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Why is Nagoya emerging as a prime destination for property investment in 2025? Is it the robust rental market, the city's strategic location, or the affordability compared to other major Japanese cities? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Nagoya's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

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1) In Nagoya, you’ll find more affordable entry points for property investment than in Tokyo or Osaka
Nagoya's property prices are much lower than those in Tokyo and Osaka, making it a more appealing option for investors.
Imagine getting more space for your money; that's what Nagoya offers. In the city center, the average price per square meter is ¥520,000, while in Tokyo, it's a whopping ¥1,538,416.81. This means you can buy more property in Nagoya for the same budget.
For those eyeing rental income, Nagoya is a smart choice. The price-to-rent ratio for a 1-bedroom apartment is 23.50 in Nagoya, compared to 36.44 in Tokyo. This indicates that rental yields in Nagoya could be more lucrative, offering better returns on your investment.
Nagoya isn't just about numbers; it's backed by a robust industrial economy. The city contributes to 11% of Japan's GDP, thanks to major industries like automotive and aerospace manufacturing. This economic strength ensures a steady demand for both residential and commercial properties.
With such a strong industrial base, the risk of high vacancy rates is lower. The presence of these industries means there's a constant need for housing and commercial spaces, making Nagoya's real estate market stable.
2) Nagoya’s location between Tokyo and Osaka makes it a prime spot for business and travel
Nagoya is perfectly situated between Tokyo and Osaka, making it a prime spot for business and travel.
Thanks to the Tokaido Shinkansen, a high-speed rail line, getting from Nagoya to Tokyo or Osaka is a breeze. This quick and easy travel option boosts Nagoya's status as a central hub, encouraging more business meetings and tourism. It's like the heartbeat of Japan's transportation network, keeping everything moving smoothly.
Big names like Toyota, Honda, and Mitsubishi call Nagoya home, driving up the demand for industrial spaces and warehouses. These giants in the automotive and manufacturing sectors highlight Nagoya's role as a manufacturing powerhouse, contributing significantly to Japan's economy.
Nagoya isn't just about cars and trains; it's also a major player in logistics. The Port of Nagoya handles tons of cargo every year, linking Japan to the rest of the world. This makes Nagoya a crucial point for international trade, reinforcing its position as a key hub.
For anyone considering buying property here, Nagoya's strategic location and bustling economy offer a promising investment. Whether you're looking at residential or commercial properties, the city's vibrant business scene and efficient transport links make it an attractive choice.
With its blend of industry, transport, and trade, Nagoya stands out as a dynamic city with plenty of opportunities. It's a place where tradition meets innovation, offering a unique lifestyle and business environment.
Sources: Prologis, First Sentier Investors

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) Nagoya’s manufacturing sector offers a stable economy and plenty of jobs
Nagoya's manufacturing sector is a powerhouse, providing a stable economic base and ample job opportunities.
Big names like Toyota, Mitsubishi, and Noritake call Nagoya home, boosting the local economy significantly. These giants offer a wealth of jobs, keeping unemployment low. While Japan's unemployment rate was 2.6% in May 2024, Aichi Prefecture likely enjoyed even lower rates thanks to its thriving manufacturing scene.
Japan's manufacturing GDP is on the rise, hitting 121800.40 JPY Billion in 2023 and expected to climb further. This growth is fueled by government efforts in digital and green tech, infrastructure upgrades, and active labor policies, all of which strengthen the manufacturing industry.
Infrastructure development, especially in logistics, plays a key role in Nagoya's manufacturing success. Efficient logistics facilities are vital for smooth operations, supporting economic stability and job creation.
For anyone considering buying property in Nagoya, the city's robust manufacturing sector offers a sense of security. The presence of major companies ensures a steady flow of employment opportunities, making it an attractive place to settle down.
Sources: Horton International, Trading Economics
4) Nagoya’s pro-business policies make it a great place for investment and economic growth
Nagoya's local government is making waves with its pro-business policies, drawing in investors and fueling economic growth.
In 2024, Nagoya rolled out a suite of programs aimed at helping foreign companies set up shop or expand their operations. These initiatives include subsidies and incubation facilities, which make it a breeze for businesses to dive into the Nagoya market. The city is pulling out all the stops to make sure businesses feel welcome and supported.
The Greater Nagoya Initiative is another ace up the city's sleeve, offering a "one-stop" service for foreign-affiliated companies. This service provides business matching and start-up support, making it easier for companies to establish their first office in the region. It's a big reason why new business registrations are on the rise.
Nagoya isn't just about big businesses; it's also a haven for startups and tech companies. The city has created a database of university-owned technology and equipment available for rent, giving startups access to resources they might not otherwise afford. This is a game-changer for small and medium-sized enterprises looking to innovate.
Looking ahead, Nagoya plans to introduce a new subsidy system for research and development costs by the end of 2025. This move is set to foster innovation among small and medium-sized enterprises, ensuring that the city remains a hotbed for cutting-edge ideas and technologies.
With these initiatives, Nagoya is not just keeping up with the times; it's setting the pace for economic expansion and innovation. The city's approach is a testament to how pro-business policies can transform a region into a thriving business hub.
Sources: JETRO Report, Blackbox Japan
5) With major companies like Toyota, Nagoya offers strong job prospects and economic stability
Nagoya's economy is thriving thanks to major corporations like Toyota.
In Aichi Prefecture, where Nagoya is located, employment rates are among the highest in Japan. This is largely due to the manufacturing sector, which employs a staggering 848,565 people. Toyota, with its global headquarters nearby, plays a significant role in creating these job opportunities.
The economic prowess of Aichi Prefecture is undeniable. It boasts the third-largest GDP in Japan, trailing only behind Tokyo and Osaka. This economic strength is largely fueled by the manufacturing industry.
Manufacturing in Aichi is a powerhouse, with the annual value of manufactured goods shipments reaching 47,924,400 million yen. This makes it the top prefecture in Japan for manufacturing value, underscoring its importance in the national economy.
For those considering a move to Nagoya, the city's economic stability and job opportunities are attractive. The presence of major corporations like Toyota not only boosts the local economy but also ensures a steady demand for skilled labor.
Living in Nagoya means being part of a vibrant economic landscape, where opportunities abound in various sectors, especially manufacturing. The city's growth is a testament to its strong economic foundation.
Sources: Aichi Prefecture, Old Houses Japan, Chihousai
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6) Nagoya’s cultural heritage and attractions make it easy to rent out your property short-term
Nagoya's rich cultural heritage and attractions draw tourists, supporting the short-term rental market.
In 2023, Japan welcomed about 25 million visitors, many of whom explored Nagoya's gems like Nagoya Castle and Atsuta Shrine. These sites are key reasons tourists flock to the city, making it a hotspot for short-term stays.
The demand for short-term rentals in Nagoya is clear, with Airbnb listings showing around 34% occupancy. This demand is fueled by the growth in listings, which hit 1,030 recently. Tourists love staying near cultural sites, so short-term rentals are a perfect fit.
Foreign visitors spent a record ¥5.3 trillion in 2023, underscoring tourism's economic impact in Nagoya. This spending highlights how crucial tourism is for the city's short-term rental market.
Media coverage and events in Nagoya keep boosting its appeal, drawing more international visitors. This ongoing interest helps maintain a vibrant short-term rental scene.
Sources: Airbtics, Japan Times
7) Nagoya’s booming tech industry creates exciting opportunities for innovation and jobs
Nagoya's tech industry is booming, opening doors for innovation and jobs.
At the heart of this growth is STATION Ai, Japan's largest open innovation hub, which has already supported over 500 startups and 200 partner companies. This hub is a key player in the Aichi-Startup Strategy, a plan designed to boost innovation and breathe new life into Japan's economy by backing startups.
Inside STATION Ai, TMI Associates offers crucial legal services to startups, strengthening the support system for tech companies in Nagoya. The region's partnerships with international organizations also attract a wide array of entrepreneurs, creating a lively startup scene.
The tech job market in Nagoya is on the rise, with a growing need for tech talent and skilled workers. This trend is expected to continue, increasing job opportunities in the area as the demand for tech expertise grows.
For those considering a move to Nagoya, the city's tech industry offers a promising landscape. With its expanding innovation hub and supportive ecosystem, Nagoya is becoming a hotspot for tech professionals and entrepreneurs alike.
Whether you're a startup founder or a tech worker, Nagoya's vibrant tech scene provides a wealth of opportunities to explore and grow.
Sources: PR Newswire, Legal Business Online, TechTarget
8) Nagoya’s airport boosts connectivity, attracting international visitors
Nagoya's Chubu Centrair International Airport has become a major hub, boosting connectivity and drawing in international visitors.
In November 2023, the airport saw a remarkable 43% jump in passenger numbers, with international travelers soaring by 295% to 289,100. This surge shows that Nagoya is becoming a hot spot for travelers from around the world.
Adding to this buzz, airlines are expanding their routes. Finnair, for example, is making a comeback to Nagoya after four years, with plans to fly twice a week starting May 30, 2024. This is part of a larger push to boost connections to Japan, including more flights to other big cities.
Tourists are flocking to Nagoya, and the airport is playing a big role in this trend. From January to September 2024, foreign visitors spent a whopping JPY 5.8 trillion in Japan, breaking last year's record. Travelers from China and South Korea, who see Japan as a safe and exciting destination, are leading this charge.
With more international flights and partnerships, Nagoya is becoming a key player in Japan's tourism scene. The airport's growth is not just about numbers; it's about making Nagoya a must-visit destination.
As airlines like Finnair expand their reach, Nagoya's appeal continues to grow, making it an attractive option for those looking to explore Japan. The airport's success is a testament to its strategic importance in connecting Japan to the world.
Sources: Skift, Aviation Week, Centre for Aviation

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) Nagoya’s urban development projects mean future growth and better infrastructure for you
Nagoya is gearing up for a bright future with exciting urban development projects on the horizon.
One of the standout plans is the expansion of the Chuo Shinkansen maglev line, which will connect Tokyo, Nagoya, and Osaka at lightning speed. This isn't just about faster travel; it's about positioning Nagoya as a key player in Japan's transportation network, making it a magnet for businesses and new residents.
Another major focus is on improving Chubu Centrair International Airport with new runways. This will enhance connectivity and make travel more efficient, which is crucial for a city aiming to boost its global presence.
Nagoya is also putting its money where its mouth is by increasing budget allocations for infrastructure. This means better public transportation and the integration of smart city technologies, all aimed at creating a more efficient and sustainable urban environment.
With these developments, Nagoya is not just keeping up with the times; it's setting the pace. The city's strategic location and commitment to modernization are expected to drive economic growth and attract a wave of new opportunities.
For those considering a move, Nagoya's ongoing projects promise a city that's not only growing but also becoming more connected and livable. The city's dedication to infrastructure improvements is a clear signal of its ambitions for the future.
Sources: Nagoya City Master Plan, Building Radar
10) Nagoya’s smart urban planning ensures balanced growth and strong infrastructure development
Nagoya is a city that’s all about smart growth and solid infrastructure.
With its strategic urban planning, Nagoya is paving the way for a balanced future. The Nagoya City Master Plan 2023 outlines 45 measures and 530 projects to boost sustainability, public services, and livability. This is all part of a bigger picture to hit five major goals by 2030.
Take the public transportation system, for instance. It’s a standout example of Nagoya’s planning prowess. The city boasts a subway network stretching 89.1 km and a bus network of about 700 km. Thanks to the introduction of two Bus Rapid Transit (BRT) systems, like the Key Route Bus System, travel times have improved, making public transport more efficient and accessible.
Nagoya is also diving into smart city initiatives, blending technology with urban planning. This approach is all about enhancing road traffic safety and pushing for a low-carbon society. Projects like the Intelligent Transportation Systems (ITS) and international collaborations show how committed the city is to using tech for sustainable growth.
For those considering a move, Nagoya’s efforts in urban development are noteworthy. The city’s strategic planning ensures that growth is not just rapid but also balanced, with a focus on infrastructure that supports a high quality of life.
Sources: Nagoya City Master Plan 2023, Nagoya University Urban Strategy Paper, Nagoya Electric Works Group
11) Nagoya’s focus on sustainability and green spaces boosts property appeal and quality of life
Nagoya is making waves with its commitment to sustainability and green spaces.
By channeling funds from a 3 billion JPY green bond issued in October 2023, the city is backing projects that focus on renewable energy and biodiversity. This isn't just about going green; it's about creating a healthier, more enjoyable place to live.
The Nagoya City Master Plan 2028 is all about urban planning that boosts the number of parks and green spaces. This means more spots for you to unwind and enjoy nature, which is crucial for a balanced lifestyle.
On the air quality front, Nagoya has made impressive strides. The city has cut PM2.5 levels by 53% from 2003 to 2018, thanks to smart moves like controlling diesel emissions. Cleaner air means better health and a more appealing city vibe.
Investing in green infrastructure isn't just a trend; it's a lifestyle upgrade. Nagoya's focus on sustainability is making it a more attractive place to call home.
With these initiatives, Nagoya is not just improving the environment but also enhancing the quality of life for its residents, making it a prime spot for property investment.
Sources: Green Bonds Issuance List (Domestic), Nagoya City Master Plan 2028, Trends in PM2.5 Concentration in Nagoya, Japan
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12) Nagoya’s diverse economy lowers investment risk by not depending on just one industry
Nagoya's economy is like a well-balanced meal, with diverse industries making it strong and resilient.
In recent years, Nagoya has been a powerhouse in the automotive sector, thanks to giants like Toyota and Mitsubishi Motors. But that's just one slice of the pie. The city also thrives in aerospace and robotics, ensuring it doesn't lean too heavily on just one industry. This mix means that if one sector hits a bump, others can step in to keep things steady.
Nagoya's strategic spot in Japan is a big plus, turning it into a key logistics hub for manufacturing and exports. This prime location not only supports existing industries but also draws in new businesses, adding more flavors to the economic mix.
Government initiatives and local universities in Nagoya are like the secret sauce, fostering innovation and nurturing a skilled workforce. This is crucial for keeping the economy diverse and adaptable.
With such a varied industrial base, Nagoya minimizes investment risk by not putting all its eggs in one basket. The city's economy is like a safety net, ready to catch any sector that might stumble.
So, if you're thinking about investing in property here, know that Nagoya's economy is built to weather storms, thanks to its robust and varied industrial landscape.
Sources: Straits Research, AeroLeads, BlackBox Japan, Shizuoka FG, IURC
13) With efficient public transport, Nagoya properties are more valuable and accessible
Nagoya's public transportation system is a lifeline for over a million daily commuters.
Living near a transit station in Nagoya is a smart move. Residential properties see a 5% price increase, while commercial properties can jump by 30%. This is because easy access to transit is a huge perk for both homeowners and businesses.
There's a concept called Land Value Capture, which shows how public transportation boosts property values. In a bustling city like Nagoya, investments in public transit can significantly raise land values, making properties near transit lines more attractive.
Nagoya's urban planning likely focuses on transit-oriented development. This means designing communities around public transport hubs, which not only makes getting around easier but also enhances property values as people love living and working near convenient transit options.
For those considering buying property in Nagoya, it's worth noting that areas near transit stations are highly desirable. The city's efficient public transportation system increases property value and accessibility, making it a key factor in real estate decisions.
Investing in property near Nagoya's transit lines is not just about convenience; it's about making a smart financial decision. With the city's focus on public transportation, these areas are set to remain in high demand.
Sources: Wikipedia, Asian Development Bank
14) Nagoya’s strong healthcare system offers residents a high standard of living
Nagoya's healthcare system is a key reason for its high standard of living.
With a large number of hospitals and clinics per capita, residents enjoy easy access to medical care. This means that people in Nagoya can get timely treatment, which boosts their overall well-being.
The city consistently ranks high for its healthcare facilities. For instance, the National Hospital Organization Nagoya Medical Center was ranked 73rd in the 2024 hospital research rankings, showcasing the quality of care available. Specialized services, like those at the Nagoya Anesthesia Clinic, offer advanced treatment options for various conditions.
The Japanese government plays a big role by investing in healthcare infrastructure. They regulate many healthcare institutions, ensuring facilities are well-maintained and regularly upgraded, which directly benefits residents.
Comprehensive health insurance coverage for all residents means medical needs are met without financial strain. This allows people to focus on their health and well-being without worrying about costs.
Sources: World Index of Healthcare Innovation, Scimago Rankings, Business Wire
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.