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
Why is Osaka emerging as a prime destination for property investment in 2025? Is it the robust rental market, the city's vibrant cultural scene, or the relative affordability compared to other major Japanese cities? What are the key advantages for investors? We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Osaka's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Osaka’s port drives economic growth as a major trade hub
Osaka's port is a key player in international trade, boosting the region's economy.
Its strategic location connects Japan with major economies like China, the United States, and South Korea, making it a crucial link in the global supply chain. This advantage is often highlighted in trade reports, showing its importance. The port consistently ranks as one of Japan's largest exporters and importers, handling a massive volume of trade in 2023 and 2024.
Infrastructure and technology at the port are constantly upgraded, thanks to government support. This keeps it competitive and efficient. The growth of logistics and transportation businesses around the port is evident, with more containers being handled and new warehousing and distribution centers popping up nearby.
The port's bustling activity has led to job growth in related industries, boosting the local economy. Collaborations with global shipping companies further enhance its capabilities, making it even more efficient in handling international trade.
Sources: JIFFA, Container News, OEC World
2) Osaka’s lively nightlife makes centrally located apartments highly sought after
Osaka's nightlife is a major draw, boosting demand for apartments in the heart of the city.
Areas like Namba, Umeda, Shinsaibashi, and Tennoji are buzzing with activity, making them hot spots for short-term rentals. This trend shows a clear preference for living close to the action, with rental rates in these areas higher than the city average. Investors are taking note, eager to tap into this thriving market.
Property values in these nightlife-rich neighborhoods are on the rise, driven by both local and international interest. The media often highlights Osaka's vibrant scene, which draws in both locals and expats, further fueling the demand for central living spaces.
Osaka's youthful crowd, who love the urban lifestyle, are a big part of this demand. They want to be where the fun is, and central locations offer easy access to entertainment. This aligns perfectly with the city's demographic trends.
Big projects like the Kansai International Airport renovation and Osaka Metro extension are set to bring even more people into these nightlife districts. This means more foot traffic and business opportunities, making central apartments even more appealing.
With all these factors in play, it's no wonder that Osaka's central apartments are in high demand, offering a lively lifestyle right at your doorstep.
Sources: InvestAsian, JLL
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.
3) Osaka’s aging population opens up opportunities for investing in senior housing
Osaka is experiencing a notable increase in its elderly population.
In 2022, 2.43 million residents were aged 65 and over, a sharp rise from 2000. This trend is set to continue, with those aged 75 or older expected to make up 17.3% of the population by 2025.
As more people age, the demand for senior housing is growing. The real estate market is shifting focus to specialized housing and healthcare properties. In Osaka, there's a clear need for compact, urban housing near medical facilities, tailored for seniors.
Currently, Osaka's long-term care facilities can't keep up with demand. As of July 2023, there were 57,000 spaces in long-term care facilities and 93,000 in fee-based homes for the elderly. The costs for these services are already high, highlighting the need for more facilities.
Sources: Osaka Prefectural Plan for Senior Citizens 2024, Japan: Osaka population by age group, 2025 Japan Property Market Insights: Trends, Opportunities, and Challenges
4) Osaka’s international airport increases tourism, making short-term rentals more in demand
Osaka's Kansai International Airport is a major driver of tourism and short-term rental demand.
During the New Year holidays of 2023-24, the airport was bustling with 809,400 international passengers, averaging 62,300 daily. This influx of travelers naturally boosts the need for places to stay.
In 2023, Osaka welcomed 15.6 million international visitors, a slight increase from 2019's pre-pandemic numbers. This rise is largely thanks to the easy access provided by Kansai International Airport.
Tourists in Osaka spend generously, with an average of JPY 158,531 per person, which significantly impacts the local economy and fuels the demand for short-term rentals.
The short-term rental scene in Osaka is thriving, with an average occupancy rate of 78% and a daily rate of JPY 11,604. This suggests that many international visitors prefer these rentals for their convenience and proximity to the airport.
As of September 2024, there were 9,505 active Airbnb listings in Osaka, with typical listings booked for 285 nights a year, highlighting the growing popularity of these accommodations.
Sources: ACI Asia-Pacific, Airbtics, Road Genius
5) Osaka’s shopping districts draw both local and international visitors
Osaka's shopping districts are a big draw for both locals and tourists.
Take Shinsaibashi-suji Shopping Street, for example. It's bustling with people, and in the first half of 2023, foot traffic bounced back to 79.4% of what it was in 2019. That's about 43 million visitors in just six months, showing how popular this area has become again.
Shopping in Osaka isn't just about the numbers; it's about the experience. Retail sales in Japan saw a 5.2% increase year-over-year in April 2023, and car sales also went up. This tells us that people are spending more, and shopping is a big part of why they come to Osaka.
Osaka's shopping scene is also getting a boost from big-name global brands. They're setting up flagship stores in places like Shinsaibashi and Namba. These brands are drawn by the high number of visitors and their spending power. In fact, international spending in Osaka in 2023 was 32% higher than in 2019.
These shopping districts aren't just about buying things; they're about the whole experience. The mix of local and international brands, along with the vibrant atmosphere, makes Osaka a must-visit for shoppers.
So, if you're thinking about buying property in the country, consider the buzz around Osaka's shopping districts. They’re not just popular; they’re thriving, and that’s a good sign for anyone looking to invest in the area.
Sources: CBRE, CEIC Data, Road Genius
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6) Osaka’s historical sites attract tourists, boosting your rental opportunities
Osaka's historical sites are a major draw for tourists, boosting both tourism and rental opportunities.
In 2023, the number of visitors from Malaysia to Osaka increased by 120% compared to 2019, highlighting a growing interest in the city's rich cultural heritage. This surge is largely due to attractions like Osaka Castle and Shitennoji Temple, which captivate tourists with their historical significance and beauty.
Osaka Castle, for example, was Japan's most visited castle in 2017, drawing over 2.7 million visitors. Such popular sites naturally lead to a higher demand for nearby accommodations, fueling the growth of short-term rental listings. This trend is further supported by positive corporate sentiment and domestic demand, especially with events like the upcoming Kansai Expo.
The Osaka Convention & Tourism Bureau emphasizes the city's cultural diversity, which appeals to tourists seeking unique experiences. This interest not only boosts tourism but also strengthens the local economy, as the government aims to surpass pre-pandemic visitor numbers by 2025.
With its blend of historical charm and modern attractions, Osaka offers a unique experience that keeps visitors coming back. The city's historical sites are not just tourist attractions; they are integral to the local economy, creating opportunities for property investors and rental businesses.
Investing in property near these sites could be a smart move, as the demand for accommodations is likely to remain strong. The city's ongoing efforts to promote tourism and cultural events ensure that Osaka remains a vibrant and attractive destination.
Sources: The Sun, Japan Times, Nippon.com
7) With efficient public transport, property values in the city are on the rise
In 2023 and 2024, efficient public transportation systems have boosted property values.
Take Osaka's Kita-Osaka Kyuko Line extension, for example. Around new stations like "Mino-Semba Hankudaimae" and "Mino-Kayano," property prices have jumped 1.5 times compared to three years ago. This surge is a testament to how much people value easy access to transit.
Living near these new stations has become highly desirable. Within a 500-meter radius, rental rates have shot up by 18.9% over three years, while the broader Minoh City area saw a 1.3% decline. Clearly, folks are willing to pay a premium for the convenience of nearby public transport.
Properties close to public transportation also enjoy higher rental yields. Even as average rents in Minoh City fell, those near the new stations rose from ¥58,701 in February 2021 to ¥69,814 in January 2024. This shows that being near efficient transit options is a major draw for renters.
For potential buyers, this trend is worth noting. Investing in properties near public transport can mean better returns, as seen in Osaka. The city's efficient public transportation system is a key factor in increasing property value.
Sources: Remax Apex, E-Housing Japan
8) Osaka’s mild climate makes it perfect for living all year round
Osaka's climate is a big draw for those considering living there year-round, thanks to its mild average temperature of 16.78°C (62.2°F).
Unlike the southern regions like Okinawa, Osaka sees fewer typhoons, making it a safer bet for those wary of extreme weather. And if you're not a fan of snow, you'll be pleased to know that heavy snowfall is a rarity here, unlike in the northern areas such as Hokkaido.
One of the perks of living in Osaka is the abundance of sunny days. With around 2050 hours of sunshine annually, the city offers plenty of bright days to enjoy outdoor activities.
During spring and autumn, you can expect 6.63 to 6.74 hours of sunshine per day, making these seasons particularly enjoyable for residents. This consistent sunshine adds to the overall pleasant atmosphere of the city.
Osaka's climate stability means you can plan your days without worrying too much about sudden weather changes. This predictability is a relief for those who prefer a steady climate.
Sources: Climates to Travel, Statista
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.
9) Eco-conscious buyers are drawn to Osaka’s focus on sustainable development
Osaka is becoming a hotspot for eco-conscious property buyers due to its strong commitment to sustainable development.
The city has made impressive progress in increasing green building certifications, with a significant number of Grade A office buildings now meeting these standards. Certifications like CASBEE and LEED are globally recognized for their positive environmental impact, making these buildings highly attractive to buyers who value sustainability.
Osaka's government is also playing a crucial role by offering incentives for sustainable construction. These policies promote the use of renewable energy and energy-efficient devices, which not only benefit the environment but also lower energy costs for residents and businesses. This makes Osaka an appealing choice for those who prioritize eco-friendly living and working spaces.
Innovative projects like the "ecological village" highlight Osaka's forward-thinking approach to sustainable living. These residential developments are designed to minimize energy consumption and make the most of natural resources, drawing in families and individuals eager for a greener lifestyle. The rapid sell-out of these projects shows a strong demand for sustainable housing options.
Osaka's commitment to sustainability is not just about buildings; it's a city-wide effort that includes promoting local energy production and consumption. This holistic approach is attracting buyers who are not only interested in eco-friendly homes but also in being part of a community that values environmental responsibility.
For those looking to invest in property, Osaka offers a unique blend of modern living and sustainability, making it a top choice for eco-conscious buyers. The city's dedication to green development is evident in its policies and projects, setting a benchmark for other cities to follow.
Sources: JLL Research, Osaka City Government, Global Times
10) Osaka’s booming tech scene draws young professionals looking for homes
Osaka's tech industry is booming, with average salaries hitting ¥9 million annually, making it a magnet for young professionals.
The Osaka Innovation Hub (OIH) is a key player in this growth, offering resources like networking events and mentorship to support startups. This creates a lively tech scene where new ideas thrive.
Osaka's government is also in on the action, pushing initiatives like the "5G X LAB OSAKA" to cement the city as a tech hub. These efforts are drawing more companies and professionals to the area.
Young professionals are flocking to Osaka, attracted by the high-paying jobs and vibrant community. The city's tech-friendly environment is a big draw for those looking to advance their careers.
With a strong job market and supportive infrastructure, Osaka is becoming a top choice for tech-savvy individuals. The city's commitment to innovation is evident in its growing number of tech startups.
Osaka's tech industry is not just about jobs; it's about creating a community where innovation and entrepreneurship can flourish. This makes it an exciting place to live and work.
Sources: City of Osaka, Nucamp, TechShake
11) Osaka’s strong manufacturing sector ensures a stable job market
Osaka's manufacturing sector is a key player in maintaining a stable job market.
In 2023, manufacturing made up about 15% of all jobs in Japan, showing its vital role in the domestic labor market. Even as the economy leans more towards services, manufacturing still holds a significant place in employment.
By May 2024, the female employment rate in Japan hit 73.7%, reflecting a steady and growing workforce in manufacturing. This boost in jobs is backed by a rise in manufacturing production, which saw a 1.60% increase in October 2024 compared to the previous year.
Osaka's manufacturing sector isn't just about local jobs; it's also about export growth. In September 2024, exports reached ¥1.11 trillion, with major contributions from Memory Integrated Circuits and Electronic printed circuits, which help keep the sector stable and expanding.
These exports are crucial, as they not only support the local economy but also strengthen Osaka's position in the global market. The city's strong manufacturing sector supports a stable job market.
For anyone considering buying property in Osaka, this robust manufacturing base means a reliable economic environment, which is always a good sign for property investment.
Sources: METI, OEC World, OECD Employment Outlook
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12) Osaka’s cultural festivals draw visitors, boosting the rental market
Osaka's cultural festivals are a huge attraction, boosting the city's rental markets.
Take the Tenjin Matsuri, for example, with its lively boat parades and fireworks, it draws in both locals and tourists from around the world. In 2024, Osaka saw 14 million foreign visitors, a 10% increase from 2019, thanks to these vibrant events. This influx of tourists is a boon for the short-term rental market, as many seek places to stay while soaking up the city's cultural vibe.
Short-term rentals in Osaka are already popular, with properties booked for an average of 285 nights a year. The median occupancy rate stands at 78%, but during festivals like Tenjin Matsuri and Semba Festival, these numbers climb even higher. The demand for temporary housing spikes as visitors flock to the city, eager to be part of the festivities.
For property investors, this means a golden opportunity. Festival periods see a surge in rental prices, making it a lucrative time for those in the rental business. The city's cultural calendar is packed, ensuring a steady stream of visitors throughout the year.
Osaka's festivals don't just bring in tourists; they also create a vibrant atmosphere that enhances the city's appeal. These events are deeply rooted in local tradition, offering a unique experience that can't be found elsewhere. This cultural richness is a key factor in attracting both short-term and long-term renters.
Investing in Osaka's property market means tapping into a dynamic environment where culture and commerce thrive together. The city's festivals are a testament to its lively spirit, drawing people in and supporting a robust rental market.
Sources: Magical Trip, Airbtics, Japan News
13) The 2025 World Expo will boost Osaka’s global profile and infrastructure
The 2025 World Expo in Osaka is gearing up to put the city on the global map with a bang.
Japan is pulling out all the stops with a massive investment of 9.7 trillion yen in infrastructure. This includes a hefty 839 billion yen just for the expo venue and another 164.7 billion yen for construction. These upgrades are set to make Osaka more inviting and easier to navigate for international guests.
Expecting a crowd of 28.2 million visitors, with 3.5 million flying in from abroad, the Expo is a big deal for Osaka. This surge in tourists will not only shine a spotlight on the city but also give the local economy a nice boost. The theme, "Designing Future Society for Our Lives," is a nod to Japan's tech-savvy reputation, likely drawing in global business and investments.
Osaka's public transport is getting a facelift too, with the Osaka Metro Chuo Line extension making it a breeze to reach the Expo. These transport upgrades, along with other urban projects, are set to bolster Osaka's growth and international profile.
With all these developments, Osaka is not just preparing for a one-time event but is setting the stage for long-term benefits. The Expo is a catalyst for change, promising to transform the city into a more connected and globally recognized hub.
As the city gears up for this grand event, the anticipation is palpable. The Expo is more than just a showcase; it's a stepping stone for Osaka's future.
Sources: Mainichi, Malque Journal, Japan Go, InPark Magazine
14) With many students coming to Osaka for university, you’ll find a steady demand for rental properties
Osaka's universities are a magnet for students, creating a steady demand for accommodation.
With over 13,000 undergraduates and 4,000 graduates at Osaka University in 2023, and Kansai Gaidai University hosting over 11,000 students in 2024, there's a constant search for housing. These numbers highlight the bustling student life in Osaka, where finding a place to live is a top priority for many.
International students are a big part of this picture. Japan saw a 20% rise in international students in 2023, with Kansai Gaidai University alone welcoming about 900 from overseas each year. This influx means more student housing is needed, especially in a city like Osaka that attracts students from all over the world.
Osaka's real estate market is tight, with low vacancy rates in student areas. Many students prefer living off-campus, which adds to the housing demand. The Japanese government is also pushing to increase international student numbers, further fueling this trend.
For those considering buying property in Osaka, this steady demand for student accommodation is a key factor. The city's vibrant student population and the government's educational initiatives ensure a constant need for housing, making it an attractive market for potential buyers.
Sources: Osaka University Student Numbers, International Students in Japan, Vacancy Rates in Osaka
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Osaka’s festivals, such as Tenjin Matsuri, attract big crowds every year
Osaka's Tenjin Matsuri is a major draw, attracting over a million people each year.
With its thousand-year-old tradition, the festival offers a vibrant mix of cultural performances, fireworks, and processions both on land and water. This lively atmosphere is a magnet for visitors, making it one of the most anticipated events in the city.
During the festival, hotel bookings in Osaka skyrocket, reflecting the massive influx of tourists. This surge is a testament to the city's allure during festival seasons, as people from around the globe flock to experience its unique charm.
The economic benefits are substantial, with local businesses and vendors seeing a significant boost in revenue. The festival's popularity not only supports the local economy but also enhances Osaka's reputation as a top tourist destination.
Extensive media coverage and international recognition further amplify the festival's appeal. Social media buzz, with trending hashtags, highlights the widespread interest and engagement from audiences worldwide.
Osaka's vibrant festivals, like Tenjin Matsuri, are a testament to the city's rich cultural heritage and its ability to draw large crowds annually. The city's festivals, like Tenjin Matsuri, draw large crowds annually.
Sources: Rakuten Travel, Japan Travel
16) Osaka’s low crime rate makes it appealing for families and investors alike
Osaka is a top choice for families and investors because of its remarkably low crime rate.
In 2024, Osaka saw a 25% drop in its murder rate from the previous year, making it even safer. Other crimes like rape and burglary also fell significantly, by 24.4% and 19.8% respectively. This trend boosts confidence among residents and those looking to invest.
Families are flocking to Osaka, drawn by its reputation for safety. They believe it's a secure place to raise children, and this is backed by high family satisfaction rates. The city's environment is seen as ideal for family life.
For real estate investors, Osaka's low crime rate is a big plus. Safer neighborhoods often mean higher rental yields and stable property values. This makes these areas particularly attractive for investment, as demand for housing remains strong.
Osaka's image as a safe city is frequently highlighted in the media, which only adds to its allure. Government efforts to reduce crime have been effective, further boosting public confidence and making the city even more appealing.
Sources: Redbook, NYC.gov, National Police Agency of Japan
17) Osaka’s food culture attracts many, boosting hospitality investment opportunities
Osaka is a food lover's paradise, drawing culinary enthusiasts from all corners of the globe.
In 2024, the bustling street food hubs like Dotonbori and Tenma became hotspots for international tourists, earning Osaka the title of Japan’s culinary capital. This surge in food tourism has naturally led to a boom in the hospitality sector, with hotels and short-term rentals enjoying high occupancy rates.
Osaka's culinary prowess is further underscored by its growing number of Michelin-starred restaurants, gaining acclaim both at home and abroad. This not only boosts the city's reputation but also attracts more culinary tourists eager to savor top-notch dining experiences.
The city also hosts vibrant food events, like the Japanese Food Festival at Hanahaku Memorial Park in 2025, showcasing Osaka's diverse culinary offerings and drawing global attention. These events highlight the city's rich food culture and contribute to its allure as a must-visit destination for foodies.
Moreover, the expansion of culinary schools such as the Tsujicho Culinary Institute reflects a growing interest in culinary education, preparing the next generation of chefs and supporting the local food scene. This educational growth adds to Osaka's charm as a top spot for food enthusiasts.
All these elements have led to increased hospitality investments, with new hotels and dining spots popping up to cater to the rising number of visitors, further cementing Osaka's status as a culinary hub.
Sources: Drift Travel, Japan Airlines, Study in Japan, Osaka Food Tours, Spa Executive
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.