1. Why Osaka Is Attracting Foreign Buyers

Osaka is rapidly becoming a top destination for foreign residents and investors. Affordable housing prices compared to Tokyo, a vibrant lifestyle, and major development projects make it an attractive market. According to recent reports, foreign nationals account for nearly 18% of luxury property transactions in Osaka.

The weak yen, combined with Japan’s inbound tourism boom and upcoming events such as Expo 2025 and the Integrated Resort (IR) in 2029, is fueling global interest in Osaka’s real estate.

2. Market Outlook and Price Growth

• Land Prices: Nationwide land prices rose 2.7% in 2024, the highest in 34 years, with Osaka leading the growth.
• Residential Prices: Average new condominium prices in Osaka reached around ¥1.2 million per m² in 2024.
• Forecast: Experts predict a 5–8% annual increase in residential and commercial property prices from 2025–2027, then 3–5% through 2030.

3. Key Areas to Watch

The following neighborhoods are expected to see the highest demand:

1. Umeda: New office and residential developments, attracting young professionals.
2. Yodogawa Ward: Increased demand due to Osaka Metropolitan University’s new campus opening in 2025.
3. Bay Area (Expo/IR Zone): Major infrastructure and tourism-driven projects boosting property values.

4. Rental Market and Living Conditions

Rental demand remains strong, with vacancy rates at about 3.8%. More apartments now include co-working spaces and eco-friendly designs, catering to both locals and international residents who work remotely.

5. Opportunities and Risks for Foreign Investors

Opportunities:

• Luxury residential properties with high rental yield.
• Hotel and hospitality investments ahead of major events.
• Eco-friendly and smart housing developments.

Risks:

• Possible cooling after Expo 2025.
• Interest rate increases by the Bank of Japan.
• Regulatory changes for foreign ownership or short-term rentals.

Summary Table