Introduction:

Why Foreigners Are Turning to Gunma and Saitama in 2025

Japan’s property market is making global headlines in 2025 for its robust recovery and steady price gains—not just in Tokyo, but nationwide. While the capital’s residential prices surge at double-digit rates, international buyers are increasingly searching just beyond city limits for value, lifestyle, and long-term security. Enter: Gunma and Saitama—two prefectures attracting savvy investors and new residents with their blend of affordability, connectivity, and evolving urban appeal.

For non-Japanese buyers, these regions offer strategic alternatives amid Tokyo’s climbing entry prices. But what’s actually driving demand, and what should foreigners expect when considering “Japan lifestyle for expats” or “how to invest in Japanese housing” outside the capital?

1. Background/Market Context:

Japan’s Housing Boom, Regional Diversification, and the Case for Gunma & Saitama

Since 2020, Japan’s residential property market has staged a remarkable comeback, marked by four straight years of price growth across both land and housing. In 2025, Tokyo leads with a reported 10.7% year-on-year price surge—a pace not seen since the 1980s. The national housing index reached 129.97 points in March 2025, up from 90 in 2015.

Yet, as capital cities edge closer to “priced-out” territory for many, regional markets are gaining attention. Gunma and Saitama—a pair of neighboring prefectures northwest and north of Tokyo, respectively—have become the focus for buyers seeking both value and proximity to Japan’s economic heart.

Key market context:

• Urban Growth: Major cities like Tokyo and Osaka see outsized price increases, yet regional hubs benefit from spillover demand.
• Rising Foreign Interest: Overseas investment remains strong, with international buyers attracted by Japan’s political stability, transparent legal system, and unique cultural appeal.
• Accessible Pricing: While Tokyo’s average new condo price has soared, Gunma and Saitama offer both lower absolute prices and higher yields for certain property types.

2. Data-Driven Analysis:

2025 Residential Price Trends and Rental Yields

National and Metro Price Trends (2025):

• Tokyo: +10.7% year-on-year (YoY)
• Tokyo Metropolitan Area: +8.14% YoY
• National Average: +2–3% forecast growth through 2026
• Land prices: +2.7% YoY nationwide

Gunma & Saitama Snapshot:

• Accessible Entry Points: Saitama and Gunma homes typically cost 30–50% less than comparable Tokyo properties.
• Rental Yields: Investors report higher gross rental yields in many Saitama and Gunma cities versus Tokyo’s core, due in part to lower acquisition costs.
• Growth Outlook: Both prefectures benefit from infrastructural upgrades and improved commuter access, with selective neighborhood appreciation forecasted over the next five years.
• Contrast with Kanagawa/Chiba: Kanagawa recorded a 4.19% rise, Chiba only 1.36% in early 2025—indicating strategic selection within Greater Tokyo is critical.

Investment Takeaway:

Whereas central Tokyo’s prices may deter entry-level investors and homebuyers, Gunma and Saitama provide a lower-risk way to participate in Japan’s ongoing real estate upswing—with the potential for both capital appreciation and strong rental returns.

3. Gunma vs Saitama:

Which Prefecture Suits International Buyers Best?

Gunma attracts those seeking scenic countryside, thermal springs, lower costs, and the promise of future development near shinkansen stops. Saitama lures families and younger professionals with fast urban access, solid infrastructure, diverse neighborhoods, and a steadily diversifying population.

4. Financing & Legal Tips:

How Foreigners Can Invest or Buy with Confidence

While Japan’s legal framework for property ownership is transparent, mortgage financing for non-residents requires careful navigation.

Key Considerations:

• Full Ownership: Foreigners can own both land and buildings outright—no citizenship or permanent residency required.
• Mortgages: Non-residents face stricter criteria; local banking partners and specialist firms can help with documentation, down payments (typically 20–35%), and translation support.
• Visa/Status: Some Japanese banks require residency or a stable visa; alternative financing options may be available via international or partner banks.
• Legal Due Diligence: Title searches, building surveys, and language assistance are vital. Reputable, multilingual advisers (like Nova conexão) help buyers avoid common pitfalls.
• Transaction Costs: Expect 4–7% of the purchase price for taxes, agent fees, and legal costs.

Recent Trends:

The ongoing inbound investment wave has encouraged some regional lenders to roll out new products for foreigners. Still, preparation and local guidance are critical—particularly for Saitama and Gunma, where smaller banks or city offices may lack English-language support.

5. Lifestyle and Living Experience:

Why Gunma and Saitama Stand Out for Expats in 2025

Foreign buyers today are not just seeking investment returns—they want a high-quality Japan lifestyle for expats, space for families, and authentic cultural experiences.

Gunma Lifestyle Highlights:

• Tranquil mountain scenery, renowned hot springs (onsen), and fresh air.
• More detached homes, gardens, and affordable land—ideal for remote workers or those prioritizing privacy.
• Active international communities around Takasaki and resort towns.

Saitama Living Advantages:

• Proximity to Tokyo—commute times as low as 30 minutes for some neighborhoods.
• Cosmopolitan neighborhoods with international schools, shopping, and diverse food scenes.
• Urban conveniences with lower density and more green space than central Tokyo.

Both regions see growing interest from international families, retirees, and digital nomads—driven by rising Tokyo costs, a desire for quality of life, and improved local amenities.

6. Risks and Future Outlook:

Demographic Shifts, Urban-Rural Divide, and What’s Next

• Regional Disparities Widen: Urban hubs—especially Saitama’s key cities and Gunma’s shinkansen-connected zones—should see continued, if moderate, appreciation. More rural or depopulating areas may stagnate or decline.
• Demographics: Japan’s aging population remains a major long-term challenge. Areas with strong inbound migration or new industry fare better.
• Policy and Infrastructure: Ongoing government upgrades to transport and digital infrastructure are crucial for sustaining demand outside Tokyo.
• Market Cycles: 2025–2030 projections call for a “soft landing,” with prices stabilizing after the recent rapid ascent.

Investor Advice:

Foreign buyers should balance optimism about Japan’s enduring appeal with careful location research, realistic yield expectations, and close monitoring of regional population and economic trends.

Key Takeaways:

• Investment Potential: Gunma and Saitama present more affordable options compared to Tokyo, offering potential for strong returns.
• Lifestyle Choices: Evaluate personal priorities—rural peace in Gunma versus urban convenience in Saitama.
• Due Diligence: Seek support with financing and legal processes to navigate buying intricacies effectively.

Ready to Explore Gunma or Saitama?

Contact New Connection for Multilingual, Personalized Support

Navigating the intricacies of buying property in Japan—from Saitama’s vibrant suburbs to Gunma’s peaceful escapes—requires expert, on-the-ground guidance. As a trilingual team specializing in international client needs, Nova conexão delivers comprehensive support: market analysis, financing strategies, legal navigation, and local lifestyle advice.

Contact us today to start your Japan property journey with confidence and clarity—wherever you call home.