Authored by the expert who managed and guided the team behind the Japan Property Pack
Everything you need to know before buying real estate is included in our Japan Property Pack
In this article, we break down the current rental yields in Nagoya so you can see what returns to realistically expect from residential property in Japan's fourth-largest city.
We keep this blog post constantly updated with the latest data from official sources and industry surveys, so you always have fresh numbers to work with.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Nagoya.
Insights
- Nagoya's average gross rental yield sits around 5.8% in early 2026, which is noticeably higher than Tokyo's compressed yields in prime areas, making it attractive for investors seeking better cash flow in a major Japanese city.
- The gap between Nagoya's highest-yield and lowest-yield neighborhoods spans about 2 to 3 percentage points, meaning your choice of ward can dramatically change your returns.
- Compact 1K and 1LDK units near rail stations in Nagoya tend to deliver the strongest gross yields because entry prices stay reasonable while tenant demand from young professionals remains deep.
- Nagoya landlords typically lose 1.0 to 2.5 percentage points between gross and net yield due to vacancy, management fees, repairs, property taxes, and building charges.
- Areas like Minato-ku and Nakagawa-ku in Nagoya often screen well for higher yields because purchase prices are more forgiving while steady commuter demand keeps units occupied.
- The Nagoya Station (Meieki) redevelopment is the biggest catalyst to watch, as Meitetsu's multi-year project could pull renter demand inward and lift rents in nearby Nakamura-ku and Nishi-ku.
- Nagoya's combined property tax rate is 1.7% of assessed value, but because assessed value runs below market price, landlords typically pay around 0.25% to 0.6% of market value per year.
- A conservative vacancy buffer for Nagoya rentals is about 5% to 7% of annual rent, though well-located units with strong management can often run closer to 3% to 5%.
What are the rental yields in Nagoya as of 2026?
What's the average gross rental yield in Nagoya as of 2026?
As of early 2026, the average gross rental yield for residential property in Nagoya sits around 5.8%, which means investors can expect to collect roughly 5.8% of their purchase price back in annual rent before expenses.
That said, most typical residential properties in Nagoya fall within a realistic range of about 4.8% to 7.0% gross yield, depending on the neighborhood, property age, and unit type you choose.
Compared to national benchmarks, Nagoya's gross yields tend to run higher than Tokyo's prime areas (where yields often compress below 4%) but are roughly in line with other major regional cities in Japan that offer better rent-to-price math.
The single biggest factor influencing gross rental yields in Nagoya right now is the balance between relatively stable purchase prices in outer wards and steady rental demand driven by the city's role as a major employment and transit hub in the Chubu region.
What's the average net rental yield in Nagoya as of 2026?
As of early 2026, the average net rental yield for residential property in Nagoya is around 4.1%, which reflects what landlords actually keep after paying all recurring costs.
The typical difference between gross and net yields in Nagoya is about 1.0 to 2.5 percentage points, meaning a property with a 5.8% gross yield will usually deliver somewhere between 3.3% and 4.8% net.
In Nagoya specifically, building management fees and reserve contributions (especially for condominium units) tend to be the single biggest expense category that eats into gross yield, often more impactful than property taxes alone.
Because of this, the realistic range of net rental yields for standard investment properties in Nagoya spans roughly 3.3% to 4.8%, with the wide spread depending on whether you own a condo with high building fees or a standalone rental with lower ongoing charges.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in 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.
What yield is considered "good" in Nagoya in 2026?
In early 2026, a gross rental yield of about 5.5% to 6.5% is generally considered "good" by local investors in Nagoya, as it signals a balanced property where rent and price are reasonably aligned.
The threshold that separates average-performing properties from high-performing ones in Nagoya typically sits around 6.5% gross, and anything above 7% can be very attractive but usually comes with trade-offs like older buildings or weaker station access that you need to investigate carefully.
How much do yields vary by neighborhood in Nagoya as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Nagoya is about 2 to 3 percentage points, which means your choice of ward can significantly change your investment returns.
Neighborhoods that typically deliver the highest rental yields in Nagoya are those with more affordable purchase prices but steady renter demand, such as Minato-ku, Nakagawa-ku, Moriyama-ku, and parts of Midori-ku where commuter access remains solid.
On the other hand, the lowest-yield neighborhoods in Nagoya tend to be premium convenience areas like Naka-ku (around Sakae and Fushimi) and central Nakamura-ku (near Nagoya Station and Meieki), where high prices compress yields even though rents are strong.
The main reason yields vary so much across Nagoya neighborhoods is that purchase prices in central, transit-rich areas get bid up faster than rents can follow, while outer wards offer better rent-to-price math because investors face less competition for properties.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Nagoya.
How much do yields vary by property type in Nagoya as of 2026?
As of early 2026, gross rental yields across different property types in Nagoya range from roughly 4.5% for newer condos in prime locations to about 7.5% for smaller apartments and older wooden buildings in outer wards.
Small apartments and compact units (1R/1K) currently deliver the highest average gross rental yield in Nagoya because their low entry prices relative to rent create favorable math, even though turnover can be higher.
Family-sized condominiums and newer tower units in central Nagoya tend to deliver the lowest average gross rental yield because purchase prices are elevated while rents do not scale proportionally with the higher cost.
The key reason yields differ between property types in Nagoya is simply that smaller, more affordable units attract a deeper pool of tenants (students, young workers) at rents that represent a larger percentage of the lower purchase price.
By the way, you might want to read the following:
What's the typical vacancy rate in Nagoya as of 2026?
As of early 2026, a realistic rental vacancy buffer for income underwriting in Nagoya is about 5% to 7% of annual rent, which accounts for the time your unit sits empty between tenants.
Vacancy rates across different Nagoya neighborhoods can range from as low as 3% in high-demand station areas to 8% or more in less accessible outer districts with weaker tenant demand.
The main factor that currently drives vacancy rates in Nagoya is proximity to rail stations and employment centers, as tenants strongly prefer convenient commutes and will pay premiums (or accept longer waits) based on location.
Compared to national averages, Nagoya's vacancy rates for well-managed rental stock tend to be reasonable because the city's economic base and transport network create consistent demand, though individual unit outcomes vary more than large portfolio averages suggest.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Nagoya.
What's the rent-to-price ratio in Nagoya as of 2026?
As of early 2026, the average rent-to-price ratio in Nagoya (annual rent divided by purchase price) is about 5.8%, which is essentially another way of expressing the gross rental yield.
A rent-to-price ratio of around 5.5% to 6.5% is generally considered favorable for buy-to-let investors in Nagoya, and since this ratio equals your gross yield, hitting that range means your property clears the threshold most local investors target.
Compared to other major Japanese cities, Nagoya's rent-to-price ratio is more attractive than Tokyo's prime areas (often below 4%) and roughly competitive with cities like Osaka and Fukuoka, which makes Nagoya appealing for yield-focused investors.
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.
Which neighborhoods and micro-areas in Nagoya give the best yields as of 2026?
Where are the highest-yield areas in Nagoya as of 2026?
As of early 2026, the top highest-yield neighborhoods in Nagoya include Minato-ku, Nakagawa-ku, and Moriyama-ku, where more affordable purchase prices combine with steady renter demand from commuters and families.
In these high-yield areas, investors can typically find gross rental yields ranging from about 6% to 7.5%, especially for smaller units near rail stations like Aratamabashi or properties on the Kanayama fringe.
The main characteristic these high-yield areas share is that they offer solid public transit access and proximity to employment nodes without commanding the premium prices of central Nagoya, which keeps the rent-to-price math favorable.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Nagoya.
Where are the lowest-yield areas in Nagoya as of 2026?
As of early 2026, the lowest-yield neighborhoods in Nagoya are Naka-ku (especially around Sakae and Fushimi), central Nakamura-ku (near Nagoya Station and Meieki), and parts of Higashi-ku with upscale residential pockets.
In these premium areas, gross rental yields typically fall in the 4% to 5% range because property prices are high relative to the rents landlords can charge.
The main reason yields are compressed in these parts of Nagoya is that buyers pay a premium for convenience, prestige, and liquidity, which pushes prices up faster than rents can follow.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Nagoya.
Which areas have the lowest vacancy in Nagoya as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Nagoya are the Meieki/Nagoya Station area, Sakae/Fushimi in Naka-ku, and university-adjacent pockets like Yagoto and Motoyama.
In these low-vacancy areas, landlords often experience vacancy rates closer to 2% to 4%, meaning units typically get re-rented quickly between tenants.
The main demand driver that keeps vacancy low in these parts of Nagoya is the concentration of jobs, transit options, and institutions (universities, corporate offices) that give tenants strong reasons to live nearby.
The trade-off investors typically face when targeting these low-vacancy areas is that the same demand that keeps units full also pushes purchase prices up, which compresses gross yields even as occupancy stays high.
Which areas have the most renter demand in Nagoya right now?
The neighborhoods currently experiencing the strongest renter demand in Nagoya are Sakae and Fushimi (for lifestyle and CBD proximity), Nagoya Station/Meieki and Kanayama (for commuter convenience), and Chikusa-ku pockets like Imaike and Motoyama (for university and family demand).
The type of renter driving most of the demand in these areas includes young professionals seeking short commutes, students attending nearby universities, and couples looking for convenient urban living with good amenities.
In these high-demand Nagoya neighborhoods, rental listings typically get filled within a few weeks, and well-priced units near stations can often find tenants within days of being listed.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Nagoya.
Which upcoming projects could boost rents and rental yields in Nagoya as of 2026?
As of early 2026, the biggest upcoming project expected to boost rents in Nagoya is the Nagoya Station (Meieki) area redevelopment led by Meitetsu, which involves major rail improvements, new commercial space, and enhanced connectivity over a multi-year timeline.
The neighborhoods most likely to benefit from this project are Meieki, Sasashima-live, and adjacent parts of Nakamura-ku and Nishi-ku, where improved infrastructure will pull more workers and residents into the area.
Once the Meieki redevelopment phases complete, investors might realistically expect rent increases of 5% to 15% in directly affected micro-areas, though the exact impact will depend on how much new housing supply arrives alongside the demand boost.
You'll find our latest property market analysis about Nagoya here.
Get fresh and reliable information about the market in Nagoya
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What property type should I buy for renting in Nagoya as of 2026?
Between studios and larger units in Nagoya, which performs best in 2026?
As of early 2026, compact units like studios (1R) and one-bedroom apartments (1K/1LDK) tend to perform best in Nagoya for gross rental yield and occupancy because their lower purchase prices create better rent-to-price ratios.
Studios in Nagoya typically deliver gross yields around 6% to 7.5% (roughly ¥50,000 to ¥70,000 monthly rent, or $320 to $450 USD / €300 to €420 EUR), while larger 2LDK units often yield closer to 5% to 6% due to higher purchase prices that do not scale with proportionally higher rents.
The main factor explaining why smaller units outperform in Nagoya is that the tenant pool for affordable singles housing (students, young professionals) is very deep, while family-sized units face more competition from homeownership.
That said, if you are targeting stable, long-term tenants like young families or professionals with remote work flexibility, larger 1LDK or 2LDK units in family-friendly wards like Midori-ku or Moriyama-ku can be a better choice because turnover is lower and net yields can actually match or beat studios once you factor in reduced vacancy and re-leasing costs.
What property types are in most demand in Nagoya as of 2026?
As of early 2026, the most in-demand property type in Nagoya is small singles units (1R/1K) located near major rail stations, driven by steady demand from young workers and students.
The top three property types ranked by current tenant demand in Nagoya are: first, compact 1R/1K units near stations; second, 1LDK apartments for couples and remote workers; and third, 2LDK family units in wards with good schools and parks.
The primary demographic trend driving this demand pattern is the concentration of employment in Nagoya's urban core combined with a growing preference for convenient, transit-oriented living among younger renters who prioritize commute time over space.
One property type currently underperforming in demand and likely to remain so in Nagoya is large detached houses in distant suburban areas without good rail access, as these struggle to attract renters who have increasingly urban lifestyle preferences.
What unit size has the best yield per m² in Nagoya as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Nagoya is typically 20 to 40 m², which corresponds to studios and compact one-bedroom apartments.
For this optimal unit size in Nagoya, gross rental yield per m² works out to roughly ¥2,500 to ¥3,000 per m² monthly (about $16 to $19 USD / €15 to €18 EUR per m²), which translates to annual yields around 6% to 7% on well-located properties.
The main reason smaller units have better yield per m² than larger units in Nagoya is that rent per square meter drops as unit size increases (tenants pay a premium for compact spaces), while purchase prices per m² stay relatively flat or even rise in premium buildings, eroding the math for bigger apartments.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Nagoya.
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.
What costs cut my net yield in Nagoya as of 2026?
What are typical property taxes and recurring local fees in Nagoya as of 2026?
As of early 2026, the annual property tax for a typical rental apartment in Nagoya runs about ¥50,000 to ¥150,000 (roughly $320 to $960 USD / €300 to €900 EUR), depending on the property's assessed value and whether it qualifies for any reductions.
Beyond property taxes, landlords in Nagoya must also budget for building management fees and reserve fund contributions (especially for condos), which can add another ¥100,000 to ¥300,000 per year ($640 to $1,920 USD / €600 to €1,800 EUR) depending on the building.
Together, these taxes and fees typically represent about 10% to 20% of gross rental income for a standard Nagoya rental property, making them a significant factor in the gap between gross and net yields.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Nagoya.
What insurance, maintenance, and annual repair costs should landlords budget in Nagoya right now?
Annual landlord insurance (fire insurance, with optional earthquake coverage) for a typical rental property in Nagoya usually costs between ¥15,000 and ¥50,000 per year (roughly $100 to $320 USD / €90 to €300 EUR), though earthquake add-ons can increase this significantly.
For maintenance and repairs, landlords in Nagoya should budget about 0.5% to 1.0% of the property's value annually, which translates to roughly ¥75,000 to ¥200,000 per year ($480 to $1,280 USD / €450 to €1,200 EUR) for a typical investment unit, with older buildings requiring more.
The type of repair expense that most commonly catches Nagoya landlords off guard is water heater and air conditioning unit replacements, which can cost ¥100,000 to ¥300,000 ($640 to $1,920 USD / €600 to €1,800 EUR) when they fail unexpectedly.
Adding everything together, landlords should realistically budget a total of about ¥150,000 to ¥400,000 per year ($960 to $2,560 USD / €900 to €2,400 EUR) for insurance, maintenance, and repairs combined on a standard Nagoya rental unit.
Which utilities do landlords typically pay, and what do they cost in Nagoya right now?
In most standard long-term rentals in Nagoya, tenants pay their own in-unit utilities (electricity, gas, water), while landlords are mainly responsible for common-area electricity and water in multi-unit buildings, which is typically embedded in building management fees rather than billed separately.
For landlords who do cover some utilities (uncommon in standard leases), the monthly cost for common-area charges might add ¥3,000 to ¥8,000 (roughly $20 to $50 USD / €18 to €48 EUR) on top of management fees, though this varies significantly by building size and configuration.
What does full-service property management cost, including leasing, in Nagoya as of 2026?
As of early 2026, the typical monthly property management fee for full-service management in Nagoya runs about 3% to 6% of monthly rent, which on a ¥70,000/month unit (roughly $450 USD / €420 EUR) translates to about ¥2,100 to ¥4,200 per month ($13 to $27 USD / €12 to €25 EUR).
On top of ongoing management, the typical leasing or tenant-placement fee in Nagoya is around one month's rent (¥50,000 to ¥80,000 or $320 to $510 USD / €300 to €480 EUR), charged each time a new tenant is placed in the unit.
What's a realistic vacancy buffer in Nagoya as of 2026?
As of early 2026, landlords in Nagoya should set aside about 5% to 7% of annual rental income as a vacancy buffer, which provides a conservative cushion for the time units sit empty between tenants.
In practical terms, this translates to roughly 2 to 4 vacant weeks per year for a typical Nagoya rental, though well-located units with professional management can often run closer to 1 to 2 weeks, while less desirable properties may experience longer gaps.
Buying real estate in Nagoya can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Nagoya, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Chubu REINS | It's the official MLIT-designated real estate information network for the Chubu region, built on actual brokerage transaction data. | We used it as the anchor for closed-deal pricing, especially "used condo" price-per-m² benchmarks in and around Nagoya. We then cross-checked neighborhood ranges using listing-based sources to avoid overfitting to one dataset. |
| LIFULL HOME'S (rent data) | It's one of Japan's largest property portals, and it clearly explains how it computes average rent from its dataset. | We used it to estimate current asking rents and rent differences across Nagoya wards for early 2026. We combined it with transaction-based prices to estimate gross yields and neighborhood dispersion. |
| LIFULL HOME'S (resale prices) | It's a transparent, large-sample listing dataset updated regularly, useful for intra-city comparisons. | We used it to illustrate how central wards price differently from outer wards. We treated it as a relative signal while keeping REINS as the price level anchor. |
| IREM Japan NOI Survey | It's an industry-wide survey co-produced with major associations and a large portal, with defined NOI and vacancy methodology. | We used it to benchmark operating expense ratios, NOI ratios, and vacancy behavior for professionally managed stock. We used those ratios to convert gross yields into net yields. |
| City of Nagoya (tax rates) | It's the city's official tax FAQ with explicit rates and calculation basis. | We used it to model the core recurring property taxes landlords face in Nagoya. We then applied Japan-typical assessed-value logic to translate rates into realistic yen costs. |
| City of Nagoya Housing Survey | It's the city's publication of a national core statistics survey on housing and land. | We used it for macro housing balance signals and as a guardrail on long-run vacancy risk. We kept this separate from rental vacancy because the survey includes non-rentable vacant units too. |
| Aichi Prefecture (land prices) | It explains and links to the statutory land price publication framework used nationwide. | We used it to contextualize why land price cycles in Aichi and Nagoya matter for long-run capital values. We avoided relying solely on portal pricing narratives. |
| Meitetsu (Nagoya Station redevelopment) | It's the primary issuer's project document with official corporate release details. | We used it to identify concrete, dated catalysts around Meieki that can shift renter demand. We translated the plan into practical implications for rents rather than hype. |
| Chubu Electric Power | It's the regional utility's official communication for the Chubu area. | We used it only as context that energy-price adjustments can affect tenant affordability. We did not use it to build precise per-kWh forecasts. |
| DLA Piper REALWORLD | It's a legal reference resource summarizing statutory rates and tax base conventions. | We used it as an external cross-check that Nagoya's property tax rates align with national norms. We relied on the City of Nagoya page for final rate inputs. |
| JETRO | It's a government-affiliated investor resource with standardized guidance on Japan taxes. | We used it to corroborate the overall tax landscape and keep terminology consistent for non-professional readers. We kept all Nagoya-specific numbers pinned to primary local datasets. |
| Our internal analyses and data | We maintain proprietary datasets and conduct independent research on Japanese real estate markets. | We used our internal data to validate patterns, fill gaps, and ensure consistency across multiple public sources. We also stress-tested our yield estimates against real transaction outcomes. |
Get the full checklist for your due diligence in Nagoya
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts