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Property prices in Nagoya are experiencing steady upward momentum as we reach mid-2025, with residential land prices in the Greater Nagoya Area rising by 2.8% in 2024—the highest growth rate in years and above the national average. This growth trajectory continues into 2025, making Nagoya an increasingly attractive destination for both domestic and international property investors seeking opportunities in Japan's third-largest metropolitan area.
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Nagoya's residential property market is experiencing robust growth with prices rising 3-5% annually, driven by urban development, infrastructure improvements, and increasing demand near subway stations.
The city offers significantly better value than Tokyo and Osaka, with new condominiums averaging ¥40-60 million compared to Tokyo's ¥110-150 million, while maintaining strong economic fundamentals and growth prospects.
| Market Metric | Current Status (Mid-2025) | Trend/Outlook |
|---|---|---|
| Average Price per Sqm (City Center) | ¥365,000-500,000 | Rising steadily (+3-5% annually) |
| New Condo Price (70-80 sqm) | ¥40-60 million | Strong demand, limited supply |
| Land Price Growth (2024) | +2.8% (Greater Nagoya Area) | Highest growth in years |
| Subway Station Properties | Premium locations | +6-7% price appreciation |
| Rental Yields | 3.54% average (Q1 2025) | Stable investment returns |
| Foreign Investment | Increasing interest | Growing international demand |
| Bank of Japan Rate | 0.50% (highest since 2008) | Moderate cooling expected |
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.
What are the current average property prices in Nagoya as of mid-2025?
As of June 2025, the average price to buy an apartment in Nagoya's city center is approximately ¥365,000 per square meter, with new apartments in desirable locations ranging from ¥40 million to ¥60 million for a standard 70-80 sqm unit.
This pricing makes Nagoya significantly more affordable than Tokyo, where comparable units in central wards can exceed ¥110 million. Nagoya is also less expensive than Osaka and Fukuoka, where similar properties average ¥55-57 million and ¥56 million, respectively.
The city's affordability combined with its strong economic fundamentals continues to attract both domestic and international buyers. Properties near major subway stations command premium prices, often 15-20% above the city average due to excellent connectivity and urban amenities.
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How much have residential property prices increased in Nagoya recently?
Residential property prices in Nagoya have experienced consistent upward momentum, with several key growth indicators demonstrating the market's strength.
In 2024, residential land prices in the Greater Nagoya Area grew by 2.8%—the highest rate in years and above Japan's national average. This growth accelerated from previous years when increases were below 1% annually. In 2025, the official residential land price rose by 2.3% year-on-year, maintaining robust growth.
Second-hand residential properties in Nagoya appreciated by an average of 3% in 2024, while overall residential property prices rose by 3-5% during the same period. Properties near subway stations saw the fastest growth, appreciating by 6-7% in 2024, significantly outperforming the broader market.
This growth is largely attributed to urban development projects, infrastructure upgrades, and Nagoya's strategic position as a major industrial and logistics hub. The city's role as home to major corporations like Toyota, Honda, and Mitsubishi continues to drive employment and housing demand.
Which neighborhoods in Nagoya are experiencing the fastest price growth?
Several districts in Nagoya are outperforming the city average in terms of property price appreciation, driven by specific development projects and demographic trends.
Atsuta Ward saw the largest residential land price growth at 8.4% in 2025, making it the standout performer among Nagoya's wards. This growth is attributed to ongoing urban redevelopment projects and improved transportation links. Chikusa Ward led commercial land price growth at 14.2%, reflecting increased business investment in the area.
Central districts, especially those with high population density and limited land supply, are experiencing the strongest price appreciation due to high demand and new amenities. Properties near subway stations across all central wards have consistently outperformed the broader market with price increases of 6-7% in 2024.
Meito Ward is becoming increasingly popular among families thanks to its excellent schools and family-friendly amenities like Tenpaku Park and Heiwa Park. This demographic shift is driving steady demand and price appreciation in the ward's residential areas.
The concentration of growth in well-connected, amenity-rich areas reflects buyers' preferences for convenience and quality of life, trends that are expected to continue throughout 2025 and beyond.
What property types are seeing the biggest price increases in Nagoya?
| Property Type | 2024 Price Growth | Key Growth Drivers |
|---|---|---|
| New Condominiums (Central) | 5-7% annually | Limited supply, subway proximity, urban redevelopment |
| Subway Station Properties | 6-7% annually | Transportation convenience, infrastructure investment |
| Luxury Apartments | 4-6% annually | International demand, premium amenities |
| Single-Family Homes (Central) | 3-4% annually | Family demographics, school districts |
| Eco-Certified Buildings | 4-5% annually | Sustainability trends, government incentives |
| Rental Properties (Central) | 3-4% annually | Strong rental demand, low vacancy rates |
| Suburban Detached Houses | 2-3% annually | Modest growth, working from home trends |
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How do current Nagoya property prices compare to five and ten years ago?
Nagoya's property market has undergone a significant transformation over the past decade, shifting from stagnation to steady growth that reflects broader nationwide urban property trends.
Five years ago in 2020, residential land prices in Nagoya were growing at a rate below 1% per year. Growth has dramatically accelerated since then, with annual increases of 2-3% becoming the norm in recent years. This acceleration reflects both improved economic conditions and increased investment in urban infrastructure.
Compared to 2015, when growth was negligible or even negative in some areas, current prices are up by approximately 15-20% in central Nagoya. The strongest gains have occurred in the last three years, coinciding with major infrastructure projects and urban redevelopment initiatives.
Over the past decade, rental growth has also been substantial, with rents increasing by 9% over the past five years. Property prices have followed a similar trajectory, reflecting the fundamental shift in Nagoya's economic position and attractiveness as a place to live and invest.
This long-term appreciation trend demonstrates Nagoya's evolution from a secondary market to a recognized investment destination in Japan's real estate landscape.
What are the current mortgage rates and financing conditions in Nagoya?
The financing landscape for Nagoya property purchases has undergone significant changes as the Bank of Japan ended its era of negative interest rates and began normalizing monetary policy.
As of mid-2025, Japan's central bank policy rate stands at 0.50%, the highest level since 2008, following rate hikes in July 2024 and January 2025. Major banks have responded by adjusting their lending rates, with institutions like Mizuho Bank and Sumitomo Mitsui Trust Bank raising short-term prime rates to 1.875%, while Resona Bank increased rates to 2.125%.
Despite these increases, mortgage rates remain historically low by global standards, averaging around 1.6-2.1% for housing loans. The Bank of Japan noted that "real interest rates are expected to remain significantly negative, and accommodative financial conditions will continue to firmly support economic activity."
Housing loan demand remains strong, with total new housing loans increasing by 8.5% year-on-year to ¥17.32 trillion in 2024. Foreign buyers continue to access favorable financing terms, though banks are becoming more selective about loan-to-value ratios and borrower qualifications.
The moderate rate environment continues to support property demand in Nagoya, where affordability remains high compared to Tokyo and Osaka markets.
How does Nagoya compare to other major Japanese cities in terms of property prices?
| City | Avg. New Condo (70-80 sqm) | Price per sqm | YoY Growth (2025) |
|---|---|---|---|
| Tokyo | ¥110-150 million | ¥1,100,000-1,500,000 | +10.7% |
| Osaka | ¥55-57 million | ¥875,000 | +2.3% |
| Fukuoka | ¥56 million | ¥700,000 | +9.0% |
| Nagoya | ¥40-60 million | ¥365,000-500,000 | +3-5% |
| Kobe | ¥45-50 million | ¥600,000 | +2.8% |
| Sendai | ¥35-45 million | ¥550,000 | +2.1% |
| Sapporo | ¥30-40 million | ¥500,000 | +1.8% |
What are the property price forecasts for Nagoya over the next 5-10 years?
The outlook for Nagoya's property market over the medium to long term reflects both opportunities and challenges, with analysts generally optimistic about continued growth despite broader demographic headwinds.
Over the next five years, analysts expect Nagoya's residential prices to rise by 2-4% annually in prime areas, supported by urban development, infrastructure projects, and the city's economic strength. Central districts and areas near major transport hubs are expected to outperform, while outer wards may see slower growth or occasional stagnation.
The city's ongoing urban renewal projects, infrastructure upgrades, and strategic location continue to drive appreciation in prime areas. Nagoya's role as a major industrial and logistics center, anchored by the automotive sector, provides fundamental economic support for sustained housing demand.
Over 10-20 years, demographic headwinds from Japan's declining population may limit overall appreciation, but central Nagoya is likely to remain resilient due to its economic base and ongoing urbanization trends. Regional cities like Nagoya may actually benefit from population concentration as people migrate from rural areas to urban centers.
Foreign investment is expected to increase, particularly from international buyers attracted by Nagoya's affordability relative to Tokyo and Osaka, potentially providing additional price support in select neighborhoods with strong transport links and tourism appeal.
We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How is Japan's demographic decline affecting Nagoya's property market?
Japan's declining population presents a long-term structural challenge that affects different regions differently, with Nagoya showing more resilience than many other areas due to its economic position and urban magnetism.
While Japan's overall population is declining, Nagoya's population growth remains stable or only mildly positive, helping to sustain housing demand. The city continues to attract residents from other parts of Aichi Prefecture and surrounding regions, drawn by employment opportunities and quality of life.
The demographic impact is more pronounced in rural areas, where prices are falling due to oversupply and outmigration. In contrast, Nagoya benefits from urban concentration trends, as people migrate from smaller towns to major metropolitan areas for work and amenities.
Analysts caution that long-term demographic trends could eventually slow price growth, especially outside the city center. However, Nagoya's position as Japan's third-largest metropolitan area and its strong industrial base provide greater insulation from demographic pressures compared to smaller cities.
The increasing number of seniors living alone (up 60% over the past decade) is creating demand for smaller, more manageable housing units, particularly in well-connected areas with access to healthcare and services. This trend supports continued development and investment in certain segments of Nagoya's housing market.
What impact is foreign investment having on Nagoya property prices?
Foreign investment in Nagoya's real estate market is increasing steadily, though it remains much lower than in Tokyo or Osaka, creating emerging opportunities for international buyers seeking value in Japan's property market.
The city's affordability and economic stability are attracting more international buyers, particularly in the rental and hospitality sectors. Nagoya's strategic location between Tokyo and Osaka, combined with its role as a major industrial center, makes it attractive to foreign investors seeking exposure to Japan's economic growth.
Rising international interest is contributing to price growth in select neighborhoods, especially those with strong transport links and tourism appeal. Areas near Nagoya Station, Sakae district, and locations with easy airport access are seeing increased foreign investment activity.
The weak yen has made Japanese property more attractive to foreign buyers, with currency exchange rates providing additional purchasing power for international investors. This trend is expected to continue as long as the yen remains relatively weak against major currencies.
Foreign investors are also showing interest in Nagoya's emerging short-term rental market, converting centrally located apartments into legally compliant vacation rentals to capture high nightly rates from business travelers and tourists. This trend is adding upward pressure on property prices in prime locations.
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What are the key economic indicators supporting Nagoya's property market growth?
Nagoya's property market is underpinned by strong economic fundamentals that distinguish it from many other regional Japanese cities, providing solid support for continued real estate appreciation.
Aichi Prefecture, of which Nagoya is the capital, ranks among Japan's wealthiest regions, anchored by the automotive and manufacturing sectors. Major corporations including Toyota, Honda, and Mitsubishi maintain significant operations in the area, providing stable, high-paying employment that supports housing demand.
The local economy demonstrates resilience with unemployment rates around 2.5%, well below national averages, and strong job creation across multiple sectors. Business confidence remains robust, with companies continuing to invest in expansion and modernization projects.
Nagoya's strategic location and infrastructure provide additional economic advantages. The Port of Nagoya serves as a major international trade gateway, while the city's position on the Tokaido corridor between Tokyo and Osaka makes it a natural logistics and transportation hub.
These economic indicators support continued housing demand and moderate price growth in Nagoya. The diversified economic base, strong employment market, and strategic advantages position the city well for sustained real estate market performance over the medium term.
What are local experts predicting for Nagoya's property market in the second half of 2025?
Local analysts and real estate professionals express cautious optimism about Nagoya's property market prospects for the remainder of 2025, citing multiple factors supporting continued growth despite some emerging challenges.
Real estate developers and market analysts expect Nagoya's housing market to remain competitive, particularly in central wards and near major transport hubs. Ongoing urban renewal projects, infrastructure upgrades, and the city's strategic location are expected to drive further appreciation in prime areas throughout 2025.
The consensus forecast among local experts calls for price growth in the 2-4% range annually for the next several years in the city's core areas. Properties near subway stations and in redevelopment zones are expected to continue outperforming the broader market.
Market professionals note increasing interest from both domestic relocators seeking value outside Tokyo and international investors attracted by Nagoya's affordability and growth potential. This dual demand is expected to provide price support across multiple property segments.
However, experts also acknowledge potential headwinds including higher construction costs, the possibility of additional Bank of Japan rate hikes, and ongoing demographic challenges. Despite these concerns, the overall sentiment remains positive for selective investment in well-located properties.
The market is forecast to remain attractive for both end-users seeking residence and investors looking for steady returns, with Nagoya continuing to offer better value propositions than Japan's tier-one cities while maintaining strong fundamentals.
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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.
Yes, property prices in Nagoya are going up significantly. The data clearly shows robust growth with residential land prices rising 2.8% in 2024—the highest in years—and overall property prices increasing 3-5% annually, driven by urban development, infrastructure improvements, and strong economic fundamentals.
Nagoya offers compelling value compared to Tokyo and Osaka while maintaining strong growth momentum, making it an attractive option for both residents and investors seeking exposure to Japan's recovering real estate market with moderate risk and solid fundamentals supporting continued appreciation.
Sources
- Numbeo - Property Prices in Nagoya
- BambooRoutes - How Much for an Apartment in Japan
- BambooRoutes - Average House Price Japan
- Statista - Japan Residential Land Price Change Nagoya
- BambooRoutes - Nagoya Real Estate Market
- Global Property Guide - Japan Price History
- Tokyo Portfolio - Japan Real Estate Market Trends
- Reuters - Japan Land Prices Rise
- Real Estate Asia - Nagoya Residential Market
- Morgan Stanley - Japan Economic Outlook 2025