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- Osaka remains a key economic hub, with a growing economy and increasing taxable incomes. The city has witnessed strong net migration since the pandemic, particularly among foreign nationals, young workers, and students, which should support firm rental residential demand going forward.
- Osaka City has a high proportion of renters at nearly 55%, driven by a rising number of single-person households and an increasing foreign national population. Rents have grown steadily at a 2.6% CAGR since 2019, with central wards seeing even stronger gains.
- Average new condominium prices have reached new highs at JPY1.2 million per sq m in 2024, fuelled by strong demand, rising wages, and a weak yen attracting overseas buyers. At the same time, subdued supply and rising prices continue to push more residents into the rental market.
- Luxury developments, such as GRAND GREEN OSAKA, are transforming the high-end market. More upscale projects, such as those in Dojima, are expected to cater to growing demand from wealthy domestic and international buyers, putting upward pressure on prices, especially on the higher spectrum of mid-markets.
- With the record 14.6 million inbound tourist arrivals in 2024 and budget hotel supply tightening, private accommodation (minpaku) is likely to fill the gap. More investors may acquire residential properties, with conversion into minpaku units in mind.
- Strong residential demand, rising property prices, and constrained supply will continue to drive Osaka’s real estate market. Major projects like Expo 2025 and the Integrated Resort will further boost the city’s appeal, reinforcing both the rental and sales markets.
Strong fundamentals support a positive performance in Osaka's residential markets
Osaka has continued to perform well, particularly given its growing economy and strong net migration. Rental growth continues in earnest, with central wards seeing the strongest gains, while prices in the for-sale market continue to hit new highs due to firm demand and supply bottlenecks. Major upscale projects have transformed central areas and helped the luxury market to flourish. Meanwhile, inbound tourism demand has grown rapidly, and iconic projects such as Expo 2025 and Japan’s first Integrated Resort should bring a wide positive economic windfall, and strengthen residential markets in Osaka overall.
Savills Research & Consultancy