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13 strong trends for 2025 in the Nagoya property market

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

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What is happening in Nagoya’s real estate market? Are prices on the rise or decline? Is Nagoya still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?

These are the questions we hear every day from professionals, buyers, and sellers alike, from Sakae to Atsuta and beyond. Perhaps you’re curious about the same things.

We know this because we stay closely connected with local experts and individuals like you, exploring the Nagoya real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.

Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance 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.

These trends 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, like JETRO, the City of Nagoya, and ICMA (among many others).

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded. For the "trends" meeting our standards, we go and look for more insights from real estate blogs, industry reports, and expert analyses, alongside our own knowledge and experience. We believe it makes them more credible and solid.

Trustworthiness 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 forecasts 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.

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) Foreign buyers will target properties near international schools and business districts

Foreign buyers are eyeing properties near international schools and business districts in Nagoya.

Expat families are keen on these areas because they want their kids to get a global education. This has led to a boom in international schools, especially in Nagoya, where the demand is high. These schools offer a holistic approach, which is a big draw for families moving from abroad.

Real estate reports show that properties near business hubs are hot commodities. Nagoya's strategic location and thriving industrial sector make it a prime spot for international trade. This has pushed property values up, especially in areas close to big companies like Toyota Motor Corporation, which attract foreign investors and expats.

Expatriates working in business districts often prefer to live nearby, which is even more important for families with kids in international schools. They want to cut down on commute times and be close to educational facilities. This trend is evident in the way infrastructure and amenities are developing around these schools, catering to the growing demand.

Living close to work and school is a priority for many expat families. The convenience of having everything nearby is a major factor in their decision-making process. This is why properties in these areas are so sought after.

In Nagoya, the combination of international schools and business districts creates a unique appeal for foreign buyers. The city's industrial growth and the presence of multinational companies make it an attractive place to invest in real estate.

Sources: Finalsite, JETRO, GSIN Education

2) Nagoya’s property prices will rise due to limited land availability

Nagoya is experiencing a surge in residential property prices due to limited land availability.

In 2024, the official price of residential land in the Greater Nagoya Area saw a 2.8% increase, a clear sign of the ongoing trend. This rise is largely because there's just not enough land to go around. The city's draft for the 2028 Master Plan points out that land scarcity is a major hurdle for urban development. With around 9 million people in the metropolitan area, the demand for housing is only going up.

Japan's economic growth is adding fuel to the fire, especially with big projects like the Chuo Shinkansen maglev line. These developments are making Nagoya even more attractive, but the catch is that there's limited space to build. Real estate experts say that in cities like Nagoya, where land is scarce, prices will keep climbing because there's high demand but not enough supply.

For those considering buying property in Nagoya, it's important to know that the city's growth and infrastructure projects are key drivers of this trend. The limited land means that property values are likely to continue rising. This makes Nagoya a potentially lucrative market for real estate investment, but also a competitive one.

As the city continues to expand, the pressure on available land will only increase. This situation creates a unique dynamic where property in Nagoya becomes a valuable asset. If you're thinking about investing, understanding these factors can help you make informed decisions.

Sources: Statista, Nagoya City Master Plan 2028, Nagoya City Master Plan 2023

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) Demand for large family homes will drop as household sizes shrink

In Japan, the average household size has shrunk to just 2.23 people as of 2023.

This change is largely due to an aging population and declining birth rates. In 2023, Japan recorded only 758,631 births, marking the eighth consecutive year of decline and a 5.1% drop from the previous year.

There's also a noticeable cultural shift towards individualism and smaller living spaces. Many young people are flocking to urban areas like Nagoya, where they prefer compact apartments or condos.

Economic factors play a role too. The rising costs of maintaining larger homes and better job opportunities for women have led to delayed family formation.

In cities like Nagoya, the demand for smaller, more efficient homes is growing, reflecting these societal changes.

As household sizes decrease, the demand for large family homes is expected to decline.

Sources: Statista, ICMA, City of Nagoya

4) Demand for smaller apartments will grow as single-person households increase

Japan is seeing a surge in single-person households, with 18.5 million recorded by June 2023, making up 34% of all households.

In cities like Nagoya, this trend is particularly evident. The city has experienced a noticeable increase in young professionals and students, especially from abroad. Between 2015 and 2019, the number of foreign students in Nagoya jumped by 85.3%, which is a significant boost.

With this influx of young people, the demand for smaller, more affordable apartments is on the rise. Rental prices in Nagoya have been climbing, making compact living spaces a smart choice for many.

Nationally, the trend is clear. In 2023, over 11 million one-person households in Japan were renting apartments, showing a strong preference for smaller living spaces.

For potential property buyers, this means that investing in smaller apartments could be a wise move. As single-person households continue to grow, the demand for these types of properties is likely to increase.

In Nagoya, the combination of rising rental prices and a growing population of young, single residents makes smaller apartments an attractive option. This shift is reshaping the housing market, offering opportunities for savvy investors.

Sources: Nippon.com, City of Nagoya, Statista

5) Nagoya rents will rise as the city attracts more international students

Rents in Nagoya are set to rise as the city becomes a hotspot for international students.

With more students flocking to Nagoya's universities, the demand for student housing is on the rise. This isn't just speculation; the private rental student accommodation market is expected to grow by 6.1% annually from 2024 to 2030. Imagine the bustling neighborhoods filled with students from all over the world, each looking for a place to call home during their studies.

The Japanese government is also playing a big role in this shift. Through initiatives like the J-MIRAI strategy, they're working to attract more international students by improving educational programs and infrastructure. For instance, they're doubling the number of English-only programs, making Nagoya even more appealing to students from abroad. As more students arrive, the need for housing will naturally push rents higher.

We've seen this pattern before in cities like Tokyo, where an influx of international students has led to increased rental prices. It's a simple equation: more students mean more demand for housing, which in turn drives up rents. Nagoya is likely to follow this trend as it becomes a more popular study destination.

Real estate experts are already predicting steady growth in Nagoya's rental market. This is fueled by increased investment and a maturing market, making it a prime location for property investors. As the city continues to develop, the rental market is expected to thrive, offering opportunities for those looking to invest in property.

So, if you're considering buying property in Nagoya, now might be the time to act. With the city's growing appeal to international students and the government's push to enhance educational offerings, the rental market is poised for growth. Keep an eye on these trends as you make your decision.

Sources: Grand View Research, ICEF Monitor, Japan Mobility

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6) Foreign buyers will increasingly target Nagoya for its expanding international business presence

Foreign buyers are increasingly interested in Nagoya because of its expanding international business scene.

In recent years, Nagoya has become a hotspot for foreign direct investment, with multinational companies setting up shop in the city. This trend is likely to continue, thanks to Nagoya's strategic location and its thriving industrial sector. The city is not just about cars; it's a hub for cutting-edge industries like IT and biotechnology.

Big names like Toyota, Honda, and Mitsubishi already call Nagoya home, and more international companies are following suit. The local government is actively encouraging this influx by offering incentives to attract international businesses. They're focusing on five key industries to make Nagoya even more appealing.

Greater Nagoya's economic clout is impressive, contributing to more than one percent of the global GDP. This economic strength is largely due to its international business activities. The city is not just a local player; it's a significant contributor on the world stage.

For those considering property investment, Nagoya offers a unique opportunity. The city's growing international presence means that property values are likely to rise as more businesses and expatriates move in. It's a city on the rise, with a promising future for investors.

With its booming industrial scene and strategic initiatives, Nagoya is set to become an even more attractive destination for foreign buyers. The combination of economic growth and international business presence makes it a compelling choice for property investment.

Source: Foreign Policy

7) Foreign interest in Nagoya's outskirts will decline as buyers prefer central locations

Foreign investors are increasingly drawn to central Nagoya for property purchases.

In 2023 and 2024, the trend shifted as more buyers favored the city center over the outskirts. This change is largely due to enhanced infrastructure and amenities in central Nagoya, making it more attractive to foreign buyers.

Central Nagoya's appeal is evident in its higher rental prices compared to the outskirts. A small apartment in the city center commands a premium, reflecting the strong demand for urban living. Surveys highlight that foreign buyers appreciate the convenience and vibrant lifestyle offered by central areas.

Demographic studies reveal a rise in expatriates working in central business districts, which boosts demand for properties in these locations. The city's improved public transportation and infrastructure significantly enhance the quality of life, making commuting a breeze and further attracting foreign interest.

Central Nagoya's allure is not just about convenience; it's about lifestyle. The area offers a rich tapestry of cultural experiences, dining options, and entertainment venues, which are highly valued by international residents. This vibrant urban environment is a key factor in the growing preference for central properties.

Sources: Real Estate Japan, Nagoya University, Japan Mobility

8) Foreign investment in Nagoya’s luxury residential market will increase

Foreign investment in Japan's real estate market is booming, with $10.2 billion invested in 2023.

This surge is largely due to the yen's lower value, making Japanese properties more attractive to international buyers. While Tokyo's luxury residential market is thriving, Nagoya is catching up thanks to urban redevelopment and government incentives.

Nagoya is becoming a hotspot for foreign investors, especially with its expanding infrastructure like the Nagoya Port. This port is crucial for trade, drawing in international buyers involved in commerce.

Japan's business environment is also a big draw, offering low mortgage rates and stable economic conditions. These factors make Nagoya a prime location for those looking to invest in luxury real estate.

With the city's ongoing development and strategic location, Nagoya is poised to attract more foreign investment in the coming years.

Sources: e-housing.jp, Mordor Intelligence, Boom Logistics

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) Nagoya's rental yields will rise as more people opt to rent instead of buy

Rental yields in Nagoya are on the rise as more people choose to rent instead of buying homes.

In recent years, Nagoya has seen a steady increase in rental demand, with yields averaging around 4.12% in Q2 2024. This suggests a growing interest in renting, driven by the balance of supply and demand. As more people opt for renting, the demand for rental properties goes up, potentially boosting rental yields.

Home ownership rates in Japan, including Nagoya, are dropping, indicating a shift towards renting. This is largely due to rising property prices and affordability issues, making buying less appealing. As property prices climb, renting becomes a more attractive option, further increasing rental demand and yields.

Economic factors also play a role, with job market trends favoring renting. With wage growth expected to outpace housing costs, renting becomes more accessible for many. This economic stability supports the trend of rising rental yields, as more people find renting a practical choice.

In Nagoya, the rental market is benefiting from these shifts. As more individuals face affordability challenges, they turn to renting, which in turn drives up rental yields. This trend is particularly evident in urban areas where job opportunities are abundant.

Overall, the combination of economic factors and changing preferences is creating a favorable environment for rental yields in Nagoya. As more people choose to rent, landlords can expect increased returns on their investments.

Sources: Global Property Guide, Global Property Guide, Patience Realty

10) Newly developed areas will see higher rental yields as they attract more young professionals

Rental yields are climbing in newly developed areas as they become hotspots for young professionals.

Take Nagoya, for instance, where the rental market is buzzing. In Naka-ku, studio apartments boast an average gross rental yield of 5.04%, while 3-bedroom apartments offer 4.22%. This surge is largely due to the influx of young professionals.

In 2022, Nagoya saw a significant rise in foreign residents, a clear sign of its growing allure for young, skilled workers. The city is actively courting businesses, especially in the ICT and startup sectors, which are magnets for young talent. This demographic shift is reshaping the rental landscape.

Nagoya's commitment to infrastructure and transportation improvements is another draw. Urban renewal projects are in full swing, boosting both commercial activity and property values. The city's push to develop tech and creative industries is attracting young professionals, who are eager for modern living spaces.

This influx of young talent is driving up demand for rentals, leading to higher yields. The city's strategic focus on tech and creative sectors is paying off, as more young professionals flock to Nagoya, seeking vibrant urban living.

Sources: Global Property Guide, Expat.com, Nagoya Potential

11) Property prices in Nagoya's outskirts will stabilize as new developments decelerate

In Nagoya's outskirts, new construction permits have noticeably decreased recently.

This trend is part of a larger pattern across Japan, where new housing starts are expected to dip slightly by 2025. With fewer homes being built, the supply isn't growing as fast as it used to, which is a key factor in stabilizing property prices.

Real estate agencies are observing a slowdown in new housing projects in these areas. This means that the supply of new homes isn't outpacing demand, which helps keep property prices steady. Government data also shows a drop in infrastructure investments in suburban areas, adding to the slowdown in new developments.

Developers are shifting their focus from suburban to urban projects, which means fewer resources are going into suburban developments. This shift is another reason why property prices in the outskirts might stabilize. Demographic studies show that population growth in these areas is stable or even declining, which reduces the demand for new housing.

Insider knowledge suggests that developers are prioritizing urban centers due to better returns on investment. This change in focus is crucial for understanding the dynamics of the property market in Nagoya's outskirts.

With fewer new developments and stable demand, property prices in Nagoya's outskirts are likely to stabilize as the market adjusts to these changes.

Source: e-Housing

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12) Rental yields in central Nagoya will stabilize as the market reaches equilibrium

Central Nagoya's property prices have been on the rise, drawing in more investors eager to tap into the urban living trend.

With this surge in interest, real estate companies are ramping up development efforts, leading to a steady climb in property values. This boom is fueled by a growing demand for city life, making Nagoya a hotspot for investment.

However, there's a twist. Rental price growth has slowed down in 2023, hinting at a market shift. The influx of new developments is starting to balance things out, suggesting that rental prices might be stabilizing soon.

Take Kanden Real Estate Development, for instance. They're planning to add 650 new rental units, which should help even out the demand and supply, keeping rental yields steady.

Interestingly, the vacancy rate for rental offices in Nagoya hasn't budged much, showing a healthy balance in the market. This is backed by strong economic factors like stable jobs and income levels, which are key to maintaining rental yields.

As Nagoya's real estate scene matures, it's likely to mirror cities like Tokyo, where rental yields have found their sweet spot and reached equilibrium.

Sources: Japan Mobility, Azuki Partners, DWS

13) Property prices in Nagoya's central districts will steadily rise due to high demand

Property prices in Nagoya's central districts are on the rise due to growing popularity.

With over 8,000 people per square kilometer in some areas, the high population density is a key driver of this trend. This means there's a strong demand for both housing and commercial spaces, naturally pushing prices up.

Land scarcity is another big factor. The central districts are already packed with infrastructure, leaving little room for new developments. This limited availability makes existing properties more valuable and, as a result, more expensive.

New commercial and cultural amenities are popping up, making central Nagoya even more appealing. The city is known for its cleanliness and maintenance, which adds to its charm. As more people and businesses are drawn to these features, the demand for property continues to grow, further increasing prices.

Insider tip: Nagoya's central districts are becoming a hotspot for both locals and expats. The area offers a vibrant lifestyle with easy access to amenities, making it a prime choice for property investment.

For those considering buying property here, it's worth noting that the market is expected to remain competitive due to these ongoing trends. Keep an eye on new developments and be ready to act quickly if you find a property that fits your needs.

Sources: Wikipedia, Japan Mobility, Demographia

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.