Tokyo rental prices are continuing to rise, with both the office and residential markets showing a clear upward trend.
Recent surveys reveal that office rents in Tokyo have risen to their highest level in approximately 17 and a half years since the first half of 2008. According to the office rent index for the second half of 2025 released by Nikkei Inc., rents have increased by around 10% over the past year. As competition for talent intensifies, more companies are relocating offices to prime central Tokyo locations, favoring large-scale buildings with extensive amenities—making premium office spaces the focal point of demand.
The residential market is also heating up. Average rents for studio apartments in Tokyo’s 23 wards rose 10.7% over the past year, marking the highest level in recent years—significantly outpacing surrounding prefectures. In 2024 alone, 95,000 people aged 15 to 29 moved into the area, fueling strong demand for studio units. At the same time, housing shortages are becoming more pronounced. Rising moving costs have led many tenants to renew their leases rather than relocate, resulting in a 12% year-on-year decrease in available listings—further driving up rents.
The luxury rental segment continues to climb as well. Average monthly rent for family-type premium properties has surpassed 1 million yen (about 50,000 RMB), with more than half of these concentrated in central districts. Rent thresholds for high-end studio apartments in the city center have also risen by about 30% compared to a decade ago, indicating sustained strong demand at the top end.
Industry insiders note that the autumn moving season is likely to push rents even higher. With increased relocation activity from companies and an influx of new students, rental demand is set to remain robust, and properties will continue to be leased at a rapid pace despite rising costs.
Overall, Tokyo’s rental market is entering a new phase of comprehensive rent growth, placing heavier financial pressure on both businesses and residents.
