Authored by the expert who managed and guided the team behind the Japan Property Pack
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What is happening in Osaka’s real estate market? Are prices on the rise or decline? Is Osaka still a prime destination for international investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from Namba to Umeda and beyond. Perhaps you’re curious about the same things.
We know this because we stay closely connected with local experts and individuals like you, exploring the Osaka real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
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1) Budget property yields will stay steady with ongoing student demand
In Osaka, budget properties are in high demand due to the steady influx of students seeking affordable housing.
Universities like Osaka University have seen a notable rise in student enrollment, which has been a key driver of this trend. The city is a hub for education, attracting students from all over, especially from Southeast and South Asia, who are looking for cost-effective living options.
By 2022, the number of international students in Osaka exceeded pre-pandemic levels, underscoring the ongoing need for budget-friendly housing. This surge is not just a temporary spike; it's a reflection of Osaka's growing reputation as a global educational center.
Rental prices near universities have either remained stable or experienced slight increases, which is a clear indicator of strong demand in these areas. Students are keen on living close to their campuses, making these neighborhoods particularly attractive for property investors.
Low vacancy rates in student accommodations further emphasize the consistent demand for affordable housing. This trend is a boon for property owners, ensuring steady rental income and minimal downtime between tenants.
For those considering investing in Osaka's property market, the student population provides a reliable tenant base, keeping budget property yields steady. The city's educational appeal and the influx of international students make it a promising area for real estate investment.
Sources: Savills Asia, Osaka University, Real Estate Asia
2) Suburban property prices may dip slightly as urban areas gain appeal
In Osaka, urban living is becoming increasingly popular.
Central Osaka is buzzing with life, thanks to revitalization projects like Grand Green Osaka. This initiative is not just about adding more buildings; it’s about creating a vibrant community with green spaces and commercial hubs. Such developments are making city life more appealing, drawing people away from the suburbs.
With these changes, infrastructure improvements are transforming urban areas into more desirable places to live. The Grand Green Osaka project, for instance, features a sprawling park and shopping facilities, which are big attractions for city dwellers. This shift is making suburban living less attractive as people flock to the city for its conveniences.
Young people in Osaka are leading this trend, showing a clear preference for the convenience and excitement of city life. They love the idea of having everything within reach, from work to entertainment, which is pushing up the demand for housing in central areas.
As more people move to the city, suburban areas might see a slight dip in property prices. The allure of urban living is strong, and with ongoing developments, it’s likely to stay that way.
For those considering buying property, it’s worth noting that urban areas are becoming increasingly attractive, potentially impacting the real estate market in the suburbs.
Sources: Travesia Insights, PIARC Proceedings
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) Suburban rental yields will drop as urban convenience becomes more desirable
There's a growing trend of people, especially the younger crowd, preferring the convenience of city life.
Take Osaka, for example, where the urban vibe is strong. The Midosuji Line, a major metro line, sees 1.12 million passengers daily, showing just how bustling and densely populated these areas are. This kind of environment is a magnet for those who want everything within arm's reach.
Urban rental prices are climbing, too. In Osaka's Shinsaibashi area, rents for ground-floor spaces have jumped 11.6% in just a year. Meanwhile, suburban areas aren't seeing the same action, with property values either dropping or staying flat as younger folks head to the city.
People are increasingly valuing urban perks like easy access to amenities, entertainment, and jobs. This shift is evident in Osaka's redevelopment projects, which aim to create lively, multi-use communities that cater to the needs of city dwellers.
These changes are reshaping the housing market, with urban areas becoming more attractive. The focus is on creating spaces that offer everything from shopping to dining, all within a short walk or ride.
As more people flock to cities, suburban rental yields are likely to decline, as the allure of urban convenience continues to grow.
Sources: Statista, Savills Asia, Picture Perfect Portfolios
4) Luxury apartment rents in Osaka will rise as international professionals move in
Luxury apartment rents in Osaka are on the rise as more international professionals make the city their home.
Since 2016, rents have jumped by about 8%, and despite a pandemic pause, the upward trend is back on track. This is largely due to Osaka's growing population and the increasing demand for upscale housing. The city is actively wooing international companies, especially in finance, with a subsidy program aimed at boosting innovative financial services. This strategy is drawing in more global talent, who often seek out high-end living spaces.
From 2019 to 2023, Osaka's foreign resident numbers grew by 2.9% annually. Many of these newcomers are skilled professionals in need of luxury housing. Certain areas in Osaka are seeing a notable rise in their foreign-born population, highlighting a strong preference for luxury accommodations in these neighborhoods.
As more international professionals settle in, the demand for luxury apartments is expected to keep climbing. This influx is not just about numbers; it's about the type of housing these professionals are looking for. They often prefer high-quality, well-located apartments that offer a taste of home while living abroad.
Osaka's strategy to attract foreign financial companies is paying off, bringing in a wave of professionals who contribute to the city's vibrant international community. This, in turn, fuels the demand for luxury housing, as these professionals seek comfortable and stylish living spaces.
Sources: Savills Asia, EU-Japan Centre, Real Estate Asia
5) The demand for smaller apartments will increase as single-person households rise
In cities like Osaka, single-person households are on the rise.
By 2050, over 40% of households in many areas, including Osaka, are expected to be single-person. This shift is largely due to people marrying later in life. In 2023, the average age for first-time marriages was nearly 30 for women and over 31 for men, meaning more folks are living solo for longer.
Urbanization is another big factor. As cities grow, people are choosing smaller homes, driven by both economic reasons and lifestyle choices. Living alone is becoming more common as personal space becomes a priority.
Osaka, like many urban centers, is seeing this trend because of a cultural shift towards individualism. People value their own space, and this is reflected in the housing market. Smaller apartments are in demand, catering to those who prefer living alone.
With more people opting for single living, the housing market is adapting. Developers are focusing on creating smaller, more efficient living spaces to meet this growing demand. This trend is reshaping how cities like Osaka are planned and developed.
Sources: Asian News Network, Statista, Deseret
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6) Stricter short-term rental regulations will affect investment profitability
In Osaka, short-term rental regulations are tightening, making it harder for property owners to profit from such investments.
Over the past couple of years, the local government has shifted its stance, moving from a somewhat lenient approach to enforcing stricter rules on short-term rentals. This change is driven by concerns over how these rentals affect the local housing market and the quality of life for residents. The authorities are now more actively cracking down on unlicensed properties, which means operating legally is becoming more challenging and costly for hosts.
Complaints from residents have been a major catalyst for these changes. People are worried about noise, strangers in their neighborhoods, and the impact on housing availability. Media coverage has amplified these concerns, often calling for tighter regulations to protect local communities. Studies back this up, showing that short-term rentals can worsen housing shortages and drive up costs for locals.
As a result, the number of short-term rental listings is expected to drop. Compliance with the new legal requirements is not only more demanding but also more expensive, discouraging many potential hosts. This trend is likely to continue, as the government seems committed to addressing the issues raised by residents and the media.
For anyone considering investing in a property for short-term rental in Osaka, it's crucial to be aware of these regulatory changes. The landscape is shifting, and what might have been a lucrative opportunity a few years ago is now fraught with challenges. Understanding the local sentiment and the government's stance can help in making informed decisions.
Sources: Toyokeizai, Airbtics, Wiley Online Library
7) Compact apartments will become more popular as people look for affordable urban living options
Compact apartments are gaining traction as people hunt for budget-friendly city living.
In Osaka, there's a noticeable buzz in the housing market. Property sales are outpacing those in Tokyo, hinting at a growing interest in affordable living spaces. Compact apartments fit the bill perfectly, offering a cost-effective alternative to larger homes.
Prices are on the rise, too. From 2019 to 2022, new condo prices in Osaka jumped by 13% per square meter. As these costs climb, many find larger apartments slipping out of reach, making smaller units like compact apartments more appealing.
Osaka's demographics are shifting. The city is welcoming more foreign nationals, many of whom prefer living centrally. This, coupled with the trend of smaller households and single-person living, fuels the demand for compact apartments.
These compact spaces aren't just about saving money; they're about lifestyle. Living in the heart of the city means easy access to work, entertainment, and amenities, which is a big draw for many.
Sources: Savills Asia, Axross Japan, Global Property Guide
8) Interest in traditional houses will decline as modern living preferences shift towards convenience
In Osaka, living preferences are shifting towards convenience as the city becomes more urbanized.
With a bustling population of 19.1 million, people are flocking to areas that offer modern amenities and easy access to daily necessities. This means that modern apartments and condos are in high demand because they are close to public transport and shopping hubs.
Consumer surveys highlight a strong desire for homes near train stations, which is why new developments are popping up in these areas. The focus is on meeting the needs of those who want everything within arm's reach.
Smart home technology and energy-efficient housing are also big draws. Many homes now come with advanced automation systems and energy-saving features, making them more appealing than traditional houses that lack these perks.
The real estate market is also seeing a shift in buyer demographics. Singles and smaller families are on the lookout for smaller, more convenient living spaces, which are typically found in modern apartments and condos.
Sources: Atlas of Urban Expansion, First Step Japan, Population Stat
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) Minami Ward will lose appeal as noise pollution increases
Minami Ward in Osaka is becoming less appealing due to rising noise pollution.
One major reason for this is the increase in traffic congestion. The TomTom Traffic Index shows that travel times in Osaka have gone up by 10 seconds per 10 km in 2023, which means more cars and more noise. This is a big deal for anyone considering moving to the area, as the constant hum of traffic can be quite bothersome. If you're thinking about buying property here, it's something to keep in mind.
Construction is another noise culprit. Hulic Co., Ltd.'s New Medium-Term Management Plan (2023-2025) includes several projects in Minami Ward. These projects bring in heavy machinery and long hours of work, adding to the noise. For those living nearby, this can be a daily disturbance, making the area less peaceful than it used to be.
Noise pollution doesn't just affect your ears; it can hit your wallet too. Studies suggest that property values can drop in noisy areas. This is a concern for both current residents and potential investors. Real estate agents have noticed that buyers are steering clear of noisy neighborhoods, which could mean fewer people interested in properties here.
For anyone looking to invest in Minami Ward, it's crucial to consider these factors. The noise might not just be a temporary inconvenience; it could have long-term effects on property values and quality of life. If you're sensitive to noise or worried about resale value, you might want to think twice.
While Minami Ward has its charms, the increasing noise levels are something to weigh carefully. It's not just about the current situation but also about how these trends might continue in the future. If you're set on the area, it might be worth looking into properties that are a bit removed from the main sources of noise.
Sources: TomTom Traffic Index Osaka, Hulic Co., Ltd. New Medium-Term Management Plan 2023-2025
10) Improved transport links will draw more investors to the Shin-Osaka area
The Shin-Osaka area is quickly becoming a prime spot for investors due to its improved transportation links.
In 2023, the Tokaido Shinkansen experienced a 20.3% increase in passengers compared to the previous year, underscoring Shin-Osaka's growing role as a major transportation hub. This surge in rail travel is a clear sign of the area's rising importance.
Another big draw for investors is the Japanese government's infrastructure development plan for the Osaka Kansai EXPO 2025. This plan includes extending the Osaka Metro Central Line and renovating Kansai International Airport to boost international flight capabilities. These upgrades will make Shin-Osaka even more accessible and attractive to investors.
New rail lines are also making a difference. The Naniwasuji Line, for instance, will connect Shin-Osaka directly to central and south Osaka, enhancing accessibility significantly. This is a game-changer for anyone looking to invest in the area.
Adding to this, the opening of the Umekita (Osaka) Chika Station in 2023 as part of JR West’s project has further strengthened connectivity in the region. This development is drawing even more interest from investors eager to capitalize on the area's growth.
With these transportation improvements, Shin-Osaka is set to become a key investment destination, attracting more attention from those looking to invest in property.
Sources: Statista, Travel Voice, Nankai
11) Waterfront redevelopment projects will boost residential interest in Osaka Bay
Osaka Bay is quickly becoming a prime destination for homebuyers due to exciting waterfront redevelopment projects.
In 2023, major investments like CapitaLand Investments' purchase of residential properties in central Osaka highlight the strong interest in the area. This influx of investment is a clear indicator of the region's growing appeal.
Property values in Osaka City have been on the rise, with cap rates dropping from 5.7% in 2013 to 3.9% in 2023. This trend suggests that properties are becoming more valuable, making it an attractive prospect for potential buyers.
The government is actively involved, spearheading projects such as the Umekita redevelopment. This initiative is transforming areas around JR Osaka Station into vibrant parks, commercial spaces, and luxury hotels, enhancing the city's allure.
These developments are expected to improve access to Kansai International Airport, further boosting the region's growth and making it a key gateway to Western Japan. The improved infrastructure is likely to attract even more interest from both domestic and international buyers.
Sources: Savills Asia, Kyodo News, JLL
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12) Flood prevention efforts will boost investment appeal in certain low-lying areas
Flood prevention efforts can make low-lying areas more appealing for investment by reducing flood risks.
Take Osaka, for instance. The city has crafted detailed flood disaster prevention maps for each of its 24 wards. This comprehensive planning gives investors confidence that the area is ready for potential natural disasters, making it a more stable and attractive place to invest.
When flood protection measures are in place, property values often rise. Safer and more desirable areas for living and business can lead to higher returns for property developers and investors.
Projects like Umekita Park in Osaka, which incorporate flood prevention, attract businesses and residents by offering a safe and sustainable environment. This increased interest from real estate developers highlights the investment potential of these areas.
Flood prevention initiatives not only protect but also enhance the appeal of low-lying areas, making them prime spots for development. Investors are drawn to the security and potential for growth these measures provide.
In Osaka, the combination of strategic planning and flood prevention projects is transforming low-lying areas into investment hotspots. This trend is a clear indicator of how such initiatives can boost the attractiveness of these regions.
Sources: Osaka City, Earth.org, R&I
13) Namba district will attract more property interest with new entertainment developments
The Namba district is buzzing with excitement as new entertainment developments are set to boost property interest.
One major factor is the increased investment in entertainment infrastructure, with significant hotel transactions highlighting this trend. For instance, the acquisition of 'The Rihga Royal Hotel' in 2023 for over JPY 50 billion underscores a growing interest in hotel investments. This surge is fueled by upcoming events like EXPO 2025 and the Integrated Resort (IR) in 2029.
Visitor numbers to Namba are also on the rise. In 2023, the total number of overnight guests in Osaka surpassed pre-pandemic levels, with a 103% increase compared to 2019. This upward trend is expected to continue, especially with the EXPO 2025 and IR projects drawing more tourists to the area.
The redevelopment of Namba Parks South and the Namba Station Front Plaza, which kicked off in 2023, is another draw. These projects are set to attract more visitors and increase foot traffic. Alongside these, the transformation of Midosuji Avenue into a pedestrian-friendly space is part of Osaka's revitalization efforts, making the area more appealing to both tourists and locals.
With these developments, Namba is becoming a hotspot for property interest. The district's transformation is not just about new buildings but creating a vibrant community that draws people in. The combination of entertainment, infrastructure, and visitor influx is setting the stage for a property boom.
Sources: Jones Lang LaSalle, Nankai Electric Railway Co.,Ltd., Yomiuri Shimbun
14) Abeno Ward will attract more interest as it evolves into a shopping destination
The Abeno Ward is quickly becoming a shopping hotspot in Osaka.
One reason is the nearby Shinsaibashi-suji Shopping Street, which has seen a 57.3% jump in foot traffic in early 2023 compared to the previous year. This surge means more people are exploring the area, and Abeno Ward is likely to benefit from this increased interest.
Osaka's urban redevelopment, including the upcoming Linear Chuo Shinkansen, is set to boost the city's connectivity. These projects are expected to attract more businesses and shoppers to the region, making Abeno Ward a prime spot for companies looking to expand in the Kansai area.
Abeno Harukas, a standout high-rise in the ward, is another major attraction. It features the main branch of the Kintetsu Department Store, known for hosting popular events like the New Year's lucky bags. These events draw crowds, enhancing the area's retail charm.
With more foot traffic, ongoing urban development, and unique shopping experiences, Abeno Ward is poised to become a key shopping destination in Osaka.
Sources: Matcha, CBRE, Axross JP
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) Umeda properties will gain appeal as new office spaces draw young professionals
The Umeda area in Osaka is becoming a hotspot for young professionals, thanks to a booming demand for office spaces.
By 2025, Umeda will see a significant addition of nearly 40,000 tsubo of new office space, especially around Yodoyabashi station. This expansion is fueled by strong corporate performance, which is a major factor driving office demand here. Companies from sectors like manufacturing, information and communications, and wholesale and retail trade are moving to Umeda to upgrade their building standards for better recruitment and efficiency.
The GRAND GREEN OSAKA project, a mixed-use development, is already a hit, with several major tenants on board and over half of its space pre-leased. This shows a strong interest in the area, making it a prime spot for businesses and professionals alike.
Young professionals are keen on living close to work, and this is evident in the rising demand for both office and residential spaces in Umeda. The average monthly gross rent per tsubo in Umeda has gone up by 1.1% quarter-on-quarter and 1.8% year-on-year in Q3 2024, underscoring the growing appeal of the area.
As new office spaces continue to attract young professionals, properties in Umeda are becoming more desirable. The influx of businesses and the convenience of living near work are key factors making Umeda a sought-after location.
Sources: Real Estate Asia, Real Estate Asia, Savills Asia
16) Yodogawa Ward will see increased property demand with the arrival of new educational institutions
In 2025, Yodogawa Ward in Osaka will see a surge in property demand thanks to new educational institutions.
The upcoming Osaka Metropolitan University's Morinomiya Campus is a major factor. Set to open in fall 2025, it will house the Faculty of Liberal Arts, Sciences and Global Education, and the School of Medicine. This development is expected to draw students and faculty, boosting the local housing market.
Yodogawa-ku is also home to the Osaka Prefectural Kitano Senior High School, part of a broader initiative by the Osaka Prefectural Board of Education. This initiative aims to cultivate innovative global citizens, making the area attractive to families and students alike. Such educational hubs often lead to increased student enrollment, which in turn drives up demand for housing and local services.
Historically, areas with new schools or universities see spikes in property demand. The strategic location of the Morinomiya Campus, with its "Forest of Knowledge" concept, is expected to boost property values in Yodogawa Ward. Enhanced public transportation options, like the nearby Morinomiya Station on the JR Loop Line and Osaka Metro Chuo Line, make the area more accessible for students and staff.
These developments are not just about education; they are about transforming Yodogawa Ward into a vibrant community. The influx of students and faculty will likely lead to new businesses and services, further enhancing the area's appeal. This is a golden opportunity for property investors looking to capitalize on the growing demand.
With these educational institutions setting up shop, Yodogawa Ward is poised for a property boom. The combination of academic prestige and improved accessibility makes it a prime location for families and investors alike.
Sources: Osaka Metropolitan University, Osaka Prefectural Board of Education
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.