Goldmine in Tokyo: The Top 10 Wards with the Highest Real-Estate Growth Potential
In my previous articles, I argued for why Tokyo is a top choice for domestic real estate investment in Japan, but not every area of the city is equally promising.
To maximize your chances of success, it's important to carefully select the neighborhood you invest in.
What is important when selecting an area in Tokyo is convenience and future potential. Tokyo has always been a convenient place, but since the beginning of the 2010s, there are massive redevelopment projects in various parts of the city that will increase the attractiveness and convenience of the areas substantially.
For example, the ongoing Azabudai Hills project in the heart of Roppongi will certainly increase surrounding property values. This multi-use complex will be a “city within a city” with a 330-metre office tower, two residential towers, a hotel, an international school, retail shops, restaurants and cultural facilities plus many green spaces. This, in turn, is likely to drive up asset values and reduce vacancy risks, making them particularly attractive for real estate investors.
These top ten wards in Tokyo have been carefully selected and ranked based on their potential as real estate investment destinations.
As historical price trends of real-estate often already saturated areas, I have decided to take on more qualitative criteria.
Therefore, the ranking considers these five key criteria:
The attractiveness of the ward as a location
The presence of new construction projects
The potential for job growth and economic development
The convenience of transportation
The availability of amenities and lifestyle attractions.
So, without further ado, here are:
Tokyo's Top 10 Wards, From Bottom to Top, With the Highest Real-Estate Growth Potential:
Disclaimer: This list is based on my own knowledge about Tokyo, conversations with real-estate agents and research papers on the topic. It is intended solely for entertainment purposes and should not be used for any other purposes, including but not limited to investment decisions.
10. Nakano Ward
Nakano is often described as Shimokitazawa’s dirtier cousin, with tons of dingy bars, secondhand shops, and of course Nakano Broadway, one of Japan’s most famous destination otakus (hobbyists and enthusiasts, particularly those of anime and manga).
The area is only 5 minutes away from Shinjuku station with the Chuo express train, but still enjoys some of the cheapest rents in central Tokyo due to its dingy reputation.
Property prices are already going up, with major redevelopment of the Nakano Broadway shopping district underway, including the construction of the Nakano Central Park complex with rental housing, offices, and commercial facilities.
Potential for increased demand for rental properties due to the growth of businesses and influx of professionals and families to the area.