Why Foreign Buyers Are Flocking to Saitama and Gunma: 2025’s Most Accessible Japan Real Estate Boom
Estimated reading time: 7 minutes
- Explore the growing real estate markets in Saitama and Gunma for better value and potential returns.
- Understand financing options and legal processes to navigate property purchases as a foreigner.
- Consider your lifestyle priorities—commuter convenience versus tranquil living—when choosing between Saitama and Gunma.
Índice
- Introdução
- Market Context: Japan’s 2025 Real Estate Surge
- Saitama: Stable Growth and Commuter Magnet
- Gunma: The Value Alternative
- Gunma vs Saitama: Which Prefecture Is Right for You?
- Financing and Legal Considerations for Non-Residents
- Lifestyle: Living in Saitama and Gunma as an Expat
- Risks and Future Market Outlook
- Key Takeaways
- Call-to-Action
Introdução
The Japanese property market is in the midst of a structural transformation. While headlines focus on Tokyo’s breakneck price increases—up nearly 11% year-on-year as of January 2025—the quieter story is the surge of international interest in “greater Tokyo” alternatives like Saitama and Gunma. For non-Japanese buyers and investors, these neighboring prefectures offer a rare mix of affordability, growth potential, and resilient lifestyle appeal.
As Japan’s low interest rate environment continues and the yen remains historically soft, global buyers are increasingly drawn to the accessibility and stability of Japan’s smaller cities and commuter belts. Whether you’re seeking a family home, a rental apartment, or long-term capital appreciation, understanding the latest market trends in Saitama and Gunma is essential for making an informed purchase in 2025.
Market Context: Japan’s 2025 Real Estate Surge
Residential property prices across Japan are experiencing their strongest growth since the early 1990s. The Tokyo Metropolitan Area (including Saitama) saw an 8.14% increase in residential property prices year-on-year as of January 2025. Nationwide, land prices grew by 2.7%—a record pace for the past 34 years. This surge is powered by:
- Continued urban redevelopment and infrastructure improvements
- Stable low-interest rates, making borrowing affordable
- Rising foreign investment—now a key driver in city and suburban markets
Yet, while Tokyo grabs the spotlight, a new generation of buyers—Japanese and international—are looking north to Saitama and Gunma for better value.
Saitama: Stable Growth and Commuter Magnet
Data-Driven Analysis
Saitama, just north of Tokyo, is rapidly solidifying its reputation as a haven for savvy investors and urban escapees. Here’s why:
- Population Stability and Growth: Saitama Prefecture maintains a population of 7.36 million, with steady growth in Saitama City and Kawaguchi City—two top commuter hubs for Tokyo workers.
- Rising Land Prices: Residential land prices in Saitama have climbed every year since 2019, reaching an average of 135,490 yen/m² in 2023—a roughly 7% increase over five years.
- Rental Demand: Proximity to Tokyo, a robust transportation network, and a growing expat community keep rental demand and yields strong.
Average Residential Land Price in Saitama (Yen/m²):
| Year | Avg. Price |
|---|---|
| 2019 | 127,056 |
| 2020 | 129,688 |
| 2021 | 129,399 |
| 2022 | 130,861 |
| 2023 | 135,490 |
Compared to Tokyo, where average prices and competition are intense, Saitama offers international buyers a smoother entry point—less price volatility and more selection, with the added benefit of being just 30–45 minutes by train to central Tokyo.
Gunma: The Value Alternative
Gunma, further inland, stands out for its exceptional accessibility, natural appeal, and lower cost of entry.
- Lower Acquisition Costs: Property in Gunma remains substantially less expensive than in Tokyo or Saitama, making it ideal for first-time investors or buyers looking to maximize yen returns.
- Post-Pandemic Migration Trends: There’s rising interest in Gunma from Tokyo residents and remote workers who now prioritize space, outdoor amenities, and peaceful communities in their home purchases.
- Promising Yields: With fewer ultra-premium neighborhoods, rental yields in Gunma can outpace those in overheated city centers—particularly for well-located homes near train lines or regional economic hubs.
For foreigners intent on buying property in Japan without the urban premium, Gunma is a compelling bet—especially as regional revitalization programs and inbound tourism projects accelerate.
Gunma vs Saitama: Which Prefecture Is Right for You?
| Factor | Saitama | Gunma |
|---|---|---|
| Proximity to Tokyo | 20–40 min (commuter belt cities) | 90–120 min (Shinkansen/car) |
| Population Growth | Stable/increasing (esp. Saitama, Kawaguchi) | Stable/slightly declining |
| Land Price Trend | Up 7% over 5 years, steady urban appreciation | Stable, low base, selective growth |
| Rental Demand | High—expats, students, Tokyo workers | Moderate, but rising post-pandemic |
| Lifestyle Appeal | Urban amenities, shopping, international schools | Natural scenery, onsens, more space |
| Entry Price | Mid-range (cheaper than Tokyo) | Low (among Japan’s most accessible) |
| Resale Potential | High, especially in city centers or near stations | Moderate—focus on popular towns |
Both prefectures offer advantages for foreigners in Saitama or those looking at Gunma real estate, but preferences depend on budget, lifestyle, and investment horizon.
Financing and Legal Considerations for Non-Residents
Good news: Japan remains one of the world’s most open real estate markets for non-residents. Foreigners can buy “freehold” property outright, with no major restrictions.
Key points for 2025:
- Mortgage Access: Japanese banks are cautious lending to non-residents, but several large institutions and some regional lenders have products for permanent residents, long-term visa holders, and those with strong local ties. Cash transactions remain common for overseas buyers, but secured loans are possible with the right documentation.
- Purchase Process: Deals typically close within 2–4 weeks. Expect due diligence on property titles, taxes, and any building restrictions.
- Taxes & Fees: Buyers should budget for transaction taxes (approx. 5–7% of purchase price), annual fixed asset taxes, and insurance.
Legal Tips:
- Always engage a bilingual agent or legal advisor for contract reviews and communication with sellers.
- Non-residents must appoint a local tax representative for property-related taxes.
- In Saitama and Gunma, rules on farmland or heritage property may differ—check local by-laws if considering anything outside standard residential listings.
Lifestyle: Living in Saitama and Gunma as an Expat
Foreign buyers are drawn to these prefectures not just for investment, but for quality of life:
- Saitama: Ideal for those seeking convenience, city amenities, and a short commute to Tokyo. Good international schools, diverse shopping, and a growing foreign community.
- Gunma: Suits buyers prioritizing space, tranquility, and proximity to nature. Popular with remote workers, retirees, and families wanting mountain views, onsen hot springs, and outdoor sports.
Both areas offer a softer landing for Japan lifestyle for expats than crowded urban wards, while providing reliable public transport, healthcare, and personal safety.
Risks and Future Market Outlook
Risks:
- Demographic Headwinds: While city centers are stable, rural and peripheral areas in both prefectures face slow population decline. Focus on growth or commuter zones for resilient demand.
- Yen Volatility: Currency shifts can impact overseas capital inflow and repatriation—watch exchange rates closely.
- Regulatory Changes: While policies remain investor-friendly, keep abreast of potential reforms on foreign ownership or tax incentives.
Outlook:
- Saitama’s residential sector is poised for steady growth, buoyed by urban spillover and persistent housing shortage in Tokyo’s outskirts.
- Gunma’s revitalization and migration trends are likely to accelerate as remote work and rural tourism reshape demand.
- Japan’s “soft landing” scenario predicted for the next five years should keep price appreciation steady, with particular upside in regional hubs.
Key Takeaways
- Explore the growing real estate markets in Saitama and Gunma for better value and potential returns.
- Understand financing options and legal processes to navigate property purchases as a foreigner.
- Consider your lifestyle priorities—commuter convenience versus tranquil living—when choosing between Saitama and Gunma.
Call-to-Action
Ready to explore Saitama or Gunma? Contact New Connection today for multilingual, personalized guidance tailored to your needs. Whether you’re investing from overseas or relocating for a better lifestyle, our trilingual team ensures you navigate the Japanese housing market—especially in Gunma and Saitama—with confidence and clarity.
Buy smarter, live better, and unlock the full potential of your Japan property journey with New Connection.
