Can Foreigners Buy Property in Japan? (2025 Guide)

Thinking of buying property in Japan? Now might be a good time.

Whether it’s an akiya (an empty house), a sleek Tokyo apartment, or a cozy mountain retreat, many foreigners wonder if they’re allowed to purchase and own property in Japan. The good news: yes, foreigners can still buy property in Japan in 2025. But the process is very different from buying in the US, Canada, or other parts of the world, and there are unique challenges you’ll want to know before taking the leap. Also - the recent election results and media headlines suggest that might change.

Here’s everything you need to know about buying property in Japan as a foreigner.

Are There Any Restrictions on Foreigners Buying and Owning Property in Japan?

As of 2025, there are no legal restrictions on foreigners owning land or property in Japan. Unlike some countries, you don’t need to be a resident or citizen to purchase land or buildings in Japan. You can buy under your own name, and the property is fully yours.

Although there are no ownership restrictions, getting a Japanese mortgage as a foreigner can be challenging unless you’re a permanent resident, have a long-term visa, or are married to a Japanese citizen. Most foreign buyers pay in cash or secure financing in their home country.

What Types of Property Can You Buy in Japan?

Foreigners can buy almost any type of property in Japan, including:

• Detached Single-Family Homes: Single-family homes are available in cities, suburbs, and rural areas. Prices range widely, as urban homes** in Tokyo or Osaka can cost anywhere from ¥50 million to ¥200 million+ ($350k–$1.5M USD), while rural homes** (including akiyas) often sell for under ¥10 million ($70k USD) and sometimes even as low as ¥1 million ($7k USD).
• Condos: When you buy a condo in Japan, you own your individual unit but share ownership of common areas like hallways and elevators. Expect monthly fees for maintenance and a repairs reserve fund.
• Land: Foreigners can buy land and build homes if zoning laws allow it. But raw land in rural areas often lacks infrastructure, so budget for utility connections and road access.

Top Mistakes That Foreign Buyers Make When Purchasing a House in Japan

1. Owning property will lead to residency

Buying and owning property, whether it’s residential or commercial, doesn’t automatically grant you a visa or permanent residency to stay long-term. To live in Japan, you’ll still need to apply work visa, spouse visa, or other residency permit.

2. Skipping an inspection

It’s easy to be charmed by the low prices and forget to look under the surface. But skipping a professional inspection is one of the biggest mistakes foreign buyers can make. Many older properties hide serious structural issues that aren’t obvious at first glance, such as:

• Termite damage (shiroari), which can compromise the entire framework of the house.
• Leaking roofs or water damage from Japan’s humid climate and heavy rains.
• Outdated or unsafe wiring that doesn’t meet modern safety standards.
• Plumbing problems, especially in homes that have sat vacant for years.
• Lack of earthquake resistance: homes built before Japan’s stricter building codes (1981) are often not designed to withstand major earthquakes. Retrofitting them for safety can be expensive and, in some cases, impossible.

3. Assuming property values will rise

Unlike in countries like the U.S. or Canada, property in Japan, rarely appreciates in value. Most homes actually depreciate over time, especially older ones. In rural areas, resale can be particularly difficult due to Japan’s declining population. Buy for lifestyle or long-term use, not quick profit.

4. Going in with the idea that you’ll make a lot of money

While Japan’s property market offers unique opportunities, it’s not ideal for “flipping” houses or short-term investments. Both short-term and long-term rental yields can also be modest, especially if you’re targeting rural areas or akiya where there is little to no tourist investment in the area. Approach Japanese real estate as a lifestyle or legacy purchase, not a get-rich-quick plan.

5. Underestimating renovation costs

Renovations in Japan can quickly add up, especially if you’re buying an older or abandoned home.Many rural properties require full-scale renovations, which will also require costly permits. New plumbing, electrical systems, insulation, roofing, and sometimes even structural repairs or complete rebuilding can can easily rival or exceed the price of the home itself.

Even seemingly minor tasks like clearing out years of abandoned belongings aren’t cheap. Garbage disposal in Japan can cost thousands of yen, as you’ll need to hire licensed companies to handle large volumes of waste according to strict local regulations.

6. Not using a bilingual agent

Most real estate contracts are in Japanese. Hiring a bilingual agent or judicial scrivener is essential to guide you through the process.

🛑 Are New Restrictions Coming for Foreign Property Buyers in Japan?

Japan currently allows foreigners to buy property without restrictions, but current political climate and media headlines are increasingly spotlighting the tensions and problems. The Land Monitoring Act (2021) enables review of purchases near military bases and critical infrastructure, and discussion over broader restrictions has intensified lately.

Additionally, in May 2025, stricter renovation rules were introduced: Full-scale renovations must now meet modern earthquake and energy-efficiency standards, adding significant cost and time.

For most residential buyers who want to invest in their communities, these new laws aren’t a barrier. However, there’s always the possibility that additional restrictions on foreign property ownership could emerge in the future. Make sure to work with a licensed real estate agent to stay ahead of evolving policies.

Ready to Start your Purchase Journey?

Buying property in Japan as a foreigner is 100% possible and with the right expectations and guidance, it can be a great investment. Whether you’re dreaming of a countryside fixer-upper or a city apartment, start by exploring listings and connecting with a bilingual agent to guide you through the process.

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