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
Where are the best places to invest in Osaka right now? Is Namba still the top pick, or are areas like Umeda, Tennoji, and Shin-Osaka gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with real estate agents, property developers, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Osaka and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Shinsaibashi is thriving with high demand for luxury retail spaces and rising property values
Shinsaibashi is buzzing with luxury retail spaces that are in high demand.
Foot traffic on Shinsaibashi-suji Shopping Street has bounced back, with 79.4% of 2019 levels reached in 2023, drawing in luxury brands eager to tap into this crowd.
Big names like BVLGARI and Tiffany & Co. are opening new stores, making Shinsaibashi a prime luxury shopping destination and pushing up demand for retail spaces.
While rental prices dipped slightly in 2023 due to a flurry of new openings, the overall trend shows rising demand and increasing rents.
Real estate analysts and media coverage are spotlighting Shinsaibashi as a luxury shopping hub, adding to its allure for both shoppers and investors.
The upcoming Expo 2025 Osaka, Kansai, is expected to further boost Shinsaibashi's popularity, likely leading to even higher property values.
Sources: CBRE and Shinsaibashi-suji Shopping Street Promotion Association, Savills Asia Pacific Research
2) Umeda is booming with redevelopment projects and its role as a major business hub driving property appreciation potential
Umeda is seeing a surge in property appreciation potential thanks to ongoing redevelopment projects and its status as a major business hub.
One of the main reasons for this boom is the rising property prices in recent years. A big player in this trend is CapitaLand Investments, which made waves in 2023 by acquiring six residential assets in central Osaka for a whopping US$105 million. This move marks their significant entry into the multifamily sector, highlighting the area's growing appeal.
Umeda's growth is also fueled by increased investment in infrastructure and commercial developments. Between 2023 and 2024, the area saw major investments, including the redevelopment of Umeda North Phase 2. This ambitious project, featuring four high-rise complexes, began its partial opening in 2024 and is set to redefine Osaka Station with luxury skyscrapers and an urban park.
Being a major business and transportation hub, Umeda benefits from around 20,000 commuters passing through every hour. This bustling activity underscores its importance as a key business center. The high traffic volume, coupled with low vacancy rates for both commercial and residential properties, signals strong demand and interest from investors worldwide.
For those considering a property purchase, Umeda's strategic location and ongoing developments make it an attractive option. The area's transformation is not just about new buildings; it's about creating a vibrant urban environment that appeals to both residents and businesses.
Investors are particularly drawn to Umeda because of its blend of modern amenities and traditional charm. The ongoing projects aim to enhance this unique mix, making it a prime spot for real estate investment.
Sources: Wealth Park Blog, Hankyu-Hanshin Co., Ltd., Savills Asia
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) Namba is booming with high rental yields thanks to its vibrant nightlife and shopping districts
Namba is a real estate hotspot, thanks to its high rental yields.
In 2023 and 2024, Namba's rental yields were around 5-7%, much higher than Osaka's average of 2%. This makes it a prime spot for investors aiming for maximum returns.
The area's vibrant nightlife and shopping districts are key drivers of its high rental demand. These lively spots attract a mix of young professionals, tourists, and students, ensuring high occupancy rates. Properties here rarely sit empty, providing a reliable income stream for owners.
Namba's location near major attractions and transport hubs keeps foot traffic steady. This constant flow of potential tenants boosts the area's popularity and rental yields. The energetic vibe and convenience make Namba irresistible to both renters and investors.
Insider tip: Namba's nightlife isn't just about bars and clubs; it's a cultural hub with theaters and live music venues. This diverse entertainment scene draws a wide audience, further enhancing its appeal.
Shopping in Namba is a unique experience, with everything from luxury brands to quirky local shops. This retail variety not only attracts shoppers but also potential tenants who want to live in the heart of the action.
Sources: Global Property Guide, CBRE
4) Hommachi is attracting investors with its central location and new office spaces
Hommachi is a prime spot for investors due to its central location in Osaka.
Being in the heart of the city, Hommachi enjoys increased foot traffic and excellent public transport, making it a convenient and attractive place for both businesses and residents. This centrality is a magnet for investors seeking areas with high accessibility and visibility.
What's really catching investors' eyes is the influx of new office spaces in the area. By 2025, Osaka is set to add nearly 40,000 tsubo of new office space, with a big chunk near Yodoyabashi station, just a stone's throw from Hommachi. This boom in office space signals growth and development, making it a hot prospect for those looking to dive into the expanding business scene.
Media reports and real estate analyses are buzzing about Hommachi as a rising business hub. The ongoing development of new office spaces and urban plans aimed at enhancing the business environment are solidifying its appeal. These elements make Hommachi a promising area for investment, especially for those eyeing the growing commercial real estate market in Osaka.
Sources: Taiwanese Investment in Japanese Real Estate, Office Building Projects in Tokyo and Osaka, Osaka Office Supply in 2025
5) Tennoji is gaining interest for its affordable property prices and excellent transport links
Tennoji is quickly becoming a favorite spot for property investors.
One of the main attractions is its affordable property prices. In November 2023, the average price for existing condominiums in Tennoji was ¥396,882 per square meter. This is a smaller increase compared to central Osaka, making it a more budget-friendly option for buyers. The area offers a unique blend of urban convenience and local charm, which is hard to find elsewhere in the city.
Investors are also eyeing Tennoji for its strong rental yields. With yields ranging from 8% to 10%, the area promises stable and profitable returns. This is largely driven by the growing demand for residential properties, as more people are drawn to the neighborhood's vibrant atmosphere and amenities.
Another key factor is Tennoji's proximity to major transportation links. Tennoji Station is a major hub, connected to several important lines like the Midosuji Line and JR Osaka Loop Line. This connectivity makes it easy for residents to travel across the city, adding to the area's appeal for both locals and newcomers.
Living in Tennoji means having easy access to a variety of cultural and recreational spots. The area is home to the famous Shitennoji Temple and the bustling Tennoji Park, offering a mix of history and modern leisure activities. This blend of attractions makes it a desirable place to live and invest.
For those considering a property purchase, Tennoji offers a compelling mix of affordability, strong returns, and excellent connectivity. It's a neighborhood that balances the hustle and bustle of city life with the tranquility of suburban living, making it a smart choice for investors looking to tap into Osaka's dynamic property market.
Sources: Axross JP, The Standard, Japan Experience
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6) Nishinari is becoming attractive for long-term investment with its new residential projects transforming the area
Nishinari is undergoing a significant transformation, making it a hotspot for long-term property investment.
In 2023, land prices in Nishinari Ward jumped by 15.8%, and they're expected to keep climbing thanks to new developments and growing demand. This area is buzzing with new residential projects, like the YOLO BASE facility, which offers job training for foreign workers. Plus, there's a new "Chinatown concept" targeting international customers, adding to the area's charm.
Government efforts have been key in revitalizing Nishinari. The Nishinari Special Zone Concept, introduced in 2013, aimed to boost security and environmental standards, leading to a drop in crime rates. More job support for young people on welfare has also helped create a vibrant and welcoming community.
Better infrastructure and public transport have made Nishinari more accessible. The YOLO BASE facility is close to Shin-Imamiya Station, and the Osaka Metro network's expansion has improved connectivity, making the area more appealing to buyers and investors.
Real estate investors are increasingly interested in Nishinari. The association's vice chairman predicted an economic impact of ¥25 billion annually from revitalization efforts, showing strong investment interest. International players like CapitaLand Investments are snapping up residential assets, marking their entry into the multifamily sector.
Media reports highlight Nishinari's transformation, noting the mix of hope and bewilderment among residents as the area becomes more internationalized. The residential leasing market in Osaka City, including Nishinari, is driven by young middle-class individuals, many of whom prefer living alone, fueling housing demand.
Demographic shifts, with an influx of younger residents and foreign workers, have contributed to the area's transformation. Facilities like YOLO BASE provide essential training and support, while government initiatives focused on urban development enhance the appeal of Osaka's real estate market.
Sources: Nation Thailand, Savills Asia
7) Hirano is attracting interest for its affordable homes and improving infrastructure
Hirano is becoming a popular spot for homebuyers due to its affordable housing options and improving infrastructure.
In Osaka, there's a noticeable uptick in property transactions, hinting that more people are eyeing areas like Hirano for their next home. This is likely because Hirano offers a more budget-friendly alternative compared to other bustling urban centers.
New residential projects are popping up all over Osaka, thanks to government efforts and smart urban planning. This means Hirano could soon see a surge in housing options, making it even more appealing for those looking to settle down.
Osaka City Government is pouring resources into local infrastructure, with projects like the Nishinari Special District Vision already transforming communities. Hirano might be next in line for such upgrades, which would boost its charm as a residential area.
Public transport is getting a facelift too, with the Naniwasuji Line project promising to make Hirano more accessible. This improved connectivity is a big plus for anyone considering moving there.
With these developments, Hirano is shaping up to be a great choice for those seeking a balance of affordability and convenience in Osaka.
Sources: Enhancing transportation networks in Osaka, Nishinari Special District Vision, 2025 Japan Property Market Insights
8) Abeno is thriving with its upscale residences and the iconic Abeno Harukas, Japan's tallest building
Abeno is a hot market thanks to its upscale residential areas and the iconic Abeno Harukas, Japan's tallest building.
Property values in Abeno are climbing, especially around Abeno Harukas, driven by a surge in demand for luxury apartments. People are drawn to the idea of living near such a landmark, making it a prime spot for real estate investment.
Buyers are increasingly interested in smart, energy-efficient homes, reflecting a shift towards modern and eco-friendly living spaces. This trend is not just about personal preference; it's also supported by government initiatives that promote sustainable housing.
The presence of Abeno Harukas doesn't just attract tourists; it also brings in potential residents, leading to a higher influx of people compared to other Osaka districts. This influx boosts the local economy and increases the area's desirability.
Government-backed urban redevelopment projects are transforming Abeno, creating new investment opportunities and upscale residential developments. These projects are a key factor in the area's growing appeal.
Retail and commercial spaces around Abeno Harukas are thriving, which in turn boosts local businesses and real estate values. This commercial growth complements the residential boom, making Abeno a well-rounded and attractive place to live.
Sources: E-Housing, Nippon.com, The Gaijin Host
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) Kyobashi is attracting interest with its strategic location near Osaka Castle and expanding residential developments
Kyobashi is catching eyes for its prime spot near Osaka Castle and its booming residential scene.
Picture this: the area around Osaka Castle, especially Chuo-ku, is buzzing with new high-rise condos. Why? It's packed with office buildings and commercial spots, making it a hot rental market. Plus, with government offices and the Osaka Stock Exchange nearby, the demand for housing in central Osaka is on the rise.
Osaka Castle isn't just a pretty face; it's a major tourist magnet. And with the 2025 World Expo on the horizon, tourism is set to skyrocket, especially in places like Kyobashi. This tourism boom is expected to give the local economy a nice boost and draw more folks to settle down here.
Now, let's talk real estate. The Osaka market is on fire, with real estate investment jumping 52% in 2023. This isn't just a flash in the pan; with redevelopment projects and the World Expo coming up, this trend is likely to keep going strong.
Kyobashi's strategic location and the buzz around Osaka Castle are making it a hot spot for new residential developments. It's not just about the buildings; it's about being part of a vibrant, growing community.
So, if you're thinking about buying property, Kyobashi offers a mix of strategic location and exciting growth. It's a place where history meets modern living, and the future looks bright.
Sources: Property Access, Osaka Prefecture Market Report
10) Yodogawa is gaining interest for its family-friendly vibe and excellent schools, driving property value growth
Yodogawa is seeing rising property values thanks to its family-friendly vibe and excellent schools.
In recent years, real estate prices in Osaka have been climbing, and Yodogawa is no exception. Families love it here because it offers a great work-life balance and plenty of green spaces, making it a perfect spot to settle down. The local government has been working hard to improve school quality and facilities, which is a big draw for families looking to move.
Yodogawa's reputation as a family-friendly area is often highlighted in the media, adding to its charm. The community is buzzing with development projects aimed at enhancing family living, like upgrading parks and schools. These efforts are making Yodogawa even more appealing, and as a result, property values are on the rise.
Families are particularly drawn to the area because of its emphasis on work-life balance and access to green areas, making it an attractive place to live. Local government reports have highlighted improvements in school quality and facilities in Yodogawa, which is a significant factor for families when choosing where to live.
Community development projects aimed at enhancing family living, such as improving green spaces and educational facilities, also contribute to the area's attractiveness. These factors combined make Yodogawa a popular choice for families, leading to rising property values.
Sources: E-Housing, Osaka Prefecture Documents, Axross JP
11) Suminoe is gaining attention for its waterfront projects and future urban growth plans
Suminoe is catching eyes for its waterfront developments and urban expansion plans.
Take the Yumeshima district, part of Osaka, which is gearing up to host Expo 2025. This area is a shining example of successful waterfront development. The buzz around Expo 2025 is expected to bring in a wave of foreign investment, which could spill over into nearby areas like Suminoe.
The Osaka City government is pushing hard on the Yumeshima Development Plan, aiming to turn the area into a global tourism hotspot. This move is part of a larger trend of urban redevelopment in Osaka, hinting that Suminoe might also be on the radar for future growth. The masterplan for Expo 2025, crafted by Sou Fujimoto, has been making headlines, underscoring the excitement around Osaka's waterfront projects.
Infrastructure is getting a boost too, with the JR Naniwasuji line extension set to improve connectivity in Osaka by 2031. This upgrade will likely make areas like Suminoe more accessible and convenient, adding to their appeal. Plus, Osaka City's population is on the rise, thanks to net migration inflows, showing a growing interest in living and working in the city, which could extend to Suminoe.
With these developments, Suminoe is poised to benefit from enhanced accessibility and increased interest in the region. The combination of infrastructure improvements and urban redevelopment plans is creating a buzz that could make Suminoe a sought-after location.
As Osaka continues to evolve, the spotlight on Suminoe is likely to grow, driven by its strategic location and the city's broader urban transformation efforts. The potential for future growth and investment in Suminoe is becoming increasingly apparent.
Sources: Osaka Residential Markets - Savills, 2025 Japan Property Market Insights, Construction begins on Expo 2025 Osaka masterplan by Sou Fujimoto
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.