Rising Property Prices in Greater Tokyo: What Foreign Buyers Need to Know About Gunma & Saitama’s 2025 Housing Boom

Estimated reading time: 8 minutes

• Gunma and Saitama offer compelling opportunities for foreign property buyers.
• Significant price growth in the Tokyo Metropolitan Area encourages buyers to look beyond the city.
• The legal process for foreign buyers in Japan is straightforward but benefits from early consultation.
• Quality of life considerations are important in choosing a location for living and investment.

目次

• 導入
• 1. Background: The Surge in Japanese Housing Prices
• 2. Data-Driven Analysis: Market Dynamics in Gunma and Saitama
• 3. Gunma vs. Saitama: Lifestyle, Investment, and Value
• 4. Financing & Legal Tips for Foreign Buyers
• 5. Lifestyle: Living Experience and Trends for Expats
• 6. Risks and Future Outlook
• Key Takeaways
• Call-to-Action

導入

Japan’s housing market in 2025 is on a tear. After decades of relative stagnation, property prices are accelerating—especially in the Tokyo Metropolitan Area, which includes both Saitama and, just beyond the official boundary, accessible parts of Gunma. For non-Japanese buyers, these regions now represent some of the most compelling opportunities for living, investing, or gaining a toehold in one of the world’s safest, most stable real estate markets.

Recent headlines highlight double-digit annual gains in Tokyo prices, but the real story for global buyers isn’t just in the heart of the city. Instead, it’s in the attractive mix of value, growth potential, and lifestyle offered by “peri-metropolitan” prefectures like Saitama and Gunma, which are increasingly popular with both Japanese and international buyers.

This post unpacks the latest data, explains key drivers, and provides actionable advice for buying property in Gunma or Saitama—whether you’re seeking an investment, a family home, or a foothold in Japan’s unique real estate landscape in 2025.

1. Background: The Surge in Japanese Housing Prices

2025 is seeing the most robust property market in Japan since the asset bubble era. Nationwide, land prices grew 2.7% in January—the fastest pace since 1991. In the Tokyo Metropolitan Area, home prices rose a striking 8–10.7% year-on-year as of January 2025, reflecting both economic optimism and intensified competition for housing.

Key Drivers:

• Low interest rates and a weak yen: Japan’s ultra-low borrowing costs and currency depreciation attract both local buyers and international investors.
• Urban redevelopment and infrastructure: Major transit and lifestyle improvements continue to add value to communities surrounding Tokyo.
• Foreign investment: Overseas buyers are entering the market in greater numbers, drawn by clear rules and the appeal of Japanese lifestyle.

While Tokyo grabs the headlines, neighboring prefectures like Saitama and Gunma are deeply affected by these trends—offering their own, often more accessible, paths into the market.

2. Data-Driven Analysis: Market Dynamics in Gunma and Saitama

Saitama Prefecture, directly bordering Tokyo, is a hotbed of price growth as buyers seek larger homes and better affordability within commuting distance of the city center. The Tokyo Metropolitan Area, which includes all of Saitama, saw an 8.14% year-on-year increase in home prices as of January 2025. Adjusted for inflation, that’s still a robust 3.95% rise.

Gunma, just northwest of Saitama, represents a new frontier for value-seeking buyers. While it’s not technically a part of Greater Tokyo, Gunma offers:

• Proximity to Tokyo by shinkansen or expressway.
• Substantially more space and lower prices.
• A wealth of akiya (vacant, traditional homes), some available for as little as $12,500–$35,000 USD, often with sizable land and renovation potential.

Price Benchmarks in Gunma (Recent Listings):

• Charming Traditional Home, Kiryu City: $12,500, 4BR/1BA, 1,123 sq ft.
• Spacious Home, Ora Town: $19,200, 3BR/1BA, 606 sq ft (needs renovation).
• Opportunity, Maebashi City: $34,100, 3BR/1BA, 658 sq ft.

By contrast, Saitama is more urbanized, with prices higher than Gunma but still less than central Tokyo. It’s ideal for families or investors seeking new-build condos, houses close to major rail lines, or apartments in growing suburban centers.

3. Gunma vs. Saitama: Lifestyle, Investment, and Value

Gunma is ideal for those seeking space, fresh air, and the “real Japan”—from hiking and hot springs to traditional neighborhoods. Many akiya (vacant homes) can be purchased for renovation, offering both a lifestyle project and potential for capital gain as the region’s profile rises.

Saitama offers full urban infrastructure, strong transport connections, and is a top pick for commuters, families, and investors desiring steady price growth and lower entry costs than Tokyo. It also has vibrant international communities, excellent schools, and growing retail and entertainment options.

4. Financing & Legal Tips for Foreign Buyers

Japan is among the world’s most open major markets for foreign property buyers:

• No nationality restrictions: Foreigners can own freehold property and land without special permits.
• Mortgage possibilities: While it’s possible for non-residents to get a mortgage, terms and acceptance vary by bank, and buyers without long-term visas may face additional scrutiny or stricter requirements.
• Transaction process: Most deals require a licensed Japanese real estate agent, but non-residents do not need to be physically present—remote closings with notarized power of attorney are standard practice.
• Fees and taxes: Buyers should prepare for additional costs (real estate agent fee, registration tax, acquisition tax, annual fixed-asset tax). These typically total 6–8% of the purchase price.
• Earthquake resilience: Modern buildings in both Gunma and Saitama adhere to strict seismic standards. However, buyers of akiya or older homes should budget for inspections and possible retrofitting.

Pro tip: Early consultation with a trilingual agency like 新しい接続 helps to clarify eligibility, document requirements, and available financing options for your individual situation, smoothing what can otherwise be a daunting process.

5. Lifestyle: Living Experience and Trends for Expats

Why are more international buyers and families choosing Gunma or Saitama in 2025?

• Space and comfort: Homes with yards, gardens, and storage—rare in central Tokyo—are available and affordable.
• Connectivity: Fast rail and highway links put Tokyo’s business districts and airports within easy reach.
• Community: Expanding foreign communities, international schools, and global supermarkets are making suburban and semi-rural living easier.
• Nature and wellness: Gunma’s onsens, hiking trails, and clean air make it a wellness hotspot. Saitama’s rivers, parks, and festivals provide a lively cultural calendar.

With work-from-home and hybrid work on the rise, more buyers prioritize quality of life over central address—making these prefectures more attractive than ever.

6. Risks and Future Outlook

Opportunities come with increased competition. Rising prices mean buyers should act decisively, as inventory is tightening and the best properties in Saitama and Gunma are attracting competitive bids from both local and global investors.

Risks to consider:

• Continued price appreciation is likely but not guaranteed: Sharp economic changes, policy shifts, or currency fluctuations could impact both costs and returns.
• Older properties may require significant repairs: Due diligence (including surveys and seismic checks) is crucial, especially for akiya.
• Financing for non-residents remains complex: Not all lenders serve overseas clients; local knowledge is essential.

Still, Japan’s fundamentals—economic stability, safe legal environment, and a welcoming policy for foreign buyers—suggest that Gunma and Saitama will remain among the most attractive regions for international real estate investment and lifestyle relocation.

Key Takeaways

• Gunma and Saitama offer compelling opportunities for foreign property buyers in Japan due to affordability, space, and lifestyle.
• The Tokyo Metropolitan Area has seen significant price growth, encouraging buyers to look beyond the city for value.
• Legal processes are relatively straightforward for foreigners, but early consultation is advisable for clarity on financing and documentation.
• Lifestyle considerations such as family needs, community, and nature play a significant role in the choice of location.

Call-to-Action

Ready to explore Gunma or Saitama property opportunities? Contact 新しい接続 for multilingual, expert guidance tailored to international buyers. Our team makes buying property in Japan—from financing to lifestyle planning—clear, straightforward, and rewarding. Whether you’re hunting for a scenic akiya or a family home close to Tokyo, we’ll help you make a confident, informed decision in today’s dynamic market.

Let’s connect and unlock your next chapter in Japan.

FAQ

Q: Is it easy for foreigners to buy property in Japan?
A: Yes, Japan has a very open policy for foreign buyers, allowing them to own property without special permits.

Q: What types of properties are available in Gunma and Saitama?
A: Both regions offer a diverse range of properties, including traditional homes, large houses, and new condos.

Q: What are the risks involved in buying property in these areas?
A: Buyers should consider potential repairs for older properties and understand the complexities of financing as a non-resident.

Q: Can I get a mortgage as a foreigner?
A: It is possible, but the terms can vary significantly by bank and financial institutions may require a long-term visa.

Q: What lifestyle amenities can I expect in Gunma and Saitama?
A: Both regions offer access to nature, community, great schools, and vibrant cultural scenes, making them attractive for families and expatriates.