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Japanese homes are smaller than those in most other developed nations. The need for heating in Japanese homes depends on the geographic location. Northern and central Japan experience several meters of snow during the winter, while southern Japan hardly experiences freezing temperatures and may become uncomfortable without air conditioning in the summer heat.

In the metropolitan areas, houses are built very close to each other, with narrow strips of green for a garden. Apartment buildings with ten to fifteen floors can be found even in suburbs. While lacking space, these houses otherwise offer all other amenities.

The price of Japanese housing differs greatly between urban and rural areas. In the cities, housing is very expensive relative to annual income, even though the high cost is offset somewhat by low interest rates. Large companies often offer financial support to their employees to pay for housing.

The cost of property

The cost of property varies on the region in which a person wants to invest. Tokyo is by far the most costly, but prices decrease gradually as the distance to the nearest rail station or city center increases. Typically older buildings are considerably cheaper than newer ones. Remote regions like the Tohoku, Hokkaido or prefectures such as Shimane and Yamaguchi, are relatively inexpensive. In some areas the local government has offered land for free, to people who agree to settle there.

The most effective way to ascertain price ranges for Japan real estate is to contact an experienced and recommended real estate agent or check nation-wide real estate search engines.

Obtaining a (house) loan/mortgage in Japan

In the current economic situation it has become difficult for the Japanese themselves to own a house in Japan. It is very important to have a (Japanese) guarantor, financially suitable to repay your loan in case you fail to pay.

Foreign residents generally have good chances of getting a loan if they:

 - Have been living in Japan for a considerable span of time and can speak Japanese.
 - They have a family in Japan. For example if they are married to a Japanese citizen or have a child attending Japanese schools.
 - They have a stable job in Japan, which they are likely to continue.
 - They have good credit history.
 - They are not willing to return to their country before they can pay off their loan.
 - They have desirable reasons to want to stay in Japan, are comfortable and well adapted to Japanese lifestyle

Considerations in selecting real estate for investment

Japan is an earthquake-prone country. As no region is entirely safe from seismic activity, buying a house or apartment/flat entails some risk, as it could be ruined any time. One of the safest investments in terms of earthquake risk involves purchasing an unimproved lot, which can be lucrative in big cities when rented as parking space. (For example, in central Tokyo, parking space for a single car costs about 50.000yen/month.) That said, the value of real estate in Japan - especially in the major cities - has been the subject of significant fluctuations and is inherently risky.

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