban areas offer more affordable entry points with steady rental demand from students and families.

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.

Quick Summary:

Kyoto's property market shows consistent 3-5% annual growth with strong tourism-driven demand in central areas.

Rental yields range from 2-3% in prime locations, while purchase costs including taxes and fees total 6-8% of property value.

Property Type	Average Price per m²	Best Areas	Rental Yield
Modern Apartments	¥850,000-¥1,000,000	Nakagyo, Shimogyo	2.0-2.5%
Traditional Machiya	¥1,000,000+	Higashiyama, Gion	2.5-3.0%
New Developments	¥1,200,000+	City Center	2.0-2.3%
Suburban Properties	¥500,000-¥700,000	Sakyo, Kamigyo	3.0-4.0%
Student Areas	¥600,000-¥800,000	Near Universities	3.5-4.5%
Tourist Zones	¥900,000-¥1,200,000	Arashiyama, Fushimi	2.0-3.5%

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.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Kyoto, Tokyo, and Osaka. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current price per square meter in different Kyoto neighborhoods?

As of September 2025, Kyoto property prices range significantly based on location and proximity to cultural landmarks.

Premium tourist-heavy districts like Higashiyama, Nakagyo, and Shimogyo command ¥900,000 to ¥1,200,000 per square meter. These areas benefit from their proximity to famous temples, traditional streets, and major tourist attractions.

Central city neighborhoods including Kamigyo and Sakyo offer more moderate pricing at ¥700,000 to ¥900,000 per square meter. These districts provide good access to downtown amenities while maintaining residential character.

Suburban districts on the city periphery start from ¥500,000 to ¥700,000 per square meter. These areas attract families and long-term residents seeking larger spaces and quieter environments.

It's something we develop in our Japan property pack.

How do apartment, traditional house, and new development prices compare?

Property type significantly impacts pricing in Kyoto's real estate market.

Property Type	Average Price Range	Key Features
Modern Apartments	¥850,000-¥1,000,000/m²	Low maintenance, modern amenities
Traditional Machiya	¥1,000,000+/m²	Historic value, renovation required
New Developments	¥1,200,000+/m²	Premium locations, latest construction
Renovated Traditional	¥1,100,000-¥1,300,000/m²	Heritage charm, modern functionality
Older Condominiums	¥600,000-¥800,000/m²	Affordable entry, potential upgrades needed
Luxury Penthouses	¥1,500,000+/m²	Premium views, exclusive amenities

What are the recent price trends over the past 1-2 years?

Kyoto's property market has experienced consistent upward momentum since 2023.

Property prices have increased 4-5% annually since 2020, with a notable 3-4% jump recorded in 2024 alone. This growth reflects recovering tourism demand and sustained investor interest in the historic city.

Central and historic districts have led price appreciation, driven by limited supply and strong demand from both domestic and international buyers. Tourist-heavy areas near major temples and cultural sites have seen the strongest price increases.

The market has shown resilience despite broader economic uncertainties, supported by Kyoto's unique position as Japan's cultural capital and UNESCO World Heritage site.

What's the 3-5 year outlook for Kyoto property prices?

Market experts forecast continued moderate growth of 3-5% annually through 2028-2030.

Central area appreciation will likely continue due to supply constraints, rising international tourism, and persistent foreign buyer interest. Historic districts face particular scarcity as preservation laws limit new construction.

The market may reach a plateau by 2026-2027, depending on broader Japanese economic conditions and potential regulatory changes affecting foreign ownership or vacation rentals.

Tourism recovery to pre-pandemic levels supports optimistic projections, with international visitor numbers expected to exceed 2019 records by 2026.

However, potential headwinds include stricter heritage preservation regulations and demographic shifts as Japan's population continues aging.

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What are the long-term risks and opportunities for 10+ year property holdings?

Long-term Kyoto property investment presents both significant opportunities and notable challenges.

Key Opportunities:

Properties near UNESCO World Heritage sites offer appreciation potential due to absolute scarcity and permanent cultural significance
Kyoto's global reputation as Japan's cultural heart ensures sustained international interest
Ongoing urban revitalization projects enhance neighborhood attractiveness
Limited developable land in historic areas creates natural supply constraints
Growing trend of remote work may increase demand for cultural city residences

Primary Risks:

Regulatory tightening on vacation rentals could impact investment returns
Japan's demographic decline may reduce long-term domestic demand
Traditional machiya houses face non-rebuildable designations in some areas
High maintenance costs for heritage properties can erode returns
Stricter preservation controls may limit renovation flexibility

How do rental yields vary across different areas of Kyoto?

Rental yields in Kyoto vary significantly between central tourist areas and suburban residential districts.

Central and tourist-heavy wards typically generate gross yields of 2-3% for long-term rentals. These premium locations command higher purchase prices, which compress yield calculations despite strong rental demand.

Suburban areas offer better yields of 3-5% due to lower property acquisition costs and steady rental demand from families and students. Areas near universities consistently attract tenants throughout the academic year.

Short-term vacation rentals can push gross yields higher in permitted zones, though strict 60-day annual limits in many areas restrict this income stream.

Kyoto's rental yields remain below Japan's average city yield of 4.2%, reflecting the premium pricing of this culturally significant location.

What are typical maintenance and management costs for different property types?

Property maintenance costs vary dramatically between modern apartments and traditional houses.

Property Type	Monthly Maintenance	Annual Management
Modern Condominiums	¥10,000-¥20,000	5% of gross rent
Traditional Machiya	¥25,000-¥50,000	8-12% of gross rent
New Developments	¥15,000-¥25,000	4-6% of gross rent
Vacation Rentals	¥6,000+ basic	15-25% of gross income
Suburban Houses	¥8,000-¥15,000	6-8% of gross rent

Traditional machiya houses require specialized maintenance due to aging wooden structures and preservation requirements. Major renovations can cost ¥300,000 per square meter for authentic restoration.

How liquid is Kyoto's property market?

Market liquidity varies significantly by location and property condition within Kyoto.

Properties in central and desirable neighborhoods typically sell within 2-4 weeks of listing. Prime locations near famous temples or tourist attractions experience strong buyer demand with minimal price negotiation.

Well-located properties in excellent condition usually sell at 0-3% below listing price, indicating strong market confidence and buyer competition.

Outside core districts or for older properties requiring significant renovation, liquidity decreases substantially. These properties may require 2-3 months to sell with 5-10% price discounts being common.

It's something we develop in our Japan property pack.

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 taxes and fees should buyers expect?

Property purchase in Kyoto involves substantial upfront and ongoing tax obligations.

Initial purchase costs including registration fees, agent commissions, and acquisition tax total approximately 6-8% of the property price. Real estate agent fees typically reach 3% plus ¥60,000, while registration and legal fees add another 2-3%.

Annual property tax amounts to 1.4% of assessed property value, with an additional 0.3% city planning tax in most areas. Property assessments typically run 60-70% of market value, providing some tax relief.

All properties require building insurance, with annual premiums ranging from ¥30,000-¥100,000 depending on property type and coverage level.

Condominium owners face additional management fees and building reserve fund contributions averaging ¥15,000-¥30,000 monthly.

What budget ranges make sense for personal use versus investment?

Budget requirements differ significantly between personal residence and investment property purchases.

For personal residence in central Kyoto, plan ¥35-45 million for a quality 50-60 square meter condominium. Traditional machiya houses suitable for family living typically require ¥60-75 million including necessary renovations.

Investment properties under ¥50 million in strong rental demand districts offer attractive risk-return profiles for steady rental income. These price points allow for better cash flow and lower financing costs.

First-time foreign buyers should consider starting with modern condominiums in the ¥25-40 million range to minimize maintenance complexity while learning the market.

Luxury buyers seeking premium locations or fully restored traditional houses should budget ¥80-150 million for top-tier properties.

Which neighborhoods balance affordability, rental demand, and growth potential?

Several Kyoto districts offer optimal combinations of reasonable pricing and strong investment fundamentals.

Gion, Higashiyama, and Shijo-Kawaramachi areas balance tourist appeal with solid rental demand and long-term value appreciation. While purchase prices are higher, these locations offer strong liquidity and consistent appreciation.

Sakyo and Kamigyo districts provide more affordable entry points while maintaining central access. These areas attract diverse rental markets including students, families, and expatriates.

Keihan Railway corridor neighborhoods offer lower entry prices with steady rental demand from commuters and families. Growth potential is slower but more stable than tourist-dependent areas.

Areas near major universities consistently generate rental income from student populations, providing recession-resistant cash flow streams.

It's something we develop in our Japan property pack.

What property type and location would be best for buying today?

Optimal property selection depends on your primary objectives and risk tolerance.

For personal residence, purchase a modern condominium or well-renovated machiya in Higashiyama or Nakagyo districts. These locations provide exceptional lifestyle quality with strong resale potential.

Investment buyers should focus on 1-3 bedroom apartments in central or university-adjacent areas for stable rental yields and manageable property management requirements.

Resale-focused investors should select properties near famous cultural sites or major transit connections. Ensure full building code compliance and recent renovations to maximize liquidity and appreciation potential.

Avoid properties requiring major structural work or those with heritage restrictions that limit future renovation flexibility unless you have significant renovation experience and budget reserves.

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 offers compelling opportunities for both personal residence and investment, with consistent growth driven by cultural significance and tourism demand.

Success requires careful neighborhood selection, realistic budget planning, and thorough understanding of maintenance obligations, particularly for traditional properties requiring specialized care and preservation compliance.