If you've ever dreamed of owning a place in Tokyo, you're not alone. From the neon buzz of Shibuya to the laid-back charm of Shimokitazawa, Tokyo isn’t just one city—it’s a collection of unique neighborhoods, each with its own vibe, price tag, and lifestyle. But for first-time buyers—especially foreigners—it can feel like diving into the unknown.

Whether you're looking to invest, relocate, or just curious about what it takes to own a slice of Shibuya Japan or a view near Tokyo Skytree, this guide breaks things down in a clear, practical way. No fluff—just the stuff you actually need to know.

Can Foreigners Buy Property in Tokyo?

Yes, Foreigners Can Buy in Japan

Let’s get this out of the way: yes, foreigners can own property in Japan—land and all. You don’t need a visa or residency. There are no major restrictions. But here’s the catch: financing, paperwork, and finding trustworthy local support can make or break your experience.

If you’re buying in areas like Shibuya-ku, Shinjuku, or near landmarks like Tokyo Tower, understanding the market—and the competition—is key.

Popular Tokyo Areas: What’s Right for You?

Tokyo boasts a wide variety of neighborhoods, each with its own unique features, and choosing the right location is an art. Whether you're buying for personal use or investment, location will directly impact the property's value retention and growth potential. Below are several popular areas worth considering, along with their unique features and data analysis:

Shibuya

One of the most vibrant areas in Tokyo, Shibuya is a hub for fashion and technology, attracting many young people, entrepreneurs, and foreign companies. According to 2024 real estate statistics, the average price for newly built apartments in Shibuya is around 1.75 million yen per tsubo (approximately 5.3 million yen per square meter), one of the highest in Tokyo. In the coming years, redevelopment projects around Shibuya Station, such as the second phase of Shibuya Scramble Square, will continue to drive land prices. The area is not only convenient for living but also offers competitive rental yields.

Shinjuku

Shinjuku is the transportation heart of Tokyo, with over 3.5 million commuters passing through Shinjuku Station daily, making it the busiest station in the world. The area combines office buildings, department stores, entertainment, and residential spaces, offering excellent amenities. According to 2024 real estate surveys, the average price of second-hand apartments in Shinjuku is around 1.6 million yen per square meter, though quieter residential areas such as Ochiai and Yotsuya are more family-friendly. If you're looking for a balance between quality of living and investment returns, Shinjuku is an ideal choice.

Asakusa

With its rich Edo-period charm and traditional culture, Asakusa has regained attention in recent years. The nearby Tokyo Skytree and the development of the Oshiage area have led to a steady increase in tourist traffic, with over 2 million visitors each month in 2023. The property prices here are more affordable compared to Shibuya and Shinjuku, averaging 1 to 1.2 million yen per square meter. For those seeking a quieter life in Tokyo while valuing tourism potential, Asakusa is a great option.

Shimokitazawa

Famous for its quirky shops, vintage stores, and live music scene, Shimokitazawa is a gathering place for young artists and freelancers. The area recently underwent redevelopment on its south side, improving walkability and upgrading amenities. Although property prices are lower compared to the main commercial districts, with the average price around 950,000 to 1.1 million yen per square meter, the unique culture of the area ensures stable rental demand. If you're looking to secure a property in a "potential district," this area’s mid-to-long-term development prospects are worth watching.

Skytree Area

Sumida Ward is transforming from a traditional industrial zone into a modern residential and commercial area, with the most significant changes occurring around Oshiage Station. With riverside views and spacious living environments, the property prices here are relatively moderate, averaging 800,000 to 950,000 yen per square meter, making it one of the more affordable areas in central Tokyo. In addition to infrastructure upgrades led by Tobu Railway and local government, the area is seen as having "rapid growth potential within the next 5 years."

Shibuya-ku

This area includes upscale neighborhoods like Daikanyama, Ebisu, and Hiroo, offering a rare combination of greenery, design taste, and international schools in Tokyo. The average price for apartments in these areas is 1.8 to 2.2 million yen per square meter, but due to their long-term value retention, they are highly favored by high-net-worth individuals in Japan and expatriates. The Daikanyama area, in particular, also features low-density residential properties and cultural facilities, making it one of the most sought-after residential areas in Tokyo.

What Types of Properties Are on the Market?

Apartments (Mansions): Modern concrete buildings, earthquake-safe, usually managed with monthly fees.

Detached Houses: Less common in the city center but a great option in quieter zones. You get land ownership too.

Second-Hand (Used) Properties: More affordable but may need upgrades. Always check earthquake resistance standards—post-1981 is the benchmark.

How the Buying Process Really Works

Find a Reliable Agent: Bilingual and licensed is a must. Some agents specialize in working with foreigners—ask upfront.

View Properties & Ask Questions: Don’t just look at the kitchen. Ask about the neighborhood, resale value, and renovation history.

Make an Offer: Once you’re serious, submit an offer. If it’s accepted, you’ll sign a contract and pay a deposit (usually 5–10%).

Legal + Financing Step: If you’re financing locally, expect a lot of paperwork. Cash buyers? Things move faster. Hire a judicial scrivener to handle title registration.

Final Payment & Handover: You’ll pay the balance, cover taxes and fees, and receive the keys once everything’s registered

Let’s Talk Money: What It Actually Costs

Aside from the property price, budget for:

● Agent Fee: About 3% + ¥60,000 + tax

● Taxes: Registration (0.15–0.4%), acquisition (3–4%), yearly fixed asset tax (1.4%)

● Judicial Scrivener Fee: ¥100,000–¥200,000

● Management Fees (for condos): ¥10,000–¥30,000/month

● Renovation Costs (if needed): Totally depends on age and condition

Financing in Japan as a Foreigner

If you live and work in Japan, your chances are good with local banks like Shinsei, MUFG, or Prestia. Typical requirements:

● Minimum 1–3 years of residency

● Stable income in Japan

● Loan-to-value up to 90%

● Interest rates around 1–3%

If you're buying from abroad, expect to pay cash or use international financing. It’s tougher but not impossible.

Extra Tips from Real Buyers

Use an inspector: Especially for older homes. Don’t skip this.

Check the neighborhood at night: A place can feel very different after dark.

Earthquake awareness matters: Look for properties built after 1981 or renovated to newer codes.

Watch out for tiny floor plans: 20sqm might look cute in photos, but you’ll feel it fast.

Final Thoughts: Is Buying in Tokyo Worth It?

Absolutely—if you’re informed, prepared, and realistic about your goals. Whether it’s a modern flat in Shibuya Japan, a traditional home in Asakusa, or a family-sized condo near Tokyo Skytree, owning property in Tokyo is about more than investment. It’s a commitment to living (or profiting) in one of the most exciting cities in the world.

The process can be complex—but with the right guidance, it’s entirely doable.