Buying Abandoned Houses (Akiya) in Major Japanese Cities: A Comprehensive Guide for Foreigners

Introduction

Japan is facing an akiya (空き家) epidemic – over 9 million homes nationwide sit vacant, about 14% of all houses. While many are in depopulated rural towns, even major cities like Tokyo, Osaka, and Kyoto have thousands of empty houses. “Akiya” refers to any unoccupied home – some are inherited old houses left to rot, others are aging urban homes whose owners moved or passed away. This guide will walk through everything a foreign buyer needs to know about purchasing these abandoned houses in and around Tokyo, Osaka, and Kyoto. We’ll cover the availability of urban akiya (including examples of extremely cheap or even zero-yen homes), whether foreigners can buy property without residency, the buying process and legal requirements, renovation costs and contractors, government subsidies or tax incentives to revitalize akiya, common pitfalls to watch out for, and key resources (like akiya banks and real estate websites) to find these properties.

Akiya Availability in Major Cities

Even Japan’s largest cities have a notable supply of vacant homes. Nationally, the number of akiya has steadily risen (nearly doubling since 1993 due to an aging population and urban migration. Cities are not immune – there are “hundreds of thousands” of long-term empty houses in urban areas. However, the proportion is smaller than in rural regions. Tokyo Prefecture has the lowest percentage of abandoned homes at about 2.6% of housing, and Osaka around 4.6%, compared to 10–20% in some rural prefectures. This still translates into many thousands of vacant houses in and around these cities. Below we outline what’s available in each region, including examples of prices and even free houses:

Tokyo (Metro Tokyo and Outskirts)

When most people think of Tokyo, they imagine the dense 23 wards – here truly abandoned houses are rarer due to high demand. But Tokyo Metropolis also encompasses suburban cities and rural villages on its outskirts (up to mountainous Okutama, two hours from downtown). In these outer areas, akiya are more common. In fact, Tokyo’s western town of Okutama launched a “0 Yen Vacant House Bank” to give away homes for free . Under this program, empty houses in Okutama have been offered at 0 yen (free), typically to young families willing to move in and renovate, with conditions such as committing to live long-term (e.g. 15 years to gain full ownership). Hundreds of people have relocated under such schemes, showing that even “free” houses can attract interest with the right conditions.
For modestly priced examples, there are old houses in Tokyo’s suburban wards and cities that sell for a fraction of normal Tokyo real estate prices. It’s reported that one can find a “decent” akiya house in the 23 wards for around ¥10–20 million (What to know about Akiya (unused house) investment in Japan), and in outlying cities of Tokyo for around ¥10 million (approximately $70,000) or even less (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate). In fact, many vacant houses in rural parts of Tokyo are listed in the ¥1–10 million range (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate). As a rule of thumb, Tokyo akiya around ¥10 million tend to need only light renovations (~¥1 million of touch-ups), whereas ultra-cheap ones (down to ¥1–2 million or less) likely require extensive repairs (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate). For example, Tokyo akiya listings have included older wooden homes in peripheral areas like Hachioji or Akiruno for around ¥7–8 million (US$50–60k) (Old Houses Japan | Homes and Akiya for Sale in Japan), and those needing major work can be found closer to ¥1–2 million (under $15k) in remote neighborhoods. Keep in mind that not all vacant houses are publicly for sale – nationwide only about 330,000 out of 9 million akiya are on the market (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian), so finding them requires digging through the right channels (see Resources section). Tokyo’s metropolitan government maintains an online portal aggregating local vacant house banks for each ward/city (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate), reflecting dozens of available properties across the region.

Osaka (Osaka City and Prefecture)

Osaka, Japan’s second-largest metro, also has aging homes hidden among its dense neighborhoods and surrounding suburbs. The Osaka Prefecture Akiya inventory includes everything from old rowhouses in the city to countryside farmhouses in the prefecture’s outskirts. Some deals are strikingly cheap. For instance, in 2024 a property listing roundup featured terraced houses in suburban Osaka for as low as ¥1.1 million (under $8,000) and a small detached house for ¥2.5 million ($18,000) (5 Affordable Houses for Sale Under ¥6,000,000 in Osaka Prefecture: Akiyas in the Japanese Countryside for Home, Vacation Rental, or Investment - EAVES JAPAN MAGAZINE) (5 Affordable Houses for Sale Under ¥6,000,000 in Osaka Prefecture: Akiyas in the Japanese Countryside for Home, Vacation Rental, or Investment - EAVES JAPAN MAGAZINE). These particular examples were from southern Osaka neighborhoods – e.g. a 1978-built terrace house (requiring a setback if rebuilt) listed at ¥1.1M, and a 48 m² standalone house in a landslide caution zone for ¥2.5M. Even within Osaka City, one could find tiny older apartments or fixer-uppers under ¥5 million; for example, a 14 m² studio apartment near Nagai Station was advertised for ¥3.5M ($25k) (5 Affordable Houses for Sale Under ¥6,000,000 in Osaka Prefecture: Akiyas in the Japanese Countryside for Home, Vacation Rental, or Investment - EAVES JAPAN MAGAZINE). Such ultra-affordable Osaka akiya tend to be either very small, very old, or in less convenient locations (often all of the above). Many are in the suburban fringes of the city or in smaller satellite towns of Osaka Prefecture, where depopulation has left houses empty. While Osaka doesn’t have “free house” programs like some rural towns, local governments in the Osaka region do operate akiya banks (property databases) to promote sales of vacant homes. There is a steady supply of listings under ¥10M in the Osaka area, though condition and renovation needs vary widely. Buyers can occasionally find essentially land-value deals – old houses being sold for the value of the plot – in Osaka’s older districts for well under the cost of new construction.

Kyoto (Kyoto City and Surroundings)

Kyoto is famed for its traditional machiya townhouses and historic atmosphere – and many of those lovely old houses now sit vacant. Within Kyoto City, thousands of homes are unoccupied (Kyoto has led Japan in population decline in recent years (Kyoto seeks more families with home renovation subsidy offer | The Asahi Shimbun: Breaking News, Japan News and Analysis)), including both modern homes and traditional wooden machiya. Some akiya in Kyoto are quite inexpensive relative to the hot real estate market for modern condos. It’s not uncommon to see aged machiya buildings or small houses on Kyoto’s outskirts listed in the tens of thousands of dollars range. For example, a weathered machiya or an older detached home in Kyoto might be found for ¥5–15 million ($35k–$105k) if it’s in need of significant renovation or in a less central area. These opportunities exist especially in Kyoto’s older neighborhoods or the fringes of the city, where younger generations have moved out. However, Kyoto’s akiya often carry unique considerations: some are culturally protected or in historic preservation zones, and many date back many decades. The city and prefecture actively encourage buyers to rehabilitate these properties (more on incentives below). In short, Kyoto offers plenty of “cheap” houses by local standards, but the term is relative – a vacant traditional house in a good part of Kyoto might still cost tens of millions of yen. The upside is that Kyoto’s government is aggressively addressing vacant homes, so buyers here can tap into some of the most generous support programs in the country. From subsidies for young families who purchase vacant homes (Kyoto seeks more families with home renovation subsidy offer | The Asahi Shimbun: Breaking News, Japan News and Analysis) to specialized funds for restoring machiya (Subsidies for Building Renovation - Arrows International Realty), Kyoto is trying to turn akiya into an opportunity. (Do note that Kyoto is implementing Japan’s first vacant house tax by 2026 to prod owners into action (Ministry OKs Kyoto city’s plan to tax vacant properties | The Asahi Shimbun: Breaking News, Japan News and Analysis) (Ministry OKs Kyoto city’s plan to tax vacant properties | The Asahi Shimbun: Breaking News, Japan News and Analysis) – a sign of how seriously the city takes the issue.)
Table: Akiya Comparison – Tokyo vs. Osaka vs. Kyoto
Below is a quick comparison of the akiya landscape in Tokyo, Osaka, and Kyoto, including typical prices, examples, local incentives, and special considerations in each city:

(Prices based on 2023–2024 data; ¥1M ≈ $7,000 USD.)

Can Foreigners Buy Property in Japan (Without Residency)?

Yes – Japan imposes no citizenship or residency requirements on real estate ownership. Foreigners have the same rights as Japanese citizens when it comes to buying land or houses (Can a foreigner purchase property in Japan? - PLAZA HOMES). You do not need to be a permanent resident or even living in Japan to purchase property. In fact, many foreign investors and individuals routinely buy homes in Japan while residing abroad. According to real estate experts, “Foreigners can easily purchase real estate in Japan, including land and property, with the same rights as Japanese citizens.” (Can a foreigner purchase property in Japan? - PLAZA HOMES) Unlike some countries, Japan has no legal restrictions or extra taxes targeting foreign buyers – ownership is 100% fee-simple and indefinite, and property can be resold or inherited freely (Can a foreigner purchase property in Japan? - PLAZA HOMES).
Importantly, owning property in Japan does not grant you a visa or residence status (Can a foreigner purchase property in Japan? - PLAZA HOMES). Japan doesn’t have a “golden visa” program for property buyers, so if you plan to live in the home, you’ll still need to qualify for a visa through other means (work, spouse, etc.). But purely for purchase purposes, there is no need to have any visa at all – “there is no need to have citizenship or even a residence visa to buy a house in Japan.” (Q&A of Real Estate in Kyoto - Arrows International Realty) In other words, a foreigner on a tourist visa, or even entirely outside Japan, can legally buy property.
There is one minor post-purchase formality: notification under the Foreign Exchange and Foreign Trade Act. A non-resident foreign buyer is required to submit a notification of the acquisition to Japan’s Ministry of Finance (via the Bank of Japan) within 20 days of purchase (Q&A of Real Estate in Kyoto - Arrows International Realty). This is not an approval process (it’s just a filing) and it isn’t onerous – essentially, you or your agent just send in a form noting that you, as a foreign national, bought X property. Aside from this paperwork, no special permissions are needed.
Financing: While legal ownership is straightforward, getting a Japanese bank mortgage is another story. Japanese banks typically lend to foreigners only if they reside in Japan and have stable local income or permanent residency. As a non-resident without ties to Japan, assume you will need to pay cash or secure financing from your home country. Some niche lenders or programs may finance overseas buyers, but in general, obtaining a housing loan in Japan is challenging without residency or local employment (Japan's Immigration Law: Guides for Expats - E-Housing). Many foreign akiya buyers pay cash given the low prices, or use international financing.
Taxes and ongoing obligations: Foreign owners pay the same property taxes as Japanese (fixed asset tax, city planning tax) – there are no extra charges on foreign ownership (Can a foreigner purchase property in Japan? - PLAZA HOMES). However, if you will not be residing in Japan, you must appoint a local tax representative (tax agent) to receive and pay your property-related taxes on your behalf (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate). This can be a trusted individual or a service company. It’s a simple step but an important one to remember after purchase. Lastly, rental income or sale profits from the property would be subject to Japanese taxes, and treaties may apply (beyond our scope here). In summary, foreigners are fully eligible to buy Japanese real estate, including akiya houses, with almost no red tape – just be aware that owning a house doesn’t let you live in Japan permanently without a proper visa.

The Buying Process and Legal Requirements

Purchasing an akiya as a foreigner follows much the same process as any Japanese real estate transaction, with a few additional considerations for language and logistics. Here is an overview of how the buying process works and what to prepare:

1. Finding a Property: Start by identifying a vacant house that meets your needs. This can be through local akiya bank listings, real estate websites, or agents (see Resources section). Once you spot an interesting property, you’ll make an inquiry and schedule a viewing. It’s common to go through a licensed real estate agent, even for akiya bank properties – agents facilitate communication with the seller and guide you through the next steps (Can a foreigner purchase property in Japan? - PLAZA HOMES) (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate). If you’re overseas and cannot visit, some agents offer virtual viewings or may allow an offer with inspection contingencies.
2. Making an Offer: For private sales, you’ll submit a written offer or application to purchase (this might be a simple form or informal agreement). If multiple buyers are interested (not uncommon if an akiya is very cheap), there could be a brief negotiation or lottery. Once the seller accepts your offer, a formal purchase agreement (sales contract) is drawn up. This contract signing in Japan is a significant event – traditionally done in person with all parties present and stamped with personal seals (hanko). As a foreign buyer, you can sign via power of attorney if you aren’t in Japan; your appointed representative (often the real estate agent or a judicial scrivener) can sign/stamp on your behalf. The contract will be in Japanese, but by law the important terms must be explained to you – non-Japanese speakers should obtain a translation or have a bilingual agent to interpret the Important Terms Explanation (重要事項説明) before signing. At contract signing, you typically pay a deposit (earnest money), usually around 5–10% of the price.
3. Closing the Deal: After signing the contract and securing any necessary funds, the next step is the settlement/closing, where you pay the remaining purchase price and transfer the title. In Japan, closings are often facilitated by a judicial scrivener (a legal specialist) who handles the property registration paperwork. The title transfer is registered with the local Legal Affairs Bureau. Your scrivener will ensure the deed is recorded under your name (yes, foreign names can be on the property title). If you aren’t physically in Japan, you will again rely on your power of attorney to sign the closing documents. The final payment is typically made via bank transfer or cashier’s check on the day of closing. After this, you receive the keys and the transaction is complete – congratulations, you own the house! One extra step if you’re a non-resident: as mentioned earlier, you must file a post-purchase notice with the Bank of Japan (within 20 days) (Q&A of Real Estate in Kyoto - Arrows International Realty). Your agent or scrivener can usually help with this filing.
4. Registration and Taxes: Upon purchase, you will need to register with the local authorities for property taxes. If you have no address in Japan, you appoint a tax agent locally (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate). The annual fixed asset tax and city planning tax for the property will be billed to that agent (typically a few months after purchase, and then yearly). Also, a one-time acquisition tax is levied a few months post-purchase (a tax office letter will arrive; your agent can handle it). These taxes are the same for foreigners and Japanese owners. Additionally, if the property is an older home, consider getting fire insurance (not mandatory, but recommended for your investment – your agent can help a foreign buyer set up insurance as well).
5. Renovation and Move-in: After purchase, most akiya buyers will move on to planning renovations or repairs (see next section). There is no legal requirement to renovate, but if the house is uninhabitable and you plan to live in it, obviously you’ll need to make it livable. In some cases (like certain akiya bank programs), the contract may stipulate that you renovate or occupy the house by a certain deadline – be mindful of any such conditions. If you plan to hire contractors, you might start getting estimates even before closing so work can begin soon after you have the keys. If you’re overseas, you may need to coordinate remotely or hire a project manager. Finally, if you intend to use the property as a rental or guesthouse, ensure you comply with local registration (for example, short-term rental (minpaku) licenses in Kyoto or Tokyo require registration and adherence to strict rules).
   Throughout this process, the biggest “legal” hurdle for foreigners is the paperwork in Japanese. It’s strongly advised to work with an English-speaking real estate agent or lawyer who can translate and smooth the process for you. Real estate transactions in Japan are highly formal but well-organized – standard contracts, government-set fees, and licensed professionals involved. As long as you have a reliable agent and scrivener, the fact that you’re not Japanese should not pose any problem at all. “Real estate transactions in Japan are typically facilitated by real estate agents to ensure a smooth process. Direct transactions between individuals are uncommon.” (Can a foreigner purchase property in Japan? - PLAZA HOMES) So, lean on those professionals.
   Key documents and requirements: You will need your passport (for ID), and if residing in Japan, your Residence Card and personal seal (inkan). If you are overseas, your signature can sometimes suffice in lieu of a seal, or a proxy with a registered seal can sign for you. You do not need any special license to buy property. Just be prepared to sign a lot of papers in Japanese! Also, have a plan for transferring funds – if bringing money from abroad, be mindful of transfer time and Japanese banking procedures. One more tip: because opening a bank account in Japan is nearly impossible unless you’re a resident (Q&A of Real Estate in Kyoto - Arrows International Realty), many foreign buyers handle all payments from an overseas account or use their agent’s escrow account if available. Ensure you factor exchange rates and any international wire fees into your budget.

Renovation Needs, Costs, and Finding Contractors

Buying an abandoned house is just the first step – the real challenge (and cost) often lies in renovating the akiya. Many akiya have been vacant and unmaintained for years, which means issues like leaky roofs, outdated wiring, wood rot, pest infestations, and so on. It’s safe to assume that any very cheap or free house will need significant work to be comfortably habitable.
( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ) An abandoned house in Tokyo being demolished. Some akiya in urban areas are in such disrepair that demolition and rebuilding is the most practical option. In general, expect to invest time and money to bring an akiya up to modern living standards. The extent (and cost) of renovation varies hugely depending on the house’s condition. Cosmetic refresh vs. full gut rehab: If you’re lucky, an akiya may only need superficial improvements (new paint, cleaning, replacing some fittings). But more often, “a house that has been vacant for many years may require a full-scale renovation”, as one realty resource notes (How much does it cost to renovate an akiya [vacant home] in Japan?). Common needs include: replacing or repairing the roof (which can cost as much as ¥3–3.5 million for a traditional tile roof) ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ), reinforcing or replacing exterior walls (another potentially multimillion-yen item) ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ), updating electrical wiring and plumbing to meet modern code, installing new kitchen and bathroom fixtures, and adding insulation or heating/cooling systems (older homes often lack proper insulation). There can also be hazards like mold, termites, or even asbestos in some old construction ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ) that need professional remediation. In the worst cases, an abandoned house might be structurally unsound – a thorough inspection could reveal foundation issues that are prohibitively expensive to fix. It’s not unheard of that the cost to fully renovate an extremely deteriorated akiya exceeds the cost of tearing it down and building new ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). Indeed, anecdotal evidence shows that doing a full “down-to-the-studs” overhaul of an akiya can “quickly approach the cost of a new structure” ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ).
That said, many buyers do successfully revive akiya without spending a fortune. If the house has “good bones” (structurally sound, no severe damage), a motivated DIYer or a contractor can make it livable for far less than new construction. There are stories of people buying a house for a few thousand dollars and fixing it up with sweat equity and minimal budget – but those are usually the exceptions and often involve a lot of personal labor. For most, expect renovation to be a significant expense. A helpful rule of thumb from an akiya expert: “it’s reasonable to expect somewhere between ¥5 million and ¥10 million in renovations on a property that needs renovations in the first place.” ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ) (Approximately $35,000–$70,000 USD). This aligns with many real-world cases: plenty of akiya buyers report spending in the mid five figures (USD) on construction and materials. For example, one American couple who opened a guesthouse in an akiya spent about $19,000 on renovation (versus only $9,000 to acquire the house itself) ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). On the lower end, those doing a lot of DIY or focusing on just basic fixes might spend on the order of $10k–$20k. On the higher end, turning a centuries-old traditional house into a “like new” home with modern comforts can easily run into the hundreds of thousands of dollars if you’re not careful (essentially building a new house within an old shell).
Typical renovation cost breakdown: To get specific, here are some rough costs in Japan for common renovation items (How much does it cost to renovate an akiya [vacant home] in Japan?): Replacing wallpaper might be ~¥1,000 per square meter; installing flooring ¥10,000–¥70,000 per tatami mat (depending on material); a basic new toilet unit ¥200k–¥500k installed; kitchen replacement a few hundred thousand yen; re-wiring an entire house can be several hundred thousand yen; roof repair in the millions as noted; and so on. These are ballpark figures – costs vary by region and contractor. Labor in Japan isn’t cheap, so extensive carpentry or masonry work will add up quickly. Akiya vs. new construction: Japan’s construction industry is optimized for building new houses efficiently, not necessarily for rehabbing old ones. This means sometimes contractors might quote high prices for renovation that make a new prefab house look appealing. As one seasoned buyer advised, “renovations are expensive, so look for the diamond in the rough – a property that’s pretty much ready to go” ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). In other words, if you can find an akiya that only needs moderate work, you’ll come out far ahead. If you fall in love with a total wreck, you must either be ready to put in a lot of DIY labor or budget for potentially high professional fees.
Finding contractors and expertise: In major metro areas, you will generally have no trouble finding contractors to work on your house – there are plenty of construction firms in Tokyo/Osaka/Kyoto. However, not all contractors are equal. If your house is a traditional machiya or kominka (old folk house), you may need specialized craftsmen to do it justice. One expert noted that there’s a lot of hype about buying big old farmhouses, “but it’s a huge commitment and there aren’t many contractors that can fix them up – the traditional carpentry skills are dying out.” (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian) This is more of an issue in deep rural areas than in cities, but even in Kyoto, truly skilled machiya restoration experts are few and can be booked out. Language can be a barrier as well – most local builders won’t speak English. If you don’t speak Japanese, consider hiring an architect or renovation consultant who is bilingual to manage the project. Some real estate agencies that cater to foreigners (and even some akiya bank offices) offer hand-holding through the renovation stage, connecting you with trusted local builders.
Before purchase, it’s wise to get a professional home inspection if possible. While Japanese akiya are usually sold “as-is” (the seller often won’t make any guarantees about condition), you can sometimes arrange an inspection to know what you’re in for. Local governments sometimes even offer free or subsidized inspection programs for akiya buyers. For instance, an Osaka suburb might have a scheme where an architect will evaluate a vacant house and report on needed fixes. Avail yourself of such programs if they exist.
In terms of timeline, renovation can take anywhere from a couple of months for light work to a year or more for a full remodel, especially if permits are needed (e.g. expanding the structure) or if there are delays in finding materials. Modernizing an older home might also require bringing parts of it up to code – e.g. installing smoke alarms, improving earthquake resistance (some municipalities require a seismic evaluation if you do major renovations). These add to the scope.
Lastly, consider demolition as an option. Sometimes the land is worth more than the house, and the smartest move is to demolish the derelict structure and rebuild new (or even place a pre-fab home). Demolition costs in Japan depend on size and material – for a small wooden house it might be around ¥1 million (roughly $7k), but can be more in dense urban areas due to manual disassembly and waste disposal fees. Keep in mind that if you demolish and don’t rebuild, your property tax will jump (since the land loses its special reduced tax status once no house is on it) (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian). Some akiya owners purposely leave a ruin standing just to avoid that tax hike. As a buyer, factor in the tax implications of renovation vs rebuilding.
In summary, renovating an akiya is entirely doable – thousands of people are doing it across Japan – but approach it with realistic expectations. Budget generously (it’s better to overestimate costs than run out of money mid-way). Assume things will take longer than expected. Line up reliable local help for the project, and consider leveraging any subsidy programs (next section) to offset costs. With patience and resources, you can transform a vacant house into a wonderful home or investment, as many have successfully done.

Government Subsidies and Tax Incentives for Akiya Buyers

To encourage the reuse of vacant homes, Japan’s government (national and local) has rolled out various incentives. These can make a big difference in reducing your net costs. Here we cover the main forms of support available, especially in urban areas:

• Renovation Subsidies: Many city and prefectural governments offer cash grants to help cover a portion of renovation or repair costs for akiya. These programs vary by locale. Typically, if you commit to live in the house (or sometimes even if you’ll rent it out), you can apply for a subsidy that pays for part of approved renovation works (like fixing the roof, installing a bathroom, etc.). For example, an old-house resource notes grants often cover “up to 50% of retrofitting costs, with maximum grants ranging from ¥1,000,000 to ¥3,000,000 depending on the property size and project.” (Grants and Subsidies for Renovating Old Homes in Japan (2025 ...) Local governments want the house to be safe and occupied, so they’re willing to split the renovation bill with you in some cases. Always check the municipality’s official website or housing department for “空き家改修補助” (vacant house renovation subsidy) – Tokyo’s 23 wards, Osaka’s cities, and Kyoto all have had such programs. As a specific example, Kyoto City in 2024 launched a subsidy up to ¥2 million for families with young children who purchase and renovate an existing home (at least 5 years old) (Kyoto seeks more families with home renovation subsidy offer | The Asahi Shimbun: Breaking News, Japan News and Analysis). Kyoto even stacks bonuses: an extra ¥500k if you moved in from outside Kyoto, another ¥500k if you have 2+ kids, another ¥500k if it’s a traditional machiya – up to two of these can be added, making a possible ¥3 million total from Kyoto, plus they allow combining with other programs up to ¥5 million (Kyoto seeks more families with home renovation subsidy offer | The Asahi Shimbun: Breaking News, Japan News and Analysis) (Kyoto seeks more families with home renovation subsidy offer | The Asahi Shimbun: Breaking News, Japan News and Analysis). This is unusually generous, but it shows what cities are doing to attract owners to akiya. Osaka Prefecture’s programs might be less, but for instance, an Osaka suburb might offer ¥300k to anyone who renovates a vacant house and moves in.
• Tax Breaks: Japan’s tax code provides some incentives as well. One big one is for homebuyers in general: if you take out a mortgage and live in the home, you may qualify for the “home loan tax deduction” on your income taxes (this applies to residents, though, and certain conditions). For akiya specifically, some areas have introduced tax relief. For instance, certain cities reduce the fixed asset tax on a house for a number of years if you renovate a long-term vacant house or convert an old building to residential use. Additionally, if the house is historically significant (like a registered traditional building), there could be property tax waivers or deductions to encourage preservation. On the flip side, be aware of tax penalties that may spur you to act: as noted, leaving land vacant without a structure can increase your property tax sixfold (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian), and cities like Kyoto are implementing a new annual tax on vacant homes to push owners to either use them or sell them (Ministry OKs Kyoto city’s plan to tax vacant properties | The Asahi Shimbun: Breaking News, Japan News and Analysis) (Ministry OKs Kyoto city’s plan to tax vacant properties | The Asahi Shimbun: Breaking News, Japan News and Analysis). But as a buyer intending to rehab, those punitive taxes shouldn’t affect you (they target the people who let homes sit unused). Instead, you as the buyer might benefit from avoiding a higher land tax by virtue of maintaining the house on it – an odd incentive, but a real one.
• Low-Interest Loans: Some local governments partner with banks to offer special financing for akiya renovation or purchase. For example, a prefecture might have a tie-up with JA Bank or similar to lend at a subsidized interest rate if the loan is used to refurbish a vacant home. These programs are often limited to residents of that prefecture or those who plan to reside in the home. If you happen to be living/work in Japan, it’s worth asking about these at your bank or local government office. (If you’re a non-resident foreigner, these public loan programs may not be accessible, since they usually require domestic income or guarantors.)
• Relocation Incentives: There are national schemes to redistribute population, which overlap with akiya utilization. Notably, the Japanese government will pay families to move out of greater Tokyo and settle in the countryside – starting in 2023, grants of up to ¥1 million per person (max ¥3 million per family) have been offered to those who relocate from Tokyo to a smaller town and work there ($500 Home Offers Are No Match for Japan's 8 Million Abandoned Houses - Business Insider). If you were moving from, say, Tokyo to Kyoto or Osaka outskirts this wouldn’t apply (since those are still large urban areas), but moving from Tokyo to a rural town near Osaka might. Additionally, some towns simply offer “free houses” or land to entice new residents (often younger families). We already mentioned Okutama’s free homes in Tokyo. Across Japan, many villages list nominally priced houses (¥50k, ¥100k – essentially <$1,000) on akiya banks to lure people. These typically require that you actually live there and sometimes that you have a plan (some ask for a business plan if you want a particular property for free, etc.). For urban settings: don’t expect free houses in central Osaka or Kyoto – demand is too high there. But in the peripheral areas just outside these cities, you might find local governments willing to help with both money and welcoming support if you take on a vacant house.
• Preservation and Cultural Programs: Especially in Kyoto, there are funds to preserve machiya (traditional townhouses). For instance, the Kyoto Machiya Machizukuri Fund provides subsidies for restoration work on certified Kyo-machiya, to maintain their historical character (Subsidies for Building Renovation - Arrows International Realty). These typically require you to follow certain guidelines (you may need to restore using traditional methods or open the house for occasional public viewing, etc., if you take such funds). If you’re buying an akiya specifically because it’s a cultural gem, look for non-profits or municipal grants dedicated to architectural heritage – you might get some financial help and expert advice.
  In summary, don’t leave free money on the table. Before you start renovations, see what’s available from the city hall. As one source advises, “check the subsidies offered by the local municipality before doing renovation on an abandoned house.” (Taxes Related to "Akiya" Abandoned Houses in Japan) The combination of subsidies and tax breaks can substantially reduce your effective cost. For example, if you spend ¥5M on a renovation in Kyoto and qualify for the full ¥2M family subsidy plus maybe a ¥0.5M machiya grant, that’s ¥2.5M saved – real money. Government and community interest in solving the akiya problem is high; they want you to succeed in fixing up that house. Local officials will often happily guide you through applying for their programs (though forms will be in Japanese). Consider also that by utilizing these programs, you’re becoming part of a community revitalization effort – which leads to the next topic: pitfalls and how to avoid turning an akiya dream into a nightmare.

Common Pitfalls and Risks of Buying Akiya

Buying a cheap, abandoned house in Japan can be exciting, but it comes with its share of risks. Here are some common pitfalls to be aware of when purchasing an akiya in or around major cities:

• Underestimating Renovation Costs and Effort: The number one lesson from many akiya buyers: “No such thing as a free house.” Even if you acquire a house for next to nothing, you may end up spending significant money to fix it ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). Always budget more than you think for repairs. Surprises behind the walls (rot, pests, structural issues) can quickly escalate costs beyond initial estimates ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). If you’re not prepared to invest the required funds or labor, that bargain house could turn into a money pit. A foreign buyer should also account for the challenge of managing a renovation remotely or in a foreign language – the process can be “time-consuming and complex”, especially navigating permits or local contractors (Akiya: A Japanese Phenomenon - Nippon Tradings).
• Legal and Bureaucratic Hurdles: While buying itself is straightforward, some akiya come with legal quirks. Be sure the title is clear – in Japan it’s not uncommon for inherited properties to have multiple heirs or unregistered transfers. If a house was empty because the previous owner died without settling the estate, it might take time to get all heirs to agree to a sale. (Properties with unresolved heir issues usually won’t even be on the market, but just be cautious.) Additionally, check zoning and land use restrictions. Some older houses may be in zones where new construction is restricted. For example, one Osaka listing noted it “cannot be reconstructed independently” without adjusting to modern setback rules (5 Affordable Houses for Sale Under ¥6,000,000 in Osaka Prefecture: Akiyas in the Japanese Countryside for Home, Vacation Rental, or Investment - EAVES JAPAN MAGAZINE) – meaning if you tear it down, you might not be allowed to rebuild the same size. If the property includes a portion of agricultural land, special laws apply – “akiya on designated agricultural land must be run as proper working farms,” requiring approvals and oversight by agricultural committees ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). In short, ensure the property’s land category allows your intended use (residential or otherwise). If you plan a home business or to rent out rooms, confirm local regulations (e.g. some neighborhoods restrict Airbnbs or any commercial use). Foreign buyers should not be scared of bureaucracy, but do due diligence with the help of professionals: as one guide put it, understanding local regulations and permits is crucial, and it’s “advisable to seek assistance from local real estate experts or legal professionals” to navigate these hurdles (Akiya: A Japanese Phenomenon - Nippon Tradings).
• Hidden Maintenance Issues: Akiya have often been neglected for years. On top of known repairs, there could be hidden issues that only surface later – underground water leaks, termite infestations in structural beams, or septic tank failures (if in an area not on sewer). Many akiya are sold as-is with no warranties, so it’s up to the buyer to inspect. If you’re unfamiliar with Japan’s climate, note that it can be harsh on buildings: hot humid summers and plenty of rain encourage mold and insect damage. Cold winters (in Kyoto, for instance) might have caused frozen pipes in an unheated vacant house. Mold, rot, pests, and outdated systems are common risks. It’s wise to have a contingency fund for unexpected fixes even after you move in. Also, older houses may not meet current earthquake safety standards – houses built before 1981 were under a less strict seismic code. If your akiya is older, consider reinforcing it; there are subsidies for seismic retrofitting in some places. You may also find that insurance is harder to get on a very old house (or payouts reduced), which is a subtle risk if something like a fire or quake occurs.
• Community and Neighborhood Factors: One often overlooked aspect is the local community’s attitude. In rural areas, newcomers (especially foreigners) might face a tight-knit traditional community that is initially wary. In city outskirts this is less pronounced, but even then, if you buy a home and then leave it languishing, neighbors will not be pleased. As Matthew Ketchum of AkiyaZ notes, locals get hopeful when someone buys an eyesore akiya, “but if the new owner doesn’t follow through (e.g. they get busy and don’t come back, and then the roof collapses under snow), it actually worsens community trust” ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ) ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). The lesson is: don’t be that person. If you’re not living in the house, secure it and maintain it so it doesn’t trouble the neighbors. Make an effort to introduce yourself (or have someone do so on your behalf) to immediate neighbors – this can go a long way, especially in Kyoto’s traditional neighborhoods or smaller outskirts towns. Remember you’re likely joining an aging community; being respectful and patient helps. On a practical side, also check the neighborhood’s convenience: is there public transport nearby? Grocery stores? If not driving, an akiya on the fringe could become inconvenient. Location matters not just for enjoyment but for liquidity – a remote house will be much harder to resell down the line if you decide to.
• Financial and Market Risks: While akiya are cheap, they are not always investments in the traditional sense. In some cases, their value may continue to decline due to Japan’s demographic trends. An empty house in an unpopular area might have almost zero resale value even after you renovate (aside from land value). Foreign buyers eyeing akiya should be cautious if their plan is to flip for profit – the market for old homes is not very liquid in Japan. Experts warn of “fluctuating market conditions” and note that these properties are not guaranteed to appreciate (Foreign Buyers Target Japan's Affordable Empty Houses Amid Risks). Think of it more as a lifestyle purchase or a long-term project. If you get in at a very low price and add value by renovating, you might do well, but don’t bank on making a quick buck. Also, note that if you do sell and you’re not a Japanese resident, there could be a hefty withholding tax on the sale (and you’d later file for adjustment) – that’s getting ahead of ourselves, but just know the tax laws if you flip. If you plan to rent the house out, research the rental demand in that area. Akiya in a commuter belt of Tokyo might find tenants; an akiya in a semi-rural pocket might not.
• Contract Conditions and Restrictions: If you acquire an akiya through an official bank or program, read the fine print. Some municipalities attach conditions like “you must reside in the house” or “you cannot resell for X years” when giving a subsidy or free house. For example, Okutama’s free house requires a long-term residency commitment (
  One shrinking Japanese town's plan: Give away houses for free - CBS News). Kyoto’s subsidy requires you actually have a young child and live there. Breaking these terms could mean repaying subsidies or other penalties. Even private sellers sometimes include clauses (for instance, a seller might put in the contract that you must demolish the house if it’s beyond repair, or that you cannot use the property for certain commercial purposes). While not extremely common, these “onerous contract requirements” were noted among concerns on some akiya deals ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). Always have your agent or lawyer review any special terms so you’re comfortable with them.
  To sum up, due diligence is key. The pitfalls can all be managed if you go in with eyes open: get inspections, understand the legal status, budget for reno and taxes, engage with the community, and leverage professional help. Plenty of foreigners have successfully bought akiya and turned them into dream homes or business ventures – but they’ll all tell you it required commitment. As one commentator said, “understand what you're getting yourself into from a human point of view” when you join a local community and take on an old house ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ). If you prepare well, you can avoid the horror stories and enjoy the adventure of giving new life to an old Japanese home.

Resources for Finding and Buying Akiya

Thankfully, you don’t have to do this alone. There is a growing ecosystem of resources – websites, services, and official programs – geared towards helping buyers find akiya and navigate the process. Here are some of the most useful resources for foreign buyers:

• Municipal “Akiya Bank” Websites: Across Japan, local governments maintain Akiya Banks (空き家バンク) – essentially online databases of vacant homes available in their area. These are often the best place to start, especially for rural towns, but also for city outskirts. Each city, town, or ward may have its own site. For example, Tokyo’s housing policy website links to an Akiya Bank list for all Tokyo wards and cities (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate), and the Osaka Prefecture site does similarly for its municipalities. Kyoto Prefecture has an akiya bank directory as well (Kyoto | AkiyaBanks | 京都府空き家バンク). These sites are usually in Japanese only. A strategy is to search the city name plus “空き家バンク” (e.g. “京都市 空き家バンク”). Once on the site, you’ll see listings with property details and photos. Interested buyers typically need to register (free) with the akiya bank to express interest in a property. The local coordinator will then connect you with the owner or a realtor. Note: some popular akiya bank properties go fast or have lots of applicants, so it’s good to check regularly. Also, not every vacant house is listed – only those owners who opted in. Still, these banks are treasure troves of cheap houses. As an example, the Tokyo Akiya Bank portal (run by the metropolitan government) shows links to dozens of ward-level programs and even included an Excel list of all participating areas (空き家を探す|空き家でお困りの方 （東京都空き家ポータルサイト）|東京都住宅政策本部). Browsing those can give you an idea of what’s out there (from suburban homes in Hachioji to mountain cottages in Okutama).
• English Akiya Listing Platforms: In recent years, new platforms have emerged to bridge the language gap. Websites like AkiyaMart and AkiyaJapan aggregate property listings (including akiya) in English (Japan Real Estate and Akiya Listings in English). For instance, AkiyaMart claims to have “hundreds of thousands” of listings translated into English (AkiyaMart - Japan Real Estate and Akiya Listings in English). These services usually pull data from Japanese listing sites and akiya banks and present them in English, sometimes with added services. Akiya & Inaka and Old Houses Japan are other platforms that feature selected abandoned or traditional houses, often with English descriptions and even consulting services. OldHousesJapan.com, for example, lists cheap akiya by region (including sections for Tokyo area, Osaka, Kyoto, etc.) and provides a directory of akiya bank links (Kinki Region Akiya Banks | Old Houses Japan) (Kinki Region Akiya Banks | Old Houses Japan). MailMate’s Akiya guide (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate) (which we cited earlier) is another English-friendly resource and offers services like mail forwarding and tax representation for foreign homeowners. Many of these sites offer not just listings but blogs, success stories, and how-to guides (like how to get a free house, how to apply for subsidies, etc.). Some even act as a buyer’s agent for foreigners – you pay them to handle the Japanese side of things for you.
• Japanese Real Estate Portals: Regular real estate websites in Japan also list older/cheap houses. Big portals such as SUUMO, Homes.co.jp, and AtHome have filters for used houses. In fact, there are dedicated sections like the HOME’S Akiya database and AtHome’s akiya site (Akiya Houses For Sale in Tokyo: An Easy Guide For Foreigners | MailMate). Those are in Japanese, but with a bit of effort (or Google Translate) you can find properties by region, price, age, etc. On these sites you might find akiya that aren’t on a local government bank (listed instead by real estate companies). Additionally, RealEstate.co.jp (which is an English site targeting foreigners) sometimes has listings for whole houses (including some akiya) aside from its usual apartments – plus they run an informative blog with akiya news and guides.
• Local Realtors and Agents: Especially in cities, local real estate agencies can be incredibly helpful. Some specialize in older properties or akiya. For Kyoto machiya, for instance, there are agencies focusing only on those. In Tokyo/Osaka, any large agency (like Plaza Homes, RE/MAX, etc.) could help you find a house if you tell them your budget and interest in a fixer-upper. Engaging an agent is typically free for a buyer (they get the standard 3% commission from the seller side or split, depending on the situation). If language is a concern, look for agencies that brand themselves as foreigner-friendly or English-speaking – there are quite a few in the Tokyo and Kansai areas. An agent can also search the REINS system (an MLS-like database all Japanese agents use) for properties that meet your criteria. Often, a very cheap akiya might not be in REINS if it’s on an akiya bank, but many are dual-listed.
• Online Communities and Blogs: The foreigner and Japan enthusiast communities online are great sources of firsthand tips. The subreddit r/japanlife and r/movingtojapan often have threads about akiya experiences and advice. Blogs like Inaka Lifestyle document personal journeys of buying and renovating akiya (including cost breakdowns). YouTube has channels where people vlog their akiya renovations – these can give you realistic insight into the process. Seeing someone else’s trial and error in English is valuable before you jump in. There are also Facebook groups for akiya enthusiasts and even group-buy discussions.
• Government and Info Services: Don’t overlook official info services. For example, the Japan External Trade Organization (JETRO) or local international associations sometimes publish guides on buying property. The Ministry of Land, Infrastructure, and Transport has an online portal (in Japanese) about vacant house measures and links to policies. While these might not directly find you a house, they can help you understand the legal environment and connect you to the right local offices. If you’re in Japan, local city halls often have a housing consultation desk – they might not speak English, but if you bring a translator or a Japanese friend, you can get details on local programs, procedures, and maybe even get introduced to a local agent who deals with akiya.
• Specialized Services: A few companies have started turnkey services for foreign akiya buyers. For example, Nippon Tradings International (NTI) offers to handle property searches and management for overseas investors and has covered akiya topics in their blog (Akiya: A Japanese Phenomenon - Nippon Tradings) (Akiya: A Japanese Phenomenon - Nippon Tradings). There’s also mention of services like AkiyaHub (which provides a free guide and presumably consulting) and CheapHousesJapan (a site that lists cheap listings and offers an email newsletter). These services often can act as your representative in dealing with Japanese sellers who may not speak English.
  In summary, help is out there at every step: from finding a property (via akiya banks or English aggregators) to closing the deal (English-speaking agents and legal professionals) to renovating (local governments can recommend contractors, and communities of foreign renovators can share contacts). The key is to utilize these resources. Start with the listings to get a sense of what’s available and at what price, then reach out to the relevant entities. If it’s a local government akiya bank, send them an email or have someone call – they will guide you on next steps to view or apply for the house. If it’s a listing on a platform like OldHousesJapan, you can often contact them and they’ll intermediate with the seller’s agent. It might seem daunting to handle from abroad, but many have done it successfully by leveraging these channels.
  Finally, be patient and persistent. The perfect akiya might not pop up immediately in your target area. But with so many millions of empty homes, new listings appear all the time. Keep an eye on multiple sources. And when you do find one that looks right, move quickly – the foreign interest in akiya is growing, and the best deals can get snapped up (there’s a bit of an “akiya boom” lately (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian) (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian)). Arm yourself with knowledge, surround yourself with helpful resources, and you’ll be well on your way to turning an abandoned Japanese house into your new home or project.

Conclusion

Buying an abandoned house in Japan’s big-city regions is no longer a far-fetched idea reserved for the adventurous few – it’s becoming an accessible reality for many, including foreign buyers. Tokyo, Osaka, and Kyoto each present unique opportunities to acquire property at a fraction of normal market prices, provided you’re willing to invest sweat equity (and capital) into renovations. We’ve seen that foreigners have full legal ability to own property in Japan (Q&A of Real Estate in Kyoto - Arrows International Realty), and numerous support systems – from government subsidies to specialized akiya marketplaces – are in place to assist in rejuvenating these vacant homes. The road from akiya to a comfortable house can be bumpy: there are challenges in repairs, cultural adjustments, and procedural learning curves. Yet, with due diligence and the aid of the growing body of resources, those challenges can be overcome.
In a country where an aging society has created millions of “ghost houses,” taking one of those off the list is not just a personal gain, but a small contribution to Japan’s broader community revitalization. The Japanese government and local communities are increasingly “attracting growing interest from foreigners” to join in fixing the akiya problem (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian) (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian) – in fact, your initiative as a foreign buyer is often very welcome. By carefully selecting the right location and property, securing the necessary help, and tapping into available incentives, a foreigner can successfully buy and revitalize an akiya in or around the big cities. Many have done so – turning abandoned structures into lovely family homes, guesthouses, cafes, artist studios, and more.
We hope this comprehensive guide has illuminated both the exciting potential and the practical realities of buying an akiya in Tokyo, Osaka, or Kyoto. With realistic expectations and thorough preparation, your akiya adventure can be rewarding – both as an investment and as a deeply immersive experience in Japanese life. Good luck with hunting for that hidden gem of a house, and may your new home bring you both personal satisfaction and a connection to the community that you form a part of through this process. Enjoy the journey of giving new life to an old Japanese home!
Sources: The information in this report was gathered from a range of reputable sources, including news outlets (Japan Times, The Guardian, Asahi Shimbun), real estate industry publications, and official Japanese municipal websites. For further reading and reference, see the cited sources throughout the text, such as government data on vacant homes (Akiya houses: why Japan has nine million empty homes | Japan | The Guardian), expert commentary on renovation costs ( First lesson of Japan’s akiya gold rush: No such thing as a free house. - The Japan Times ), and details of Kyoto’s subsidy program (Kyoto seeks more families with home renovation subsidy offer | The Asahi Shimbun: Breaking News, Japan News and Analysis), among others. These sources provide additional context and depth on Japan’s akiya phenomenon and are recommended for anyone looking to dive deeper into the topic.