#Japan #Tokyo #LIFULL HOME'S #Fixed-Term Rental

The Growing Popularity of Fixed-Term Rental Properties in Tokyo

As the 2026 spring rental season approaches, LIFULL, a prominent real estate information service in Japan, has conducted a thorough investigation into the latest trends regarding fixed-term rental properties in the Tokyo metropolitan area. With rental prices continuing to soar, many are left wondering whether these types of rentals are genuinely cheaper and what areas are seeing the most growth in fixed-term rentals.

Understanding Fixed-Term Leases

A fixed-term lease, also known as a periodic rental agreement, specifies a predetermined rental period. Unlike standard rental agreements, which can be renewed indefinitely, fixed-term leases conclude upon the expiration of the contract, meaning tenants cannot renew or terminate the contract prematurely without specific conditions. This leaves tenants seeking to continue residing in the property needing to negotiate a new contract, which may come with new rental rates influenced by continuous market changes.

The Increasing Trend of Fixed-Term Rentals

In recent years, the Tokyo metropolitan rental market has seen a significant uptick in listing prices, particularly for fixed-term rentals. This increase is partly due to the rising costs of property maintenance and management, which have surged alongside inflation and interest rate hikes. Many property owners are reconsidering their rental pricing strategies as they face various economic pressures, leading to a noticeable rise in fixed-term rental listings.

Between January 2022 and November 2025, the average listing share of fixed-term rentals in the metropolitan area was recorded at 8.7%. Notably, in Tokyo, this share is expected to reach 9.3% in 2025, marking an increase of 3.6 percentage points over three years. Surrounding areas such as Kanagawa and Saitama have also shown considerable growth, with Kanagawa seeing an increase of 4.1 percentage points and Saitama by 3.8 percentage points.

In contrast, Chiba remains below the 5% mark, showing the rapid adoption of fixed-term rentals throughout a larger portion of the metropolitan region.

Rental Price Trends in Fixed-Term Rentals

The average rental prices for fixed-term properties have also experienced significant upward trends from 2022 to 2025. When looking at the data, the overall average rent in the Tokyo metropolitan area increased to 111.4% of 2022's rates. Tokyo sees the highest surge in rental prices among the three prefectures, with an increase of 16.7%. Chiba follows closely with an increase of 13.5%, outperforming Kanagawa and Saitama, which saw milder increases of 8.2% and 4.7%, respectively.

Insights from Tokyo's 23 Wards

Among the 23 wards of Tokyo, the listing share of fixed-term rentals has reached as high as 9.5%, surpassing the overall city average. Despite the increase in shares, it has been observed that the rising rental rates for standard leases are outpacing their fixed-term counterparts. For example, from 2022 to 2025, standard rental properties saw a price increase of 24.5%, compared to 4.0% for fixed-term rentals, indicating a possible shift in the market dynamics.

In 2025, the district of Shibuya boasts the highest share of fixed-term rentals at 18.1%, with an impressive 2/10 of the properties in the area classified as such. Throughout the city, 19 out of 23 wards have shown growth in fixed-term rental shares, suggesting a broader acceptance and demand for these types of agreements.

Expert Perspective from LIFULL HOME'S

According to Toshihiro Nakayama, Chief Analyst at LIFULL HOME'S, the expansion of fixed-term rental property shares is driving rental price increases. Factors contributing to this situation include rising property management costs, changes in user demand, and a post-pandemic return to urban living. While fixed-term leases may provide potential cost savings, they equally present challenges for tenants facing evolving market rates upon renewal.

Conclusion

As we head into the bustling rental season of spring 2026, the prominent growth of fixed-term rentals could suggest further potential increases in rental prices. Tenants may find themselves better off by comparing the terms of fixed-term leases against standard leases to gauge the potential for upcoming price changes. Understanding these dynamics and preparing for possible negotiations may be vital for those looking to secure housing in the ever-evolving rental landscape of Tokyo.

LIFULL HOME'S offers valuable insights into the evolving rental market and assists individuals in finding optimal housing solutions based on their preferences and circumstances. For anyone seeking to delve deeper into the Tokyo rental market, LIFULL HOME’S provides robust platforms for exploring available listings and understanding market trends.