Kanagawa New Development Projects and Infrastructure Guide for Foreign Buyers

Kanagawa Prefecture is undergoing a remarkable urban transformation. From the sweeping waterfront regeneration of Yokohama's Minatomirai district to the entertainment-driven Arena City in Kawasaki, and from the compact smart city of Musashi-Kosugi to major railway expansion projects, the region is attracting significant investment and rising property values. For foreigners considering buying property in Kanagawa, understanding these development projects and the supporting infrastructure is key to making a well-informed investment decision.

This guide covers the most important new development projects, rail and road infrastructure upgrades, and what these changes mean for property buyers — especially expats and foreign investors — in Kanagawa through 2030 and beyond.

Why Kanagawa's Development Scene Matters to Foreign Buyers

Kanagawa is already Japan's second most internationally connected prefecture after Tokyo. With a population of 9.1 million and 268 foreign-affiliated company headquarters, it ranks as Japan's most important business hub outside the capital. Three international trading ports — Yokohama, Kawasaki, and Yokosuka — link the region to global commerce, and Haneda International Airport sits just minutes away by rail.

Land values have responded accordingly. According to the National Tax Agency, Kanagawa saw a +2.1% increase in average land values as of January 2024 — the third consecutive year of gains. Even more striking, Kanagawa Ward and Kohoku Ward in Yokohama recorded land values 3.15 times higher than a decade ago, according to Yamamoto Property Advisory's 2024 analysis, driven by ongoing redevelopment and intense competition for transit-adjacent real estate.

For foreign buyers navigating this market, Living in Nihon offers practical guides on housing search, rental contracts, and settling into life across Japan's major urban areas.

The Minatomirai 21 Blocks 60–61 Mega-Project

One of the most anticipated developments in Kanagawa is the Minatomirai 21 Blocks 60–61 Redevelopment in Yokohama. Signed into motion when four major developers reached a land purchase agreement with Yokohama City in February 2025, this project will reshape Yokohama's iconic waterfront.

Key details:

The project is integrated with the adjacent K-Arena Yokohama (Japan's largest arena) via pedestrian walkways and plazas, creating what developers call an "entertainment district" at the heart of Yokohama. It holds government certification as an excellent urban redevelopment project, which enables tax incentives and low-interest financing — good news for commercial investors in the area.

For property buyers, the MM21 district remains one of Yokohama's premium addresses. Completion of Blocks 60–61 will add hotel, office, and cultural facilities, increasing footfall and reinforcing the area's long-term property value growth. Learn more about buying in the Yokohama and Kanagawa area in our Buying Property in Yokohama and Kanagawa guide.

Kawasaki Arena City: A New Entertainment Hub by 2030

Kawasaki is making a bold statement with the Kawasaki New! Arena City Project, a joint development by DeNA Corporation and Keikyu Railway. Centered around a 15,000-capacity arena near Keikyu Kawasaki Station, the project is transforming a former motor school site into a major urban entertainment destination.

Key facts:

According to Japan Luxury Realty Group's analysis, the estimated annual economic ripple effect after completion is 127.37 billion yen, encompassing arena operations, hospitality services, and local business stimulus. Kawasaki is already exceptionally well-connected — Keikyu Kawasaki Station puts residents 13 minutes from Haneda Airport, 10 minutes from Shinagawa, and 15 minutes from Yokohama.

Foreign investors buying near Kawasaki Station today are positioning themselves ahead of these improvements. The 2026–2030 construction period will gradually push up demand for both residential and commercial property in the surrounding Kawasaki-ku area.

For advice on working in or near Kawasaki, For Work in Japan provides practical career guides for foreigners across the Kanto region.

Kannai Station Area Redevelopment in Yokohama

The Kannai Station Area Type 1 Urban Redevelopment Project is another large-scale initiative in central Yokohama. Announced by Yokohama City in May 2024, it targets the aging commercial blocks around Kannai Station — one of Yokohama's original business districts.

Timeline:

• Fiscal year 2025: Right conversion plan approval and demolition begins
• Fiscal year 2026: New construction starts
• Fiscal year 2029: Completion target

Adding to this, BASEGATE Yokohama Kannai — developed on the site of Yokohama's former City Hall — is set to open in spring 2026. This development will inject new commercial, cultural, and residential spaces directly into the heart of the Kannai district.

Kannai has historically been undervalued compared to Minatomirai, making it an interesting opportunity for buyers looking for growth potential in central Yokohama before the redevelopment premium is fully priced in. For context on property transaction procedures, see our guide on Legal Procedures and Documentation for Japan Property Purchase.

Musashi-Kosugi: Kawasaki's Smart Compact City Model

Among Kanagawa's established development success stories, Musashi-Kosugi in Nakahara Ward stands out as a model for transit-oriented, family-friendly urban living. What was once an industrial area of large factories has been remade into a skyline of tower mansions since the 1980s Urban Redevelopment Project.

Today, Musashi-Kosugi station is served by:

• JR Yokosuka Line
• JR Shonan-Shinjuku Line
• JR Nambu Line
• Tokyu Toyoko Line
• Tokyu Meguro Line
• Sotetsu Line (added 2019, connecting to Shinjuku)

Commuters can reach Shibuya, Shinagawa, Osaki, and Tokyo Station in under 20 minutes — while paying Kanagawa-level prices rather than Tokyo-level rents. For expat families, the area also sits within reasonable reach of YIS, St Maur International School, and the German School in Yokohama.

The 2019 Sotetsu Line connection to Shinjuku was a significant infrastructure addition that increased accessibility and triggered another round of property value gains. More connectivity improvements are planned as the Sotetsu/JR through-service expands.

Rail Infrastructure Expansion Across Kanagawa

Beyond individual project zones, Kanagawa benefits from ongoing regional rail infrastructure upgrades:

These improvements collectively reduce commute times, making previously overlooked Kanagawa neighborhoods attractive to buyers priced out of central Yokohama or Tokyo. See our Japan Real Estate Market Overview and Trends for broader context on how infrastructure drives property values.

Kanagawa's Innovation and Business Zones

Kanagawa also has a strong track record attracting high-value business and research facilities, which drives professional expat demand for housing:

King Skyfront (Tonomachi, Kawasaki) — Japan's flagship life science and medical innovation hub. Designated as a "Keihin Coastal Area Life Innovation International Strategic Comprehensive Zone" by the national government, it hosts R&D facilities, global pharmaceutical firms, and research institutions. Proximity to this zone supports consistent demand for quality housing in the Kawasaki waterfront area.

Select Kanagawa 100 Program — Launched in 2016 by the Kanagawa Prefectural Government in collaboration with JETRO, this program offers foreign businesses:

• Free startup office rental for 50 business days (IBSC Kanagawa offices)
• Subsidies covering 50% of establishment costs up to 2 million yen
• Subsidized monthly rent for the first 6 months of operations
• Maximum subsidy of 6 million yen for companies hiring at least 5 full-time employees

As more foreign-affiliated companies establish Kanagawa bases, demand for expat-friendly housing continues to grow. Review our Visa and Residency Considerations for Property Buyers guide for important information on how residency status affects your property purchase options.

Property Market Outlook: Where Development is Driving Values

Based on current development pipelines and infrastructure improvements, here are the key areas where property values in Kanagawa are expected to benefit most:

For a broader view on financing your Kanagawa purchase, see our Mortgages and Home Loans for Foreigners in Japan guide, and review the Hidden Costs and Fees When Buying Property in Japan to budget accurately.

Practical Considerations for Foreign Buyers in a Developing Market

Buying in a redevelopment zone comes with specific considerations:

Construction noise and disruption: Major projects like Blocks 60–61 and the Kawasaki Arena involve years of active construction. Properties immediately adjacent may face short-term disruption even as long-term values rise.

Regulatory transparency: From October 2025, Japan requires nationality disclosure for significant land purchases. There is no ban on foreign ownership, but reporting requirements have increased. Working with an experienced bilingual real estate agent is essential — Gaijin Buy House offers resources specifically for foreign buyers navigating Japanese real estate.

Value timing: In areas like Kannai, buying before the major redevelopment premium is priced in (pre-2026) may offer better entry points than waiting until after completion in 2029.

Infrastructure as value driver: In Kanagawa as across Japan, proximity to railway stations consistently outperforms other location factors. Prioritize walkable distance (within 10 minutes) to major interchange stations.

For a complete overview of the property purchase process, see our Step-by-Step Home Buying Process in Japan guide.

Conclusion: A Region Transforming Before Your Eyes

Kanagawa in 2025–2030 is a region actively investing in its own future. From the world-class entertainment and commercial complex rising at Minatomirai, to the arena-anchored regeneration of central Kawasaki, to the continued evolution of Musashi-Kosugi as a model transit-oriented city, this prefecture offers foreign buyers a rare combination of developed infrastructure, rising property values, and genuine long-term growth drivers.

Understanding which projects are underway, when they will complete, and how they interact with rail connectivity gives you a significant advantage in identifying the right neighborhood and timing for your purchase. As always in Japanese real estate, proximity to station exits and alignment with where corporate and government investment is flowing are your most reliable compasses.

Start your research with our Complete Guide to Buying Property in Japan as a Foreigner and explore the full Buying Property in Yokohama and Kanagawa guide for neighborhood-by-neighborhood detail.