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Overview of the Kansai Real Estate Market Report - February 2026

Mitsubishi Estate Realty Services, headquartered in Chiyoda, Tokyo, has published its latest edition of the "Area Market Report/Kansai February 2026." This report encapsulates significant insights and data related to the Kansai real estate sector, including macroeconomic indicators and current market trends.

Real Estate Sales Market

The Kansai region, particularly the Keihanshin area, has witnessed a consistent upward trend in real estate transactions since 2020, with projections indicating continued growth in 2024 across all asset types compared to the previous year. While the expected yield for investors in Osaka city has stabilized, the yields for business hotels have been on a decline since 2003.

Interestingly, there has been a notable increase in the average price per tsubo for newly built condominiums in the Kinki region, which surpassed 3 million yen per tsubo for the first time in a decade in 2024. The average living area size has remained around 60 square meters since 2017, reflecting a steady demand for adequately sized living spaces.

Real Estate Rental Market

In the rental sector, vacancy rates for office spaces in Osaka, Kyoto, and Kobe are trending downwards, while rental prices are on the rise in Osaka and Kobe, and remaining stable in Kyoto. The rental index for apartments has reached its highest levels since 2009 for all types in Osaka and for single-room types in Kyoto, indicating a robust rental market.

Looking ahead, over 1.5 million square meters of new logistics facilities will be added in the Kansai area by 2025, marking the highest supply level since 2008. This strong supply is being met with steady demand, maintaining a balanced market where rental prices are also trending upwards.

Macroeconomic Indicators

The construction cost index in Osaka city is on the rise, though it has recently stabilized across various components. The occupancy rates of hotel rooms in Osaka have consistently exceeded last year's levels, with a notable increase in the percentage of Japanese guests.

In Kyoto, foreign visitors continue to dominate, accounting for approximately 58% of the total overnight stays. Notably, Hyogo prefecture also reported the highest number of foreign guests since January 2019 in October, showcasing a recovery in tourism.

Market Summary

The report further details key metrics including:

• - Trends in publicly announced land prices
• - Distribution maps of land prices
• - Patterns of real estate transaction volumes
• - Expected yield trends
• - Current sale trends and insights on newly built condominiums including average prices and dwelling sizes

The rental market section highlights:

• - Trends in office vacancy rates and rental prices
• - New office supply levels
• - Rent indices for apartments
• - Vacancy rates and rental trends in logistics facilities
• - Supply-demand balance in logistics

In macroeconomic indicators, it covers:

• - Trends in construction costs
• - Changes in business sentiment indices
• - Occupancy rates and total overnight stays in hospitality
• - Retail sales trends
• - Location trends for factory establishments

For those interested in delving deeper, detailed reports are available for download through the company's research portal. This release underscores the evolving landscape of the Kansai real estate market as of February 2026, providing essential insights for investors and stakeholders alike.