- Market Outlook
Prices, Rents, and Yields in Japan (Updated: November 2026)
Last Updated: November 4, 2026
This overview provides property investors with the latest insights into prices, rental trends, and yield rates in Japan as of April 2024. Understanding these factors will help investors make informed decisions in Japan's dynamic real estate market.
Table of Contents
Investing in Japanese real estate will allow you to earn rental income and capital growth. Before putting your money into real estate you should know what prices are like and how much you can earn. It varies from city to city and within cities you can have completely different investment opportunities.
In 2026 investors will find they have a range of investment options. With property prices increasing, rental demand, infrastructure developments and different populations across regions. Tokyo is one of the most established cities to invest in however Osaka and Fukuoka have some investment opportunities with lower prices.
Property Prices Across Major Cities
Prices will vary across cities, areas, types of property, age of building, size and how close it is to public transport. A property in a Condominium close to a major train station will be much more expensive.
Residential & Condominium prices in Japan are expected to increase by the end of 2025. Below are some examples of property prices and rental prices in Q1 2026. The below prices are in USD. These are not official average prices but just examples.
| City or market | Indicative one-bedroom purchase price |
|---|---|
| Tokyo (all locations) | US$362,800 |
| Central Tokyo | US$572,800 |
| Osaka (all locations) | US$146,300 |
| Fukuoka (all locations) | US$148,100 |
Investors looking to invest in Japan should look at MLIT data on real estate sales and indexes. Try to get accurate information by looking at sales prices and price per square metre. This will help give you a better idea of the prices to expect.
Factors to consider when buying real estate in Japan:
- Location: Properties located in central business areas and popular areas are going to be more expensive.
- Access to transport: Properties located close to train stations and public transport will be favourable for renters/owners.
- New build, maintenance, age: New builds will be more expensive. Properties that are well maintained will be more expensive. Older properties may be discounted.
- Development: Businesses, infrastructure and employment in the area can impact how much demand there is.
- Supply & Demand: Properties with limited supply will be more expensive.
Rental Rates and Trends
Rentals will vary depending on location, size, condition, access and type of renters. The largest cities in Japan - Tokyo and Osaka will have the highest demand for rentals due to established economies, universities and great transport links. Properties in these cities will be rented out to a variety of people.
| City or market | Indicative monthly rent |
|---|---|
| Tokyo (all locations) | US$860 |
| Central Tokyo | US$1,340 |
| Osaka (all locations) | US$550 |
| Fukuoka (all locations) | US$510 |
These are estimated rental prices. They are not guaranteed and do not reflect the average rental price in each area. The actual rental price can vary greatly depending on size, age, facilities and how close it is to local amenities and transport links (particularly the closest station). For example, a small apartment close to a major business area will have a very different rental price to a larger unit in a more residential area. Investors should look to compare similar properties in the local area.
Investors may also be attracted to the lower purchase price in some regional cities like Fukuoka. This can give investors a better balance between purchase price and rental income.
Rental Yields
If you are looking to invest in a property in Japan you may want to consider the potential rental income. The rental yield is one of the most important factors to consider. Rental yield shows the relationship between your purchase price and how much rental income you could earn from renting it out. In areas with high purchase prices the rental yield tends to be low. Unless rental prices increase to match the increased purchase price. In areas with lower purchase prices you can have higher gross yields as there will be demand to rent them.
As of Q1 2026 the average gross rental yield in Japan was around 4.55%. This is up from Q3 2025 with an average gross rental yield of around 4.34%. Below is the average gross rental yield per city in Japan. Data from Global Property Guide Q1 2026.
| City | Average gross rental yield |
|---|---|
| Tokyo | 3.27% |
| Osaka | 4.78% |
| Fukuoka | 4.77% |
| Yokohama | 4.97% |
| Sapporo | 5.03% |
| Kobe | 4.32% |
| Kawasaki | 4.71% |
This shows that some areas in regional Japan can offer higher gross rental yields than central Tokyo. Whilst this may seem like a good investment you should also consider vacancy rates, ongoing maintenance costs, demand and potential to sell.
Rental yield is just one factor to consider when investing in real estate in Japan. To work out the gross rental yield of a property:
Gross Rental Yield = (Annual Rental Income / Purchase Price) x 100
For example, if you purchased an apartment in Osaka for 25 million yen and rented it out for 100,000 yen per month:
Gross Rental Yield = (1,200,000 / 25,000,000) x 100 = 4.8%
However, this does not take into account any costs associated with the property such as property management, repairs, insurance, fixed asset tax, city planning tax, vacancies etc. It is also important to consider the net rental yield. You should also consider the costs of financing and taxes from your rental income.
Key Considerations
Tokyo is definitely a real estate market that has been more established than others. However that doesn't make it the only option. Osaka and Fukuoka may provide options at a lower acquisition cost and higher rental yield potential. Don't rule out other cities in regional Japan such as Sapporo or Yokohama. At the end of the day it's not about buying properties at the cheapest price or based on highest advertised rental yield, but it's about the overall investment argument. Purchase cost compared to achievable rent and ongoing costs and of course long term demand outlook. Review reliable data sources and weigh up each property individually before making your decision and developing your investment in Japan strategy.
Final Thoughts
- Property performance can vary between neighborhoods within a city: Look at local rental demand, transportation, amenities, development projects, and recent sales of similar properties in the area.
- Compare purchase price and rental income: A property that looks reasonably priced may not necessarily be a good investment. In addition to the purchase price, consider taxes and other purchase closing costs. Compare these costs to expected rent from the property.
- Factor in ongoing costs: Consider costs that will come out of rent, including management, repairs, improved, insurance, taxes, and periods when the property may be vacant.
- Understand local market trends: Population changes, local job market, supply of new housing, and development and infrastructure projects can all affect property values and rental demand.
- Consider your investment goals: If generating rental income is your primary goal and you plan to hold the property long-term, sustainability of demand for rentals will be critical. If your primary goal is capital appreciation, focus on factors that affect resale values, such as redevelopment plans and growth potential in an area.
Source
- Global Property Guide – Gross Rental Yields in Japan
- Global Property Guide – Japan Residential Rental Yields
- Global Property Guide – Square Meter Prices in Japan
- MLIT – Long-Term Trends in Land Prices
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