Can You Buy a House in Japan for $200? The Truth About Akiya

If you've heard about houses in Italy for a few euros , it's very likely you've also heard about cheap, abandoned houses in Japan .

Yes, the latter is indeed true. These are so-called akiya , or abandoned houses, which have been abandoned as a result of a phenomenon fueled by demographic and economic changes.

By the end of 2023, there were approximately 9 million akiya in Japan , accounting for almost 14 percent of all homes in the Japanese cherry blossom country . According to EHL Insights, this is twice as many as in 1993.

Where do these numbers come from? Several factors contribute to this: a long-standing low birth rate, rapid urbanization, and an aging population.

“ The akiya problem has been growing for decades, rooted in Japan’s post-war economic boom, which led to a surge in residential construction,” Tetsuya Kaneko , head of research and advisory at Savills Japan , told CNBC Make It.

Akiya, or young Japanese leaving the village

Kaneko also explains that in the case of houses older than 30 years, residents fear high renovation costs and even believe they may be haunted . Younger generations also prefer to move to larger cities, which has led to the depopulation of rural areas , leaving many vacant properties.

Okay, but what can we do about this problem? It's simple: Make sure foreign tourists and investors buy abandoned houses . So-called " akiya banks" have been created, listing empty houses for sale and rent, as well as online databases of such properties. On the Akiya Japan website, you can find properties for as little as $200 , or about 750 złoty.

In addition, new akiya buyers can count on additional support, such as renovation grants . Doesn't that sound like a great opportunity? It is, but experts advise carefully considering your decision.

While purchase prices for abandoned homes are indeed low, renovating them can be problematic and, of course, expensive. According to EHL Insights , older homes may require complex structural repairs , modernized utilities , and compliance with stringent building codes.

To Invest in Akiya or Not? "Bottomless Pit"

Unfortunately, most akiya are located in depopulated areas with limited economic activity. Boutique hotels or short-term rentals are possible, but seasonality is a factor.

As Anton Wormann , owner of seven akiyas, said in an interview with CNBC Make It , you can't come to Japan "just like that."

- You can't come here without understanding the culture, without knowing how Japan works, and just throw money at it, because it would be a bottomless pit - he explained.

Today, his Japanese properties are making money, but renovating one of his homes cost him around $110,000, a lot of effort and time.

So if you're hoping that akiya can be a quick investment that will bring quick profits... Experts say it's better to look for something else.