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Where are the best places to invest in Tokyo right now? Is Shibuya still the top pick, or are areas like Shinagawa, Kichijoji, and Ikebukuro 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, 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 Tokyo 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) Tsukishima is gaining interest for its traditional charm and new residential developments, boosting property demand
Tsukishima is turning heads with its blend of traditional charm and modern living.
In the heart of Tokyo, Tsukishima is buzzing with new projects like the Tsukishima 3 Chome North District Town Redevelopment. This ambitious plan features a towering 58-story building, offering over 1,200 apartments, along with shops and facilities for both childcare and elder care.
Tokyo's property prices have been climbing steadily, and experts predict they will rise by about 8% annually by 2025. This makes Tsukishima, with its fresh developments, a hot spot for potential homebuyers.
The Greater Tokyo Area's population is booming, and by 2025, it will still be the world's largest metropolitan area. This surge in residents fuels the demand for quality housing in central areas like Tsukishima.
Tsukishima's appeal lies in its unique mix of old and new, drawing in those who appreciate its traditional atmosphere alongside modern conveniences. The area's transformation is a magnet for those seeking a vibrant community.
With its strategic location and ongoing developments, Tsukishima is becoming a prime choice for property investment in Tokyo.
Sources: TechBullion, CTBUH, E-Housing
2) Kachidoki is gaining interest with new residential towers and improved transport links enhancing its appeal
Kachidoki is buzzing with real estate activity thanks to its new residential towers.
Projects like "Park Tower Kachidoki" are reshaping the area, offering luxury living that draws high-end buyers. These developments are not just about fancy apartments; they’re about creating a lifestyle that appeals to those looking for something special in the heart of Tokyo.
The Toei-Oedo line, one of Tokyo's newest subway lines, has made Kachidoki more accessible, with passenger numbers at the station rising significantly. This improved connectivity is a game-changer, making it easier for residents to commute and for investors to see the potential in the area.
Local government initiatives are also in play, focusing on developing infrastructure and amenities. These efforts have enhanced the quality of life for residents and attracted new businesses, turning Kachidoki into a lively community.
With these changes, Kachidoki is not just a place to live; it’s becoming a vibrant hub. The combination of new housing, better transport, and local government support is transforming the area into a sought-after location for both living and investment.
Sources: E-Housing, Mitsui Fudosan Realty, Tokyo Railway Labyrinth, PR Newswire 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) Koenji is a real estate hotspot with its vibrant music scene and affordable homes attracting younger buyers
Koenji is quickly becoming a real estate hotspot, and it's easy to see why.
In recent years, property prices in Koenji have been climbing, with existing condos up by 9% and new ones skyrocketing by 42.5% in 2023. This trend is expected to continue, with a projected 5-6% annual increase by 2025. The area is buzzing with interest, especially among younger buyers.
One of Koenji's biggest draws is its vibrant music scene. Known for its indie and alternative acts, venues like 20000V and ShowBoat are local favorites. This cultural energy attracts young artists and musicians, making the neighborhood a lively and appealing place to live.
Despite the rising prices, Koenji still offers more affordable housing options compared to other Tokyo neighborhoods. This affordability, paired with its dynamic music scene, makes it a top choice for young buyers seeking a vibrant community without the hefty price tag.
Social media is buzzing with testimonials from residents who love Koenji's unique lifestyle and cultural attractions. This online chatter keeps the neighborhood in the spotlight, drawing even more interest from younger demographics.
Koenji's appeal is not just about affordability and music; it's about a lifestyle that resonates with the younger crowd. The area's unique blend of culture and community makes it a standout choice for those looking to buy property in Tokyo.
Sources: Global Property Guide, Experience Suginami Tokyo, Japan Experience
4) Musashi-Koyama is gaining interest with its urban renewal projects and new commercial facilities boosting property values
Musashi-Koyama is turning heads with its exciting urban renewal projects and new commercial facilities.
One standout project is the redevelopment of Musashi-Koyama Shopping Street, known as Musashi-Koyama Shotengai Palm, which holds the title of Tokyo’s longest covered shopping street. This area is buzzing with new high-rise residential buildings like Park City Musashi-Koyama The Tower, adding a modern touch to the neighborhood.
Adding to the charm is KANAME NO MORI, a fresh commercial building that's all about revitalizing the district. It's crafted with natural materials, boosting its commercial value and promoting environmental sustainability. The area is now a magnet for visitors, offering a delightful mix of shopping and dining, from giant parfaits to yakitori stands.
These developments are pushing property prices up in Musashi-Koyama. In 2024, the average price of newly built condominiums in Tokyo hit approximately ¥1.2 million per square meter, with expectations of further increases in 2025. Real estate agencies are spotlighting Musashi-Koyama as a hot investment spot, thanks to these changes.
Government-led infrastructure improvements are also playing a big role in boosting the area's appeal. The combination of new projects and better infrastructure is making Musashi-Koyama a prime location for property investment.
With all these exciting changes, Musashi-Koyama is becoming a vibrant hub, drawing in more people and raising property values significantly.
Sources: Global MF Realty, E-Housing Japan, ArchDaily
5) Shimokitazawa is gaining interest for its vibrant cultural scene and recent infrastructure upgrades, driving property price growth
Shimokitazawa is buzzing with a vibrant cultural scene and new infrastructure, pushing property prices up.
In 2022, the Shimokitazawa Station redevelopment wrapped up, marking a big change. This project not only upgraded the infrastructure but also kept the area's unique vibe intact. The addition of Shimokita Senrogai turned the place into a lively hub with shops, facilities, and event spaces, leading to increased foot traffic and new businesses.
Media has spotlighted Shimokitazawa's cultural scene, famous for its secondhand clothing shops and fringe theaters. This area is a magnet for young people and creatives, making it a hot spot. The influx of younger residents is reshaping the demographics, drawn by the blend of old-world charm and modern amenities.
Real estate experts note a surge in property demand here. The area's cultural revival and infrastructure boost make it a top choice for residents and investors. Compared to other Tokyo neighborhoods, Shimokitazawa is seeing one of the highest property value growth rates, thanks to its unique cultural vibe and recent upgrades.
Locals know that Shimokitazawa's charm lies in its mix of the old and new. The area is not just about shopping and theaters; it's about the community vibe that draws people in. The recent changes have only amplified this appeal, making it a prime spot for those looking to invest in property.
For anyone considering buying property in Tokyo, Shimokitazawa offers a unique opportunity. The combination of cultural richness and modern infrastructure improvements makes it a standout choice. With property values on the rise, it's a neighborhood that promises both lifestyle and investment potential.
Source: Japan News
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6) Nakameguro is gaining interest for its cherry blossom views and trendy lifestyle along the Meguro River
Nakameguro is a hot spot in Tokyo, famous for its stunning cherry blossoms along the Meguro River.
Every spring, from late March to early April, visitors from around the globe flock to Nakameguro for the cherry blossom festival. The area buzzes with cultural events and breathtaking views, making it a vibrant and lively destination.
The cherry blossom season brings a surge in foot traffic, as people are captivated by the blossoms' delicate fragrance and soft colors. This festive vibe turns Nakameguro into a joyful celebration, drawing crowds eager to experience its unique charm.
But it's not just about the blossoms. Nakameguro is also a trendy lifestyle hub, known for its vintage fashion and contemporary art scene. The district's chic cafes and boutiques often make headlines, adding to its allure.
This trendy atmosphere has made Nakameguro a magnet for both visitors and investors, boosting its real estate appeal. The area's unique blend of natural beauty and modern culture is a big draw.
Sources: Mighty Travels, Klook
7) Nihonbashi is attracting interest with its traditional charm and modern redevelopment, driving up property values
Nihonbashi is turning heads with its unique blend of tradition and modernity.
In recent years, property prices in Tokyo's Nihonbashi have been climbing steadily, with annual increases of about 5-6%. This surge is fueled by luxury developments like the Nihonbashi Mitsui Tower, which have introduced high-end retail and dining experiences to the area.
The district is also thriving thanks to the Nihonbashi Revitalization Plan, a collaborative effort to inject new life into the area. This initiative has attracted significant investments, enhancing Nihonbashi's appeal. New commercial spaces like COREDO Muromachi, featuring 31 premium stores, are drawing both local and international investors.
Nihonbashi stands out for its cultural richness, offering a mix of culinary traditions and historical landmarks like Meijiza, alongside modern conveniences. The district's urban renewal projects, which include new halls and open spaces, are making it a more attractive and livable area for diverse groups.
These developments are not just about aesthetics; they are transforming Nihonbashi into a vibrant hub. The area is becoming a hotspot for those seeking a dynamic lifestyle, with modern amenities seamlessly integrated into its historical fabric.
As Nihonbashi continues to evolve, it is gaining attention for its successful blend of old-world charm and cutting-edge redevelopment, leading to rising property values and increased interest from potential buyers.
Sources: Mitsui Fudosan, E-Housing, GLTJP
8) Toyosu is gaining interest with its waterfront developments and closeness to the central business district, appealing to investors
Toyosu is drawing significant attention from investors for several compelling reasons.
In recent years, property prices in Toyosu have been climbing steadily, with forecasts predicting a 5-6% annual growth in 2025. This upward trend makes Toyosu a prime spot for real estate investment, especially for those eyeing long-term gains.
The area is buzzing with new developments, notably the upcoming Toyosu Urban Center. This project will feature a blend of residential units, office spaces, and retail areas, creating a balanced environment that attracts both residents and businesses. Toyosu's proximity to major business districts like Marunouchi and Otemachi adds to its allure, offering professionals the convenience of living close to work.
Transportation in Toyosu has seen remarkable improvements. The Yurakucho Line and the Yurikamome Line now provide enhanced connectivity, making commuting across Tokyo a breeze. This ease of access further boosts Toyosu's attractiveness as a residential and investment hub.
The media has played a role in Toyosu's rising popularity, highlighting its transformation into a modern waterfront hub with a vibrant social scene. This positive media coverage has elevated Toyosu's image, making it a sought-after location for both living and investing.
Sources: E-Housing, Tokyo Portfolio, E-Housing
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) Daikanyama is thriving as a fashionable district with luxury boutiques and upscale residences, attracting affluent buyers
Daikanyama is a hot market thanks to its reputation as a fashionable district with luxury boutiques and upscale residences.
In 2023, the average prices for new condominiums in the Tokyo Metropolitan Area surged by 42.5%, highlighting the high demand for luxury properties in areas like Daikanyama. Despite a 20.2% decline in land sales in Tokyo, Daikanyama's land demand stayed strong, showing its appeal to affluent buyers.
The area is known for its chic cafes, upscale dining options, and stylish boutiques, which add to its sophisticated charm. This makes it a magnet for both locals and visitors who enjoy a touch of elegance in their daily lives.
Daikanyama's strategic location between Ebisu and Shibuya makes it a prime spot for professionals. They seek a comfortable lifestyle with easy access to urban amenities, and Daikanyama delivers just that.
The vibrant culinary scene in Daikanyama is another draw, offering a wide range of cuisines and Michelin-starred restaurants. This makes it a food lover's paradise, adding to the area's allure.
For those considering a move, Daikanyama offers a unique blend of luxury and convenience, making it a top choice for discerning buyers. Its reputation as a fashionable district continues to grow, attracting more interest from those looking to invest in a premium lifestyle.
Sources: Japan Residential Real Estate Market Analysis 2024, Rental Apartments and Houses in Daikanyama, 11 Best Restaurants in Daikanyama, Long-term Living in Tokyo A 2025 Cost Analysis for the Shibuya-Daikanyama Area
10) Kagurazaka is gaining popularity for its historic charm and modern amenities, attracting locals and expatriates
Kagurazaka is quickly becoming a sought-after area in Tokyo.
Imagine strolling through streets where traditional Japanese culture meets modern French flair. This unique blend is what makes Kagurazaka so appealing to both locals and expatriates. The area offers a high quality of life, with its charming atmosphere and a mix of historic streets and modern amenities.
In recent years, there's been a noticeable uptick in real estate demand here. This is largely due to new residential developments and renovations that are sprucing up the area. A standout example is the Akagi-jinja Shrine, designed by Kengo Kuma, which beautifully integrates modern architecture into the historic landscape.
Media buzz has also played a big part in Kagurazaka's rising popularity. Articles from 2023 and 2024 have dubbed it Tokyo's "Little Paris," highlighting its French-inspired amenities and cultural events. This media attention has drawn in both locals and expatriates, eager to experience the area's unique cultural vibe.
For those considering a move, Kagurazaka offers a lifestyle that's hard to find elsewhere in Tokyo. The area is not just about its picturesque streets; it's about a community that embraces both its past and its future. This makes it a magnet for people seeking a balanced lifestyle.
Whether you're looking for a place to call home or just a spot to explore, Kagurazaka's blend of history and modernity offers something special. It's a place where you can enjoy the best of both worlds, making it a prime choice for property buyers.
Sources: Kagurazaka - Wikipedia, Kagurazaka: French-Inspired Oasis in the Center of Tokyo, Kagurazaka – Tokyo's “Little Paris”
11) Kiyosumi-Shirakawa is gaining attention as a trendy area with new cafes and art spaces, boosting real estate demand
Kiyosumi-Shirakawa is now a hotspot thanks to its trendy cafes and art spaces.
In recent years, real estate demand has surged as people flock to this vibrant neighborhood. The area offers a unique mix of modern art galleries, chic cafes, and serene traditional gardens, making it a magnet for both locals and newcomers. This blend of old and new has made Kiyosumi-Shirakawa a sought-after place to live.
The coffee culture here is booming, with international names like Blue Bottle Coffee and Allpress Espresso setting up shop. These cafes have become social hubs, drawing in coffee lovers from all over. The presence of the Museum of Contemporary Art Tokyo and various local galleries adds to the area's artistic vibe, making it a cultural haven.
Media coverage has played a big role in putting Kiyosumi-Shirakawa on the map. Articles and blogs have painted it as a cultural hotspot, attracting tourists and locals alike. This buzz has only increased its appeal, turning it into a must-visit destination.
For those considering a move, the neighborhood offers a lively atmosphere with a touch of tranquility. The mix of trendy spots and traditional elements creates a unique living experience. It's no wonder that property prices are climbing as more people discover this gem.
Whether you're a coffee enthusiast, an art lover, or someone seeking a vibrant community, Kiyosumi-Shirakawa has something to offer. The area's transformation into a trendy locale has made it a prime spot for real estate investment. Its growing popularity is undeniable, and it's a place where modernity meets tradition.
Sources: My Tokyo Guide, Looke Japan, Lifestyle by Remi
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12) Jiyugaoka is attracting homebuyers with its European-style streets and boutique shopping
Jiyugaoka is becoming a hot spot for homebuyers thanks to its European-style streets and boutique shopping.
In recent years, the area has seen a surge in demand for properties, driven by its unique character and desirable location. This trend is supported by real estate reports that highlight the increasing interest from both local and international buyers. Retail sales in Jiyugaoka have been on the rise, with a notable increase in foot traffic and sales at boutiques and cafes.
Marie Claire Street, in particular, is lined with chic boutiques and cafes that attract a significant number of visitors. This vibrant shopping scene contributes to the neighborhood's charm and lifestyle appeal, as highlighted by media coverage and travel guides. Social media platforms and influencers have also played a role in showcasing Jiyugaoka's European-style streets, further increasing its popularity among potential homebuyers.
The growing number of boutique shops and cafes, along with positive testimonials from residents praising the neighborhood's ambiance and amenities, add to its reputation as a desirable location. Jiyugaoka's unique blend of culture and convenience makes it a standout choice for those looking to invest in property.
Insider knowledge reveals that Jiyugaoka's community events and festivals are a big draw, offering a taste of local culture and a chance to mingle with neighbors. The area is not just about shopping; it's about a lifestyle that combines modern living with a touch of European flair.
For those considering a move, Jiyugaoka offers a blend of tranquility and excitement, making it a perfect spot for families and young professionals alike. The neighborhood's appeal is only set to grow as more people discover its unique charm.
Sources: Rakuten Travel, Japan Property Market Insights, DiGJAPAN!
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.