The Impact of the Osaka Expo on the Real Estate Market

Real estate values tend to rise in areas where urban development progresses and populations are concentrated. Until now, Tokyo has been the most expensive market, but property prices in Osaka and the Kansai region have gradually been increasing as well. This is due to international attention surrounding the 2025 Osaka-Kansai Expo, the integrated resort scheduled to open in 2029, and plans for an international financial hub.

The Expo is an international event where countries come together to promote public education and showcase advancements in various fields. It is predicted to bring significant benefits to the regional economy. The economic effect of the Osaka Expo, both before and after its opening, is expected to be 2.18 trillion yen, with a ripple effect of 2.88 trillion yen. This is far higher than the 600 billion yen economic impact of the Tokyo Olympics. The Expo is expected to attract about 28 million visitors.

The 2020 Expo in Dubai, despite being impacted by the pandemic, still drew 23 million visitors, nearly reaching its target. The 2005 Expo in Aichi, which included infrastructure development such as roads and airports, had an economic impact of approximately 3.5 trillion yen, with positive effects such as an increase in stock prices.

Historically, popular real estate investment areas in Osaka have been Umeda and Shinsaibashi, but with the upcoming Expo, integrated resort (IR) projects, and the opening of the Linear Shinkansen, infrastructure is improving, and commercial facilities are expanding. As a result, population growth is expected, which will lead to an increase in land values. While land prices in Tokyo have been stabilizing, property prices in Osaka and the Kansai region are on the rise. Widespread Increase in Land Prices

Construction of large-scale facilities related to the Expo has already started in Yumeshima, and luxury hotels are also opening in the area. This is expected to stimulate land transactions in previously overlooked areas of Osaka, driving up land prices. For example, around Shin-Imamiya Station in Osaka, the "OMO7 Osaka by Hoshino Resorts" opened in 2022 and became a huge success. As a result, land prices are expected to rise throughout Osaka.

Increase in Demand for Alternative Accommodations, Such as Short-Term Rentals

While many luxury hotels are opening in Osaka, not all Expo visitors will stay in high-end hotels. The increase in people flow will likely drive up demand for alternative accommodation options, such as short-term rentals. Particularly in areas like Namba and Shinsaibashi, commercial and hospitality facilities catering to tourists are increasing, which is contributing to the rise in land prices. Compared to major cities abroad, property prices in Japan remain relatively low, attracting attention from international investors. Although there was a temporary slowdown due to the pandemic, it is expected that demand will rise as travel restrictions are lifted. Impact on the National Real Estate Market

The rise in real estate value in Osaka is expected to positively influence the real estate market in Tokyo as well. The Linear Shinkansen, connecting Osaka and Tokyo, is scheduled to open around 2040, significantly shortening travel time between the two cities and making transportation more convenient. As a result, the real estate markets in Osaka and Tokyo are expected to influence each other. Conclusion

The 2025 Osaka Expo is expected to bring significant benefits to the regional economy, and its impact is likely to extend to the real estate market. However, global risks such as inflation must also be taken into account. If you are considering investing in real estate in Osaka after the Expo, feel free to consult with Imamura Real Estate. As a company based in Osaka, we are able to leverage our local network to provide you with the best information and support for your investment decisions.