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18 strong forecasts for real estate in Nagoya in 2025

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Authored by the expert who managed and guided the team behind the Japan Property Pack

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What will happen in Nagoya’s real estate market? Will prices go up or down? Is Nagoya still a hotspot for foreign investors? How is Japan’s government impacting real estate policies and taxes in 2025?

We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local real estate agents, developers, and clients who buy properties in Nagoya, we’ve gained firsthand insights.

That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.

Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

How this content was created 🔎📝

At BambooRoutes, we study the Nagoya 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 throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

When working on this content, we started by gathering insights from these conversations and our own observations. But we didn’t stop there. To make sure our predictions are reliable, we also dug into trusted sources like Statista, JETRO, and CBRE Japan (among many others).

We are committed to accuracy and authority. Any forecast lacking strong backing from reliable data or expert opinions was set aside. For the forecasts that pass our initial screening (meaning, we consider there is enough solid data to consider them credible), we take things a step further by incorporating insights from trusted real estate blogs, industry publications, and expert analyses. This additional information helps us gain a clearer perspective without compromising reliability. Naturally, we also draw on our own experience and knowledge.

Trustworthiness is key to us. Clear citations are provided throughout this article, allowing you to see exactly where our information comes from. To ensure our explanations are easy to read and engaging, we used an AI-powered writing tool—but only for this specific purpose.

To make the data even more accessible, our design team created custom infographics that highlight key trends and comparisons. We hope you find them helpful.

Finally, every illustration, screenshot, and other non-text media was produced in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) More foreign buyers will enter Nagoya’s residential market as international business grows

Nagoya's booming international business scene is drawing more foreign buyers to its residential market.

With major players like Toyota and Mitsubishi, Nagoya's industrial landscape is a magnet for investors, especially those eyeing the automotive industry. This bustling business environment naturally piques foreign interest.

The Greater Nagoya Initiative is a game-changer, offering foreign companies comprehensive support to set up offices in the region. From business matching to start-up assistance, it makes Nagoya a hot spot for international investors.

Thanks to the yen's depreciation, Japanese properties have become more affordable for foreign buyers. In 2023, there was a 45% surge in foreign investment in Japan's real estate during the first half of the year, largely due to the weak yen.

This trend is making Nagoya's real estate market increasingly attractive to international buyers, who are keen to capitalize on the favorable exchange rates.

As the city continues to grow its international business ties, more foreign buyers are expected to enter Nagoya's residential market, drawn by both economic opportunities and affordable property prices.

Sources: Statista, CEIC Data, JETRO Report

2) Demand for properties in Meito Ward will grow because of its reputation for good schools and a family-friendly environment

Meito Ward is becoming a hot spot for families thanks to its top-notch schools and welcoming atmosphere.

Back in 2023 and 2024, this area was already a magnet for families across Nagoya, drawn by its excellent educational institutions. Parents are particularly keen on the high-quality education available here, making it a prime choice for those prioritizing their children's schooling.

Beyond schools, Meito Ward boasts family-friendly amenities like Tenpaku Park and Heiwa Park. These parks are perfect for family outings, offering barbecue spots, lakes, streams, and play areas. Such features make the area even more appealing to families seeking a wholesome environment.

Real estate trends reveal that property prices in Meito Ward are on the rise, outpacing other areas in Nagoya. This surge is largely due to the area's desirability and the growing demand for family-friendly homes.

Homes designed for families are selling faster here, underscoring the strong demand for properties that cater to family needs. This trend highlights the area's appeal to those looking for a community-oriented lifestyle.

Sources: Nagoya International School Profile, Parental Demand for High-Quality Education, Real Estate Trends

infographics rental yields citiesNagoya

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 property prices will rise steadily because of its key location between Tokyo and Osaka

Nagoya's real estate prices are on the rise, thanks to its prime spot between Tokyo and Osaka.

Being nestled between these two major cities, Nagoya is a key hub for transportation and business, drawing in both residents and investors. The upcoming Chūō Shinkansen (Maglev) project will further boost its connectivity, making Nagoya even more appealing. This project is a game-changer, promising faster travel times and increased accessibility.

Over the past five years, Nagoya has experienced a moderate rent growth of 9%, with occupancy levels impressively high at around 94%. Even during tough times like the pandemic, the demand for housing remained strong. This stability is expected to continue as the city undergoes urban redevelopment and transportation improvements, enhancing its infrastructure.

Nagoya's economic strength is another draw. As the heart of Greater Nagoya’s economy, it offers ample job opportunities, attracting new graduates and professionals. This influx of people fuels the housing demand, pushing real estate prices upward. The city's strategic location, coupled with economic and infrastructural growth, makes it a hot spot for living and investing.

With ongoing urban redevelopment and improved transportation networks, Nagoya is set to become even more attractive to both local and foreign investors. These developments are not just about aesthetics; they are about creating a city that is easy to navigate and live in, which naturally boosts its real estate market.

Investors are keenly watching Nagoya, recognizing its potential for growth. The combination of a strong economy, strategic location, and infrastructure improvements positions Nagoya as a desirable place to live and invest. The city's future looks bright, with real estate prices expected to continue their upward trend.

Sources: Savills Asia, Japan Mobility, Real Estate Asia, E-Housing Japan

4) Nagoya rents will increase as more international students choose the city

Nagoya is becoming a hotspot for international students, making it a city to watch for property investors.

With Nagoya University leading the charge in Japan's goal to attract 400,000 international students by 2033, the city is seeing a surge in student numbers. This influx is naturally boosting the demand for student housing, creating a ripe opportunity for property owners.

Globally, the student accommodation market is on the rise, with a steady growth rate expected over the next few years. In Nagoya, the demand for student housing is already outstripping supply, which means rents are likely to climb as students compete for quality living spaces.

International students in Nagoya often prefer off-campus housing that offers good connectivity and modern amenities. This trend is pushing up the demand for private rentals, and students are willing to pay a premium for these conveniences, further driving up rental prices.

Surveys show that international students prioritize quality housing, and they're ready to pay higher rents to secure it. This willingness to invest in better living conditions is a key factor in the rising accommodation costs in Nagoya.

Sources: Grand View Research, ICEF Monitor, RE/MAX Apex

5) Demand for sustainable housing in Nagoya will grow due to new tax incentives for eco-friendly buildings

Nagoya is becoming a hotspot for eco-friendly buildings, with more properties earning top green certifications like DBJ Green Building and NICE GREEN Nagoya.

Companies such as Nagoya Mosaic Tile Co., Ltd. are seeing a surge in demand for sustainable building materials, indicating a shift towards eco-friendly housing. This trend is supported by financial incentives from Nagoya City's Urban Greening System, which encourage sustainable practices.

Residents in Nagoya are increasingly aware of their environmental impact, leading to a preference for eco-friendly homes. This awareness is fueled by media coverage and educational programs that highlight the benefits of sustainable living.

The real estate market is catching on, with a noticeable trend towards sustainable properties. Developers and property owners are eager to meet the growing demand for eco-friendly housing in the city.

Corporate commitments and partnerships between local governments and developers are creating a supportive environment for sustainable housing. These collaborations, along with educational initiatives, are fostering a cultural shift towards sustainability in Nagoya.

As more people embrace eco-friendly living, the demand for sustainable housing in Nagoya is expected to rise, driven by new tax incentives for green buildings.

Sources: Japan Real Estate (JRE), Nagoya Mosaic Tile Co., Ltd., Economic Incentives for Green Initiatives in Nagoya City, Japan, ITOCHU Corporation, Tatemono Sustainability Report 2021

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6) Foreign investment in Nagoya will rise as property purchase rules for foreigners are relaxed

The easing of property purchase regulations for foreigners in Nagoya is set to boost foreign investment.

In 2023, foreign property ownership in Japan saw a notable increase, with 371 properties bought near security zones. This surge was largely driven by Chinese investors, who were the main buyers. The overall foreign investment in Japan's real estate market hit $10.2 billion, marking a 12.3% rise from the previous year. A key factor was the weak yen, making Japanese properties more appealing to international buyers.

Real estate agencies like E-Housing noticed a spike in inquiries from international clients, including those from Hong Kong, Singapore, Korea, and Taiwan. This growing interest hints that Nagoya, with its relaxed regulations, could become a hotspot for foreign buyers. Cities like Tokyo have already seen significant foreign investment after similar regulatory changes, suggesting Nagoya might follow suit.

Media coverage has painted Japan as a prime real estate investment destination, which could indirectly spotlight Nagoya as an emerging market for foreign investors. The combination of these factors indicates that Nagoya is poised to attract more international investment with its new property purchase rules.

Moreover, the trend in Tokyo shows that regulatory changes can lead to increased foreign investment. This pattern suggests that Nagoya might experience a similar influx of international buyers, further boosting its real estate market.

With the spotlight on Japan's real estate, Nagoya's relaxed regulations could make it a key player in attracting foreign investors. The city's potential as a new investment hub is becoming increasingly apparent.

Sources: Kyodo News, E-Housing

7) Property values in Naka Ward will rise as new green spaces make it more desirable

The new green spaces in Naka Ward are set to make the area more attractive, boosting property values.

Imagine living near a lush park; it's not just about the view. In Boston, a study found that being close to large parks can significantly increase property values. If you double the distance from a park, property values drop by 6%. This shows how crucial nearby green spaces are.

Tokyo is seeing a similar trend. With a growing focus on work-life balance and health, homes near parks are in high demand. This demand is pushing property prices up by 5-6% each year. People want that perfect blend of city life and nature.

Research by Hobden et al. backs this up, showing that adding greenways or parks can increase property values by up to 6.9%. Homeowners love being near well-designed parks, making these areas more appealing. It's not just a trend; it's a lifestyle choice.

Looking at other cities, urban greening projects have historically led to property value increases of up to 20% for homes near parks. This isn't just a local phenomenon; it's happening worldwide.

Sources: Ellison Chair, E-Housing Japan, Anywhereis

8) Demand for senior-friendly housing in Nagoya will grow as the population ages

Nagoya's aging population is driving up the demand for senior-friendly housing.

As the years go by, Nagoya is seeing more elderly residents, much like the rest of Japan. By 2050, 20% of Japanese households will likely be single seniors, and Nagoya is no exception. This shift means more homes need to cater to older folks living alone.

In 2023, Japan saw a rise in life expectancy for the first time in three years. Women now live to about 87.14 years, and men to 81.09 years. With people living longer, there's a growing need for suitable housing that can accommodate them for extended periods. The government is stepping in, offering financial help to renovate empty homes for seniors.

Older adults in Japan have shown a clear preference for homes that are accessible and offer specialized care services. This trend is expected to continue, boosting the demand for senior-friendly housing. However, there's a catch: the market is struggling to keep up. The number of people over 80 is growing faster than the available housing options.

In Nagoya, this means potential buyers should be aware of the limited supply of senior-friendly homes. Investing in such properties could be a smart move, given the increasing demand. The city's real estate market is adapting, but the pace is slow, making it a competitive space for those looking to buy.

For those considering a move or investment in Nagoya, understanding these dynamics is crucial. The aging population trend is reshaping the housing landscape, and being informed can help you make the right decisions.

Sources: Kyodo News, Mainichi, NIC MAP Vision

statistics infographics real estate market Nagoya

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) Demand for homes with office spaces will grow as remote work rises in Nagoya

Remote work is booming in Nagoya, and it's changing the real estate game.

With more people working from home, homes with office spaces are hot on the market. In Nagoya, this trend is clear as day. People are looking for homes that aren't just places to live but also places to work comfortably. Real estate listings are buzzing with properties that have dedicated office spaces, and buyers are snapping them up.

Companies in Nagoya are jumping on the remote work bandwagon, which means more folks need home offices. This isn't just a passing phase; it's a shift in how we live and work. Employers are more open to remote work, and that's pushing the demand for homes with office spaces even higher.

Government policies are also playing a role. With tax incentives for telecommuting, the appeal of homes with office features is skyrocketing. It's not just about having a desk in the corner anymore; people want full-fledged office setups at home.

Consumer surveys back this up, showing a clear preference for homes that offer more than just a place to sleep. Multifunctional living spaces are the new norm, and Nagoya is no exception. Buyers are keen on properties that can adapt to their work-from-home needs.

So, if you're eyeing a property in Nagoya, consider one with a home office. It's not just a trend; it's the future of living in this bustling city.

Sources: Japan Times, Mordor Intelligence, Statista

10) Rental yields in suburbs will drop as more people buy homes thanks to favorable mortgage rates

The housing market in suburban areas is changing, with favorable mortgage rates making homeownership more appealing.

As mortgage rates dropped below 6.3% by 2025, more people found buying homes financially viable, leading to a surge in mortgage applications. This shift is largely due to banks offering attractive mortgage deals, encouraging many to consider purchasing rather than renting.

With more people buying homes, the demand for rental properties in suburban areas has decreased. This naturally results in lower rental yields, as fewer renters are available in the market.

In Japan, the real estate market analysis shows a slowdown in residential property growth, indicating a shift towards home purchases. This trend is evident in major cities like Tokyo, where sales of existing condo units and detached houses have significantly fallen.

Surveys and expert opinions consistently highlight a growing preference for homeownership over renting, driven by affordable mortgages. This preference is expected to continue, further impacting rental yields in suburban areas.

As more people opt for homeownership, rental yields in suburban areas are likely to decline, reflecting broader market trends.

Sources: Global Property Guide, Norada Real Estate, CRE

11) Demand for compact living spaces in the city will rise as households become smaller

In cities like Nagoya, there's a noticeable rise in single-person households.

By 2025, 34.6% of households in Japan are expected to be single-member, and Nagoya is no exception. This shift is pushing the demand for smaller, more efficient living spaces. People are marrying later, staying single longer, and this trend is reshaping the housing market.

Japan's birth rate is low, with only 1.26 children per woman in 2022, leading to smaller families. This demographic change means more people are looking for compact homes. Younger folks are flocking to city centers like Nagoya, where they prefer affordable, smaller living spaces.

Minimalist lifestyles are gaining popularity, with many choosing to live in efficient, compact spaces. This is evident in the rise of micro-homes and compact apartments. The trend is clear: people want to live simply and efficiently.

Urbanization is a big factor, as younger generations move to cities for work and lifestyle. They are drawn to the convenience and vibrancy of city life, which often means opting for smaller, more practical homes.

In Nagoya, the construction of compact living spaces is booming, reflecting the demand for efficient homes. This shift is not just about space but also about embracing a lifestyle that values simplicity and functionality.

Sources: Japan Times, IMF eLibrary, NAHB

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12) Demand for luxury apartments in Nagoya will rise as more affluent residents move in

The demand for luxury apartments in Nagoya is on the rise as more affluent individuals are drawn to the city.

In 2023, property prices in Nagoya saw a notable increase. Existing condominium prices jumped by 5.1% to JPY396,882 per square meter, while new condominium prices also rose by 5.1% to JPY808,000 per square meter. This surge highlights a strong appetite for luxury housing.

Nagoya is not just about homes; it's becoming a hotspot for luxury retail and services too. Luxury brands are seeing double-digit sales growth in the city, mirroring trends in Tokyo. This boom is supported by developments like the Nagoya Shimizu Fukoku Seimei Building, which is attracting high-end tenants.

The city's strategic location and growing international business scene make it a magnet for wealthy individuals. The tightening of investment-grade office vacancy rates in Nagoya shows a strong demand for modern office spaces, adding to its allure.

With positive economic indicators and job growth, Nagoya offers a high quality of life. These factors are drawing affluent residents who seek both economic opportunities and a luxurious lifestyle.

Sources: Real Estate Asia, Global Property Guide, Business of Fashion, Data Insights Market

13) Rental demand in Nagoya will rise, boosting investor yields

The demand for rental properties in Nagoya is on the rise, promising better returns for investors.

Urbanization is a key driver here, as more people flock to cities like Nagoya. This trend has been steady, with increasing urban populations fueling the need for rental housing. As Nagoya grows, so does the demand for places to live.

Another factor is the influx of students and young professionals. Nagoya is becoming a hotspot for international students and young workers, thanks to its job opportunities. This demographic shift is significant because it directly boosts the rental market, with more people looking for temporary homes.

Government projects are also making Nagoya more appealing. The Linear Chuo Shinkansen, for instance, cuts travel time to major cities, making Nagoya a convenient place to live. This improved connectivity attracts more residents who prefer renting over buying.

Land scarcity is another issue. With limited space for new housing developments, the supply of new homes is restricted. This scarcity means existing rental properties are in higher demand, pushing up rental yields.

All these factors combined make Nagoya a promising market for rental property investors, with higher yields on the horizon.

Sources: JETRO, E-Housing

14) Property prices in Moriyama Ward will rise as remote work makes suburban areas more appealing

The shift to remote work is changing where people want to live.

In Japan, especially after COVID-19, over 66% of companies embraced remote work. This means people aren't tied to city centers anymore. Suburban areas like Moriyama Ward are becoming more appealing because they offer larger spaces, perfect for a home office or family activities.

Moriyama Ward, with its spacious homes and quieter environment, is catching the eye of remote workers. People are drawn to these areas for a better quality of life, away from the hustle and bustle of the city. This trend is making suburban areas more attractive, and property prices are expected to rise as demand increases.

Surveys indicate that while big cities still have a high rate of remote work, suburban areas are gaining popularity. The appeal lies in the tranquility and space they offer, which is ideal for those working from home. This shift is reflected in the real estate market, where suburban property prices are on the rise.

Moriyama Ward is a prime example of this trend. With more people working from home, the need to live close to the office is diminishing. Instead, people are opting for areas that offer a better lifestyle, and suburban living is becoming the new norm.

As remote work continues to grow, suburban areas like Moriyama Ward will likely see increased interest and rising property values. This shift is reshaping the real estate landscape, making these areas more desirable for potential buyers.

Sources: Kyodo News, Numbeo, Jelper, Minut, Japan Times

infographics comparison property prices Nagoya

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.

15) Rental yields in Nagoya will rise as it becomes more appealing to expats

Rental yields in Nagoya are on the rise as the city becomes a hotspot for expatriates.

With more international companies setting up shop in Nagoya, the city is becoming a magnet for foreign professionals. This influx is largely due to the Japanese government's efforts to promote Nagoya as a prime destination for global talent. They've been busy upgrading infrastructure and educational facilities, making the city especially appealing to expatriates with families. International schools and educational facilities have seen significant improvements, which is a big draw for those moving with children.

Nagoya's public transportation is top-notch, making it easy for residents and newcomers alike to get around. The city's advanced infrastructure developments are a major plus, enhancing the overall quality of life. These improvements in public transport and infrastructure are key factors in making Nagoya a more attractive place to live.

Beyond the practicalities, Nagoya is also boosting its cultural and recreational offerings. From museums to parks, the city is rich in amenities that cater to a variety of interests. The growing cultural and recreational amenities add to the city's charm, making it a desirable destination for expatriates looking for a balanced lifestyle.

As Nagoya continues to evolve, it's becoming a more vibrant and appealing city for expatriates. The combination of business opportunities, family-friendly facilities, and lifestyle perks is hard to resist. These factors collectively contribute to the city's increasing appeal, which in turn is expected to improve rental yields.

For those considering a move or investment in Nagoya, the city's ongoing developments and strategic location make it a promising choice. With its blend of modernity and tradition, Nagoya offers a unique living experience that is becoming increasingly sought after.

Sources: Global Property Guide, Nagoya University, Numbeo

16) Nagoya’s property prices will grow moderately thanks to a stable economy and infrastructure investments

Nagoya's real estate market is set for moderate price growth due to its stable economy and strategic infrastructure investments.

With a strong manufacturing sector, especially in automotive and aerospace industries, Nagoya sees a steady demand for housing and commercial properties. This demand is a major driver of the moderate price growth in the real estate market.

Infrastructure projects like the expansion of the Port of Nagoya and urban renewal around Nagoya Station are making the city more appealing to businesses and investors. These developments not only improve logistics and transportation but also increase property values, making Nagoya a hot spot for real estate investment.

Compared to Tokyo and Osaka, Nagoya offers more affordable property options, which is a big draw for investors. Its strategic location and lower property prices attract both domestic and foreign investors, fueling the growth of the real estate market.

Insider knowledge suggests that Nagoya's urban renewal initiatives are particularly focused on enhancing the areas around major transport hubs, which is expected to further boost property values.

For those considering investing in Japan, Nagoya's combination of affordability and growth potential makes it a compelling choice. The city's ongoing infrastructure improvements and stable economic environment provide a solid foundation for real estate investments.

Sources: CBRE Japan, Old Houses Japan, E-Housing Japan

17) Rents in central Nagoya will rise as more people prefer urban convenience

Central Nagoya's population is booming, with over 9.5 million people calling it home in 2024.

People are flocking to Nagoya, drawn by the return to in-person office work after the pandemic. This shift means more folks want to live near their jobs, pushing up the demand for rental properties.

Nagoya's public transport is a game-changer. The Key Route Bus System makes commuting a breeze, so living in the city center is more appealing for those who'd rather skip the car.

With these conveniences, urban living in Nagoya is on the rise, attracting more residents who value easy access to work and amenities.

As more people move to the city, rents in central Nagoya are climbing, reflecting the growing demand for urban convenience.

Sources: World Population Review, Real Estate Japan, Nagoya University

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buying property foreigner Nagoya

18) Rental demand in Nagoya will rise as the expat community grows

The demand for rental properties in Nagoya is on the rise due to a growing expatriate community.

In recent years, Nagoya has seen a noticeable increase in its foreign resident population. Back in 2020, there were 278,116 foreign residents, and this number has been climbing steadily. By 2070, it's projected that foreign residents could make up 12.4% of Aichi Prefecture's total population, which is a significant shift.

International companies setting up shop in Nagoya are a big part of this trend. For example, VTI Japan recently opened a new office in the city, signaling a boost in international business activities. These developments often bring in expatriates who need rental homes. Plus, there's been an uptick in work visa issuance in Aichi Prefecture, which ties directly to the growing number of expatriates.

Families are also part of the mix, thanks to international schools like the Nagoya International School offering classes in English. This makes Nagoya attractive to expatriate families who typically prefer renting. Surveys show that expatriate families lean towards renting properties rather than buying.

The city's expanding public transportation network is another draw. It's making Nagoya more accessible and appealing to expatriates, which in turn is driving up the demand for rental properties. The ease of getting around the city is a big plus for those new to the area.

Sources: Real Gaijin, VTI Japan, All Japan Relocation, DWS

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.