Is buying a property in Roppongi a good investment?

Last updated on December 20, 2023

Yes, the analysis of Tokyo's property market is included in our pack

If you've embraced the upscale dining and nightlife in Roppongi, you may have daydreamed about living in this chic part of Tokyo, savoring its fashionable lifestyle and international flair.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Japan, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Roppongi?

Roppongi, located in the heart of Tokyo, has evolved into a highly sought-after area for property buyers, and there are several reasons why it stands out in the vast and dynamic Tokyo real estate market.

To begin with, Roppongi offers a unique blend of cultural, entertainment, and business amenities that are hard to find elsewhere in Tokyo.

This area, famous for its vibrant nightlife and luxury shopping, also hosts significant cultural sites like the Mori Art Museum and Roppongi Hills, making it a culturally rich environment.

What really sets Roppongi apart from other areas in Tokyo is its international appeal. It's known for being more foreigner-friendly compared to more traditional districts like Asakusa or Ueno.

This international vibe is not just about language but also about the variety of international cuisines, expat communities, and businesses that cater to a global audience.

So, for property buyers, especially those from overseas or those seeking a cosmopolitan lifestyle, Roppongi is an attractive choice.

The popularity of Roppongi as a real estate hotspot started to rise significantly in the early 2000s. This was largely due to major redevelopment projects like Roppongi Hills and Tokyo Midtown, which transformed the area into a modern, high-end residential and commercial hub.

These developments brought in a wave of new residents and businesses, elevating Roppongi's status in the Tokyo real estate market.

As for whether this hype will continue, the trends seem to suggest it will. Tokyo, being a constantly evolving city, always sees shifts in popular areas, but Roppongi's unique blend of culture, entertainment, and business seems to have a lasting appeal.

The continuous development and investment in the area, along with its status as a cultural and entertainment hub, suggest that its popularity isn't just a passing trend.

The kind of people attracted to Roppongi are quite diverse. It's popular among expatriates and business professionals, especially those working in international firms or embassies.

The area's modern apartments and high-end amenities appeal to those who seek a luxurious lifestyle. Young professionals and artists are also drawn to its dynamic cultural scene.

However, Roppongi isn't without its drawbacks. The area can be quite expensive, making it less accessible for those on a tight budget. The bustling nightlife, while attractive to many, can also be a downside for those seeking a quieter, more residential atmosphere.

Additionally, the constant flow of tourists and party-goers might be a turn-off for those looking for a more traditional or tranquil Japanese living experience.

Overall, Roppongi's appeal lies in its unique combination of modernity, culture, and international flavor, making it a standout in Tokyo's real estate landscape.

While it may not suit everyone's tastes or budget, its continued popularity and development suggest that it will remain a key player in Tokyo's ever-changing real estate scene.

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Why is Roppongi a nice place to live?

Roppongi has a reputation as a dynamic and cosmopolitan area, making it an attractive place to live, especially for those who enjoy an urban lifestyle.

The lifestyle and culture in Roppongi are quite unique. It's known for its vibrant nightlife, with an array of bars, clubs, and restaurants that cater to a diverse crowd. During the day, the area transforms, offering a more laid-back atmosphere with cafes, art galleries, and shopping centers.

One of the defining features of Roppongi is its expat community. It's one of Tokyo's most foreigner-friendly neighborhoods, which means you'll find a lot of services and amenities geared towards English-speaking residents.

This is a huge plus for expatriates who might face language barriers in other parts of Tokyo. The presence of international companies and embassies also contributes to the diverse community here.

Living in Roppongi, however, does come with a higher price tag. The cost of living here is generally higher compared to other parts of Tokyo. This is reflected in the rental prices for apartments and the cost of goods and services in the area.

While this might be a deterrent for some, those who choose to live here often find that the convenience and the vibrant atmosphere justify the expense.

Safety is another important aspect to consider, and Roppongi fares well in this regard. Tokyo, in general, is known for its safety, and Roppongi is no exception.

However, like any nightlife area, it's always wise to be cautious late at night, especially on weekends when the streets are more crowded.

The amenities and facilities in Roppongi are top-notch. For healthcare, there are facilities like the Roppongi Clinic offering a range of medical services. When it comes to education, there are international schools nearby, such as the Nishimachi International School, catering to the expat community.

Shopping centers like Roppongi Hills and Tokyo Midtown provide ample opportunities for shopping and entertainment.

The infrastructure in Roppongi is well-developed, with excellent roads, utilities, and internet connectivity. This makes everyday life convenient and comfortable. Whether you're working from home or commuting, you'll find that the infrastructure supports a high-quality urban lifestyle.

Accessibility is one of Roppongi's strong points. It's well connected to other parts of Tokyo, making it a convenient place to live for those who work elsewhere in the city.

Public transportation options are plentiful, with the Roppongi Station serving as a major hub. The Tokyo Metro Hibiya and Oedo Lines run through here, providing easy access to various parts of the city.

Additionally, Roppongi's proximity to major transport hubs like Tokyo Station and Shinjuku Station means that traveling to airports or other cities is relatively hassle-free.

How much does it cost to buy real estate in Roppongi?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Japan.

Buying a property in Roppongi can be quite an investment, as this area is known for its high-end real estate market.

The types of residential properties available in Roppongi are diverse, including apartments, luxury condominiums, and a limited number of detached houses.

Due to its urban and upscale nature, apartments and luxury condominiums are the most common types of properties you'll find here.

In Roppongi, the demand for properties, particularly luxury apartments and condominiums, is quite high. This demand is driven by the area's status as a cosmopolitan and business hub, appealing to expatriates, business professionals, and affluent individuals.

These properties offer modern amenities, security, and often include features like gyms, concierge services, and stunning city views, making them particularly attractive to those seeking a high-quality urban living experience.

The real estate market in Roppongi includes both new developments and resale properties. In recent years, there has been a trend towards redevelopment, with new high-rise apartment buildings and complexes being constructed.

These new developments often come with a higher price tag but offer state-of-the-art amenities and design.

Speaking of prices, the cost of buying property in Roppongi is among the highest in Tokyo. Prices per square meter can vary widely based on factors like location within the neighborhood, the age of the building, the condition of the property, and the amenities offered.

As a ballpark figure, prices can range significantly, often reaching into the tens of millions of yen per square meter for the most luxurious properties.

Over the recent years, property values in Roppongi have shown a trend of steady increase. This is attributed to the ongoing development in the area, its unwavering popularity, and its appeal to both domestic and international buyers.

The area's continuous modernization and development projects, like the Roppongi Hills and Tokyo Midtown complexes, have significantly boosted property values.

Looking ahead, there are expectations that the real estate market in Roppongi will continue to thrive. The area's popularity, ongoing development projects, and its status as a business and cultural hub suggest that property values are likely to continue their upward trend.

Additionally, any upcoming city planning changes or new developments, which are quite common in dynamic urban areas like Roppongi, could further influence property values.

Specific factors that indicate a potential increase in value include Roppongi's strong appeal to the international community, its continuous urban development, and its reputation as a prestigious and desirable neighborhood.

As Tokyo continues to grow and evolve, Roppongi's strategic location and its blend of lifestyle, culture, and convenience make it a prime area for real estate investment.

For anyone considering investing in property in Roppongi, it's important to stay informed about the latest market trends and developments. This area represents not just a place to live but an investment into a lifestyle that's at the heart of one of the world's most dynamic cities.

Where is the best area to buy a property in Roppongi?

When considering where to buy a property in Roppongi it's important to understand that different parts of this area offer varied atmospheres, types of properties, and price ranges.

Roppongi is not just a monolithic neighborhood; it has distinct zones, each with its own character and appeal.

One of the most prestigious parts of Roppongi is around the Roppongi Hills area. This is a modern, high-end zone that includes a mix of residential, commercial, and entertainment facilities. Properties here are typically luxury apartments and condominiums, offering a range of upscale amenities.

The atmosphere in this area is vibrant and cosmopolitan, attracting a mix of business professionals, expatriates, and affluent individuals. Due to the high demand and the luxurious nature of these properties, prices here are among the highest in Roppongi.

Another notable area is around Tokyo Midtown, which is similar in prestige to Roppongi Hills. This part of Roppongi is also known for its high-end residential options, stylish shopping centers, and fine dining establishments.

The properties here are similarly luxurious, with price tags to match. This area appeals to those who appreciate a blend of modern urban living with access to green spaces like Hinokicho Park.

For those looking for something slightly more subdued but still within Roppongi, the areas bordering Akasaka and Nishi-Azabu might be of interest. These areas tend to be a bit quieter and more residential while still offering convenient access to the amenities of central Roppongi.

The properties here can range from modern apartments to older, more traditional buildings, and the prices can be somewhat more approachable compared to the heart of Roppongi.

As for up-and-coming areas within Roppongi, it's worth keeping an eye on the fringes of the neighborhood. These areas are sometimes overlooked but can offer good value for money, especially as the overall development of Roppongi continues.

These areas might not have the same immediate name recognition or prestige as Roppongi Hills or Tokyo Midtown, but they can be a smart choice for those looking for a long-term investment in a slightly less hectic part of the neighborhood.

On the contrary, certain parts of Roppongi, especially those closer to the nightlife areas, might not be advisable for everyone. These areas can be quite noisy, especially at night, and might not offer the same sense of community or tranquility that some buyers seek.

While these areas are perfect for those who love being in the heart of the action, they might not be ideal for families or those looking for a more peaceful residential environment.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Japan.

Area	Atmosphere	Property Types	Price Range	Suitability
Roppongi Hills	Vibrant, Cosmopolitan	Luxury Apartments, Condominiums	Very High	Business Professionals, Expatriates
Tokyo Midtown	Modern, Upscale	Luxury Apartments, Condominiums	Very High	Affluent Individuals, Urban Lifestyle Enthusiasts
Bordering Akasaka and Nishi-Azabu	Quieter, More Residential	Modern Apartments, Traditional Buildings	Moderate to High	Those Seeking Quieter Urban Life
Edges of Roppongi	Emerging, Less Established	Varied	Moderate	Long-term Investors, Value Seekers
Near Nightlife Areas	Noisy, Energetic	Diverse, Often Older Buildings	Moderate to High	Nightlife Enthusiasts, Singles

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Is there a strong rental demand in Roppongi?

Roppongi is indeed known for its strong rental demand, thanks to its reputation as a lively, upscale area that attracts a diverse range of residents.

The rental market in Roppongi caters to both short-term and long-term rentals, but there's a significant emphasis on long-term rentals due to the presence of expatriates and professionals who work in or near the area.

The target demographic for rental properties in Roppongi is quite varied. It includes expatriates, business professionals, and affluent individuals, many of whom are drawn to the area for its vibrant lifestyle, cultural amenities, and proximity to business districts. These potential tenants often look for properties that offer comfort, convenience, and a touch of luxury.

Specifically, they tend to prefer modern apartments and condominiums that come with amenities like security services, in-building fitness centers, and proximity to public transportation.

Certain areas within Roppongi, such as around Roppongi Hills and Tokyo Midtown, are particularly popular for rentals. These areas are known for their modern, high-end residential buildings that cater to the tastes and needs of the aforementioned demographic.

Apartments in these areas, especially those offering views of the city or additional luxury amenities, are often in high demand.

When it comes to reducing vacancy and attracting tenants, certain amenities can be particularly effective. These include features like high-speed internet, modern home appliances, well-equipped kitchens, and perhaps most importantly, strong security systems.

The convenience of on-site or nearby facilities such as grocery stores, fitness centers, and easy access to public transportation also significantly enhances the appeal of rental properties in Roppongi.

Speaking of potential returns on investment, properties in Roppongi can offer attractive yields, but these can vary widely based on factors like property size, location, and the quality of amenities offered.

While exact numbers can fluctuate, rental yields in prime areas like Roppongi are generally considered competitive compared to other parts of Tokyo.

Investors can expect a decent return on investment, especially if they own properties that align well with the preferences of the target tenant demographic.

In terms of property types that are seeing increasing demand and could potentially offer better yields, modern, well-maintained apartments and condominiums with the aforementioned amenities tend to be the most sought after. Properties that cater to the lifestyle and convenience needs of professionals and expatriates are particularly in demand.

As Roppongi continues to develop and attract a global clientele, properties that offer a blend of luxury, convenience, and accessibility are likely to be solid investments with the potential for attractive rental yields.

Overall, the rental market in Roppongi is robust, driven by the area's appeal to a diverse and affluent tenant base.

For investors and property owners, understanding the specific needs and preferences of this demographic is key to capitalizing on the opportunities that this vibrant Tokyo neighborhood offers.

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Is it easy to buy a property as foreigner in Roppongi?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Japan.

Buying a property in Roppongi, Tokyo, as a foreigner is relatively straightforward, especially compared to the processes in some other countries.

Japan does not impose significant legal restrictions on foreigners purchasing real estate. There are several nuances to the process and potential risks that should be considered.

Firstly, there are no specific regulations or restrictions for foreign buyers in Japan. This means that, in theory, a foreigner can purchase and own real estate in Roppongi just like a Japanese citizen.

However, owning property does not grant residency rights, so if you're a non-resident, you'll need to consider your visa status for stays in Japan.

The purchasing process in Roppongi typically involves finding a property, making an offer, signing a sales contract, and then completing the transaction with a property transfer at a legal office.

One unique aspect of buying property in Japan is the importance of the "hanko" or personal seal, which is used instead of a signature for official documents. As a foreigner, you may need to have one made for these transactions.

The primary risks associated with property investment in Roppongi are similar to those in other major cities. These include market fluctuations, potential for natural disasters (such as earthquakes, which are not uncommon in Japan), and changes in the local economy.

Additionally, language barriers and differences in business practices can pose challenges for foreign investors.

A classic pitfall for foreigners buying property in Japan is underestimating the importance of understanding local property laws and market nuances.

For instance, Japan has strict property condition disclosure laws, and misunderstanding these can lead to unexpected issues.

Also, property sizes are often measured in "tatami mats" in listings, which can be confusing for those unfamiliar with this measurement.

Working with a local real estate agent or lawyer is highly recommended, especially for those who are not fluent in Japanese. They can help navigate the complexities of the local real estate market, assist with language barriers, and ensure that all legal requirements are met.

Common exit strategies for property investors in Roppongi include selling the property after a period of appreciation or renting it out to generate income. The rental market in Roppongi can be lucrative due to the high demand, especially for properties near popular areas like Roppongi Hills and Tokyo Midtown.

However, it's important to stay informed about the local real estate market trends and economic factors that could affect property values and rental demand.