What are the best areas for real estate in Tokyo? (2026)

Authored by the expert who managed and guided the team behind the Japan Property Pack

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Tokyo. If you’d like to learn more about us, you can check our presentation page.

What's the Current Real Estate Market Situation by Area in Tokyo?

Which areas in Tokyo have the highest property prices per square meter in 2026?

As of early 2026, the three Tokyo neighborhoods with the highest property prices per square meter are Chiyoda (especially Bancho and Kojimachi), Minato (particularly Akasaka, Azabu, and Shirokanedai), and Shibuya (around Ebisu, Daikanyama, and Jingumae).

In these ultra-prime Tokyo districts, typical prices range from around 1.9 million to 2.9 million yen per square meter for used condominiums, with new developments in the best micro-locations sometimes exceeding 3 million yen per square meter.

Each of these expensive Tokyo neighborhoods commands high prices for different reasons:

• Bancho and Kojimachi (Chiyoda): extremely limited land supply and old-money residential prestige near the Imperial Palace.
• Akasaka and Azabu (Minato): embassy corridor, international schools, and deep expat demand supporting liquidity.
• Shirokanedai (Minato): family-friendly low-rise character with excellent schools and quiet streets.
• Ebisu and Daikanyama (Shibuya): lifestyle premium with boutique retail, cafes, and walkable charm.
• Jingumae (Shibuya): proximity to Omotesando and Harajuku creates brand-driven demand.

Which areas in Tokyo have the most affordable property prices in 2026?

As of early 2026, the most affordable Tokyo neighborhoods for property buyers are Adachi (around Kita-Senju and Ayase), Katsushika (Kanamachi and Kameari), Edogawa (Kasai and Nishi-Kasai), and parts of Itabashi and Nerima (Narimasu, Shakujii-Koen).

In these budget-friendly Tokyo wards, typical used condominium prices range from around 530,000 to 710,000 yen per square meter, roughly one-quarter to one-third of what you would pay in central Minato or Chiyoda.

The main trade-off in these lower-priced Tokyo areas is longer commute times and, in some cases, flood risk near rivers. Adachi and Katsushika offer strong transit hubs but older building stock. Edogawa neighborhoods like Kasai sit in a designated flood hazard zone, which can affect insurance and resale. Itabashi and Nerima feel more suburban, with fewer dining and nightlife options compared to central Tokyo.

You can also read our latest analysis regarding housing prices in Tokyo.

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.

Which Areas in Tokyo Offer the Best Rental Yields?

Which neighborhoods in Tokyo have the highest gross rental yields in 2026?

As of early 2026, the Tokyo neighborhoods delivering the highest gross rental yields are Kita-Senju in Adachi (around 5.5% to 6.5%), Kinshicho in Sumida (around 4.5% to 5.5%), Kasai and Nishi-Kasai in Edogawa (around 4.5% to 5.5%), and Kamata and Omori in Ota (around 4% to 5%).

Across Tokyo as a whole, typical gross rental yields for investment properties range from about 2% in the most expensive central wards to around 5% or 6% in outer wards with strong commuter demand.

Each of these high-yield Tokyo neighborhoods outperforms for specific reasons:

• Kita-Senju (Adachi): massive interchange station with five rail lines keeps tenant demand exceptionally strong.
• Kinshicho (Sumida): fast CBD access and large renter population from nearby corporate offices.
• Kasai and Nishi-Kasai (Edogawa): affordable family rentals with steady supply and Tozai Line access.
• Kamata and Omori (Ota): airport corridor jobs and broad tenant pool from Haneda-related employment.

Finally, please note that we cover the rental yields in Tokyo here.

Which Areas in Tokyo Are Best for Short-Term Vacation Rentals?

Which neighborhoods in Tokyo perform best on Airbnb in 2026?

As of early 2026, the Tokyo neighborhoods that perform best on Airbnb are Asakusa and Ueno in Taito (strong tourism footfall), Shinjuku-sanchome and Nishi-Shinjuku (transport hub demand), Shibuya and Ebisu (global brand recognition), and Ginza and Tsukishima in Chuo (premium positioning).

In these top-performing Tokyo short-term rental areas, well-managed properties can generate monthly revenues ranging from around 200,000 to 400,000 yen, depending on unit size, quality, and compliance with Japan's minpaku regulations.

Each of these Tokyo neighborhoods attracts Airbnb guests for distinct reasons:

• Asakusa (Taito): Senso-ji temple draws steady international tourist traffic year-round.
• Ueno (Taito): museum district plus direct airport access via Keisei Skyliner.
• Shinjuku-sanchome (Shinjuku): Japan's busiest station hub with nightlife and shopping.
• Shibuya (Shibuya): iconic crossing and global brand appeal for first-time Tokyo visitors.
• Ginza and Tsukishima (Chuo): upscale positioning works when unit quality matches expectations.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Tokyo.

Which tourist areas in Tokyo are becoming oversaturated with short-term rentals?

The Tokyo tourist areas showing signs of short-term rental oversaturation are Asakusa and Kuramae in Taito, core pockets around Shinjuku Station, and nightlife-adjacent streets in Shibuya near the main crossing.

In these oversaturated Tokyo zones, you can find hundreds of active Airbnb listings concentrated within a few blocks, and official minpaku registration counts have grown rapidly over the past two years according to government filings.

The clearest sign of oversaturation in these Tokyo neighborhoods is the high share of multi-listing operators, meaning professional hosts managing multiple properties rather than individual homeowners, which increases competition and puts downward pressure on nightly rates for everyone.

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.

Which Areas in Tokyo Are Best for Long-Term Rentals?

Which neighborhoods in Tokyo have the strongest demand for long-term tenants?

The Tokyo neighborhoods with the strongest long-term tenant demand are Akasaka, Roppongi, Azabu-Juban, and Shirokanedai in Minato, plus Ebisu and Nakameguro on the Shibuya and Meguro border, and Toyosu and Kachidoki in the bayfront area.

In these high-demand Tokyo rental markets, well-priced units typically rent within two to four weeks, and vacancy rates remain consistently below 5% because tenant pools are deep and diverse.

Different tenant profiles drive demand in each of these Tokyo neighborhoods:

• Akasaka, Roppongi, and Azabu-Juban (Minato): corporate expats on housing allowances from embassies and multinationals.
• Shirokanedai and Hiroo (Minato): international school families seeking quiet, leafy streets.
• Ebisu and Nakameguro (Shibuya and Meguro): young professionals valuing lifestyle, cafes, and walkability.
• Toyosu and Kachidoki (Koto and Chuo): dual-income families wanting modern towers and waterfront parks.

What makes these Tokyo neighborhoods especially attractive to long-term tenants is the combination of excellent transit access (most are within 10 minutes of a major station) and neighborhood amenities like international supermarkets, quality restaurants, and bilingual services that reduce the friction of daily life.

Finally, please note that we provide a very granular rental analysis in our property pack about Tokyo.

What are the average long-term monthly rents by neighborhood in Tokyo in 2026?

As of early 2026, average long-term monthly rents in Tokyo vary dramatically by neighborhood, ranging from around 160,000 yen per month for a 40-square-meter apartment in outer wards to over 390,000 yen per month for a similar-sized unit in the central five wards.

In Tokyo's most affordable rental neighborhoods like Kita, Itabashi, Adachi, and outer Nerima, entry-level apartments of 25 to 30 square meters typically rent for around 80,000 to 120,000 yen per month.

In average-priced Tokyo neighborhoods like Nakano, Suginami, Koto, and Sumida, mid-range apartments of 40 to 50 square meters generally cost between 170,000 and 220,000 yen per month.

In Tokyo's most expensive rental neighborhoods like Minato, Shibuya, and Chiyoda, high-end apartments of 70 square meters or more command rents of 350,000 to 450,000 yen per month, with luxury tower units in Azabu or Roppongi sometimes exceeding 500,000 yen.

You may want to check our latest analysis about the rents in Tokyo here.

Which Are the Up-and-Coming Areas to Invest in Tokyo?

Which neighborhoods in Tokyo are gentrifying and attracting new investors in 2026?

As of early 2026, the Tokyo neighborhoods drawing the most investor attention for gentrification potential are Kita-Senju in Adachi, Kinshicho and Oshiage in Sumida, Shinagawa's Konan side and the Tamachi corridor, and Toyosu with its bayfront extensions into Ariake and Shinonome.

These gentrifying Tokyo neighborhoods have typically seen annual price appreciation of 5% to 10% over the past few years, outpacing the broader Tokyo average as redevelopment projects improve local amenities and transport connections.

Which areas in Tokyo have major infrastructure projects planned that will boost prices?

The Tokyo areas with major infrastructure projects expected to boost property prices are Shinagawa (Takanawa Gateway City), Nihonbashi (riverfront redevelopment), the Yaesu side of Tokyo Station (TOFROM YAESU), and the greater Shibuya Station area.

Specific projects underway include the Takanawa Gateway City development by JR East (a 26-hectare mixed-use hub opening through 2026), the Nihonbashi 1-chome redevelopment with a 52-story tower and riverside promenade completing in 2026, and the ongoing Shibuya Station West Exit 48-story tower project led by Tokyu and Odakyu.

Historically, Tokyo neighborhoods near completed major infrastructure projects have seen price increases of 10% to 20% in the years following project completion, though the exact impact depends on how well the development improves daily convenience and commercial vibrancy.

You'll find our latest property market analysis about Tokyo here.

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.

Which Areas in Tokyo Should I Avoid as a Property Investor?

Which neighborhoods in Tokyo with lots of problems I should avoid and why?

The Tokyo areas that investors should generally approach with caution include certain flood-prone lowland blocks in Edogawa, Koto, and Sumida near major rivers, plus any building with poor strata management reserves regardless of location, and over-concentrated short-term rental streets in Asakusa and Shinjuku.

Each of these Tokyo problem areas has specific issues:

• Flood-prone blocks in Edogawa and eastern Koto: located in designated hazard zones that affect insurance costs and resale value.
• Poorly-managed older buildings (any ward): low maintenance reserves lead to special assessments and brutal resale discounts.
• Asakusa side streets near Senso-ji: neighbor complaints and tightening minpaku rules make long-term rental strategy difficult.
• Shinjuku core pockets near station exits: high turnover and noise issues make quiet tenant retention challenging.

For these Tokyo problem areas to become viable investments, flood mitigation infrastructure would need to be completed (Edogawa), management associations would need to rebuild reserves (older buildings), or short-term rental regulations would need to stabilize and clarify (tourist streets).

Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Tokyo.

Which areas in Tokyo have stagnant or declining property prices as of 2026?

As of early 2026, true price declines are rare across Tokyo's 23 wards, but stagnation risk is highest in very old buildings far from stations, certain bayfront tower clusters with oversupply, and distant suburban edges with aging demographics.

In these stagnant Tokyo micro-markets, prices have remained flat or declined by 5% to 10% over the past few years while central Tokyo continued rising, creating a widening gap.

The main causes of stagnation differ by area:

• Older buildings 15+ minutes from stations (any ward): lack of elevator or modern amenities makes them unappealing to younger buyers.
• Certain bayfront tower clusters in Koto: too many similar units competing at resale when original residents move out.
• Far outer edges of Adachi and Katsushika: aging population and limited commercial development reduce buyer interest.

Which Areas in Tokyo Have the Best Long-Term Appreciation Potential?

Which areas in Tokyo have historically appreciated the most recently?

The Tokyo areas that have appreciated the most over the past five to ten years are the Bancho and Kojimachi pocket in Chiyoda, the Akasaka, Azabu, and Shirokane corridor in Minato, the Ebisu, Daikanyama, and Jingumae cluster in Shibuya, and waterfront family areas like Toyosu and Kachidoki.

Here is the approximate appreciation these top-performing Tokyo areas have achieved:

• Bancho and Kojimachi (Chiyoda): around 50% to 70% cumulative appreciation over ten years.
• Akasaka, Azabu, and Shirokane (Minato): around 40% to 60% cumulative appreciation over ten years.
• Ebisu and Daikanyama (Shibuya): around 35% to 55% cumulative appreciation over ten years.
• Toyosu and Kachidoki (Koto and Chuo): around 30% to 50% cumulative appreciation over ten years.

The main driver behind above-average appreciation in these Tokyo areas is the combination of structurally limited supply (Bancho has almost no new land, Azabu faces height restrictions) and deep, consistent demand from both wealthy domestic buyers and foreign investors seeking yen-denominated assets.

By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Tokyo.

Which neighborhoods in Tokyo are expected to see price growth in coming years?

The Tokyo neighborhoods expected to see the strongest price growth in coming years are Shinagawa's Takanawa Gateway area, the Toyosu to Kachidoki bayfront corridor, Kita-Senju in Adachi, and the Nihonbashi riverfront redevelopment zone.

Here are projected annual growth rates for these high-potential Tokyo neighborhoods:

• Takanawa Gateway and Shinagawa corridor: around 5% to 8% annual growth as JR East's mega-project matures.
• Toyosu, Kachidoki, and Harumi: around 4% to 6% annual growth driven by family demand and BRT transit.
• Kita-Senju (Adachi): around 4% to 6% annual growth as amenities improve and yields attract investors.
• Nihonbashi riverfront (Chuo): around 5% to 7% annual growth as expressway undergrounding completes.

The single most important catalyst for future price growth in these Tokyo neighborhoods is the completion of infrastructure projects that dramatically improve daily convenience, whether through new stations (Takanawa Gateway), transit connections (BRT in the bay area), or urban amenities (Nihonbashi promenade).

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.

What Do Locals and Expats Really Think About Different Areas in Tokyo?

Which areas in Tokyo do local residents consider the most desirable to live?

The Tokyo areas that local residents consistently rank as most desirable are Kichijoji (in Musashino City, just outside the 23 wards), Ebisu, Meguro, Naka-Meguro, Omotesando, and increasingly Kita-Senju.

Here is what makes each of these Tokyo neighborhoods most desirable to local residents:

• Kichijoji: Inokashira Park, diverse shopping streets, and a relaxed atmosphere with excellent transit.
• Ebisu: walkable charm with boutique shops, quality restaurants, and a village-like feel despite central location.
• Meguro and Naka-Meguro: cherry blossom-lined Meguro River, trendy cafes, and residential calm.
• Omotesando: tree-lined avenues, architectural landmarks, and proximity to Harajuku and Shibuya.
• Kita-Senju: increasingly popular for affordability, station convenience, and improving local amenities.

The demographic typically living in these locally-preferred Tokyo areas tends to be young professionals, creative industry workers, and families who prioritize lifestyle quality and neighborhood character over pure investment returns.

Local preferences in Tokyo generally align with what foreign investors target in terms of desirability, but locals often place more weight on daily livability factors like supermarket quality and neighborhood atmosphere, while foreign investors sometimes focus more heavily on brand recognition and potential capital appreciation.

Which neighborhoods in Tokyo have the best reputation among expat communities?

The Tokyo neighborhoods with the strongest reputation among expat communities are Hiroo, Azabu-Juban, and Shirokanedai in Minato, plus Ebisu and Daikanyama in Shibuya, and the bayfront family hubs of Toyosu and Tsukishima.

Here is why expats prefer these Tokyo neighborhoods over others:

• Hiroo and Azabu-Juban (Minato): international supermarkets, English-friendly services, and proximity to embassies.
• Shirokanedai (Minato): quiet residential streets, excellent schools, and family-friendly parks.
• Ebisu and Daikanyama (Shibuya): boutique lifestyle, walkable charm, and cosmopolitan dining scene.
• Toyosu and Tsukishima (Koto and Chuo): modern tower living, waterfront parks, and good international school access.

The typical expat profile in these popular Tokyo neighborhoods includes corporate transferees on housing allowances, embassy staff, international school families, and remote workers who chose Tokyo for lifestyle reasons and can afford premium rents.

Which areas in Tokyo do locals say are overhyped by foreign buyers?

The Tokyo areas that locals commonly say are overhyped by foreign buyers are tourist-heavy streets in Asakusa near Senso-ji, certain Roppongi blocks known more for nightlife than livability, and some bayfront towers marketed heavily overseas but less popular with domestic families.

Here is why locals believe these Tokyo areas are overvalued or overhyped:

• Asakusa tourist streets (Taito): priced for tourism aura rather than daily convenience, with limited local amenities.
• Roppongi nightlife blocks (Minato): noisy and transient, not where Tokyo families actually want to raise children.
• Certain heavily-marketed bayfront towers (Koto): foreign marketing inflates expectations beyond actual resale liquidity.

What foreign buyers typically see in these Tokyo areas that locals do not value as highly is brand recognition, Instagram-worthy views, and the assumption that tourist popularity equals investment quality, when in fact local residents prioritize quiet streets, good schools, and neighborhood depth that tourists never experience.

By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Tokyo.

Which areas in Tokyo are considered boring or undesirable by residents?

The Tokyo areas that residents commonly consider boring or undesirable are distant station-far pockets in any ward, industrial or logistics-heavy zones with limited retail, and suburban edges where commercial development has not kept pace with residential growth.

Here is the main reason residents find these Tokyo areas boring or undesirable:

• Station-far pockets (15+ minutes walk): daily inconvenience outweighs any price savings for most residents.
• Industrial zones in Ota, Koto, and Adachi edges: warehouses and factories instead of cafes and shops.
• Outer Nerima and far Itabashi: feels suburban without the urban energy Tokyo residents expect.
• Reclaimed land areas without established neighborhoods: lack the organic street life and local character.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Tokyo, we always rely on the strongest methodology we can and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why it's authoritative	How we used it
MLIT National Land Numerical Information (Koji Chika)	Japanese government's official benchmark land price dataset.	We used it to identify the most expensive micro-areas in Tokyo down to specific subdistricts. We also used it to verify neighborhood-level price narratives against official point data.
LIFULL HOME'S	Major Japanese property portal with transparent listing aggregation.	We used it to estimate ward-level purchase prices for 70-square-meter condos. We then converted these into price-per-square-meter figures for cross-ward comparisons.
Savills Tokyo Residential Leasing Spotlight	Global research consultancy with consistent submarket rent reporting.	We used it to estimate rent-per-square-meter by Tokyo submarket. We then calculated gross yields by comparing these rents to purchase prices.
Tokyo Kantei	Well-known Japanese real estate data provider used by industry and media.	We used it to track the direction of price changes over time. We also used it to triangulate claims about which neighborhoods have recently heated up.
SUUMO Desirability Ranking	Japan's biggest consumer housing brand with widely cited annual survey.	We used it to capture what residents actually prefer at the station level. We used it to identify neighborhoods that stay desirable even when yields are lower.
Tokyo Metropolitan Government Foreign Resident Statistics	Official ward-by-ward foreign resident data for Tokyo.	We used it to identify where expat demand is structurally strongest. We used it to explain why certain embassy and school corridors maintain resilient demand.
Inside Airbnb Tokyo	Open-data civic project widely used in academic STR discussions.	We used it to check short-term rental market structure and multi-listing operator share. We used it to support claims about oversaturation in specific neighborhoods.
MLIT Minpaku Portal	Official national portal tracking short-term rental registrations.	We used it to ground STR discussions in the actual legal framework. We used it to emphasize compliance requirements as a real investor constraint.
MLIT Trends Concerning Land Report	MLIT's official interpretation of nationwide land price trends.	We used it to set the macro backdrop for residential land prices. We used it to avoid over-reading private indexes in isolation.
PropertyAccess Tokyo Outlook	Investment platform with expert market forecasts and analyst commentary.	We used it to understand projected price growth rates for 2026. We used it to contextualize supply constraints and foreign demand trends.