Real estate values tend to rise in areas with urban development and growing populations. While Tokyo has traditionally had the highest property values, Osaka and the Kansai region are also seeing gradual increases. This is mainly due to major events like the Osaka-Kansai Expo in 2025, the opening of an Integrated Resort in 2029, and plans for an International Financial City, all of which are attracting international attention.
The World Expo is an international event where countries come together to educate the public and showcase progress in various fields. The event is expected to bring significant economic benefits to the region. According to estimates, the total economic demand before and after the Osaka Expo is expected to reach 2.18 trillion yen, with a ripple effect of 2.88 trillion yen. This is much higher than the economic effect of the Tokyo Olympics, which was 600 billion yen. The Expo is expected to attract around 28 million visitors, far more than the 10 million who attended the Tokyo Olympics.
For comparison, the 2020 Expo in Dubai attracted 23 million visitors despite the impact of COVID-19. Aichi’s 2005 World Expo resulted in an economic impact of about 3.5 trillion yen, including infrastructure improvements like roads and airports. The Expo also led to an increase in stock prices and other positive economic effects.
Previously, popular real estate investment areas in Osaka included Umeda and Shinsaibashi. However, with the upcoming Expo, IR development, and the opening of the linear Bullet Train, infrastructure is improving, and new commercial facilities are being built. This is expected to bring more people to the area and raise land prices. While Tokyo’s land prices are relatively stable, Osaka and Kansai are seeing gradual price increases.
So, what impact may we expect? Widespread Land Price Growth
The development of the Expo's large-scale facilities on Yumeshima Island has begun, and luxury hotels are opening in the area. This has led to increased land transactions in this area and in other previously underdeveloped parts of Osaka. For example, the Shin-Imamiya station area, once known for budget accommodations, saw the opening of a luxury hotel in 2022, which has been a big success. This redevelopment is expected to raise land prices across Osaka.
Increased Demand for Alternative Accommodations
While many new luxury hotels are opening in Osaka, not all Expo visitors will stay in these hotels. As the number of visitors increases, there will also be greater demand for alternatives like private rentals. Osaka has already seen rising demand for commercial and accommodation facilities catering to international tourists, especially in areas like Namba and Shinsaibashi. Japan’s property prices are lower than in major international cities, making it an attractive option for foreign investors. Even though the pandemic slowed this trend, demand is expected to grow now that travel restrictions have been lifted.
Impact on the National Real Estate Market
As property values in Osaka rise, this could also positively affect the real estate market in Tokyo. The "Super Mega-Region" concept includes the opening of a linear Shinkansen that will connect Tokyo and Osaka by 2040, cutting travel time by more than half. This will make travel easier for both Japanese residents and international visitors, likely creating a mutual influence on the real estate markets in both cities.
Conclusion The 2025 Osaka Expo is expected to bring significant economic benefits, not just to Osaka, but to the entire country. These effects could positively impact the real estate market. However, risks such as global inflation should also be considered.
If you're thinking about investing in real estate in Osaka after the Expo, feel free to consult with Imura Real Estate. As a company based in Osaka, we have a strong local network and can provide tailored information to help you with your investment.
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