View of Kusatsu Onsen, a hot spring resort located in Gunma Prefecture, Japan, northwest of Tokyo.

Kusatsu Onsen, Gunma: Iconic Hot Springs and Mountain Village Property

Published On: 8月 18, 2026

A definitive guide to Kusatsu Onsen – explore iconic hot springs, mountain living, tourism demand, property prices, and investment potential in one of Japan’s top onsen towns.

Kusatsu Onsen is one of Japan’s premier hot spring resorts, located in the mountains of Gunma Prefecture. At an elevation of approximately 1,200 meters, Kusatsu Onsen is famous for its steaming Yubatake (hot water field), ryokan (traditional Japanese inns), public baths, winter sports, and pleasant summer climate. Compared to other famous hot spring resorts in Japan, Kusatsu Onsen provides a unique atmosphere and a rare opportunity to invest in a desirable Japanese destination at comparatively low prices.

Both for investors and those seeking a second home, Kusatsu Onsen is a great choice due to the popularity of the hot springs resort and the relatively cheap prices of property there. Affordable resort condominiums can be purchased for several million yen, whereas the prices for houses and land are significantly lower than in Tokyo or other popular areas such as Karuizawa.

However, it is important to consider several factors before purchasing property in Kusatsu Onsen. Firstly, the population in Kusatsu Onsen is small and highly seasonal. Secondly, winter can be extremely cold and slippery. The advantage of choosing Kusatsu Onsen for property purchase lies in the balance between the local tourism industry and reasonably priced real estate. For those seeking a second home, a vacation house, or an investment in the local tourism industry, the hot spring resort of Kusatsu Onsen represents a fantastic opportunity.

Area Overview

The area of Kusatsu Onsen, which is also known as Kusatsu, is located in the Agatsuma District in the western part of Gunma Prefecture. Surrounded by mountains, the hot spring resort is known for its natural beauty and is located at an altitude of approximately 1,200 meters. As such, Kusatsu Onsen is characterized by relatively cool summer temperatures and cold, snowy winters.

There is no railway station in Kusatsu Onsen. The closest station is Naganohara-Kusatsuguchi on the JR Agatsuma Line. From the station, it takes approximately 25 minutes to reach Kusatsu Onsen by bus. High-way buses to Tokyo are also available from Kusatsu Onsen. The closest bus terminal is located in Shinjuku, and the trip takes approximately four hours.

The hot spring resort is relatively easy to reach from foreign countries, as it is well connected to transportation within the Kanto region. For instance, Karuizawa is located approximately one hour away by bus, while Tokyo is within a four-hour drive from Kusatsu Onsen by highway buses.

Kusatsu Onsen is a small city, and most of it can be explored on foot. The Yubatake (hot water field) is at the center of the resort and serves as the main attraction of Kusatsu Onsen. The hot water field is surrounded by restaurants, cafes, shops, ryokan, and public baths.

When considering purchasing property in Kusatsu Onsen, it is important to understand that the value of a property located near the center and offering spectacular views will be significantly different from the price of a villa several kilometers from the center.

Atmosphere and Vibe

Despite its popularity, Kusatsu Onsen preserves the atmosphere of a traditional Japanese onsen (hot spring) village.

The most notable feature of the hot spring resort is the steamy Yubatake, from which the hot spring water is directed to the treatment baths. The traditional Japanese architecture, hot spring water, and the overall scenery contribute to the unique atmosphere of the hot spring resort. During the day, the resort is filled with crowds of tourists, who have arrived to enjoy the local hot water field, shops, and restaurants.

However, as soon as it gets dark, day-trippers return to their accommodations, and the village transforms into a quite and charming town, where the glowing Yubatake continues to attract local overnight guests. In Kusatsu Onsen, tourists can enjoy the view of the Yubatake while wearing a yukata (traditional Japanese garment) and have dinner at a local bathhouse.

As such, Kusatsu Onsen is a great choice for those, who wish to have a second home or a vacation house in a tourist-friendly area with a traditional Japanese village atmosphere.

Tourist and Local Destinations

Kusatsu Onsen is a great destination throughout the year. While winter is a popular season in Kusatsu Onsen, as it offers skiing opportunities, spring, summer, and autumn are equally charming and picturesque. The hot spring resort is perfect for those, who wish to enjoy both the hot springs and skiing. Summer in Kusatsu Onsen is significantly cooler than in Tokyo, making the hot spring resort a preferred destination for those, who wish to escape the summer heat of Japanese cities.

Yubatake (Hot Water Field)

The Yubatake (“hot water field”) is the most famous landmark and the center of Kusatsu Onsen. The hot water field is where the hot spring water coming from underground is cooled down with cold water before being directed to the treatment baths. The hot spring water in the Yubatake contains various minerals and is highly acidic, which means that not everyone can enjoy the local hot spring.

Nevertheless, the Yubatake is at the heart of Kusatsu Onsen and offers something for everyone. The hot water field draws thousands of visitors to Kusatsu Onsen each year and serves as the center of the local hot spring resort. As such, it is crucial to consider the location of an apartment, a hotel, or a house in relation to the Yubatake when investing in the real estate of Kusatsu Onsen. The closer the property is to the Yubatake, the more tourists it will attract, and the more valuable it will be.

View of Yubatake (Hot Water Field) in Kusatsu Onsen, Gunma, Japan — Source: Zekkei Japan

Netsu-no-Yu

Next to the Yubatake, the Netsu-no-Yu (“hot water village”) is famous for its traditional yumomi (hot spring water stirring) performances. The unique traditional yumomi performances, which can be enjoyed by anyone for a small fee, are held by professional performers, who use large wooden boards to stir and cool down the hot water.

Sainokawara Park

Situated a short walk from the Yubatake, Sainokawara Park is a natural attraction, where hot water springs come out of the ground, forming steamy streams and waterfalls. The area is covered in pine trees and rocks and offers mountain vistas. The Sainokawara Park also features a large open-air bath, which is quite popular with the locals and the visitors of the hot spring resort.

Kusatsu Onsen Ski Resort

As mentioned above, Kusatsu Onsen is a four-seasons destination. Being surrounded by mountains, the hot spring resort offers a ski resort for those, who wish to enjoy winter sports. The ski resort attracts thousands of visitors each year and serves as a major source of revenue for the hot spring resort.

Mount Kusatsu-Shirane

The mountain known as Kusatsu-Shirane is home to the hot springs of Kusatsu Onsen. Hiking in Kusatsu-Shirane is a great way to enjoy the scenery of the Gunma Prefecture, although it is better to avoid the mountain during the eruption season.

Yoshigadaira Wetlands

The Yoshigadaira Wetlands are a great hiking destination for those, who wish to explore more of the local nature and enjoy spectacular mountain views. Part of the Joshin’etsukogen National Park, the wetlands attract thousands of hikers and nature lovers every year. The Yoshigadaira Wetlands are particularly stunning during the summer and the autumn seasons and are well worth exploring.

Livability

Kusatsu Onsen is a small mountain village with a population of approximately six thousand people. As such, it offers a variety of local shops, restaurants, drug stores, medical facilities, schools, and other public services. However, compared to the cities of Tokyo or Nagano, Kusatsu Onsen does not provide the same level of comfort and variety when it comes to shopping and other daily needs.

Although the convenience of Kusatsu Onsen may be questionable for some, it should not worry foreign property investors, who only wish to use their investment in tourism. With that being said, it is important to keep in mind that living in a foreign country is significantly different from staying in a second home.

Walkability

One of the main benefits of buying a property in Kusatsu Onsen is the walkability of the hot spring resort. The closer the property is to the Yubatake, the larger will be the selection of shops and restaurants, which can be visited on foot. In addition, the mountain terrain of Kusatsu Onsen rarely offers transportation alternatives and, as such, buying a house closer to the center may be a more convenient choice.

Climate

Located at an altitude of approximately 1,200 meters, Kusatsu Onsen has a significantly cooler climate than most of Tokyo or other large cities in Japan. Thus, it may be a good option for those, who wish to escape the summer heat of Japan. The cool summer nights and warm summer days of the hot spring resort create a perfect balance for a tourist destination.

On the other hand, it is important to remember, that the winters in Kusatsu Onsen can be extremely cold and slippery. As such, it is necessary to consider the expenses of heating and snow removal if planning to buy a house in Kusatsu Onsen. It may also be worth noting that snow and ice make the road conditions of Kusatsu Onsen particularly slippery.

As a result, if a foreigner is considering purchasing a property in Kusatsu Onsen, it might be helpful to hire local agents to look after the property and manage any snow removal and maintenance tasks.

Real Estate: Rent and Property Information

For a city with such popularity and such a demand for accommodation, Kusatsu Onsen provides surprisingly affordable prices for condominiums, houses, and land. Compared to other Japanese resort towns, Kusatsu Onsen is an excellent choice for those, who wish to buy a second home or a property with tourism in mind.

Condominium Prices

According to the research, published by real estate agencies on their website, the average price of a condominium in Kusatsu Onsen is approximately 6 million yen. However, it is important to note that the prices listed on the real estate agencies’ website represent the asking price, whereas the final selling price can greatly vary depending on the age of the property, its location, view, and other factors. The cheapest property options are usually available in older resort condominiums. While the price may seem reasonable, it is important to take into account additional property expenses, which may be involved with maintaining a condominium in Kusatsu Onsen.

Property Type	Indicative Listed Price
1DK condominium	Approx. ¥4 million
1LDK condominium	Approx. ¥6.3 million
2LDK condominium	Approx. ¥9.8 million
Overall average	Approx. ¥6 million

Land Prices

Depending on the area, the price of land in Kusatsu Onsen can vary drastically.

According to the research of land prices in 2026, the average land price in Kusatsu Onsen is ¥36,400 per square meter. In residential areas, the average land price is ¥25,750 per square meter, whereas the commercial land price is ¥57,800 per square meter.

On the other hand, the price of land depends on the demand, which means that it can be much higher in particularly desirable locations. According to the research, conducted in 2026, the land price in one of the popular hot spring resort areas reached ¥121,000 per square meter.

To summarize, it is essential to consider the location when buying land because a property located right next to the Yubatake would have a different value compared to a house several kilometers from the center of Kusatsu Onsen.

Detached Houses and Villas

In addition to the resort condominiums, Kusatsu Onsen also offers mountain houses or older detached houses.

Buying a detached house can be a great investment, as it usually provides more space than a condominium. Detached houses are great for families, who wish to spend their vacations in Kusatsu Onsen. Another advantage of buying a detached house is that older houses can be renovated and turned into rental properties, depending on local regulations.

However, when buying a detached house, it is important to keep in mind additional expenses, such as insulation or snow removal, and the condition of the property. Older houses may require renovation and significant investments. At the same time, it is crucial to factor in the expenses of maintaining a house in Japan, such as snow removal and pipe freezing during the winter season.

Tourism and Rental Demand

With Kusatsu Onsen being one of the most popular hot spring resorts in Japan, there is a steady demand for accommodation. Thus, it is highly likely that a property in Kusatsu Onsen can be rented out for a significant price. According to the data from the National Tourism Organization, in June 2026, the number of overnight visitors reached 172,113, which means that the demand for private accommodation was particularly high. The hot spring resort welcomed 60,187 overnight visitors, with an average of 6,687 overnight guests per day, representing an 8 percent increase compared to the same period in 2025.

In terms of renting properties in Kusatsu Onsen, it is important to remember that not all of the properties in the hot spring resort can be opened to tourists. Local regulations, which restrict short-term rental contracts, and specific building regulations, such as hotel licenses, must be taken into consideration. At the same time, a condominium located close to the Yubatake might have a demand throughout the year.

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Other Information

The value of a property in Kusatsu Onsen relies on the balance between the price of the property, the demand for accommodation in terms of tourism, and an individual’s or a company’s ability to maintain their property.

When purchasing an investment property, it is essential to consider both the value of the property itself and the value of the view over the Yubatake. In terms of location, a house at the center or a villa deep in the mountains can provide a different set of advantages. Compared to resorts such as Karuizawa, Kusatsu Onsen offers a great opportunity to invest in an affordable Japanese mountain resort at comparatively low prices.

For foreigners, it is important to remember that they are allowed to purchase property in Japan without citizenship or residency. Nevertheless, it is vital to consult local regulations to fully understand the details of ownership of any investment property in Japan.

Short-Term Rentals

When considering the purchase of property with tourism in mind, it is essential to conduct thorough research regarding local regulations. At present, there are specific legal requirements relating to the possession of a hotel, ryokan (traditional Japanese inn), or other private accommodations in Japan. Furthermore, local regulations and building guidelines for condominiums and house rentals might also impose limitations on short-term property rentals.

Onsen Properties

In some cases, a property in Kusatsu Onsen can offer more than a view and a place to stay. Some houses, hotels, and condominiums in the hot spring resort provide access to the local onsen resources. Thus, it is vital to research the particular onsen-related regulations and responsibilities, which come along with a property in Kusatsu Onsen. The regulations can range from additional monthly or annual payments, which grant access to the onsen water, to the obligation to participate in the maintenance of the onsen. The responsibilities and additional expenses, such as the cleaning, may vary, depending on the onsen community and the property’s relationship with it. It is important to keep in mind that the so-called “onsen condominium” will usually offer more amenities, which come with additional expenses.

Snow and Property Management

With the high altitude of the hot spring resort, Kusatsu Onsen rarely sees warm winters. As a result, snow and ice can considerably impact the state of the property, its surroundings, and the road conditions. At the same time, snow removal and additional maintenance of the house is a responsibility of the property owner. Therefore, when purchasing property in Kusatsu Onsen, it is essential to factor in the additional snow management expenses, which might arise in the winter season.

Particularly in the case of a single house, it is advisable to hire local agents to manage the house and remove snow from the pipes. This way, the property owner will be able to enjoy their investment without additional expenses and responsibilities.

Final Thoughts

Kusatsu Onsen is a hot spring resort, which offers a unique combination of a well-known Japanese hot spring resort destination and an affordable second home. The hot spring resort is a popular destination throughout the year, as it offers a diverse range of accommodations, including hotels, ryokan, apartments, and houses, as well as mountain views, hot water fields, and ski slopes. In addition, the real estate prices in Kusatsu Onsen are fairly competitive compared to other Japanese hot spring resorts, making it a great option for both tourists and investors.

When purchasing property in Kusatsu Onsen, it is important to consider the location, the value of the property, and the level of involvement in managing the property. A small condo close to the Yubatake will provide a different set of opportunities compared to a detached house in the mountains.