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
What do the latest numbers reveal about Osaka’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Osaka, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Foreign nationals made up 18% of Osaka’s luxury property transactions in 2024
In 2024, Osaka's real estate market experienced a remarkable surge, with foreign nationals accounting for 18% of luxury property transactions.
This trend was part of a larger movement, as foreign investors showed keen interest in Osaka's diverse real estate offerings. Beyond luxury homes, they were drawn to hotels, logistics, office spaces, retail, and rental housing, making Osaka a hotspot for international investment.
Osaka's appeal wasn't just limited to luxury properties. The city played a significant role in Japan's real estate scene, contributing nearly 18% to the nation's total transactions in 2024. This highlights its importance as a key player in the country's property market.
The groundwork for this boom was laid in the first half of 2023, when real estate investment in the Osaka metropolitan area jumped by 52%. This surge set the stage for the increased activity and interest from foreign buyers the following year.
Osaka's vibrant market and strategic location made it an attractive destination for investors looking to diversify their portfolios. The city's infrastructure and economic growth potential were significant draws.
With such a dynamic market, Osaka continues to be a focal point for both domestic and international investors, offering a range of opportunities across various sectors.
Source: Enmone.jp
2) Land prices in Osaka’s popular districts increased by 5-7% in 2024 due to high demand
In 2024, land prices in Osaka's popular districts rose by 5-7% due to high demand.
Osaka's appeal skyrocketed thanks to major development projects like the Osaka Bay area and Yumeshima Island. These initiatives, coupled with Osaka's successful bid to host the World Expo 2025, are drawing in businesses and residents, boosting property values.
Infrastructure improvements, such as the expansion of the Osaka Metro network, have made the city more connected. Areas that were once hard to reach are now more accessible, making them attractive to potential buyers and investors.
Government efforts in urban regeneration and sustainable development have also made Osaka's real estate market more appealing. These initiatives are transforming the city into a more desirable place to live and work.
Osaka is gaining a reputation as a tech and innovation hub, attracting startups and tech companies. This influx is increasing the demand for office and residential spaces, particularly in central districts.
With these factors in play, it's no surprise that land prices are climbing in Osaka's sought-after areas. The city's blend of development, connectivity, and innovation is creating a perfect storm for real estate growth.
Sources: Enmone, Jutaku Johokan
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.
3) Rental yields for residential properties in Osaka stayed stable at 4-6% in 2024
The rental yields for residential properties in Osaka remained stable at 4-6% in 2024.
One reason for this stability is the consistent demand for budget properties, especially from students. With universities like Osaka University seeing more enrollments, students are actively seeking affordable housing, which helps keep rental yields steady.
Urban development projects, such as the Yumeshima Island project and the expansion of the Osaka Metro network, are also key contributors. These projects are expected to boost property values, which in turn supports stable rental yields.
Furthermore, the Osaka real estate market saw a 52% rise in transactions during the first half of 2023. This surge in investment indicates a dynamic market, attracting a wide range of investors and contributing to the stability of rental yields.
These factors combined create a favorable environment for property investment in Osaka, making it an attractive option for potential buyers. The city's ongoing developments and strong demand for housing ensure that rental yields remain stable.
Sources: Global Property Guide, JLL
4) Residential property prices near Osaka’s shopping and entertainment districts grew by 5-6% in 2024
In 2024, residential properties near Osaka's shopping and entertainment districts saw a price growth of 5-6%.
This uptick is part of a broader recovery in the real estate market across the Kinki region, including Osaka. A YouTube video by Tamaki highlights that the condominium market recorded 1,510 transactions in November 2024, marking an 11% increase from the previous year. This surge reflects a strong demand, especially in bustling areas like shopping and entertainment districts.
While the video didn't specifically mention the 5-6% growth for these districts, it did point out that some areas in Osaka are experiencing double-digit price growth. This shows their strong appeal to buyers, making them hot spots for real estate investment.
The average contract price per square meter was about $2,900, maintaining a positive trend for 17 months. This consistency indicates a stable market, even with a slight dip from October.
These figures suggest that Osaka's vibrant districts are not just popular for their lifestyle offerings but are also becoming increasingly attractive for property buyers. The ongoing demand in these areas is a testament to their enduring appeal.
For anyone considering buying property in Osaka, these statistics highlight the potential for investment growth, especially in areas with strong market activity.
Source: YouTube
5) The average price per square meter for homes in Osaka rose by 4-6% in 2024
The average price per square meter for residential properties in Osaka increased by 4-6% in 2024.
Over the past decade, Osaka's real estate market has been on a remarkable journey. According to the Real Estate Economic Research Institute, from 2013 to 2022, prices for new and used apartments in Osaka soared by about 164%. This surge highlights a strong and consistent demand for homes in the area.
Adding to this, the Ministry of Land, Infrastructure, Transport and Tourism reported a 1.6% rise in residential land prices in Osaka. This steady climb suggests that the city remains a stable and attractive spot for real estate investments, which naturally pushes property prices upward.
In November 2024, the condominium market in Osaka was buzzing with activity. There was a notable increase in transactions and new listings, showing a healthy balance between supply and demand. This dynamic is a key factor in the ongoing price rise.
For those considering buying property in Osaka, these trends paint a picture of a vibrant and growing market. The consistent demand and stable land prices make it a compelling option for investment.
With such a robust market, potential buyers can expect a lively real estate scene, where opportunities are ripe for the taking. The data clearly shows that Osaka is not just a place to live but a promising investment destination.
Sources: Real Estate Economic Research Institute, Ministry of Land, Infrastructure, Transport and Tourism
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6) In 2024, Osaka’s real estate market made up nearly 18% of Japan’s total transactions
In 2024, Osaka's real estate market accounted for nearly 18% of Japan's total transactions.
This surge was fueled by a 52% rise in real estate investment in the Osaka metropolitan area during the first half of 2023. Such a significant boost naturally led to more transactions, making the market a hotbed of activity.
Osaka's market wasn't just busy; it was also incredibly diverse. The hotel sector was the star, attracting the most investment, followed by logistics, office spaces, retail, and rental housing. This variety showed that Osaka's market was robust and dynamic, appealing to a wide range of investors.
In the broader Kinki region, which includes Osaka, there were 1,510 transactions recorded in November 2024. This marked an 11% increase from the previous year and was 4.5% higher than pre-pandemic levels in 2019, highlighting a strong recovery.
Such growth in transaction volumes underscored the region's active market activity. Investors were clearly drawn to the opportunities in Osaka, making it a focal point for real estate in Japan.
With its bustling market and diverse investment opportunities, Osaka continues to be a key player in Japan's real estate landscape.
Sources: PropertyAccess Philippines, YouTube
7) Airbnb-style rentals now make up nearly 10% of Osaka’s rental market
Airbnb-style rentals now make up nearly 10% of Osaka's rental market.
By September 2024, the number of active Airbnb listings in Osaka had climbed to 9,505, with hosts earning an average of JPY3 million annually. This financial incentive is a major draw for property owners, fueling the growth of short-term rentals.
In districts like Nishinari Ku, listings have surged by 73%, while Chuo Ku boasts a high rental demand score of 94. These areas are hotspots for tourists, making them prime locations for Airbnb-style properties.
Such growth in these districts underscores the popularity and profitability of short-term rentals in Osaka. Tourists flock to these areas, ensuring a steady demand for accommodations.
For property owners, this trend offers a lucrative opportunity to tap into the thriving tourism market. The consistent demand in these districts makes them attractive for investment.
Sources: Airbtics, Maidorealestate, Maidorealestate
8) Newly built condos in Osaka sold for ¥900,000 to ¥1,200,000 per square meter in 2024
In 2024, newly constructed condominiums in Osaka sold for an average of ¥900,000 to ¥1,200,000 per square meter.
Prices varied across districts, with Fukushima district hitting a high of ¥200,000 per square meter. This was a remarkable jump of 213.3% from the previous year, showing how some areas can see dramatic price shifts.
Osaka's real estate market is on the rise, thanks to several key developments. The Osaka Bay area is undergoing significant transformation, attracting more buyers and investors.
Another factor boosting demand is the upcoming World Expo 2025, which is expected to draw international attention and investment to the city.
Government initiatives are also playing a role. Efforts to revitalize urban areas are making Osaka more appealing to potential property buyers.
These elements combined are driving up condominium prices, making Osaka a hot spot for real estate investment.
Sources: LIFULL News, LIFULL Document
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.
9) Osaka’s residential real estate market is expected to grow by 8-10% in 2025
In 2025, Osaka's residential real estate market is projected to grow by 8-10%.
This surge is fueled by the upcoming Osaka-Kansai Expo, which will attract a large number of visitors, boosting the local economy and increasing demand for homes. The event is a major draw, expected to bring in both tourists and investors, eager to explore opportunities in the city.
Another factor is the development of Integrated Resorts (IRs), which are set to transform the landscape with new housing and commercial spaces. These resorts are not just about entertainment; they are catalysts for urban development, creating a ripple effect in the housing market.
Osaka is also seeing a wave of infrastructure projects, including the expansion of commercial facilities and hotels. These enhancements are making the city more appealing, encouraging more people to consider it as a place to live. The city's strategic improvements are positioning it as a vibrant hub for both residents and businesses.
Compared to Tokyo, where real estate prices are already high, Osaka offers relatively lower property prices and higher growth potential. This makes it an attractive option for investors looking for value and future returns. The city's affordability combined with its growth prospects is a compelling combination.
With these developments, Osaka is becoming a hotspot for real estate investment, offering a unique blend of opportunity and potential. The city's evolving landscape is drawing attention from both domestic and international buyers, eager to capitalize on its promising future.
Sources: Note.com, Time Office
10) In 2024, a three-bedroom apartment in Osaka’s suburbs rented for ¥100,000 to ¥130,000
In 2024, renting a three-bedroom apartment in Osaka's suburbs cost between ¥100,000 and ¥130,000.
In some areas, like Osaka's eastern districts, rents were as low as ¥89,194 to ¥106,896 per month, according to SUUMO. This shows that certain suburbs offered more affordable options, fitting the lower end of the typical range.
Meanwhile, central areas like Nakazakicho had higher rents ranging from ¥156,000 to ¥380,000. These areas are more desirable, which naturally drives up the prices compared to the suburbs.
In less central suburbs, older buildings and lower demand kept rents more affordable. This is why many suburban areas stayed within the ¥100,000 to ¥130,000 range, making them attractive for budget-conscious renters.
For those considering a move, it's important to note that the rental market in Osaka varies significantly depending on location and property type. This variation offers potential renters a range of options to fit different budgets and preferences.
Understanding these dynamics can help you make an informed decision when looking for a place to live in Osaka. Choosing the right area could mean significant savings on rent while still enjoying the benefits of suburban living.
Sources: SUUMO Data, Average Rent in Osaka, Nakatsu and Nakazakicho Areas
11) In 2024, monthly rent for a two-bedroom apartment in central Osaka ranged from ¥120,000 to ¥150,000
In 2024, the monthly rent for a two-bedroom apartment in central Osaka ranged from ¥120,000 to ¥150,000.
Central Osaka, especially areas like Umeda, is in high demand due to its proximity to major transportation hubs and amenities. This makes it a prime location for renters, as highlighted by the "Osaka Real Estate Market" guide.
The "Osaka Real Estate Prices" source provides a detailed breakdown, confirming that the average rent for a two-bedroom apartment in central Osaka fits within the ¥120,000 to ¥150,000 range. This consistency across sources strengthens the reliability of the data.
Living in central Osaka offers the convenience of being close to bustling city life, with easy access to shopping, dining, and entertainment. This lifestyle is a significant factor in the rental price range observed in the area.
For those considering a move, understanding these rental trends is crucial. The data from these sources helps potential renters make informed decisions about living in one of Japan's most vibrant cities.
Sources: Matcha JP, Apaman Shop
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.