Tokyo is one of the world’s leading megacities, home to approximately 14 million people and a global hub where business, culture, and fashion converge. Its extensive and highly efficient transportation network—including subways, JR lines, and private railways—offers seamless access not only throughout the city but also to the suburbs and airports. With an economic scale reaching around ¥100 trillion (based on the SECO Economic Report 2025 on Japan), Tokyo continues to grow as a key business center, attracting numerous international companies that establish their headquarters or Asia-Pacific bases here.
As Japan recovers from the COVID-19 pandemic, the number of international visitors has surged, leading to unprecedented demand for accommodations in Tokyo. In April 2024 alone, over 3.04 million foreign tourists visited Japan (*1), surpassing pre-pandemic levels seen in 2019. In central Tokyo, both hotels and short-term rentals are seeing high occupancy rates, along with a steady increase in average daily room rates.
Given these conditions, investment properties designed for accommodation operations offer strong potential for stable returns, making Tokyo an attractive market for investors.
Driven by large-scale redevelopment projects and ongoing monetary easing, condominium prices in central Tokyo have been steadily rising, creating strong opportunities for capital gains.
In particular, the price per square meter in Chiyoda, Chuo, and Minato wards has shown a consistent upward trend since 2015. Major redevelopment projects—such as Toranomon Hills, Shibuya Scramble Square, and areas around Shinagawa—have driven land prices higher, further accelerating investor demand. As long as redevelopment continues, the potential for capital gains remains high, making Tokyo real estate a valuable option for portfolio diversification.
Tokyo is seeing the rise of large-scale, mixed-use development projects backed by foreign companies, alongside rapid improvements to infrastructure that meet international standards. Projects like Azabudai Hills and Tokyo Midtown Yaesu exemplify urban developments that seamlessly integrate offices, retail spaces, and luxury residences. With investments from global funds, these developments offer world-class design and services. Infrastructure upgrades—such as subway line extensions and improved access to Haneda Airport—have also significantly enhanced connectivity between central Tokyo and the suburbs.
These infrastructure enhancements have led to a growing concentration of global corporate headquarters and Asia-Pacific regional offices in Tokyo, further strengthening its role as an international city. Backed by steady demand, the real estate market remains resilient, with minimal risk of significant price declines.
Real estate prices in Tokyo vary significantly by area. While the supply of newly built condominiums remains limited, there is active trading of relatively new pre-owned units, particularly in central districts. In contrast, detached houses in the suburbs are still available at comparatively affordable price points.
Rental prices also vary widely depending on the area, layout, and age of the property. In central Tokyo, monthly rents for studio or one-bedroom units (1R/1K) typically range from ¥100,000 to ¥200,000, while two-bedroom units and larger (2LDK and up) can command ¥300,000 to over ¥700,000 per month.
The following table provides an approximate overview of property prices and rental rates by area as of May 2024.
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| Area | Condominium Price per Square Meter (Purchase) | Detached House Price (Purchase) | Rent: 1R / 1K (Monthly) | Rent: 1LDK / 2K (Monthly) | Rent: 2LDK and Above (Monthly) |
|---|---|---|---|---|---|
| Central 3 Wards (Chiyoda, Chuo, Minato) | ¥1,500,000 – ¥2,500,000 and above | ¥200,000,000 – ¥500,000,000 and above | ¥100,000 – ¥200,000 | ¥200,000 – ¥400,000 | ¥300,000 – ¥700,000 and above |
| Inner Suburbs (Shinjuku, Shibuya, Meguro, Shinagawa) | ¥1,200,000 – ¥1,800,000 | ¥150,000,000 – ¥300,000,000 | ¥80,000 – ¥150,000 | ¥150,000 – ¥250,000 | ¥200,000 – ¥400,000 |
| Suburban Areas (Koto, Setagaya, Itabashi, Suginami) | ¥800,000 – ¥1,200,000 | ¥80,000,000 – ¥150,000,000 | ¥60,000 – ¥100,000 | ¥100,000 – ¥180,000 | ¥150,000 – ¥250,000 |
※Based on data from the real estate portal Suumo (as of September, 2025).
When searching for a property in Tokyo, it's essential to start by using English-friendly property websites to gather information tailored for foreign residents.
As for the registration process, foreigners can legally register property in Japan without needing a special visa at the time of purchase. However, it's important to understand that for long-term stays or when seeking financing, permanent residency or a stable income in Japan is typically required.
After viewing a property, it’s helpful to understand the full process that follows: submitting a purchase application, receiving an explanation of important matters (which can be provided in English through real estate agencies or interpreters), signing the sales contract—which typically requires a deposit of 5% to 10% of the purchase price—and finally, settling the remaining balance and completing the transfer of ownership, which is usually handled by a judicial scrivener.
It’s also important to secure a tax accountant familiar with Japanese taxation for foreign investors as early as possible, in order to avoid overlooking the various taxes incurred during acquisition, ownership, sale, inheritance, and gift transfers.
Minato Ward, the international center of Tokyo, is home to luxury residences, foreign corporate offices, and numerous embassies. As a result, major redevelopment projects like Azabudai Hills are underway, and the area is known for its high concentration of foreign residents. The market includes high-rise condominiums, low-rise luxury apartments, and rare detached homes, making it an ideal option for capital gains, rental income, or relocation by ultra-high-net-worth individuals. With access to multiple train lines and convenient connections to Haneda Airport, Minato offers both high livability and strong investment potential.
As of May 2024, condominium prices in Minato Ward in average ¥1,700,000 per square meter and above, while rental rates typically fall between ¥300,000 and ¥1,000,000 per month and above.
Chuo Ward is where commerce and history blend seamlessly, with areas like Ginza and Nihonbashi offering some of the highest levels of convenience in central Tokyo. Meanwhile, the bayside neighborhoods of Tsukishima, Kachidoki, and Harumi are undergoing major redevelopment. The area offers investment opportunities in high-rise condominiums, privately owned apartments, and commercial buildings—making it well-suited for investors seeking capital gains as well as those looking to live in the heart of the city.
The area is served by a wide range of train lines—including the Ginza, Hibiya, Tozai, Asakusa, and Oedo lines—providing excellent connectivity. Easy access to Tokyo Station and Shinkansen lines further enhances its convenience, making Chuo Ward an attractive option both for investment and for residents who prioritize accessibility.
The Ebisu, Daikanyama, and Omotesando areas of Shibuya Ward are highly sought-after upscale residential neighborhoods known for their refined atmosphere. Redevelopment efforts have also strengthened the district’s business functions, earning strong recognition from foreign investors. Property options include privately owned condominiums, designer apartments, and some detached homes, making the area ideal for lifestyle-focused investors and those seeking a high-quality urban living environment.
With access to multiple train lines—including the JR Yamanote and Saikyo lines, as well as the Ginza, Hanzomon, and Fukutoshin subway lines—the area offers excellent connectivity to all parts of Tokyo.
Shinjuku Ward offers a diverse character, combining entertainment and commercial district around Shinjuku Station with the tranquil surroundings of Shinjuku Gyoen and the historic charm of Kagurazaka. The area features high-rise condominiums, privately owned apartments, and some detached homes, making it well-suited for investors focused on rental income as well as those seeking to live in central Tokyo.
With access to major lines such as the JR Yamanote Line, Chuo Line, Odakyu Line, Keio Line, Marunouchi Line, and Oedo Line, the area benefits from one of Japan’s most prominent terminal stations, offering unmatched convenience for getting anywhere in the city.
As of May 2024, condominium prices in Shinjuku Ward range from ¥1,200,000 to ¥2,000,000 per square meter, while rental rates typically range from ¥150,000 to ¥500,000 per month.
Meguro and Setagaya Wards are well known for their quiet, residential neighborhoods and are especially popular among families and those raising children. The area mainly features privately owned condominiums and detached houses, making it an ideal choice for investors focused on rental income as well as families seeking long-term residence.
With access to multiple train lines—including the Tokyu Toyoko Line, Den-en-toshi Line, and the JR Yamanote Line via Meguro Station—these areas offer excellent connectivity to central Tokyo. The abundance of green parks and the calm, residential atmosphere add to their appeal.
Toshima, Itabashi, and Koto Wards offer excellent access to central Tokyo while featuring relatively affordable property prices, making them attractive for cost-conscious investors. These areas are home to a large number of privately owned and family-oriented condominiums, appealing to those focused on rental income or higher yields. In Toshima Ward, redevelopment is underway in the Ikebukuro area, while in Koto Ward, large-scale residential projects are progressing along the bayside—both contributing to the potential for future property value appreciation.
These areas are served by the JR Yamanote Line, Tokyo Metro, and Toei Subway, offering smooth and convenient access to central Tokyo.
In Tokyo, vacation homes are gaining attention not merely as holiday retreats, but as urban-style second residences designed with convenience in mind. Typical buyers include wealthy individuals from other parts of Asia who use them as bases for business trips or short-term stays in the city; Western executives who purchase properties for extended stays that combine business and cultural experiences; and affluent Japanese from regional areas who use them as hubs for business or leisure activities in Tokyo.
When choosing a location, areas with convenient access to Haneda and Narita airports—such as Minato, Chuo, and Shinagawa Wards—are ideal. Other suitable options include low-rise residential neighborhoods like Daikanyama, Azabu, and Hiroo, which offer quiet surroundings and a high level of privacy, or upper floors of high-rise condominiums. It's also important to consider proximity to international schools, parks, upscale supermarkets, medical facilities, and restaurants, as well as overall neighborhood safety and stability.
In terms of ongoing costs, owners should account for property tax and city planning tax, as well as monthly management fees, reserve funds for repairs, and cleaning costs. It is common practice to outsource cleaning, maintenance, and mail forwarding during periods of absence to a professional property management company.
In the case of privately owned condominiums, it is important to understand the regulations set by the building’s management association. However, day-to-day operations are typically handled by a management company, so the direct burden on owners is relatively limited. With these factors in mind, it is advisable to consider areas and properties that align with your lifestyle and investment goals.
When considering purchasing real estate in Tokyo, the first and most crucial step is to consult a trustworthy real estate agency. This is because real estate transactions in Japan involve unique practices as well as complex legal and tax frameworks. For foreign buyers, additional challenges such as language and cultural differences, as well as hurdles in securing financing, can also arise. Having an experienced and knowledgeable partner who can navigate all of these aspects on your behalf is essential to a successful purchase.
Specifically, be sure to check the following key points.
Additionally, having a one-stop service structure that can support post-purchase rental management, interior design and furniture coordination, as well as provide guidance on operating vacation rentals, can greatly enhance both investment efficiency and convenience. Choosing the right partner that best matches your individual needs is the smartest first step toward a smooth and secure property investment or second home purchase in Tokyo.
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From brokerage to management and valuation, they offer a wide range of real estate services.
Backed by Nomura Securities' network and insights, they enables investment-focused proposals that take into account both current returns and long-term growth potential.
Major metropolitan areas across Japan
(Tokyo 23 wards, Nagoya, Osaka, Kyoto, Kobe, Sapporo, Fukuoka, etc.)
The first and only partner in Japan (*1) of Forbes Global Properties, an international luxury platform that only allows membership to top real estate companies from each country.
They selectively introduce penthouses, resorts, and condominiums priced over USD 2 million.
Tokyo’s prime districts, top resort areas like Hakuba, Furano, and Niseko.
Real Estate Japan is one of the largest portal sites in Japan with property listings for foreigners (*2), where you can research desired real estate properties by preferred area, requirements, and features.
With diverse affordable housing options available, you can easily find a home that matches your needs.
Nationwide
(*1) Source: TonTon Forbes Global Properties (https://tonton-inc.com/news/notice/3865)
(*2) Source: realestatejapan (https://realestate.co.jp/en), as of May 29, 2025