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As Japan's second-largest city, Osaka has seen a steady increase in inbound demand for tourism and business. Its post-pandemic recovery has been particularly remarkable, as has the rapid recovery of the number of foreign visitors to Japan. In fact, in 2019, Osaka Prefecture received approximately 38.6% of all foreign visitors to Japan.
Furthermore, rising hotel prices in recent years have fueled demand for private lodging called Minpaku. In 2023, some Minpaku achieved sales exceeding six times the rent of conventional rental properties.
Against this backdrop, “Special Zone Minpaku” in Osaka are an excellent investment opportunity, offering short-term cash flow and medium- to long-term asset growth. Now is the perfect time to focus on Osaka's private lodging market.
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“Special Zone Minpaku”, formally known as the “National Strategic Special Zones Foreign Resident Accommodation Business,” refers to lodging businesses permitted in specific areas under the National Strategic Special Zones Act.
The key feature of this system is the relaxation of regulations typically applied under the Hotel Business Act within the designated areas. This allows operators to run Minpaku businesses with a relatively high degree of freedom.
※ However, while offering a high degree of freedom, certain requirements are stipulated. Specifically, minimum stay periods and structural/facility standards must be met. Furthermore, since this system applies only to designated areas, businesses cannot operate freely anywhere.
“Special Zone for Minpaku” feature relaxed regulations compared to permits under the Hotel Business Act, with simplified facilities and procedures. This makes it easier to start a business while keeping initial investment low, making it accessible even for individuals and small-scale operators. However, consideration for the surrounding environment and guest safety management remain crucial.
| issue | “Special Zone for Minpaku ”(Osaka)” | Hotel Business Act(for Simple lodging) | Private Lodging Business Act |
|---|---|---|---|
| Licensing categories | Certification | Permission | Notification |
| Operable locations | Designated municipalities in the special zone | Nationwide | Nationwide |
| Business day limit | Not specified | Not specified | Up to 180 days a year |
| Minimum stay requirement | 2 nights or more | 1 night or more | Not specified |
| Minimum floor area | 25 ㎡ or larger / 1 bedroom | 3.3 ㎡ / 1 guest | 3.3 ㎡ / 1 guest |
| Notice to nearby residents | Necessary | Necessary | Necessary |
| Outsourcing to a management company | Unnecessary | Unnecessary | Necessary only when the homeowner is absent. |
| Firefighting Equipment | Necessary | Necessary | Necessary (partial relaxation) |
| Information provision in foreign languages | Necessary | Desirable | Desirable |
Osaka Prefecture has been designated as a National Strategic Special Zone, but not all municipalities within the prefecture permit “Special Zone Minpaku”. In practice, operations are restricted by each municipality's ordinances, and most municipalities are excluded. As a result, special zone private lodging is currently only permitted in three cities: Osaka City, Yao City, and Neyagawa City.
We carefully select only high-yield properties suitable for operation as “Special Zone Minpaku”. Based on revenue simulations and investment analysis, we propose the optimal properties for you. We also provide full support for foreign investors, including registration procedures, remittance assistance, and interpretation services.
After purchasing real estate, obtaining administrative approval is required to operate it as a special zone private lodging. OM Estate provides one-stop support in collaboration with administrative scriveners and architects, covering facility standard verification, renovation proposals, business plan creation, and application submission. The estimated timeframe for obtaining approval is approximately 1 to 2 months.
Once you begin operating your Minpaku, there's no need for owners to handle the details themselves. You can confidently entrust everything from daily guest interactions and property management to optimizing guest acquisition to the management company partnered with OM Estate. Specifically, you can delegate the following tasks.
Global Com's Japan, in partnership with OM Estate, is a comprehensive management company offering a wide range of services from Minpaku, hotel, and villa management to real estate leasing and property management. With 24/7 operational support and multilingual services in Japanese, English, and Chinese, it has earned high praise from guests both domestically and internationally. Furthermore, by establishing a system that handles both facility operations and building management under one roof, it provides owners with a secure environment to continue their business with peace of mind.
OM Estate offers "Minpaku" properties such as those described above.
