Japan Smashes Tourism Records In 2025

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How does it affect the real estate market

Japan offers a unique blend of traditional heritage and modern culture, and it’s this coexistence that makes the country so appealing to international visitors. From centuries-old temples to cutting-edge skyscrapers, travelers can experience both ends of the cultural spectrum—all while enjoying world-renowned Japanese hospitality.

Driven by a surge in inbound tourism, land prices in major tourist destinations are rising significantly.
In areas popular with tourists, new commercial facilities and restaurants are opening one after another, revitalizing the entire region.
These trends have made these areas popular with investors from both Japan and abroad, attracting further real estate investment.

Expanding inbound tourism is driving a surge in demand for rental properties in tourist destinations and major cities.
In addition to the trend of foreign visitors staying in Japan for longer periods of time, the number of medium- to long-term residents for work or study is also increasing, resulting in high demand for rental properties, particularly in urban areas such as Osaka.
In addition, the number of properties offering short-term rentals is increasing in Osaka and the number of real estate businesses catering to foreigners is on the rise.
As the cost of living in Japan is perceived as cheaper than in Europe, the United States, and some Asian countries, due in part to the weak yen, demand for rental properties from foreigners remains strong.

Koji Kitada
Licensed real estate agent
011-81-80-5349-2529
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