Why 2025 Is a Pivotal Year for International Buyers in Gunma and Saitama

Estimated reading time: 7 minutes

• Gunma and Saitama offer unique opportunities for international buyers amid demographic shifts.
• Understanding local markets is crucial for making informed property decisions.
• Expert guidance can help navigate Japan’s complex real estate landscape.
• Demographic changes and price trends present both risks and opportunities.
• Timing your investment wisely could lead to significant benefits in 2025.

Table of Contents

• Market Background: Japan’s Demographic Shift and Real Estate Dynamics
• Gunma: Opportunity Amidst Change
• Saitama: Tokyo’s Overflow and Urban Ambition
• Head-to-Head: Gunma vs Saitama for Foreign Buyers
• Financing & Legal Tips: What International Buyers Need to Know
• Lifestyle & Living Experience: Why Consider Gunma and Saitama?
• Risks and Future Outlook
• Key Takeaways
• Ready to explore buying property in Japan?

Market Background: Japan’s Demographic Shift and Real Estate Dynamics

The “2025 Problem” Explained

The “2025 Problem” refers to the social and economic upheaval as all members of Japan’s first baby boom generation turn 75 or older. By 2025, seniors will constitute over 18% of the population, accelerating depopulation in smaller cities and increasing the number of vacant homes—especially outside Tokyo.

Impacts on the real estate market:

• Soaring vacancies: Japan has a record-high number of empty homes, particularly in rural and suburban areas.
• Diverging price trends: While new buildings in urbanizing regions command premium prices, older and rural properties often see stagnant or falling values.
• Rising rental demand: Demographic changes heighten the need for flexible, attractive housing solutions, especially outside major city centers.

2025 Price Trends and Investor Behavior

Despite demographic headwinds, demand from both Japanese and international investors—in pursuit of lifestyle, yields, or diversification—remains strong. The weaker yen continues to attract foreign capital, even as price growth decelerates compared to the explosive gains of 2023-2024.

• Land prices: Up 2.7% nationally year-on-year, the highest rate since 1991.
• Existing home prices: Slight year-on-year declines signal more buyer-friendly conditions, especially for older properties.
• New-build demand: Construction remains constrained, preventing oversupply and supporting premium pricing, particularly for condominiums.

Gunma: Opportunity Amidst Change

Gunma is experiencing the classic duality of regional Japan: urban centers like Takasaki and Maebashi remain attractive for families and telecommuters, while outlying towns grapple with vacancy and aging populations. This creates prospects for bargain-hunters and investors eyeing renovation or rental strategies.

• Vacancy rates: Among the highest in the Kanto region, offering scope for negotiation and creative reuse.
• Rental yields: Above-average for Japan, particularly in university towns or areas accessible to Tokyo.
• Lifestyle draws: Natural beauty, hot springs, and proximity to ski resorts appeal to both domestic and foreign buyers.
• Caution: Some properties may have unresolved ownership, inheritance, or infrastructure issues—expert assistance is crucial.

Saitama: Tokyo’s Overflow and Urban Ambition

Saitama combines the best of urban efficiency and suburban space. It’s a magnet for commuters priced out of Tokyo and a growing cohort of international families seeking balance.

• Pricing: Home to some of the fastest-rising land values outside Tokyo, especially in cities like Saitama-shi, Kawaguchi, and Omiya.
• New-build focus: Developers are targeting major hubs with premium condos, though supply is limited.
• Vacancy puzzle: Outskirts and older districts see rising empty-home rates, presenting entry points for buyers willing to renovate.
• Lifestyle upgrade: Excellent schools, international amenities, and connectivity make it ideal for expat families or investors seeking resilient rental demand.

Head-to-Head: Gunma vs Saitama for Foreign Buyers

Financing & Legal Tips: What International Buyers Need to Know

Financing Reality in 2025

• Mortgage options: While some Japanese banks lend to non-residents, most require a local co-borrower, visa status, or a substantial down payment. Specialist lenders and some international banks are expanding their Japan mortgage products, but approval remains selective.
• Interest rates: Japan’s central bank is signaling a shift from ultra-low rates. Expect slow, incremental rises, which could affect affordability for yen-based buyers. Foreign exchange volatility should also be considered for those funding purchases from abroad.
• Loan-to-value (LTV): Typically 60–80% for qualified buyers; some properties (especially vacant or rural stock) may see lower LTV ratios.

Legal and Practical Advice

• Title clarity: Many vacant or inherited homes have complex legal histories. Always check for clear title, registered boundaries, and outstanding liabilities before committing.
• Due diligence: Building inspections, renovation estimates, and local infrastructure checks are critical—many older homes may need seismic retrofitting or other upgrades.
• Visa and tax: Ownership does not grant residency, but visa options exist for high-value investors or company directors. All foreigners are subject to property tax and—if generating rental income—income tax.

Lifestyle & Living Experience: Why Consider Gunma and Saitama?

Gunma: Japan’s Outdoor Playground

For expats and families prioritizing space, wellness, or remote work, Gunma delivers a blend of rural charm and city convenience. Access to Tokyo is straightforward, but the cost of living and pace of life are much gentler.

• International schools are limited, but English-speaking communities are growing, linked by shared interests in outdoor activities, wellness, and sustainable living.

Saitama: Suburban Sophistication and Global Community

Saitama’s cities offer a near-Tokyo lifestyle at more accessible prices. Its international schools, healthcare, and modern infrastructure provide comfort and security for foreign families.

• The international community is highly active, with numerous cultural festivals, language groups, and foreign-owned businesses.
• For investors, demand for quality rentals remains robust, especially near train lines and business districts.

Risks and Future Outlook

What to Watch in 2025–2026

• Vacant home surge: The pace of vacancy increases may intensify, particularly in inner suburbs and rural towns. This could spur policy incentives for foreign buyers or renovators, but also raise resale and liquidity risks.
• Price moderation: The era of double-digit annual price jumps appears to be ending, with a stable—though not booming—market ahead.
• Foreign investor role: As domestic demand slows, foreign capital is likely to play a greater role, potentially driving further regulatory changes to open the market.

Key Takeaways

• Gunma and Saitama present viable opportunities for international buyers looking for lifestyle and investment advantages.
• Understanding the demographic and regulatory changes in Japan is key to making informed property decisions.
• Expert guidance and due diligence are essential to navigate the complexities of property ownership in Japan.

Ready to explore buying property in Japan, or need tailored support navigating the Gunma or Saitama markets?

Contact New Connection—your multilingual real estate partner in Japan. Let us help you unlock opportunity, minimize risk, and secure your ideal home or investment, wherever life takes you in Japan.