Investing in Tokyo: Affordable Wards and Real Yields

The Tokyo market: tight, expensive, but very liquid

Tokyo is the world's largest metropolis and Japan's deepest property market. Its structure rests on 23 special wards (tokubetsu-ku, 特別-ku, often called 23-ku), from the ultra-premium business core to more affordable residential outskirts.

Two realities to grasp before investing:

• High and rising prices. The average new-apartment price in the 23 wards has hit record highs in recent years (order of magnitude: around ¥90M, ≈ €600,000, to be checked property by property). The core (Minato, Chiyoda, Chūō) is several times pricier than the outskirts.
• Massive, stable rental demand. This is Tokyo's great asset: low vacancy, creditworthy tenants, easy resale. The trade-off for that safety is modest gross yields (often 3-5% for long-term rentals downtown), which rise in the outskirts and in short-term rentals.

Record tourism (42.7 million visitors in 2025) also supports short-term rentals, but Tokyo strictly caps minpaku at 180 days. To compare real listings ward by ward, browse our hand-picked properties.

Premium core vs affordable wards: the real map

The most useful dividing line for an investor sets the premium core (safe-haven value, low yield) against the affordable wards (lower entry ticket, higher yield).

The premium core: Minato, Shibuya, Chūō, Chiyoda

Minato-ku Minato-ku (Roppongi, Azabu), Shibuya-ku Shibuya-ku, Chūō-ku Chūō-ku (Ginza, Nihonbashi) and Chiyoda-ku Chiyoda-ku form the expensive core. You buy here for safe-haven value, resale and prestige, not for yield: tickets often start well above ¥60-80M (≈ €400-530,000) for a small quality property.

The affordable wards: Adachi, Katsushika, Edogawa, Kita, Itabashi

To the north and east outskirts, five wards offer markedly lower tickets and better yields:

• Adachi-ku Adachi-ku: the most affordable of the 23, a working-class residential ward, well served (lines toward Ueno/Akihabara).
• Katsushika-ku Katsushika-ku: quiet, family-friendly, gentle prices (Shibamata district).
• Edogawa-ku Edogawa-ku: a large eastern residential ward, popular with families.
• Kita-ku Kita-ku: well connected (Akabane rail hub), a good price/access compromise.
• Itabashi-ku Itabashi-ku: residential, affordable, decent transport.

Between the two, intermediate wards (Nakano Nakano-ku, Suginami Suginami-ku, Toshima Toshima-ku with Ikebukuro, Kōtō Kōtō-ku) offer an appealing demand/price balance.

Ward table: profile, ticket and indicative yield

An indicative overview to guide your search. Entry tickets and yields are orders of magnitude for a small property (studio / small older apartment, manshon 中古mansion (condominium)), to be refined property by property with our yield simulator.

Ward (-ku)	Profile	Indicative entry ticket	Indicative gross yield
Minato-ku Minato / Chiyoda-ku Chiyoda	Ultra-premium, prestige	very high (often > ¥80M / ≈ €530,000)	low (~3%)
Shibuya-ku Shibuya / Chūō-ku Chūō	Central premium	high (¥50-80M / €330-530,000)	low (~3-4%)
Toshima-ku Toshima / Nakano-ku Nakano	Intermediate, strong demand	medium (¥30-50M / €200-330,000)	medium (~4-5%)
Kita-ku Kita / Itabashi-ku Itabashi	Affordable, well connected	affordable (¥20-35M / €130-230,000)	decent (~5-6%)
Adachi-ku Adachi / Katsushika-ku Katsushika / Edogawa-ku Edogawa	Affordable outskirts	low (often < ¥25M / ≈ €165,000)	higher (~6-7%+)

Beware: a headline yield is not a net yield. Always deduct the annual property tax, condo fees and vacancy. Then compare with other cities via our Airbnb profitability by city analysis. For the official detail, our comparison of Tokyo's 23 wards and their 2026 land prices gives the price per square metre, the annual rise and the short-term rental rules of every ward.

Real yields by investor profile

The 'right' ward depends on your objective. Three typical profiles:

Safety / safe-haven profile

You prioritise capital preservation and easy resale: aim for the core (Minato, Chūō, Chiyoda) or reliable intermediate wards. Accept a 3-4% gross yield in exchange for near-zero vacancy and maximum liquidity.

Yield / cash-flow profile

You seek income: target the affordable outskirts (Adachi, Katsushika, Edogawa) with long-term rentals, where gross yield can reach 6-7%+. Check the transport link (distance to the station, eki 駅), the property's condition and the creditworthiness of local demand.

Short-term rental (STR / Airbnb) profile

Record tourism boosts STR, but Tokyo applies the 180-night/year minpaku cap: the potential is throttled compared with Osaka and its 365-day Tokku Minpaku. In Tokyo, STR works mainly in central tourist zones, with strict compliance. Always model your assumptions (ADR, occupancy, 180 nights) before buying.

Common mistakes to avoid

• Buying in the premium core expecting high yield: it is structurally low.
• Trusting the gross yield without deducting taxes, fees and vacancy.
• Overlooking distance to the station: in Tokyo, 5 min on foot vs 15 min changes everything for resale and rental.
• Counting on Airbnb in Tokyo as in Osaka: the 180-night cap changes the equation.

Budget and financing: what a non-resident must plan for

Before targeting a ward, frame the budget with the immoJapon fundamentals:

• Purchase costs ≤ 6% of the price (registration duties, acquisition tax, fees of the shihō shoshi (shihō shoshi, judicial scrivener), and agency). Detail in our article on purchase costs.
• Cash purchase for a non-resident. Japanese mortgages are reserved for people both resident AND salaried in Japan. If you live abroad, budget the full price plus costs. See Japanese mortgages for a foreigner.
• Buying grants no visa. Property ownership opens no right of residence in Japan.
• Anticipate taxation: tax on rental income for a non-resident and, on resale, capital gains tax.

To place Tokyo within the national price trend, see Japan property prices in 2026. And always check exposure to natural hazards (earthquake, flood): in Tokyo, compliance with the 1981 seismic standard (shin-taishin) is a non-negotiable criterion.

For the acquisition budget in detail, agreed price per square metre, costs line by line and annual charges, see our guide to buying an apartment in Tokyo.

After the purchase: running a Tokyo property from abroad

Buying is only half the job. A non-resident investor has four things to organise from the day the keys change hands: that is what separates a theoretical yield from cash actually received.

• Collecting the rent. A Japanese bank account is hard to open without a local address and residence status: in practice the management company collects and remits abroad. See opening a bank account in Japan as a foreigner.
• Delegating management. Vacancy is low in Tokyo, but responsiveness (inspections, small repairs, tenant relations) happens on the ground. Budget roughly 5 % of rent for long-term letting, more for short-term: see remote rental management.
• Filing every year. Japan-source rental income is declared in Japan through the kakutei shinkoku, normally between mid-February and 15 March for the previous year. A non-resident must also appoint a nōzei kanrinin (tax representative) with the relevant tax office. Details in our kakutei shinkoku guide and in rental income tax for non-residents.
• Planning succession. A property located in Japan falls under Japanese inheritance tax, even when the deceased and the heirs live abroad: something owners often discover far too late. See inheritance tax on Japanese real estate.

All four items cost money: put them into your net yield in the return simulator before choosing between a premium ward and an affordable one.

In short: target the right ward for your objective

Investing in Tokyo means choosing your spot on the safety ↔ yield slider. The premium core (Minato, Shibuya, Chūō, Chiyoda) offers safe-haven value and liquidity at the cost of a low yield; the affordable wards (Adachi, Katsushika, Edogawa, Kita, Itabashi) offer gentler entry tickets and higher cash-flow, provided you check transport links and the property's condition.

Keep the fundamentals in mind: costs ≤ 6%, cash purchase for a non-resident, no visa tied to buying, and a yield always calculated net. To be guided from choosing the ward to receiving the keys, discover our personalised buying support and browse concrete examples in our projects.

Frequently asked questions

Which are the most affordable wards in Tokyo?

The five most affordable of the 23 wards are generally Adachi-ku (Adachi-ku), Katsushika-ku (Katsushika-ku), Edogawa-ku (Edogawa-ku), Kita-ku (Kita-ku) and Itabashi-ku (Itabashi-ku). They offer markedly lower entry tickets than the premium core and higher gross yields, often 6-7%+ for long-term rentals, versus ~3% in Minato or Chiyoda.

What rental yield can I expect in Tokyo?

Orders of magnitude for long-term rentals: around 3-4% gross in the premium core (Minato, Shibuya, Chūō), 4-5% in intermediate zones, and 6-7%+ in the affordable outskirts (Adachi, Katsushika, Edogawa). These are gross figures: always deduct property tax, condo fees and vacancy for the net.

Can you do Airbnb in Tokyo like in Osaka?

No, not under the same terms. Tokyo applies the national minpaku cap of 180 nights per year, whereas Osaka allows 365 days via Tokku Minpaku. Short-term rental potential is therefore more constrained, and compliance is strictly enforced.

Can a non-resident foreigner borrow to buy in Tokyo?

In practice no, if you live abroad: Japanese mortgages are reserved for people both resident AND salaried in Japan. A non-resident investor therefore buys in cash, budgeting the price plus purchase costs capped at 6%.

Should I invest in central Tokyo or the outskirts?

It depends on your objective. The centre (Minato, Chūō, Chiyoda) serves capital preservation and easy resale, with a low yield. The affordable outskirts (Adachi, Katsushika, Edogawa) serve cash-flow, with lower tickets and higher yields, provided you check transport links and the property's condition.

Do you need a Japanese bank account to invest in Tokyo?

Not to buy: the price is settled by international transfer. The question arises afterwards, to collect rent and pay property tax and building charges. Since a non-resident rarely gets an account, the usual solution is to let the management company collect and remit the net amount abroad, and to appoint a nōzei kanrinin (tax representative) for the annual filing.