Is it worth it buying property in Osaka in 2025?

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

Yes, the analysis of Osaka's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Osaka. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese 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 in cities like Osaka, Tokyo, and Kyoto. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations 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

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

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 the information 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.

What types of properties are actually available in Osaka right now?

Osaka's property market offers four main categories of residential real estate as of September 2025.

Apartments, known locally as "mansions," are high-rise reinforced concrete buildings that typically include modern amenities like security systems, parking, and communal facilities. These properties range from studio units to family-sized apartments and represent the most popular choice for both investors and residents.

Detached houses provide standalone living options, from compact urban dwellings in central districts to larger family homes in suburban areas. These properties offer more space and privacy but typically require higher maintenance costs and longer commute times to central business districts.

Condominiums come in both new construction and existing units, with new builds often designed specifically for investors who plan to obtain short-term rental licenses. These properties frequently feature modern finishes and investor-friendly layouts optimized for rental income.

Serviced and social apartments cater to tenants seeking furnished accommodations, co-living arrangements, or flexible monthly rental options, making them particularly attractive to international residents and young professionals.

Is it generally smarter to buy or rent in Osaka in 2025?

Buying property in Osaka generally makes more financial sense than renting for investors and long-term residents in 2025.

Osaka delivers superior rental yields averaging 4.47% compared to Tokyo's 3.44%, making it particularly attractive for investors seeking steady income. The city's strong price trajectory and upcoming Expo 2025 create favorable conditions for capital appreciation over the next 3-5 years.

Buying becomes the smart choice if you plan to stay in Osaka for more than 3-4 years, want to generate rental income, or seek to benefit from the city's ongoing infrastructure development and population growth. Foreign buyers can access Japanese mortgages and enjoy the same property rights as domestic purchasers.

Renting remains preferable for those who value maximum flexibility, plan short-term stays, or remain uncertain about their long-term commitment to living in Osaka. Rental markets offer excellent selection and reasonable prices compared to other major Japanese cities.

The decision ultimately depends on your timeline, budget, and investment goals, but current market conditions favor property ownership for committed residents and investors.

How much did properties cost before, how much are they now, and what's the forecast?

Property Type	Current Price (Sept 2025)	1-Year Change	5-Year Forecast (2025-2030)
New Condominium	¥55-57M ($390-410k)	-5.3%	5-8% annual growth through 2027
Existing Condominium	¥477,000/m² (~$3,167)	+9.4%	5-8% annual growth through 2027
Detached House	¥24.33M ($161,561)	-0.6%	Modest upward movement
Central District Premium	¥60-70M+ ($420-490k+)	+8-11%	Continued strong growth
Suburban Areas	¥20-35M ($140-245k)	+3-6%	Steady appreciation
Investment Properties	¥30-50M ($210-350k)	+7-9%	Strong rental demand support
Luxury Developments	¥80M+ ($560k+)	+10-15%	Premium market growth

What are the current real estate market trends in Osaka?

Osaka's real estate market is experiencing a sustained growth phase driven by multiple convergent factors in 2025.

The upcoming Expo 2025 and major infrastructure projects are creating significant price pressure, particularly in central wards like Namba, Umeda, and Shinsaibashi. These areas are seeing the strongest capital appreciation as investors position themselves for increased tourism and business activity.

Foreign investment continues to flow into Osaka's market, attracted by the city's lower entry costs compared to Tokyo and strong rental yield potential. Supply constraints in desirable locations are supporting price growth, while robust rental demand keeps vacancy rates low across most property types.

Short-term rental properties in licensed buildings are achieving occupancy rates exceeding 80%, making them particularly attractive to investors willing to navigate the regulatory requirements. The managed short-term rental sector is showing especially strong performance in tourist-adjacent areas.

It's something we develop in our Japan property pack.

Step by step, how does the buying process work in Japan for a foreigner?

The property buying process in Japan is straightforward for foreign buyers, with no legal restrictions on property ownership.

1. **Select and contact a local real estate agent** experienced with international buyers and English-language transactions2. **Define your criteria and budget**, allowing the agent to provide targeted property listings that match your requirements3. **View properties** either in person during site visits or through detailed virtual tours and video walkthroughs4. **Submit a letter of intent** once you identify a suitable property, followed by price and terms negotiation5. **Sign the purchase agreement** and pay the required deposit, typically ranging from 5-35% of the total purchase price6. **Secure financing** if needed, as foreign buyers can access Japanese mortgages subject to income verification and approval7. **Prepare required documentation** including passport, residence card (if applicable), and seal certificate from your embassy8. **Complete the funds transfer** and pay associated taxes and fees, which typically total around 3.3% of the purchase price9. **Complete title registration and property handover**, including any required reporting to Japanese authorities for foreign ownership

Where can someone realistically find properties for sale—are there specific agencies or platforms to go to?

Several reliable platforms and agencies specialize in helping foreign buyers navigate Osaka's property market.

Major multilingual websites include Japan-Property.jp, Realestate.co.jp, and Apartment-Japan.com, which offer comprehensive listings with English descriptions and foreign buyer support. These platforms provide detailed property information, photos, and direct contact with licensed agents.

Local agencies with strong international experience include Maido Real Estate, LAKIA不動産, and House List Shinsaibashi, all of which maintain English-speaking staff and understand foreign buyer requirements. These agencies offer personalized service and can guide you through the entire purchase process.

International-focused development projects like The Peak Shinsaibashi Prestige provide turnkey investment opportunities with full property management services, making them particularly suitable for overseas investors seeking hands-off ownership.

Working with licensed, locally established agents remains crucial for successful property acquisition, as they provide market knowledge, negotiation expertise, and ensure compliance with all legal requirements.

If I have a certain budget, what kind of property can I actually get in Osaka?

Budget Range	Property Options	Typical Locations
Under ¥30M ($200k)	Small older apartments, compact houses	Hirano, outer wards, suburban areas
¥30-40M ($200-280k)	Existing condos, renovated apartments	Semi-central locations, emerging districts
¥40-50M ($280-350k)	Quality existing condos, newer apartments	Good central access, established neighborhoods
¥50-60M ($350-420k)	New condos, premium existing units	Central wards, near major stations
¥60-80M ($420-560k)	Luxury new condos, large apartments	Namba, Umeda, Shinsaibashi districts
Over ¥80M ($560k+)	Premium luxury developments, penthouses	Prime central locations, landmark buildings
Investment Focus ¥30-50M	Rental-optimized properties, managed units	Tourist areas, business districts, transport hubs

What are the biggest mistakes buyers usually make in Osaka, and how can they be avoided?

Foreign buyers in Osaka commonly make several costly errors that can be easily prevented with proper preparation.

Overpaying due to insufficient local market knowledge represents the most expensive mistake, often resulting from failure to understand recent supply constraints and neighborhood-specific pricing trends. Working with experienced local agents and conducting thorough market research prevents this costly error.

Neglecting legal and regulatory details, particularly around short-term rental licensing and foreign transaction reporting requirements, can create serious compliance issues. Understanding these requirements upfront and working with knowledgeable legal advisors ensures smooth transactions.

Underestimating renovation costs and ongoing property management expenses often surprises new owners, particularly those purchasing older properties or planning rental operations. Budgeting an additional 10-15% for unexpected costs and obtaining detailed cost estimates prevents financial strain.

Not using a trusted, locally licensed agent leads to poor negotiation outcomes, missed opportunities, and potential legal complications. Selecting agents with proven foreign buyer experience and proper licensing ensures professional representation throughout the purchase process.

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's the cost of living in Osaka compared to other major cities in Japan?

Osaka offers significantly lower living costs compared to Tokyo while maintaining excellent urban amenities and lifestyle quality.

Property costs in Osaka average 60-65% less than Tokyo, with new condominiums priced around ¥55-57 million compared to Tokyo's ¥91.4 million average. This substantial difference extends to rental prices, daily expenses, and overall cost of living.

Compared to other major Japanese cities, Osaka provides excellent value—more affordable than Kyoto (where average new condos cost around ¥60 million) but slightly more expensive than Fukuoka (¥56 million average). The city offers the best balance of urban sophistication and affordability among Japan's major metropolitan areas.

Daily living expenses including food, transportation, and entertainment cost approximately 15-20% less than Tokyo, while salaries in many sectors remain competitive. This combination makes Osaka particularly attractive for both residents and investors seeking better value for money.

The cost advantage becomes even more pronounced for foreign residents, as Osaka's international infrastructure and services cost significantly less than Tokyo equivalents while providing similar quality and accessibility.

Which neighborhoods are the best to look at—affordable, up-and-coming, or upscale—and what are the strengths and weaknesses of each?

Neighborhood Type	Key Areas	Strengths	Weaknesses
Upscale Central	Namba, Umeda, Shinsaibashi	Highest growth potential, urban amenities, strong capital gains	Premium pricing, intense competition
Up-and-coming	Hirano, Bay districts (Konohana, Minato)	Affordable entry, infrastructure development, growth potential	Distance from city center, emerging amenities
Balanced Central	Tennoji, Chuo, Naniwa	Redevelopment projects, improved transport, central location	Mixed pricing levels, varying property ages
Family-oriented	Kita, Joto-ku	Excellent schools, parks, family amenities	Higher entry costs, limited rental demand
Business Districts	Osaka Business Park, Umeda periphery	Strong rental demand, corporate tenant base	Limited weekend activity, business cycle dependent
Tourist Areas	Dotonbori vicinity, Osaka Castle area	Short-term rental potential, tourist appeal	Regulatory restrictions, seasonal demand
Emerging Zones	Sumiyoshi, Nishinari (selected areas)	Lowest entry costs, redevelopment potential	Longer development timeline, infrastructure gaps

How is life in Osaka for expats on a day-to-day basis?

Osaka provides an excellent quality of life for expats, combining urban sophistication with cultural richness and practical convenience.

The city offers a lively, cosmopolitan environment with world-renowned food culture, efficient public transportation, and growing business opportunities, particularly in the expanding Umeda business districts. Large expat communities thrive in central areas, providing social networks and support systems for newcomers.

International schools, healthcare facilities, and English-language services are readily available, though less extensive than Tokyo's offerings. The city's compact size makes commuting manageable, with most areas accessible within 30-45 minutes by train or subway.

Language barriers exist but are manageable in real estate transactions and core business activities, with many professionals offering English-language services. The local culture tends to be more relaxed and welcoming compared to Tokyo, making social integration easier for foreign residents.

It's something we develop in our Japan property pack.

If I want to rent out long term, which areas should I target, what types of tenants should I expect, and what rental income and yield can I count on?

Long-term rental investment in Osaka targets specific areas and tenant demographics for optimal returns.

The best areas for steady rental income include central districts (Umeda, Namba, Shinsaibashi, Osaka Business Park) and emerging neighborhoods (Hirano, Bay districts) where infrastructure development is driving demand. These locations provide consistent tenant flow and strong rental pricing power.

Primary tenant demographics include young professionals working in Osaka's business districts, university students from the city's major institutions, families seeking affordable urban living, and incoming foreign workers attracted by the city's international business growth.

Net rental yields typically range from 4-5.6% for newer, centrally managed condominiums, with occupancy rates often exceeding 80% in well-located properties. Monthly rental income varies by location and property type, with central apartments commanding ¥100,000-200,000+ monthly rents.

Success factors include selecting properties near major transport hubs, maintaining modern amenities that appeal to target demographics, and working with experienced property management companies to minimize vacancy periods and ensure consistent income streams.

If I want to rent out short term, what areas work best, what do travelers look for, how much could I make, and what are the key regulations?

Short-term rental investment in Osaka requires strategic location selection and regulatory compliance for maximum profitability.

Prime areas for short-term rentals include central tourist hotspots (Namba, Shinsaibashi, Tennoji) and locations adjacent to Expo 2025 sites, where visitor demand remains consistently strong. Properties within walking distance of major attractions, shopping districts, and transport hubs command premium rates.

Travelers prioritize walkable access to public transit, shopping and dining options, modern furnishings and amenities, reliable internet connectivity, and proper legal licensing that ensures legitimate accommodations. Clean, well-maintained properties with local character and convenience features perform best.

Average daily rates range from ¥2,500-3,000 for standard properties, with net rental yields reaching 5-5.6% for properly licensed and managed units. Occupancy rates exceeding 80% are achievable in prime locations with professional management.

Regulatory compliance requires obtaining proper short-term rental licenses and partnering with experienced management companies to handle legal requirements, guest services, and property maintenance. Working with local experts ensures hassle-free operation and maximizes investment returns while avoiding regulatory issues.

So, given all this, is it actually worth buying in Osaka in 2025—for living, for renting out, or for reselling later at a higher price?

Buying property in Osaka in 2025 represents a compelling opportunity across all three investment strategies—personal residence, rental income, and capital appreciation.

For personal residence, Osaka offers exceptional value with significantly lower costs than Tokyo while providing excellent urban amenities, cultural richness, and rising property values that protect your investment. The city's growing international business presence and infrastructure development create a strong foundation for long-term residential satisfaction.

For rental investment, Osaka delivers superior yields averaging 4.47% with strong tenant demand driven by the growing expat community, business expansion, and tourism growth related to Expo 2025. Both long-term and short-term rental strategies show strong potential for consistent income generation.

For capital appreciation, price increases of 5-8% annually through 2027 appear likely, supported by ongoing infrastructure projects, foreign investment flows, and supply constraints in desirable locations. While growth may moderate after 2027, the next 3-5 years present favorable conditions for property value increases.

Success requires working with trusted local agencies, focusing on central or emerging districts with growth catalysts, ensuring legal compliance, and staying responsive to changing market demand patterns.

It's something we develop in our Japan property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. AB Housing Osaka
2. LAKIA Umeda Real Estate
3. Maido Real Estate
4. Tokyo Portfolio - Japan Real Estate Market Trends
5. Global Property Guide - Japan Price History
6. RE/MAX Apex - Osaka Rental Guide 2025
7. Richmonts - The Peak Shinsaibashi Prestige
8. Shiki Real Estate - Foreigner Property Buying Guide
9. InvestAsian - Osaka Real Estate Investment
10. Statista - Osaka Property Price Index