2025 Edition! Top Investment Areas Insights

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2025 Edition! Top Investment Areas Insights

2025.08.14

When engaging in real estate investment—whether through property sales or rentals—it's crucial to understand which areas are popular among tenants and what characteristics each region has. In this article, we’ll focus on real estate investment and introduce areas that should be prioritized when considering where to invest.

Does the Right Area Change Depending on Sales or Rental Investment?

Real estate investment generally falls into two categories: purchasing a property to sell later at a higher price for profit (property resale), or purchasing a property to rent out to tenants and generate ongoing income (rental investment). In either case, the key is tenant demand.

Securing real estate in areas where there is high demand from people looking to buy homes or rent apartments is essential for successful investment. No matter how luxurious a property may be, if there are no buyers or tenants, it won’t generate any profit. Moreover, properties naturally lose value over time, and owning them incurs fixed asset taxes. For these reasons, investing in real estate in areas where buyers or tenants can be easily found is important.

Put simply, where people gather, demand follows. Specifically, this includes central areas such as Tokyo’s 23 wards, large metropolitan cities like Fukuoka, Osaka, and Nagoya (each with populations over 1 million), their commuter towns with good access to city centers, and regions currently experiencing population growth.

Areas undergoing redevelopment or infrastructure improvements are also worth considering, as they have strong potential for future growth and increased value.

Regional Characteristics

Let’s take a closer look at the features of key investment areas:

・Tokyo’s 23 Wards

Among the 23 wards of Tokyo, areas like Shinjuku, Shibuya, Minato, and Chuo have a high concentration of offices and commercial facilities, making property demand strong and offering stable rental income opportunities. These areas also have excellent transportation access and attract both domestic and international demand, which keeps vacancy risk low. However, it’s worth noting that real estate prices in central Tokyo have been rising in recent years, so initial investment costs can be relatively high.

・Fukuoka City

Fukuoka City continues to see steady population growth and is undergoing large-scale redevelopment projects. In particular, the Tenjin and Hakata Station areas have many commercial and office buildings, generating strong rental demand. Major redevelopment projects like "Tenjin Big Bang" and "Hakata Connected" are underway. Tenjin Big Bang involves the reconstruction of about 50 buildings, including the recently opened ONE FUKUOKA BLDG. in April 2025. Around Hakata Station, 20 buildings are expected to be rebuilt by the end of 2028.

・Osaka City

As the largest city in western Japan, Osaka offers lower property prices compared to Tokyo, which means investors can expect higher yields. In Kita Ward (Umeda area), the "Umekita Project" is in progress and scheduled for completion in fiscal year 2027. Other attractive areas for investment include Chuo Ward, with its concentration of commercial facilities, and Yodogawa Ward near Shin-Osaka Station, where business demand is expected to grow.

・Nagoya City

In Nagoya, areas around Nagoya Station, Sakae, and Kanayama are known for their excellent transportation access and concentration of commercial and office buildings, leading to high rental demand—especially for single-person units. When considering real estate investment in Nagoya, starting your search in these areas is highly recommended.

・Yokohama & Kawasaki

Yokohama and Kawasaki are not only populous and well-developed cities, but also function as commuter towns with excellent access to Tokyo’s 23 wards. Similar to Tokyo, these cities have large foreign resident populations, making them suitable for short-term rental operations and shared housing aimed at inbound travelers or expatriates.

・Chiba City & Saitama City

Chiba and Saitama also serve as commuter towns with convenient access to central Tokyo. Both cities are undergoing redevelopment. In Chiba, the Makuhari Seaside Park Revitalization Project has begun, with construction around the area expected to start by 2026. In Saitama, the "Omiya Grand Central Station Concept" envisions large-scale redevelopment around Omiya Station. While this project is still in the planning phase, major changes are anticipated in the coming years.

Each region offers its own unique features. Be sure to select the right area that best aligns with your investment style and goals.