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Nagoya's residential property market in 2025 presents a compelling mix of steady growth, competitive yields, and major infrastructure developments. The market has shown resilient performance with moderate price appreciation and active new supply meeting growing demand from both domestic and foreign investors.
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Nagoya's property market shows steady 2.8% annual price growth with rental yields of 3.5-4.1%, outperforming Tokyo yields.
Major infrastructure projects including the ¥540 billion Nagoya Station redevelopment and Chuo Shinkansen maglev line are driving long-term value appreciation.
| Market Indicator | Current Status (2025) | Outlook |
|---|---|---|
| Average Price Growth | +2.8% annually | 2-4% growth expected through 2026 |
| Rental Yields | 3.5-4.1% | Stable, competitive vs regional markets |
| Vacancy Rate | 3.9% citywide | Healthy, trending downward |
| New Supply | 650+ units delivered in 2025 | Active pipeline continues |
| Foreign Investment | Growing interest | Increasing due to weak yen |
| Mortgage Rates | 2.2-2.5% | Historically low, slight increases possible |
| Infrastructure Investment | ¥540B+ station redevelopment | Completion phases through 2040 |
How have average residential property prices in Nagoya moved over the past 12 months?
Average residential property prices in Nagoya have risen by approximately 2.8% over the past 12 months as of September 2025.
High-performing districts such as Atsuta Ward have experienced increases up to 8.4%, while premium new condominiums in central locations have appreciated at rates of 6-7%.
The city-wide upward trend reflects ongoing urban renewal projects and infrastructure upgrades that are enhancing property values across different neighborhoods. Areas near major transport hubs and business districts have shown the strongest appreciation rates.
This steady growth pattern indicates a healthy market without the volatility seen in some other major Japanese cities.
It's something we develop in our Japan property pack.
What's the current rental yield for apartments and houses in Nagoya?
Rental yields for apartments and houses in Nagoya are averaging between 3.5% and 4.1% in 2025.
These yields are notably higher than Tokyo's average of around 3.2% and remain moderately competitive against similar regional markets like Osaka.
The strongest yields are found in central districts and areas near universities or business hubs, where tenant demand remains robust from expatriates, students, and young professionals. Properties near Nagoya Station and the central business district command premium rents while maintaining steady occupancy rates.
Investors can expect consistent rental income with yields that outperform many other major Japanese metropolitan areas.
How much new housing supply is scheduled to come on the market in Nagoya this year?
Nagoya is experiencing an active development pipeline with at least 14 new residential projects launched in 2024 and hundreds of new units scheduled for delivery in 2025.
The city has seen delivery of over 650 new rental units from major developers like Kanden Real Estate, along with large-scale developments including the S-RESIDENCE series.
This elevated supply level is designed to balance the recent surge in demand while maintaining market equilibrium. The new housing supply includes both rental apartments and condominiums for sale, targeting different market segments.
Developers are focusing on areas with strong transport connectivity and proximity to employment centers to ensure absorption rates remain healthy.
What's the current vacancy rate across different districts in Nagoya?
Vacancy rates across Nagoya's residential market are healthy and trending downward, sitting around 3.9% citywide as of September 2025.
New buildings initially show higher vacancy rates of approximately 23%, but these properties fill quickly in core districts due to strong tenant demand.
Central wards and areas near major transport infrastructure maintain the lowest vacancy rates, while peripheral districts show slightly higher but still manageable levels. The office rental market has also remained stable, indicating balanced supply and demand conditions.
These low vacancy rates reflect stable employment levels and continued attractiveness of Nagoya as a residential destination.
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How is population growth or decline in Nagoya affecting housing demand?
Nagoya's population has declined slightly by about 0.23% over the past year, with the 2025 population sitting at approximately 9.53 million.
This decline is largely attributed to broader demographic trends across Japan, including an aging population and shrinking workforce. However, the urban core continues to attract residents, with net in-migration and a vibrant expatriate community supporting continued housing demand.
Central wards and areas near transport and infrastructure projects remain particularly attractive, maintaining steady demand despite the overall population trend. The city's economic strength and job opportunities continue to draw professionals from other regions.
Foreign residents and young professionals are increasingly choosing Nagoya for its quality of life and employment opportunities, offsetting some demographic pressures.
What infrastructure or development projects are planned that could impact property values in Nagoya?
Several major infrastructure projects are reshaping Nagoya's real estate landscape and driving property value appreciation.
The Nagoya Station District Redevelopment represents a ¥540 billion investment featuring two new skyscrapers, an expanded transit hub, and improved airport access. Completion phases are scheduled through 2025-2040.
The Chuo Shinkansen Maglev Line will enhance regional connectivity and create economic spillover effects that benefit real estate values. Additional urban renewal and transport upgrades are expanding business districts and making central locations increasingly desirable for both investment and residential purposes.
These projects are strategically positioned to improve accessibility and create new employment hubs, directly impacting surrounding property values.
It's something we develop in our Japan property pack.
How do financing conditions, such as mortgage rates, look right now for buyers in Nagoya?
Japan's mortgage rates are at historically low levels due to central bank policy, with most housing loans in Nagoya offering fixed rates around 2.2% to 2.5% for standard plans as of September 2025.
Accessibility to financing remains favorable for both domestic and foreign buyers, creating attractive conditions for property acquisition. Banks are maintaining competitive lending terms to support the real estate market.
Despite expectations of moderate rate hikes if inflation persists, current conditions provide an excellent window for property investment. Foreign buyers can access similar financing terms as domestic purchasers through established banking relationships.
The low interest rate environment significantly improves the economics of property investment in Nagoya.
What's the demand like from foreign investors or companies for property in Nagoya?
Foreign demand for Nagoya property is experiencing significant growth, boosted by the weak yen, attractive yields, and Japan's unrestricted foreign ownership policies.
International buyers are increasingly targeting Nagoya for its affordability compared to Tokyo and Osaka, while still offering strong rental yields and capital appreciation potential. Investment activity is concentrated near new infrastructure projects and business expansion zones.
Corporate demand from multinational companies establishing or expanding operations in Nagoya is also contributing to the foreign investment surge. The city's manufacturing base and growing technology sector attract companies seeking strategic locations.
Foreign investors appreciate Nagoya's combination of lower entry costs and higher yields compared to Japan's primary metropolitan markets.
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How do Nagoya's property prices compare to Tokyo, Osaka, and other regional cities?
| City | Average Price per sqm (Central) | Rental Yield | Typical Condo Price (70-80 sqm) |
|---|---|---|---|
| Tokyo | ¥750,000–¥900,000 | 3.2% | ¥110m–¥150m |
| Osaka | ¥470,000–¥650,000 | 3.5%+ | ¥60m–¥90m |
| Nagoya | ¥365,000–¥500,000 | 3.5–4.1% | ¥40m–¥60m |
| Fukuoka | ¥320,000–¥450,000 | 4.0%+ | ¥35m–¥50m |
| Sendai | ¥280,000–¥380,000 | 4.2%+ | ¥30m–¥45m |
| Hiroshima | ¥250,000–¥350,000 | 4.5%+ | ¥28m–¥40m |
| Sapporo | ¥220,000–¥320,000 | 4.8%+ | ¥25m–¥38m |
What sectors of the economy are driving employment growth in Nagoya, and how does that influence housing demand?
Nagoya's economy is strongly anchored by advanced manufacturing, particularly in the automotive sector, along with growing technology, logistics, and research industries.
Employment growth is being driven by digital transformation across these industries, attracting professionals and expatriates who maintain urban housing demand in core districts. Major automotive companies continue to expand their operations and R&D facilities in the region.
The technology sector expansion, combined with Nagoya's role as a logistics hub, creates sustained demand for housing from well-compensated professionals. Research institutions and universities also contribute to steady rental demand from academic professionals and graduate students.
These employment trends support housing demand despite broader regional population decline, particularly in central districts near employment centers.
Are there any government incentives or tax policies in place that affect real estate investment in Nagoya?
National tax credits for real estate investment focus on regional revitalization and capital investment projects, with Nagoya benefiting from Japan's open ownership rules and stable property tax regime.
Major corporate and infrastructure investments may qualify for enhanced depreciation or tax credits under updated policies starting fiscal year 2025. Local government actively supports urban renewal through partnerships on transport and district upgrades.
Foreign investors face no ownership restrictions and can access the same tax advantages as domestic buyers. Property taxes remain reasonable compared to other major metropolitan areas in Japan.
The combination of national incentives and local development support creates a favorable environment for real estate investment.
It's something we develop in our Japan property pack.
What's the outlook from local real estate agencies and analysts for the next 12 to 24 months in Nagoya?
Local agencies and analysts predict continued price growth of 2-4% annually in prime Nagoya districts through 2026.
This growth is supported by new infrastructure developments, stable demand from both domestic and foreign buyers, and ongoing urban redevelopment projects. The completion of major infrastructure projects is expected to drive sustained value appreciation in connected areas.
Analysts identify risks including construction cost escalation, demographic headwinds, and potential interest rate increases, but the core market fundamentals remain strong. The consensus view supports selective investment in central, well-connected properties for steady income and long-term capital appreciation.
The outlook emphasizes Nagoya's position as an attractive alternative to Tokyo and Osaka, offering better value with comparable growth prospects.
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.
Nagoya's property market in 2025 presents a compelling investment opportunity characterized by steady growth, competitive yields, and transformational infrastructure development.
The combination of moderate price appreciation, favorable financing conditions, and major development projects positions Nagoya as an attractive alternative to higher-priced Tokyo and Osaka markets for both investment and residential purposes.
Sources
- Nagoya Property Market Analysis
- Nagoya Price Forecasts
- Japan Residential Property Price Index - Nagoya
- Nagoya Real Estate Market Report
- Nagoya Real Estate Trends
- Sanko Estate Market Report 2025
- MF Realty Global Market Analysis
- World Population Review - Nagoya
- Nagoya Station District Development
- SMBC Housing Loan Rates