🗾 The Best Prefectures for Capital Growth in 2025

When it comes to buying a home in Japan—especially an akiya—price alone isn’t the full story. What really matters for investors is capital growth: how much the value of your property can increase over time.

While akiya are often cheap to buy, some prefectures are showing real signs of appreciation in 2025, making them smarter bets for those who want to combine the charm of rural living with financial upside.

Here’s a guide to the best prefectures for capital growth in 2025, and why they stand out.

‍

‍

🏙 Tokyo: Still the Powerhouse

Even with Japan’s population decline, Tokyo’s property market is booming.

• Residential prices rose 10.7% year-on-year in early 2025, the highest in the country.
• Land values in central wards surged 8.1%, far above the national average.
• Rental demand continues to grow, with mid-market rents hitting historic highs.

For investors, Tokyo isn’t just about prestige—it’s about stable appreciation and strong rental yield. If you’re considering an akiya within commuting distance of Tokyo, expect your investment to benefit from the city’s momentum.

🏔 Nagano: Nature + Accessibility

Nagano has quietly become one of Japan’s hottest second-home markets. Thanks to its:

• Year-round tourism (skiing, hiking, hot springs)
• Shinkansen access from Tokyo (under 90 minutes)
• Scenic towns like Karuizawa, Matsumoto, and Ueda

Nagano combines countryside charm with reliable demand from urban buyers. Land values in nearby Hakuba, for example, have jumped over 30%—a sign of strong growth potential.

For akiya investors, Nagano offers the best of both worlds: low entry prices with strong resale and rental demand.

🌊 Kagawa: Affordable but Rising

On the island of Shikoku, Kagawa Prefecture is emerging as an art-and-culture hotspot.

• Home to the world-famous Naoshima and Teshima art islands
• Coastal akiya available at very affordable prices
• Local governments pushing revitalization and tourism initiatives

Kagawa is ideal for buyers seeking long-term appreciation and affordable entry costs. Think of it as an undervalued gem poised for cultural and lifestyle-driven growth.

🌏 Regional Hubs: Osaka, Fukuoka, Nagoya, Sapporo

Japan’s regional cities are also seeing strong gains:

• Osaka → Rental yields around 4.5%, major redevelopment ahead of Expo 2025.
• Fukuoka → Growing tech hub, popular with young professionals.
• Nagoya → Industrial powerhouse with Shinkansen connectivity.
• Sapporo → Leading yields (~5%), strong tourism and urban expansion.

For investors, these cities provide balance: not as expensive as Tokyo, but with reliable growth and income streams.

🏯 Beyond the Cities: Regional Growth Spots

Other prefectures like Sendai, Hiroshima, and secondary towns around Nagano and Shizuoka are starting to attract attention. With land prices slowly climbing and renewed local government investment, these areas could offer steady mid-term gains.

📊 Strategy: How to Use This Information

When considering capital growth, keep in mind:

• Tourism-driven areas (Nagano, Kagawa) → Best for short-term rentals and flips.
• Major metros (Tokyo, Osaka, Fukuoka) → Best for stable long-term appreciation.
• Emerging secondary cities → Best for balancing affordability with growth potential.

For akiya buyers, this means targeting properties with both lifestyle appeal and investment fundamentals.

🧭 Final Thoughts

Not every akiya will increase in value—but by choosing the right prefecture, you put yourself in the best position for capital growth.

• Tokyo offers stability and demand.
• Nagano blends nature with accessibility.
• Kagawa is a rising cultural star.
• Osaka, Fukuoka, Nagoya, and Sapporo balance yield with growth.

The key is knowing your goals—flip, rent, or hold—and aligning them with the prefectures driving Japan’s property market forward in 2025.

🏡 Want Help Choosing the Right Prefecture?

At Old Houses Japan, we specialize in helping investors identify not just affordable akiya, but those with the strongest long-term potential. From Nagano ski towns to coastal Kagawa, we’ll help you find a property that fits both your lifestyle and financial goals.