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What will happen in Osaka’s real estate market? Will prices go up or down? Is Osaka still a hotspot for foreign investors? How is Japan’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with real estate agents, property developers, and clients who buy properties in Osaka, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) More foreign buyers will seek properties in Osaka Bay for its global appeal and growth potential
Foreign buyers are increasingly eyeing properties in the Osaka Bay area because of its global charm and growth potential.
In the first half of 2023, real estate investment in Osaka saw a 52% jump compared to the previous year. This surge shows that foreign investors are really starting to notice Osaka's appeal. The city even ranked as the 10th most liveable city in the Economist Intelligence Unit's 2023 Global Liveability Ranking, which makes it even more attractive to international visitors.
Osaka's government is working hard to make the city a global business hub. They've labeled Osaka as a "Global Startup City" and set up the "Global Finance One-Stop Support Center" to draw in foreign companies and startups. These moves are boosting Osaka's image as a competitive financial hub, catching the eye of international investors.
Big infrastructure projects are also in the works, like the Osaka-Kansai World Expo 2025, which is expected to bring in international investment. The expo has a hefty budget for venue construction and related expenses, showing off the area's development potential. Plus, the new Umekita Area Underground Platform at JR Osaka Station, completed in 2023, has improved transport links, making it easier for international investors to get around.
Osaka's strategic location and ongoing developments are making it a hot spot for foreign buyers. The city's efforts to enhance its global business environment and improve infrastructure are paying off, attracting more international attention.
Sources: Travesia, Property Access, Osaka Prefecture
2) Osaka’s property prices will keep rising due to urban development and better infrastructure
Osaka's residential property prices are on the rise, driven by urban development and infrastructure improvements.
Take the Umekita redevelopment project, for example. It's turning the area around JR Osaka Station into a lively spot with parks, shops, and luxury hotels. This isn't just about making the place look nice; it's also about boosting access to Kansai International Airport, which is a big deal for the region's growth.
Then there's the Naniwasuji Line, an underground rail line set to open in 2031. This line will cut through central Osaka, reducing travel time to Kansai International Airport and making the city more accessible. With better transportation, more people will want to live in these well-connected areas, pushing up demand for homes.
Osaka's real estate market is also catching the eye of foreign investors. They're interested in prime spots and luxury apartments, thanks to high rental yields and potential value appreciation. This foreign investment is adding to the mix, making the market even more dynamic.
All these factors—urban development, improved infrastructure, and foreign investment—are creating a perfect storm for rising property prices. It's not just about the buildings; it's about the lifestyle and connectivity that come with them.
So, if you're thinking about buying property in Osaka, know that the city's ongoing transformation is a key driver of its real estate market. The changes happening now are setting the stage for future growth.
Sources: Axross JP, Kyodo News, Savills Asia
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.
3) Foreign investors will show more interest in luxury properties in Kita Ward due to its prime location
Kita Ward in Osaka is catching the eye of foreign investors looking for luxury properties.
One big reason is that property prices in Kita Ward are climbing, especially in the luxury market. Developments like the Grand Green Osaka are selling at high prices, which shows there's a strong demand for upscale living spaces. This area is becoming a go-to spot for those who want a slice of luxury in a bustling city.
Foreign investors are increasingly interested in Osaka's real estate, snapping up residential portfolios that include properties in Kita Ward. This trend is getting a boost from government initiatives, like the proposed Financial and Asset Management Special Zone, which aims to attract overseas investment funds and companies. These efforts are making Osaka, and particularly Kita Ward, a more attractive option for international buyers.
Luxury property developments are popping up all over Kita Ward. Projects like the Mita Garden Hills, which is set to be completed in 2025, are expected to draw a lot of attention. The area's proximity to major business districts and transportation hubs, such as Osaka Station, makes it a prime location for luxury properties. This convenience is a big draw for those looking to invest in high-end real estate.
For those considering a property purchase in Japan, Kita Ward offers a unique blend of luxury and location. The area's development boom and rising property values make it a promising investment. With its strategic location and government support, Kita Ward is poised to become a top choice for foreign investors seeking luxury properties.
Sources: Savills Asia, Savills Asia, Axross Japan
4) Interest from foreign buyers in Namba will grow because of its lively nightlife and cultural attractions
Foreign buyers are increasingly drawn to the Namba area for its vibrant lifestyle and cultural attractions.
In recent years, Osaka has become a hotspot for international property investors, with property prices on the rise. This trend is particularly evident in Namba, where the bustling streets and lively atmosphere make it a prime location for both residential and commercial investments.
Namba's appeal is further boosted by its status as a major tourist hub, attracting 15.6 million international tourists in 2023. This influx of visitors, surpassing pre-pandemic numbers, underscores the area's enduring charm. The lively nightlife and cultural spots like Denden Town and Kuromon Ichiba market are not just tourist attractions but also key reasons why potential property buyers are interested.
Media outlets often spotlight Namba's unique mix of culture and entertainment, which enhances its allure to foreign investors. The increase in international flights to Osaka has made it more accessible, encouraging more visitors to explore and consider investing in the area. This ease of access is a significant factor in the growing interest from abroad.
New venues continue to pop up in Namba, adding to its vibrant scene. This constant evolution keeps the area fresh and exciting, making it a desirable location for those looking to invest in property. The combination of cultural richness and modern entertainment options makes Namba a standout choice.
For those considering a property purchase, Namba offers a unique blend of traditional and contemporary attractions. The area's dynamic environment and strong international appeal make it a compelling option for foreign buyers looking to invest in Japan.
Sources: Road Genius, Japan Travel, Japan Property
5) Rents in Shin-Osaka will rise moderately as it becomes a major transportation hub
The Shin-Osaka area is rapidly becoming a key transportation hub in Japan.
Every day, the Shinkansen services at Shin-Osaka Station handle a staggering 432,000 passengers, which naturally boosts the demand for nearby housing and commercial spaces. This bustling activity is a magnet for both residents and businesses looking to capitalize on the area's connectivity.
Government investments are also playing a big role. The urban redevelopment project near Osaka's main hub, Umekita, is not just about creating a lush park and luxury hotels. It's about improving access to Kansai International Airport and linking it to the broader growth of the Kansai region. Such investments typically lead to increased property values and rents, making the area more attractive for potential buyers.
Property development is on the rise, with projects like Umekita offering green spaces and cultural facilities. The unveiling of luxury hotels and event venues is set to attract more residents and businesses, further driving up rents. This development is a clear sign that the area is becoming a hotspot for both living and commerce.
New business establishments are flocking to the area. For instance, Honda's new software development center and Kubota's head office relocation signal a surge in commercial activities. These businesses will need housing for their employees, contributing to the increased demand for rental properties.
As Shin-Osaka continues to evolve, it's clear that the area is on the brink of a moderate increase in rents, driven by its strategic position as a transportation hub and the influx of new developments.
Sources: Nippon.com, Kyodo News
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6) Property prices in northern districts will rise steadily due to better transportation links
Property prices in Osaka's northern districts are on the rise thanks to better transportation links.
In 2023 and 2024, the Japanese government poured funds into Osaka's infrastructure, gearing up for the 2025 World Exposition. One standout project is the Osaka Metro Chuo Line extension to Yumeshima Station, which is making the area more attractive and accessible. This has led to a surge in residents and commuters, naturally driving up property prices.
Real estate experts are buzzing about areas like Umeda, where new transport links are expected to cause significant price hikes. The media is also spotlighting projects like the "Osaka Diamond Routes" by SkyDrive and Osaka Metro, which are strategically enhancing mobility in key areas.
With the rise of hybrid workspaces, there's a growing demand for homes near business districts, including northern Osaka. This shift is another factor pushing property prices higher. The strategic selection of areas for improved transportation is a game-changer for property values.
As more people seek convenience and connectivity, the northern districts are becoming hot spots for potential buyers. The increased demand for residential properties near business hubs is a clear indicator of this trend.
Sources: Mainichi, E-Housing, Business Wire
7) Rental yields in the central business district will stay stable due to strong demand
Yields in Osaka's central business district are expected to stay stable thanks to strong rental demand.
Osaka's rental market is buzzing, driven by domestic interest and excitement around the Kansai Expo. This has sparked a need for office space, which keeps the rental market thriving. Real Estate Asia
Even with new properties popping up, the vacancy rate dropped to 3.8% in Q3 2024. This shows that people are snapping up new, high-quality, and affordable spaces, helping to keep yields steady. JLL Research
Rental prices are on the rise, with the average monthly gross rent per tsubo up by 1.1% from last quarter and 1.8% from last year. This increase, especially in budget-friendly buildings, highlights the strong demand and supports stable yields. JLL Research
Osaka's central business district is a hot spot, with corporate interest fueling the rental market. The Kansai Expo is a big draw, bringing in businesses and boosting the need for office space. Real Estate Asia
Despite new buildings, the vacancy rate is surprisingly low, showing that the market is absorbing new spaces quickly. This trend is a good sign for those looking to invest in rental properties. JLL Research
Sources: Real Estate Asia, JLL Research
8) Eco-friendly residential building development in Osaka will grow due to new regulations
In Osaka, new regulations are pushing for eco-friendly residential buildings.
The Japanese government is backing this green shift with subsidies and incentives for energy-efficient homes. This support is making it easier for developers to embrace sustainable designs and smart technologies. As a result, the environment for green building projects is becoming increasingly favorable.
Japan's smart home market is on the rise, with projections showing growth from $5.67 billion in 2023 to $9.00 billion by 2029. This boom is fueled by a strong consumer interest in sustainable living spaces, thanks to technological advancements. Companies like ITOCHU are also jumping on board, launching recycling businesses to boost the use of eco-friendly building materials.
In Osaka, there's a noticeable uptick in eco-friendly residential projects. Tech-equipped apartments with smart home features and sustainable designs are in demand. Major real estate developers are on board, aiming to cut CO₂ emissions significantly by 2030. This aligns with Japan's broader goal of achieving carbon neutrality by 2050.
Starting in 2025, new buildings in Japan will need to meet mandatory energy conservation standards. This is part of the government's ambitious plan to reduce carbon emissions. Such measures are expected to further boost the development of eco-friendly residential buildings in Osaka.
For potential property buyers, this means Osaka is becoming a hub for sustainable living. The city's commitment to green building projects offers a unique opportunity to invest in homes that are not only tech-savvy but also environmentally responsible.
Sources: Energy in Demand, ITOCHU, E-Housing, Baker McKenzie Resource Hub
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.
9) Property values near Osaka Castle will rise as it becomes a hub for tourism and cultural events
Osaka is buzzing with excitement as 15.6 million international visitors flocked to the city in 2023, surpassing pre-pandemic numbers.
With the upcoming EXPO 2025, Osaka is gearing up to become a cultural hotspot. Major investments are pouring into infrastructure, like the Kansai International Airport renovation and the Osaka Metro extension, which are set to boost the charm of the Osaka Castle area.
Osaka Castle, a historical gem, is seeing more foot traffic thanks to this tourism boom. Increased visitor numbers are turning the area into a prime spot for both tourists and investors.
The real estate scene in Osaka is heating up, with a noticeable uptick in hotel transactions and foreign investments. Tourism-related projects are driving this surge, especially around tourist-heavy zones like Osaka Castle.
As Osaka positions itself as a top destination for culture and tourism, property values in key areas are expected to climb. The Osaka Castle vicinity is particularly poised for growth.
Investors are eyeing Osaka Castle's neighborhood, anticipating that its cultural significance will fuel property demand. The area is becoming a focal point for those looking to capitalize on the city's rising popularity.
Sources: Road Genius, The Sun, Jones Lang LaSalle
10) Property values in Suminoe Ward will drop as industrial activities remain prevalent
In Suminoe Ward, property values are declining as industrial activities take over the landscape.
Residential property sales in Osaka have been dropping, with land sales down by 13.8% in 2023, following a smaller decline in 2022. This trend shows that people are losing interest in buying homes here, as the area becomes more industrialized.
Osaka's zoning changes, especially those from 1968 and 1992, have favored industrial growth. These changes were meant to control urban sprawl but ended up boosting industrial development at the cost of residential spaces. Media reports often highlight the economic benefits of this industrial expansion, but they also note the negative impact on the environment and living conditions.
Pollution is another big issue. With rising emissions from vehicles and factories, air quality in Osaka is worsening, particularly in spring and summer. This environmental decline makes the area less attractive to potential homebuyers, further pushing down property values.
Infrastructure developments in Suminoe Ward seem to cater more to industrial needs than to residential ones. Roads and facilities are being built to support factories, not homes, which reinforces the idea that Suminoe Ward is becoming more industrial-centric.
For those considering buying property in the area, it's crucial to understand that the focus is shifting towards industry. This shift is not just about economic growth; it also means fewer residential amenities and a less appealing living environment.
Sources: Global Property Guide, Urban Science, Frontiers in Environmental Science, SCEWC Japan Pavilion Guidebook
11) Interest in traditional Japanese houses will decrease as modern living becomes more popular
In Osaka, there's a noticeable shift from traditional Japanese houses to modern living spaces.
People are increasingly drawn to modern apartments and condos, with rental housing starts jumping to about 60% in 2022, up from less than 50% a decade ago. This trend highlights a growing preference for contemporary housing options that cater to modern lifestyles.
Smart home technology is another big draw. The Japanese smart home market is booming, with projections showing it could grow from $5.67 billion in 2023 to $9.00 billion by 2029. This surge indicates a strong desire for homes that come with the latest tech, something traditional houses often can't offer.
Social media and other media outlets are also pushing the appeal of modern living spaces. They frequently highlight the benefits of these homes, such as convenience and sustainability, making them especially attractive to younger generations who value energy efficiency and smart home features.
For many, the allure of modern living is about more than just aesthetics; it's about functionality and future-proofing. Younger buyers are particularly interested in homes that offer energy efficiency and smart home features, aligning with their tech-savvy lifestyles.
Sources: Atlas of Urban Expansion, Savills Asia, First Step Japan, E-Housing Japan
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12) Demand for senior-friendly housing and retirement communities in Osaka will grow as the population ages
Osaka is experiencing a notable rise in its aging population.
In 2022, 2.43 million people aged 65 and over lived in Osaka Prefecture, a sharp increase from 2000. This trend is expected to continue, with projections showing that by 2025, 17.3% of the population will be 75 or older. By 2035, 8.3% will be 85 or older, highlighting the growing need for senior-friendly housing.
As life expectancy in Japan increases, older adults are looking for living arrangements that offer community support and healthcare services. This shift is likely to boost demand for specialized senior housing in Osaka, where amenities are tailored to meet the needs of the elderly.
The Osaka Prefectural Government is already on it, planning to ensure a stable supply of housing for seniors. They're developing retirement communities like Sun City Takatsuki, which offer various living options and blend modern design with traditional Japanese culture.
These communities are not just about housing; they provide a lifestyle that includes healthcare and social activities, making them attractive to the aging population. The focus is on creating environments where seniors can thrive, with easy access to necessary services.
With the aging trend continuing, investing in senior-friendly properties in Osaka could be a smart move. The demand for such housing is only expected to grow, driven by the increasing number of older adults seeking comfortable and supportive living arrangements.
Sources: Osaka Prefectural Government, Statista, Perkins Eastman
13) Young professionals will increasingly seek properties with shared amenities like co-working spaces
Young professionals are increasingly seeking flexible work arrangements as they become more common.
In Japan, by the end of 2023, over 66% of companies had embraced remote work, a trend that continued into 2024. This shift is largely driven by young professionals who crave a better work-life balance and the convenience that comes with it.
Remote work is becoming the norm, with more than 30.7% of Japanese workers regularly working from home in 2023. This figure was expected to rise to 34.9% by 2024, making properties with shared amenities, like co-working spaces, increasingly attractive to those who value flexibility.
Co-living and co-working spaces are booming in urban areas. By the end of 2024, the number of coworking spaces worldwide was projected to hit 41,975. These spaces are popular among Millennials and Gen Z, who appreciate the community vibe and networking opportunities they offer.
Young professionals are drawn to properties that provide shared amenities, as they offer a sense of belonging and a chance to connect with like-minded individuals. These spaces cater to a wide range of industries, providing flexible work environments that align with modern work preferences.
As remote work continues to rise, properties with shared amenities will become even more appealing to young professionals looking for convenience and community.
Sources: Jelper, AllWork.Space, Coworking Resources
14) Demand for homes with office spaces will grow as remote work becomes more common
Remote work has become a major trend in recent years, especially in places like Osaka.
In 2023, many people in Japan found themselves working from home at least once a week. This shift has changed what folks want in a home. Comfortable and productive workspaces are now a top priority for those setting up shop at home. People are buying more home office furniture, focusing on ergonomic and user-friendly designs.
Homes with flexible layouts that can easily turn into office spaces are in high demand. Consumer surveys from 2023 show this trend clearly. In Osaka, real estate listings are now highlighting dedicated office spaces as a key feature. This change is also seen in the rise of home renovation projects aimed at creating functional home offices.
The media has been buzzing about this shift, and internet searches for home office design ideas have surged. This shows a strong interest in blending workspaces into living environments. Osaka's real estate market is adapting to these new needs, with more homes offering spaces that cater to remote work.
As people continue to work from home, the demand for homes with dedicated office spaces is expected to grow. This trend is not just about having a desk and chair; it's about creating a space that supports productivity and comfort. Homebuyers are looking for places that offer more than just a roof over their heads.
Sources: Statista, Mordor Intelligence, The McLemore Group, MailMate
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.
15) Tech-savvy buyers will be drawn to virtual reality tours as a standard tool for property viewings
Virtual reality tours are becoming a must-have for property viewings, especially for those who love tech.
Back in 2023 and 2024, over half of adults had already tried a virtual tour, and a whopping 67% of home buyers wanted them when checking out listings. This isn't surprising since virtual tours are way more engaging, boosting interaction by over 300% compared to regular photos.
In Osaka, real estate agencies are jumping on the VR bandwagon to get ahead in the game. Take Cushman & Wakefield Japan, for example—they started using Matterport’s 3D tool to spice up their property marketing. This move shows how real estate companies are using VR to catch the eye of potential buyers.
Surveys from that time showed that 67% of home buyers preferred virtual tours over just looking at pictures. More than half wouldn't even think about a property if it didn't have a virtual tour. This highlights the growing need for immersive experiences among tech enthusiasts.
For those looking to buy property, virtual tours offer a chance to explore homes from anywhere, making it easier to narrow down choices without stepping outside. This tech-savvy approach is not just a trend; it's becoming the norm in real estate.
As VR technology continues to evolve, expect even more interactive and detailed tours that will make property hunting a breeze. The future of real estate is here, and it's virtual.
Sources: Matterport News Release, PhotoUp
16) New homes in Osaka will commonly include smart home technology as a standard feature
Smart home technology is becoming a must-have in Japan, especially in cities like Osaka.
In Japan, the smart home market is on a roll, with projections showing growth from $5.67 billion in 2023 to $9.00 billion by 2029. This boom is largely due to the increasing popularity of smart devices that make life easier and more efficient. People are really catching on to the convenience these technologies offer.
More than 70% of home buyers are now looking for properties equipped with smart home features. This trend is driven by the desire for convenience, time savings, and enhanced security. In Japan, there's a particular focus on creating safe and secure environments, which is especially important for the elderly population.
The Japanese government is playing a big role in this shift by offering incentives and subsidies to promote smart home technology. They've even set the ECHONET Lite protocol as a standard for smart home equipment, making it easier for developers to integrate these technologies into new homes.
In Osaka, smart home features are becoming a standard in new residential developments. This city is known for its forward-thinking approach, and developers are keen to meet the growing demand for smart living solutions. It's not just about luxury; it's about creating homes that are efficient and secure.
As more people in Japan embrace smart home technology, it's clear that this trend is here to stay. The combination of government support, consumer demand, and technological advancements is making smart homes a staple in the housing market.
Sources: e-housing.jp, GlobeNewswire, Exploding Topics, GlobeNewswire
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.