top of page

5 Regions in Japan with the Best ROI for Real Estate Investments

Writer's picture: David LakeDavid Lake



Japan’s real estate market is booming with opportunities for foreign and local investors alike, especially as more areas embrace redevelopment, tourism, and remote work. For those seeking regions that offer strong returns on investment (ROI), here are five top contenders, each with unique characteristics and growth potential.


1. Tokyo: A High-Demand, Low-Risk Investment





As Japan’s capital, Tokyo has the country’s most dynamic real estate market. While it’s known for high property prices, its consistent demand for rentals and sales makes it a low-risk, high-stability investment, especially in districts like Shibuya, Shinjuku, and Minato.


  • Investment Highlights:

    • Consistent Demand: A large urban population and continuous influx of international businesses and expatriates.

    • Appreciation Potential: Ongoing development projects, such as those leading up to the Olympics, continue to boost property values.

    • Rental Income: High rental yields due to demand for urban apartments.


Tokyo’s high property prices make initial investment costs higher, but the stable and profitable rental market makes it ideal for those seeking reliable, long-term returns.


2. Osaka: High Rental Yields in a Growing City





Osaka is a top choice for investors looking for high rental yields and more affordable entry costs compared to Tokyo. As Japan’s second-largest metropolitan area, Osaka benefits from a younger demographic and a thriving cultural scene that attracts domestic and international tourism.


  • Investment Highlights:

    • Growing Tourism: Osaka has established itself as a top travel destination in Asia.

    • Affordable Prices: Property prices in Osaka remain competitive, especially in popular areas like Namba and Umeda.

    • High Rental Yields: With demand for short-term and long-term rentals, investors can achieve favorable yields.


Osaka’s reputation as a business and entertainment hub, combined with a relatively affordable real estate market, makes it a strong candidate for high ROI.


3. Fukuoka: The Emerging Tech and Startup Hub





Fukuoka is gaining attention as a tech and startup-friendly city. Known for its strategic location close to other Asian countries, Fukuoka offers an appealing lifestyle for young entrepreneurs and digital nomads, which has started to drive up property demand and rental yields.


  • Investment Highlights:

    • Young Population and Startup Appeal: A growing tech scene, favorable policies for entrepreneurs, and an increasing population.

    • Affordable Housing Market: Properties in Fukuoka are comparatively affordable, especially in emerging districts like Tenjin and Hakata.

    • Tourism: As a city with a laid-back atmosphere, Fukuoka’s tourism industry is growing, contributing to short-term rental demand.


With policies that welcome international businesses and a rise in new residents, Fukuoka presents a strong, low-cost entry for investors interested in Japan’s evolving regions.


4. Sapporo: Seasonal Appeal and High Tourism ROI





Sapporo, located on Japan’s northern island of Hokkaido, is a premier destination for seasonal tourism, especially for winter sports enthusiasts. The city’s combination of affordable property prices and high tourist demand creates a lucrative market for short-term rentals.


  • Investment Highlights:

    • Seasonal Rental Potential: Peak winter season attracts international tourists, providing opportunities for high seasonal returns.

    • Affordable Prices: Lower property prices compared to Tokyo or Osaka make it accessible for new investors.

    • Rising Tourism: Known for its snow festivals and scenic landscapes, Sapporo’s tourism appeal is strong year-round.


Sapporo is ideal for those looking to invest in vacation rentals, as high tourism numbers promise profitable returns during peak seasons.


5. Okinawa: Resort-Style Real Estate with Global Appeal





Okinawa, Japan’s tropical paradise, has seen a surge in property demand thanks to its resort-style living and international appeal. With more foreigners and retirees considering Okinawa for both investment and retirement, the region’s real estate market offers potential for substantial returns.


  • Investment Highlights:

    • Growing Foreign Demand: Okinawa attracts investors and retirees seeking scenic, resort-style living.

    • Short-Term Rental Potential: High demand for vacation rentals, especially in summer months.

    • Appreciation Potential: As a preferred holiday destination, property values have been steadily increasing.


Whether it’s vacation rentals or resort-style residences, Okinawa’s picturesque appeal and international popularity make it a profitable choice for investors interested in lifestyle properties.


Which Region Is Right for You?


Japan offers diverse real estate opportunities, from urban rentals to resort properties. Choosing the right region depends on your investment goals—whether you’re seeking stable, long-term rental income or high seasonal ROI. At Old Houses Japan, we help you navigate the nuances of each region to find a property that aligns with your goals. Reach out today to learn more about investment options in these promising areas.

Comments


FIND YOUR JAPANESE AKIYA 秋谷 DREAM HOME

Old Houses Japan strives to bring you the best up to date Akiya 秋谷 and cheap houses in Japan. Consider signing up to receive exclusive access to when new cheap houses hit the market before anyone else. 

Japan is a great place to start your real estate journey. The cost of entry can be extremely minimal and with a resurgence in countryside home purchases, there is no better time than NOW. 

SIGN UP FOR OUR NEWSLETTER

Thank you for subscribing!

Free Resources

Vacant House Banks

Buying a House in Japan​

Working with a Japanese Real Estate Agent

Purchasing an Akiya

Old hOuses Japan logo
© Old Houses Japan

Our Company

About Us

Contact

Careers

Blog Posts

* Please note, we are not licensed real estate agents in Japan and we cannot help you purchase an akiya 秋谷  property, however, we can make an introduction for you. Prices are subject to change as the YEN to USD conversation fluctuates. Homes status may also change before we get a chance to change its status on the website.*

  • Instagram
  • TikTok
  • Youtube
  • Threads
  • X

Legal

bottom of page