There are so many vacant and cheap houses in Japan that foreigners are asking for. There’s a reason the Japanese don’t want them either.

The phenomenon of household depopulation, which is deeply rooted in the depopulation of rural areas, is repeated in many parts of the planet. In Japan this type of housing is called akiya, and we have talked on more than one occasion about the problem of the country’s housing crisis: no less than nine million vacant. The reason is a breeding ground in which demography, culture and economy mix. However, this is still Japan, “that” exotic and unknown place for so many foreigners, what if you decided to buy Akiya? Well, there are compelling reasons to think twice.

Akia. As we said, according to last summer’s calculations, there are about nine million vacant homes across the country. This figure is shocking for many reasons. The main and most obvious thing is that 13.8% of the total houses in Japan are very high. To give us an idea, if we assume that each of these houses can house three people, they would be big enough to accommodate almost the entire population of Australia, for example. Furthermore, the Nomura Institute has prepared its own accounts and estimated that there are actually about 11 million Aki and that they could increase by more than 30% in a decade.

Why are there so many haunted houses? As far as the cause is concerned, Akia is mainly explained by Japan’s demographic crisis. The population of the country is decreasing. And age also increases. Both trends go hand in hand and explain the disproportionate number of vacant and abandoned homes. Properties become vacant when their tenants, elderly people, die or they pack their belongings to move to another residence. There are projections that already say there will be about 53 million people living in Japan at the end of this century, less than half of the 128 million in 2017.

As if this was not enough, the migration of youth to cities in search of employment has left many rural areas without residents, increasing the number of vacant houses at the hands of a growing population unable to maintain their homes. Furthermore, these vacant houses are often viewed as a “burden” by locals. Many inheritors of properties in Japan prefer not to use or sell them because a house older than 30 years is considered “old”. This is due to concerns about safety, renovation costs, and superstition, as some people believe they may be cursed.

“Cheap” home opportunity. There are some Akiyas in Japan’s real estate market that sell for less than $10,000. The abundance of these types of homes seems to have attracted the interest of international buyers and investors. Here, it seems, factors such as the pandemic and the rise of remote work also play a role, which has inspired both foreigners, investors and seekers of second homes to explore the opportunities of these abandoned houses in that postcard image that haunts us. Are close. Japan.

In this regard, Tetsuya Kaneko, director of research and consulting at Savills Japan, told CNBC that foreign interest has increased significantly in recent days, with the number of people looking for business, leisure, renovation project or even retirement. Looking for properties as.

A case. Take, for example, Sweden’s Anton Varman, who moved to Japan in 2018 after falling in love with the country during a work trip. In six years, the man has achieved seven “Akia” and currently works as a content creator and real estate investor.

Their buying and renovating strategy has allowed them to generate income of up to $11,000 per month in short-term rentals, after investing approximately $110,000 in their properties. However, he attributes this success to taking time to understand the culture, language and establishing relationships with the local community.

think twice. But as we said at the beginning, there’s a compelling reason not to immediately jump on the first offer we see. In fact, this is why the Japanese run away from such “cheap” offers. Although these properties offer opportunities for those looking for quiet relaxation or renovation projects, they also bring additional risks and costs.

In this regard, Varman points out that to be successful it is necessary to establish a local network and adopt Japanese customs. “You can’t come without understanding how Japan works and invest blindly, because you’ll end up losing money,” he says.

A complex renovation. For those with experience in renovation and seeking a long-term project, “Akias” can be a good investment. However, Kaneko cautions that these assets are not ideal for investors looking for quick or massive returns. High renovation costs, especially if the property requires structural repairs, can exceed resale value in some areas. Additionally, the language barrier and complexity of the Japanese legal system can be major obstacles for foreign buyers.

What’s more, as we reported a few months ago, there is an inherent risk in such older builds. These homes also pose serious security risks, as we are talking about cases of properties that have not been maintained for a long time. In fact, one investigation pointed to the possibility of collapse in the event of an earthquake, landslide or extreme weather, for example.

Find “Owner”. Even if someone wants to take over the akia, renovate it or demolish it and build a new one on its foundation, in many cases it is impossible for them to find the owner himself . There are many cases where descendants no longer live in the area because they have moved or simply no one can find them. At this point, clusters of vacant houses form what appear to be “ghost towns” in Japan’s rural prefectures that scare away young families.

conclusion. Investing in “akiyas” in Japan offers both opportunities and challenges, and more than anything. Although these properties can be an affordable option compared to other global real estate markets, they require a significant investment in terms of time, money and effort to adapt to local culture and regulations.

For those willing to commit and immerse themselves in Japanese life, akiyos can become a profitable home or a unique haven for living. However, it seems clear that it is important to fully understand the associated costs and risks before purchasing a “house in Japan”, especially in the context of the restoration and demographic context that drives the occurrence of vacant houses in the country.

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