You may have heard that Tokyo’s luxury real estate market is increasingly attractive to foreign investors.
With factors such as rising prices for new condominiums and stable rental income, Tokyo’s high-end properties are gaining global attention.
In this article, we’ll explore why Tokyo’s luxury real estate appeals to international buyers, introduce four of the most popular investment areas, and provide tips on choosing the right real estate agency and key considerations for investing in luxury property.
Why Tokyo’s Luxury Real Estate Appeals to Foreign Investors
Here are five reasons why Tokyo’s luxury real estate is considered a smart investment:
- New condominium prices are on the rise
- Stable rental income is expected
- Property prices are lower than in other global cities
- Political and economic stability
- No restrictions on foreign ownership
Let’s look at each of these points in more detail.
1. New Condominium Prices Are Increasing
New condominium prices in Tokyo’s 23 wards have risen by 13% year-on-year, and in central areas, the increase has been as high as 29%.
(Reference: NLI Research Institute, April 17, 2025)
Prices for high-rise towers have also surged by 25%, indicating a steady and strong upward trend.
2. Stable Rental Income
As Japan’s largest city, Tokyo continues to attract people from across the country and abroad, maintaining strong demand for rental properties.
While Japan’s overall population is declining, Tokyo’s population continues to grow, making it easier to secure a stable tenant base.
According to the 2023 Housing and Land Survey, the number of rental units (1,314,400) within 10km of central Tokyo far exceeds owner-occupied homes (924,800), further highlighting strong demand for rental housing.
3. Property Prices Are Lower Than Other Global Cities
Compared to cities like Hong Kong, Singapore, London, and New York, real estate in Tokyo is relatively affordable.
Lower property prices allow investors to enter the market more easily and increase potential returns, making Tokyo a preferred destination for global capital.
4. Political and Economic Stability
Japan offers a stable political and economic environment, free from civil unrest or military conflict.
As one of the world’s leading economic powers, Japan is known for its steady growth and strong tourism industry, making it a reliable and secure investment destination.
5. No Restrictions on Foreign Ownership
Unlike many countries, Japan imposes no restrictions on foreign property ownership.
Regardless of visa status or permanent residency, foreign nationals can freely purchase, sell, gift, or inherit property in Japan.
However, since the process may differ from that in other countries, it’s advisable to work with a real estate agency that specializes in assisting foreign buyers.
Top 4 Investment Hotspots for Luxury Real Estate in Tokyo
Here are four of the most sought-after areas for luxury real estate investment in Tokyo:
- Minato City
- Shibuya City
- Shinjuku City
- Chiyoda City
Let’s take a closer look at each.
Minato City
Minato is a highly prestigious area in central Tokyo, known for its upscale residences and strong brand appeal.
Ongoing redevelopment projects and infrastructure upgrades promise rising property values, while its abundance of business districts ensures strong rental demand.
Shibuya City
Although often recognized as a youth-centric hub, Shibuya also features quiet, upscale residential neighborhoods.
With excellent transport links and multiple railway lines converging at Shibuya Station, this area offers unmatched accessibility, adding to its investment appeal.
Shinjuku City
Shinjuku is a popular area for luxury property investment, known for its vibrant entertainment and shopping scenes.
With supermarkets, convenience stores, and major shopping complexes, as well as large-scale redevelopment projects, it continues to draw attention.
The “Shinjuku Grand Terminal Project,” scheduled for completion in the 2040s, is expected to further enhance the area’s value and convenience.
Chiyoda City
Chiyoda is home to Japan’s most important institutions, including the Imperial Palace, the National Diet Building, and the Supreme Court.
Its high property values and limited land availability make it a solid long-term investment with strong rental demand and capital appreciation potential.
How to Choose a Real Estate Agency for Investing in Tokyo’s Luxury Properties
When selecting a real estate agency for luxury property investment in Tokyo, consider the following two factors:
- Choose a company with a wide range of luxury listings
- Choose an agency that supports transactions in English
Choose a Company with a Wide Range of Luxury Listings
Partnering with a firm that specializes in luxury real estate gives you access to more properties across Tokyo.
They can also provide timely updates on new listings and offer expert support throughout the transaction process.
Choose an English-Speaking Agency
If you’re a foreign buyer, it’s crucial to work with an agency that can communicate fluently in English.
Such agencies can provide English property listings, assist with document preparation, and help with overseas remittance and legal procedures—ensuring a smooth, worry-free transaction.
Key Points to Keep in Mind When Investing in Tokyo’s Luxury Real Estate
Before investing, be sure to consider the following two key points:
- Carefully evaluate the location
- Monitor market trends closely
1. Carefully Evaluate the Location
Don’t be tempted by lower prices alone. A poor location can mean low rental demand or exposure to natural disaster risks.
Check population trends, verify the area’s long-term value potential, and consult hazard maps before making a decision.
2. Monitor Market Trends Closely
Stay informed about the latest political and economic developments, as these can directly impact real estate prices.
Pay attention to interest rate policies, national economic indicators, and even international affairs to mitigate investment risks.
Conclusion: Why Tokyo’s Luxury Real Estate is a Smart Investment for Foreign Buyers
Tokyo’s luxury real estate market offers strong appeal for foreign investors thanks to rising new condo prices, stable rental demand, and global affordability.
At Asian Property’s APARTMENTS TOKYO, we offer an extensive selection of high-end properties across Tokyo’s most sought-after neighborhoods, including Minato, Shibuya, Shinjuku, and Chiyoda.
Our listings range from single-family homes, condos, and apartments to commercial buildings, office spaces, and income-generating real estate—meeting a wide variety of investment needs.
We also provide full English-language support from initial consultation to final contract and beyond. Whether you’re a first-time investor in Japan or an experienced buyer, we’re here to assist every step of the way.
Interested in investing in Tokyo? Feel free to contact us anytime.
