Tokyo mid-market residential rents up 7.1% in 2025

Thanks to growth across nearly all wards.

Tokyo’s 23-ward (23W) mid-market residential leasing segment maintained its upward trajectory in Q4/2025, with rental growth extending across nearly all wards, according to a report by Savills.

Average rents across the Tokyo 23W increased 0.2% quarter-on-quarter (QoQ) to JPY4,639 per sq m, translating into a stronger annual increase of 7.1%. All constituent wards except Nakano recorded quarterly rental growth, while every ward posted solid year-on-year gains.

Central Five Wards (C5W) Continue to Outperform

The Central Five Wards (C5W) led the market, with average rents rising 2.1% QoQ and 9.0% year-on-year (YoY) to JPY5,722 per sq m.

Among the C5W:

Minato recorded the strongest quarterly increase at 6.7% QoQ.
Chiyoda and Shinjuku both posted moderate growth of 1.3% QoQ.
Chuo and Shibuya saw marginal increases of 0.4% and 0.2% QoQ, respectively.

Savills noted that central locations continue to benefit from strong demand, supported by wage growth and the return-to-office trend.

Inner North Leads Submarket Growth

The Inner North submarket recorded the most notable quarterly expansion among all submarkets, rising 2.6% QoQ and 9.8% YoY to JPY4,896 per sq m.

Bunkyo saw rents increase by 4.0% QoQ.
Toshima grew 1.2% QoQ.

Both wards posted strong annual rental growth of 10.2% and 9.5%, respectively, underscoring sustained tenant demand in well-connected residential districts.

South and West Submarkets Show Steady Gains

In the South submarket, average rents rose 1.7% QoQ and 8.2% YoY to JPY4,816 per sq m.

Ota recorded the largest quarterly gain at 4.5%.
Meguro followed with 2.1% QoQ growth.
Shinagawa and Setagaya saw more modest increases of 0.5% and 0.1%, respectively.

The West submarket edged up 1.0% QoQ and 7.8% YoY to JPY4,276 per sq m.

Nerima led quarterly gains at 4.1%.
Suginami remained flat.
Nakano saw a slight 0.5% QoQ decline but still achieved robust annual growth of 8.4%.

Gradual Growth in Eastern and Outer Submarkets

The Inner East submarket recorded rental growth of 0.5% QoQ and 8.1% YoY to JPY4,538 per sq m.

Taito and Koto both posted 0.6% QoQ growth.
Sumida saw a marginal 0.1% increase.

In the Outer North submarket, rents climbed 2.2% QoQ and 6.5% YoY to JPY4,056 per sq m.

Kita rose 2.8% QoQ.
Itabashi increased 1.6% QoQ.

Meanwhile, the Outer East submarket grew 1.0% QoQ and 7.0% YoY to JPY3,849 per sq m.

Katsushika posted the largest quarterly gain at 1.6%.
Arakawa and Adachi rose 1.3% and 0.9%, respectively.
Edogawa saw a marginal 0.1% uptick.

Broad-Based Growth Signals Market Strength

Savills’ data indicates that Tokyo’s mid-market residential segment continues to experience broad-based rental growth, with both central and peripheral wards posting solid annual increases.

While quarterly growth varied by submarket, the overall trajectory remains positive, underpinned by steady demand, demographic inflows and constrained housing alternatives — reinforcing the resilience of Tokyo’s leasing market heading into 2026.