What are Kyoto’s Kyomachiya? 4 Key Points on Their Appeal and Investment Value
What exactly are Kyomachiya?“
Many people actually have this question in mind.
Recently, Kyomachiya have been gaining attention as investments and accommodation facilities, but opportunities to learn in detail about their actual conditions and true value are surprisingly limited. In fact, Kyomachiya are being re-evaluated for their traditional wooden architectural beauty and functionality, serving as accommodation facilities, shops, and investment targets.
This article provides a clear explanation of Kyomachiya through 4 key points, covering everything from basic knowledge to investment value and purchasing considerations.
What are Kyoto’s Kyomachiya? Basic Characteristics and History
Definition and Architectural Features of Kyomachiya
Kyomachiya refers to traditional wooden residences built within Kyoto City.
Kyomachiya are traditional wooden houses built before 1950 (Showa 25) in Kyoto City, characterized by a structure called “eel’s bed” with narrow frontage and deep depth, featuring lattice doors, insect cage windows, and earthen walls.
The reason for this structure is attributed to the influence of frontage taxation during the Edo period, while other complex factors such as ancient land systems, population density in Kyoto, and climate adaptation are also pointed out.
| Item | Characteristics |
| Frontage | 4-6 meters |
| Depth | 20-30 meters |
| Structure | 2-story wooden construction |
| Main Factors | Land system, population density, climate, frontage taxation theory, etc. |
Main Architectural Elements of Kyomachiya
- Tsuboniwa (small courtyards): Spaces that ensure lighting and ventilation
- Lattice doors: Maintain privacy while improving airflow
- Inuyarai (bamboo fences): Bamboo fences that protect the lower part of buildings
- Mushiko windows: Decorative windows on the second floor, among others, with ingenious designs that create comfortable living environments even in narrow lots.
Historical Background Forming Kyoto’s Streetscape
The prototype of Kyomachiya dates back to the Heian period, with the current form taking shape during the Edo period.
They developed as buildings combining commerce and residence alongside the flourishing of merchant culture with the development of commerce and industry.
| Era | Characteristics/Changes |
| Heian Period | Prototype formation |
| Edo Period | Development as merchant residences |
| Meiji Period | Improvements due to modernization |
| Post-war | Decrease due to urban development |
| Present | Protection and utilization as cultural heritage |
Kyoto’s traditional industries (Nishijin weaving, Yuzen dyeing, Kiyomizu pottery, Kyoto confectionery, etc.) developed in close relationship with Kyomachiya.
Many were lost due to post-war urban development, but in recent years, landscape protection policies by Kyoto City have advanced, leading to conservation and utilization as buildings of high historical value.
The number of existing Kyomachiya is decreasing, estimated to be in the tens of thousands. (Kyoto City materials from the 2020s)
Many remain in areas such as Gion, Pontocho, and Nishijin districts, serving as important cultural heritage that characterizes Kyoto’s streetscape.
Appeal of Kyomachiya ①: Traditional Architectural Beauty and Cultural Value
Beauty of Wooden Architecture and Craftsmanship
The greatest appeal of Kyomachiya is that they are crystallizations of craftsmanship techniques passed down through long history.
Delicate and beautiful wooden techniques requiring high expertise even today are applied throughout.
Aesthetic Elements of Kyomachiya
| Part | Characteristics |
| Lattice doors | Contrast of light and shadow through vertical lattices |
| Eaves | Beauty of tiles and eaves emphasizing horizontal lines |
| Tsuboniwa | Small natural spaces that showcase seasonal transitions |
The techniques of Kyomachiya carpenters are particularly impressive. They achieve earthquake-resistant flexible structures through “joints and splices” that combine wood materials without using nails. The bearers of these traditional techniques are decreasing year by year, making Kyomachiya truly valuable as “living cultural assets“.
High Cultural and Historical Value
Kyomachiya are entities that embody Kyoto’s culture itself.
The essence of Japanese culture, including tea ceremony, flower arrangement, and Noh theater, developed in close connection with this architectural style.
Official Recognition
| Recognition | Content |
| Landscape Important Buildings | Designated by Kyoto City [5] |
| Registered Tangible Cultural Properties | National cultural property registration [5] |
| UNESCO Intangible Cultural Heritage | Japanese traditional architectural techniques registered (Kyomachiya as part of it) |
They also attract high attention from overseas, with accommodation facilities and cultural experiences utilizing Kyomachiya receiving high evaluations. The “fusion of tradition and innovation” can be said to be the greatest cultural value that Kyomachiya possess.
Appeal of Kyomachiya ②: Locational Advantages and Tourism Demand
Prime Location Conditions in Central Kyoto
One of the major appeals of Kyomachiya is that many still exist in central Kyoto and around major tourist attractions. Particularly in central districts such as Nakagyo-ku, Shimogyo-ku, and Higashiyama-ku, many Kyomachiya are within walking distance of tourist sites and transportation hubs, contributing to their investment value.
Distance from Major Tourist Sites (Example: Central Kyomachiya)
| Tourist Site | Walking Time (Estimate) | Characteristics |
| Kiyomizu-dera | 10-20 minutes | Representative World Heritage site |
| Gion | 5-15 minutes | Geisha and maiko entertainment district |
| Pontocho | 5-10 minutes | Kyoto-style dining street |
| Nishiki Market | 10-20 minutes | Kyoto’s kitchen |
※The above is an example of central Kyomachiya, varying by property.
Transportation access is also good, with many Kyomachiya located within 15 minutes by subway or bus from Kyoto Station, though not all Kyomachiya fall into this category. Additionally, the shortest time from Kansai International Airport to Kyoto Station is approximately 1 hour and 20 minutes (using JR Limited Express Haruka).
Inbound Demand and Value as Accommodation Facilities
Essential to discussing the investment value of Kyomachiya is the rapidly increasing inbound tourism demand.
Before COVID-19 in 2019, the number of foreign visitors staying overnight in Kyoto City reached approximately 8.8 million, and in 2024, the number of foreign tourists visiting Japan nationwide is trending to exceed 2019 levels.
Appeal of Kyomachiya Accommodation
- Entire building rental providing special feeling and privacy
- Traditional Japanese cultural experience in accommodation style
- Instagram-worthy beautiful spaces for photography
- Tea ceremony experience and kimono rental optional services
Accommodation rates can often be set higher than general hotels, with luxury properties ranging from 50,000 to 150,000 yen per night, though many properties are priced below 50,000 yen.
Profitability as Accommodation Facilities (Reference Values)
| Item | General Hotels | Kyomachiya (Luxury Rental Examples) |
| Average Accommodation Rate | 15,000-30,000 yen | 50,000-150,000 yen |
| Occupancy Rate | 70-80% | 60-85% (some examples) |
| Repeat Rate | 20-30% | Over 60% (specific property examples) |
※Not average values for all Kyomachiya, but examples from some luxury properties and management companies.
Such high profitability can be expected from some properties, with investment recovery periods estimated at 8-12 years in some cases, though this varies greatly depending on the property and management style.
Appeal of Kyomachiya ③: Profitability and Investment Advantages
Revenue Model for Accommodation Business
The appeal of Kyomachiya investment lies in the accommodation business model that can expect higher yields than general rental properties. Depending on the property and management method, it’s possible to aim for higher profitability compared to general apartment management.
Profitability Comparison
| Investment Type | Gross Yield | Net Yield | Characteristics |
| General Rental | 3-5% | 2-4% | Stability-focused |
| Kyomachiya Accommodation | 8-15% | 6-12% | High profitability |
| Commercial Tenant | 5-8% | 3-6% | Location-dependent |
The specific revenue structure of Kyomachiya accommodation business is as follows:
- Rate per night: Average 16,000-30,000+ yen (luxury properties can exceed 50,000 yen)
- Monthly operating days: Approximately 18-25 days (60-80% occupancy rate)
- Annual revenue: Average Machiya accommodation facilities around 10 million yen, luxury properties or high-occupancy cases can exceed 15 million yen
- Operating expense ratio: 30-40% of revenue
Particularly during Golden Week or autumn foliage season, bookings at 1.5-2 times the regular rate are common, allowing for revenue increases due to seasonal factors.
Other Utilization Methods and Revenue Sources
Kyomachiya can be used for restaurants, galleries, coworking spaces, photography studios, and various other revenue generation methods besides accommodation business, enabling risk diversification and revenue maximization.
Mixed-use models (e.g., cafe during the day, accommodation at night, experience events on holidays) have shown improved profitability in some cases.
Investment recovery periods vary depending on utilization methods, but proper management can expect recovery in approximately 8-12 years. Subsequently, long-term asset value appreciation can also be expected as an investment target.
Appeal of Kyomachiya ④: Renovation and Utilization Possibilities
Fusion with Modern Facilities
A major appeal of Kyomachiya is the ability to pursue modern comfort while preserving traditional beauty.
Proper renovation can achieve a fusion of Japan’s traditional aesthetic sense with the latest facilities.
Main Renovation Items (Examples)
| Facility Category | Renovation Content | Investment Effect (Examples) |
| Water Systems | System kitchen, latest bathrooms | Improved accommodation rates and satisfaction |
| Air Conditioning | Floor heating, complete air conditioning | Improved occupancy rates and comfort |
| Electrical Systems | LED lighting, Wi-Fi environment | Improved foreign visitor satisfaction |
| Seismic Reinforcement | Seismic dampers, foundation reinforcement | Long-term asset value preservation |
Particularly important is facility installation with landscape consideration.
- Outdoor unit screening to maintain exterior beauty
- Floor heating to preserve the beauty of Japanese-style rooms
- Indirect lighting to create traditional atmosphere
Renovation costs range broadly from 5 to 30 million yen, varying according to scale and content. Large-scale renovations may cost 15 million yen or more. While renovation has improved accommodation rates and occupancy rates in some cases, effects depend on the property and management method.
Diverse Business Development Possibilities
Kyomachiya have diverse business development possibilities.
Unique business models are emerging that utilize traditional architectural styles.
Utilization Examples
| Business Type | Success Cases | Characteristics |
| Cultural Experience Facilities | Tea ceremony, flower arrangement classes | High value-added services |
| Creator Bases | Artist workshops | Function as cultural transmission bases |
| Corporate Training Facilities | Training to learn Japanese spirit | Corporate demand development |
| Wedding Venues | Traditional weddings | High-priced special plans |
New business models such as subscription-type services, regular courses, and corporate training are also being developed, with confirmed cases of stable revenue generation and collaboration with local communities.
The appeal of Kyomachiya investment can be said to lie in participation in cultural businesses beyond mere real estate investment.
Points to Note in Kyomachiya Investment and Pre-Purchase Checklist
Legal Regulations and Permit Application Requirements
Kyomachiya investment requires understanding complex legal regulations and obtaining appropriate permits.
Unlike general real estate investment, there are many special regulations, making prior confirmation essential.
Major Legal Regulations
| Legal Regulation | Content | Response Period |
| Building Standards Act | Handling of non-conforming buildings | 3-6 months |
| Hotel Business Act | Obtaining accommodation business permits | 2-4 months |
| Landscape Ordinance | Restrictions on exterior changes | 1-3 months |
| Fire Service Act | Installation of evacuation and fire prevention equipment | 2-5 months |
Particularly permit applications for accommodation businesses are complex, requiring the following procedures:
- Simple accommodation business permit: Application to health centers
- Building confirmation application: Procedures for use change
- Fire department notification: Confirmation of evacuation routes and fire prevention equipment
- Kyoto City landscape review: Prior approval for exterior changes
Permit acquisition often costs 1 to 3 million yen total and takes 6 months to 1 year, which must be incorporated into investment plans.
Additionally, consultation and commissioning of specialists such as architects and administrative scriveners is strongly recommended.
For non-rebuildable properties, accommodation business permits often cannot be obtained, making confirmation of current legal requirements such as road access obligations important.
Building Condition Checkpoints When Purchasing
Since Kyomachiya are old buildings, detailed investigation of building conditions is key to investment success.
Look beyond appearances to identify structural problems.
Important Checkpoint Items
| Check Location | Confirmation Content | Repair Cost Estimate |
| Foundation/Base | Termite damage, decay condition | 2-8 million yen |
| Roof/Tiles | Leaks, tile displacement | 1.5-5 million yen |
| Pillars/Beams | Tilting, cracks | 3-10 million yen |
| Electrical Equipment | Wiring deterioration | 1-3 million yen |
Essential Building Investigation Procedures
- Structural investigation by architects and other specialists
- Termite inspection
- Seismic diagnosis
- Equipment inspection (water supply/drainage, electricity, gas)
Pre-purchase investigation costs approximately 500,000 to 1 million yen, but this can potentially avoid large-scale additional repair costs.
Additionally, boundary confirmation with neighbors and verification of construction drawings are important.
Kyomachiya often have ambiguous property boundaries, so confirmation is essential to prevent troubles.
Budgeting 30-50% of the property price for repairs provides peace of mind.
Furthermore, utilizing Kyoto City subsidy systems (up to 2.5 million yen) can reduce repair burdens in some cases.
Important Points for Successful Kyomachiya Investment
Kyomachiya are investment targets unique to Kyoto that combine traditional cultural value with modern profitability. In recent years, renovation, utilization as accommodation facilities, and re-evaluation of cultural value have progressed, attracting attention as investment destinations.
Success Factors for Kyomachiya Investment
| Factor | Importance | Key to Success |
| Understanding Cultural Value | ★★★★★ | Fusion of traditional beauty and modern needs |
| Location Selection | ★★★★★ | Convenience-focused such as within 10 minutes walk from tourist sites |
| Revenue Model Design | ★★★★☆ | Securing multiple revenue sources: accommodation, rental, second homes, etc. |
| Legal Procedures | ★★★★☆ | Collaboration with specialists based on administrative regulations and subsidy systems |
Kyomachiya investment requires awareness as cultural asset preservation and utilization projects, not mere real estate investment. Having this perspective enables both long-term asset value improvement and stable revenue generation.
Three Iron Rules for Investment Success
- Thorough building investigation before purchase to avoid hidden risks
- Proper permit acquisition to ensure legal business operations
- Differentiation strategy utilizing cultural value to aim for high profitability
Kyomachiya are meaningful investment targets that can generate revenue while passing Japanese traditional culture to the next generation, but due to risks such as deterioration, legal regulations, and tourism demand fluctuations, sufficient knowledge, preparation, and risk management are essential.
