Explore how Japan’s real estate market transformed in 2024 with rising tourism, foreign investment, and growing demand for rentals. Discover key trends shaping the future of property in Japan.
As 2024 comes to a close, Japan’s real estate market is experiencing a remarkable transformation fueled by a resurgence in tourism, an influx of international students, and a wave of foreign investment. These changes are reshaping urban and rural landscapes alike, making it a dynamic year to remember.
This year, Japan welcomed 33.1 million international visitors, surpassing pre-pandemic numbers and reinvigorating its tourism industry. This boom has sparked significant growth in real estate, particularly in tourist hotspots like Tokyo, Kyoto, and Osaka, where short-term rental demand has surged.
International students are also returning in significant numbers, with around 200,000 students enrolled in 2024. Their presence has increased the need for affordable urban housing, giving property owners a fresh market to tap into.
Additionally, Working Holiday visa participants reached a new high of 35,000 this year. With expanded quotas and growing popularity, demand for flexible, short-term rentals continues to rise.
Japan’s minpaku (private lodging) sector saw record-breaking growth in 2024, with 25,326 registered properties—37% of which are in Tokyo. While urban minpaku properties remain popular, rural areas like Shizuoka, Yamagata, and Akita are catching travelers’ attention as they seek unique, off-the-beaten-path experiences.
This trend reflects a shift in traveler preferences, with rural Japan offering cultural immersion and tranquility that urban areas can’t replicate.
Vacant houses, or akiya, have become a canvas for ambitious foreign investors who are breathing new life into forgotten properties. Here are three standout success stories from 2024:
1. The Bentons’ Guesthouse on Ōmishima Island: American couple Dani and Evan Benton transformed an abandoned house on Ōmishima Island into a thriving guesthouse. They purchased the property for just $6,500 and invested $19,000 in renovations. Their guesthouse now rents for about $130 per night on Airbnb.
2. Lawrence Covian’s Rural Japan Renovation: U.S. Army veteran Lawrence Covian and his wife bought an abandoned house in rural Japan for $35,000. They’ve skillfully blended Japanese and Western design elements in their renovation, preserving traditional features like tatami rooms while adding modern touches.
3. Anton Wormann’s Tokyo Creations: The Swedish model, known as “Anton in Japan,” has reimagined akiya homes in Tokyo, blending Scandinavian simplicity with Japanese architectural elegance.
The outlook for foreign investment in Japanese real estate remains positive. In 2024, foreign investment hit $10.2 billion, a 12.3% increase from the previous year. Tokyo’s property market has shown particular strength, with prices projected to increase by around 8% annually.
Several factors contribute to Japan’s appeal for foreign investors:
1. Relatively low property prices compared to other major global cities
2. A stable political and economic environment
3. Improving yield potential, especially in major urban areas
4. The weak yen, which provides a significant discount for foreign buyers
At Tokyo Room Finder, we’re proud to help foreign residents navigate Japan’s property market. In spring 2025, we’re launching a revamped website designed to make finding rentals even easier.
Looking ahead, we’re tackling Japan’s vacant house challenge by connecting expatriates with akiya properties, contributing to local revitalization.
To property owners: Now is the perfect time to list your properties. With the growing number of foreign residents and rising demand for Japanese real estate, your investment could reach a dynamic and eager audience.
2024 has been a year of recovery and growth for Japan’s real estate market. The surge in inbound tourism, the return of international students, and the increasing interest from foreign investors all point to a bright future for the sector.
As we move into 2025, Tokyo Room Finder is poised to play a crucial role in this evolving landscape. We’re committed to bridging cultures through real estate, helping foreign residents find their perfect home in Japan, and contributing to the solution of Japan’s vacant house challenge. Stay with us on this journey as we shape the future of Japan’s property market together.
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