Why International Buyers Are Eyeing Gunma and Saitama: Japan’s Affordable Real Estate Frontier in 2025

Estimated reading time: 7 minutes

• Gunma and Saitama are positioned as attractive real estate options for international buyers seeking affordability and lifestyle.
• Rental yields in these regions can outperform Tokyo due to lower entry prices.
• Foreigners face fewer barriers to ownership, but navigating financing and legal requirements is essential.
• Government investments and lifestyle trends bolster the appeal of these prefectures in light of Tokyo’s volatility.

Table of Contents

• 導入
• Tokyo’s Turbulence, Regional Stability
• Data-Driven Analysis: Gunma and Saitama by the Numbers
• Gunma vs. Saitama: Which Prefecture Suits Which Buyer?
• Financing & Legal Tips for Foreign Buyers
• Lifestyle & Living Experience: Why Move to Gunma or Saitama?
• Risks and Future Outlook
• Key Takeaways
• FAQ

導入

Japan’s real estate market in 2025 is making headlines for record-setting prices in Tokyo—and for savvy buyers, those high numbers tell only half the story. While Tokyo’s average new apartment price surged to over 100 million yen before a sharp correction, nearby prefectures like Gunma and Saitama present a different narrative: steady growth, affordability, and untapped potential for both investors and lifestyle-focused relocators.

Interest in these regions is intensifying, especially among foreign buyers seeking accessible entry points and a genuine Japanese living experience. As housing starts fluctuate nationwide, understanding the real prospects in Gunma and Saitama has never been more crucial for international buyers.

Tokyo’s Turbulence, Regional Stability

Recent data shows Tokyo real estate prices spiked dramatically, with 2025 seeing condominium prices jump 37.5% year-over-year before a correction in spring. This volatility, driven by luxury segments and speculative demand, contrasts sharply with the moderate and consistent growth seen in surrounding regions.

In particular, Gunma and Saitama offer accessible investment options and a stabilizing presence in Japan’s increasingly bifurcated property landscape. The national average house price is forecast to see 2-3% growth in 2025, with regional cities—including Saitama’s key urban centers—following this moderate upward trend.

Japan’s Housing Starts: Urban vs. Regional Divide

Housing starts across Japan rebounded by 2.4% year-over-year in early 2025 after nearly a year of contraction, with growth concentrated in two-by-four and built-for-sale dwellings. However, the overall picture is complex:

• Owned homes: Slight decline (-0.2% year-over-year)
• Rental and for-sale properties: Modest increases, indicating demand stability

These figures suggest that while Tokyo draws most attention, regional markets remain active—and less exposed to boom-bust cycles.

Data-Driven Analysis: Gunma and Saitama by the Numbers

Price Trends and Affordability

• Saitama: As part of the Tokyo Metropolitan Area, Saitama has seen property price growth but remains much more affordable than central Tokyo. The residential property price index for the Tokyo Metropolitan Area (including Saitama) rose 8.14% year-over-year in early 2025, but Saitama’s average prices are still far below Tokyo’s eye-watering levels.
• Gunma: Known for its mix of urban centers (like Maebashi and Takasaki) and rural charm, Gunma’s price growth is steady but subdued—a draw for value-focused buyers.
• National Perspective: Most regional hubs are experiencing selective growth driven by local economies, infrastructure, and lifestyle migration, rather than speculative bubbles.

Rental Yields and Investment Potential

Japan’s rental yields are generally modest, but with lower entry prices in Gunma and Saitama, net yields can outpace those of Tokyo, especially for foreign investors focused on income stability.

“We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.”

• Regional yields often surpass those in Tokyo’s central districts, where purchase prices have outpaced rent growth.
• Demand from both locals and incoming residents (remote workers, returnees, international families) keeps vacancy rates manageable in the most desirable pockets.
• Short-term rental regulation is generally simpler outside Tokyo, giving more flexibility to those targeting Airbnb or monthly rental income.

Gunma vs. Saitama: Which Prefecture Suits Which Buyer?

Criteria	群馬	埼玉
Accessibility	1 hr+ from Tokyo; more rural, nature	30–45 min by train to central Tokyo
Urban Centers	Takasaki, Maebashi	Saitama City, Kawagoe, Omiya
Average Prices (2025)	Lower; ideal for first-timers, retirees	Higher but still under Tokyo; expat hub
Rental Yield Potential	Higher in smaller cities/towns	Steady; easier tenant pool
Lifestyle Appeal	Onsen towns, mountains, tradition	Modern amenities, family-friendly
Infrastructure	Growing; new shinkansen stops, highways	Robust; direct rail to Tokyo, major malls
Expat/International	Emerging market, less cosmopolitan	Growing communities, English services

Who should choose Gunma?
– Those seeking rural escapes, onsen culture, or larger land plots.
– Investors focused on long-term appreciation as cities modernize.
– Buyers after lower property taxes and cost of living.

Who should choose Saitama?
– Commuters, families, and expats needing access to Tokyo.
– Investors wanting strong tenant demand plus urban amenities.
– People seeking a blend of suburban peace and urban convenience.

Financing & Legal Tips for Foreign Buyers

Can Non-Residents Get a Mortgage in Japan?

Japan has a relatively open legal framework—foreigners can own land and property outright. However, financing is the main hurdle:

• Major Japanese banks rarely lend to non-residents, and documentation demands are strict.
• Some regional banks in Saitama and Gunma may consider applications for long-term visa holders or those with local income.
• Cash purchases are common for international buyers, especially for entry-level investments under 30 million yen.
• Specialist mortgage brokers and bilingual agents are invaluable in navigating paperwork and negotiation.

“Gunma and Saitama present accessible investment options compared to Tokyo. Understanding regional dynamics is crucial for seizing opportunities.”

Legal Considerations

• No nationality restrictions: Foreigners face no legal barriers to ownership.
• Due diligence: Title checks, property condition audits, and understanding local zoning rules are a must—especially in rural Gunma, where older properties may have renovation needs.
• Inheritance and taxes: Japan’s property taxes are moderate; be aware of possible inheritance tax planning needs with cross-border ownership.

Lifestyle & Living Experience: Why Move to Gunma or Saitama?

Gunma: Japan’s Undiscovered Heartland

• Natural beauty: Mountains, rivers, and famous onsen towns like Kusatsu.
• Lower density: Spacious homes, gardens, and a slower pace of life.
• Lifestyle migration: Japanese families and retirees increasingly opt for Gunma’s calm environment, affordable acreage, and low cost of living.

Saitama: Urban Synergy and International Growth

• Commuter haven: Fast trains connect you to Tokyo in 30–45 minutes.
• Modern living: Shopping, entertainment, and international schools abound in Saitama City and Kawagoe.
• Growing expat scene: English-speaking services and community groups are multiplying as more families choose Saitama over central Tokyo for value and space.

Risks and Future Outlook

Demographic Headwinds vs. Regional Resilience

Japan faces long-term population decline, with rural areas most vulnerable to depopulation. Yet, Gunma and Saitama are relatively resilient regions due to:

• Continued inflow from Tokyo: People priced out of the capital or seeking a lifestyle change.
• Government infrastructure investment: Shinkansen extensions, highway upgrades, and city revitalization projects.
• Remote work and hybrid living: Pandemic-accelerated trends make suburban and rural lifestyles newly viable for professionals.

Risks to consider:

• In some areas, oversupply of aging homes may dampen appreciation or require renovations.
• Liquidity is lower than Tokyo—expect longer sale cycles for unique rural homes.
• Global currency shifts can impact costs for buyers sending funds from abroad.

Key Takeaways

• Gunma and Saitama offer affordable real estate options for international buyers in 2025, contrasting with Tokyo’s market volatility.
• Rental yields in these prefectures are appealing due to lower entry costs and steady demand.
• Foreign nationals face fewer barriers to ownership, but understanding financing and legal requirements is crucial.

FAQ

What is the typical property price range in Gunma and Saitama?

Gunma offers more affordable options with average prices significantly below Tokyo, while Saitama remains higher but still accessible for those looking to invest near the capital.

Are there language barriers for foreigners considering these areas?

While local language proficiency can be beneficial, many resources, including real estate agents, are available in English, particularly in Saitama.

What are the tax implications for foreign property owners?

Foreigners generally face moderate property taxes in Japan. However, understanding inheritance tax implications is important, especially for cross-border ownership.