Tokyo Real Estate Rental Market Trends in 2024
Tokyo is renowned for its dynamic real estate market. Demand remains robust, driven by the city’s business importance and urban development in luxury apartments. We explored average prices for rent in five Tokyo wards where most English-speaking expats live in Tokyo. Those wards are Shinjuku, Minato, Chiyoda, Shibuya, and Chuo Ward.
Shinjuku Ward
Shinjuku ward, known for its vibrant nightlife and towering skyscrapers, has consistently been a hot spot for real estate investments. The area’s blend of commercial, residential, and entertainment spaces creates a high demand for rental properties. With its efficient transportation networks and bustling business districts, Shinjuku remains a top choice for investors seeking steady rental income.
Average rental price in Shinjuku ward in 2024: 1LDK~¥170,000/ 2LDK~¥244,000/ 3LDK~¥340,000
Minato Ward
Minato Ward, home to many embassies, multinational corporations, and upscale residential areas. This ward offers a unique mix of luxury living and commercial activity, attracting both expatriates and wealthy locals. Minato’s appeal lies in its prestigious neighborhoods like Roppongi and Azabu, where rental prices remain robust, ensuring high yields for property investors. Average rental price in Minato ward in 2024: 1LDK~¥245,000/ 2LDK~¥355,000/ 3LDK~¥470,000
Chiyoda Ward
Chiyoda Ward, the political and administrative heart of Tokyo, is renowned for its historical landmarks and government institutions. While Chiyoda might seem like an unconventional choice for high rental yields due to its governmental and commercial nature, it offers exceptional opportunities. The limited availability of residential properties in this area drives up rental prices, providing lucrative returns for investors. Locations like Otemachi and Marunouchi are particularly popular among high-earning professionals, ensuring consistent demand for rentals.
Average rental price in Chiyoda ward in 2024:1LDK~¥210,000/ 2LDK~¥300,000/ 3LDK~¥460,000
Shibuya Ward
Shibuya, a vibrant part of Tokyo, blends fashion, culture, and nature seamlessly. Diverse neighborhoods like Harajuku, Omotesando, and Ebisu cater to various tastes, making Shibuya a hub for young professionals, creatives and expatriates seeking a lively yet convenient lifestyle. With high demand for residential properties and ongoing redevelopment projects, Shibuya presents exciting opportunities for real estate investors. Average rental price in Shibuya ward in 2024: 1LDK~¥190,000/ 2LDK~¥320,000/ 3LDK~¥440,000
Chuo Ward
Chuo Ward, stands as a cultural, commercial, and financial hub of Tokyo. Its modern buildings blend seamlessly with historic charm, creating captivating landscapes. This vibrant ward boasts nationally renowned commercial areas like Nihonbashi, Ginza, and Tsukiji, each with its own unique allure. With headquarters of major companies nestled in Nihonbashi and luxurious shopping experiences in Ginza, Chuo Ward offers a rich tapestry of opportunities. The area’s appeal extends to office workers seeking convenience, as many choose to reside near their workplace, driving high demand for residential units. Average rental price in Chuo ward in 2024: 1LDK~¥201,000/ 2LDK~¥265,000/ 3LDK~¥340,000
Conclusion
Tokyo’s real estate market remains dynamic and full of opportunities for investors seeking stable rental yields. In 2024, Shinjuku, Minato, Chiyoda, Shibuya, and Chuo wards have distinguished themselves as the top areas for expats in Tokyo. Each of these wards offers a unique blend of cultural, commercial, and residential attractions, ensuring consistent demand and rental yields.