The Latest Trends in Osaka's Major Redevelopment Projects

Large-scale redevelopment projects are currently underway throughout Osaka City. Below is a summary of representative projects, focusing on name and location, major agencies and companies involved, development objectives and concepts, latest progress and schedule, and impact on the local economy and real estate market. A comparison table for each project is also presented.

Umekita Phase 2 (Grand Green Osaka)

• Location/Overview: The project name is "Grand Green Osaka," a redevelopment area under development on the site of the former Umeda Freight Station (Kita-ku, Osaka), north of JR Osaka Station. The site covers an area of approximately 9 hectares, about half of which will be developed as a large-scale urban park, Umekita Park.

• Related entities: Osaka Prefecture and Osaka City are taking the lead in promoting the project in collaboration with the Urban Renaissance Agency (UR), JR West, and others. The private developer is a consortium consisting of Mitsubishi Estate, Osaka Gas Urban Development, ORIX Real Estate, Kanden Real Estate Development, Sekisui House, Takenaka Corporation, Hankyu Corporation, and others. This project is truly a public-private partnership.

• Objective/Concept: The goal of the project is to create a "fusion center of 'greenery' and 'innovation'". The concept is to build a new urban hub by deliberately placing a large park full of real greenery in the center of downtown Osaka and surrounding it with state-of-the-art innovation facilities, offices, and commercial facilities. In Osaka, where greenery is said to be scarce even in the Kansai region, this bold plan places one of the world's largest parks directly connected to a station (with an area about 1.2 times that of the Koshien Stadium) at its core.

• Progress and Schedule: Private-sector development work began in December 2020, with a portion of the area opening on September 6, 2024. At this point, "Umekita Park (South Park)" on the south side directly connected to the station and some commercial and business facilities (some facilities in the North District) were opened. This will be followed by the opening of the high-rise building that will be the core of the South Urban Area (the Grand Green Osaka South Building) on March 21, 2025. MICE facilities such as the International Conference Center, hotels, offices, and the plaza in front of the station will be put into service just before the opening of the Osaka/Kansai Expo. The grand opening of the entire complex, including the remaining park on the north side (North Park) and two condominium towers, is planned for FY2027 (FY2027). In other words, the entire district will be completed in approximately three years, starting in the fall of 2024, in phases.

• Impact on the local economy and real estate: High expectations are high for the redevelopment of the Umeda-Kita Yard, which has been called "the last prime location in Kansai," and with a total project cost of approximately 600 billion yen, it is one of the largest development investments in the Kansai region. Citizens have commented that they are happy to have such a large green space in Osaka. The creation of a park directly connected to a huge terminal station, a space unprecedented in the world, is expected to attract attention as a new Osaka landmark and place for relaxation, and is expected to have the effect of attracting people from Japan and abroad. The ripple effect on the real estate market is also remarkable. Demand is also gathering for high-end properties, such as a super-luxury tower condominium under construction in the area, with the top-floor unit scheduled to sell for 2.5 billion yen, the highest price in the Kansai region, leading to rising land prices in the Umeda area and the revitalization of the luxury condominium market. The Governor of Osaka Prefecture has stated that "this will be the new face of the city for the next 100 years or more," and it is hoped that this development will become a base for strengthening Osaka/Kansai's international competitiveness and driving economic growth.

Osaka IR (Yumeshima Integrated Resort)

• Location/Overview: An integrated resort (IR) facility, including a casino, is planned for Yumeshima (Konohana-ku, Osaka City), a man-made island in the Osaka Bay area. The project will be Japan's first IR attraction, and is expected to open in Osaka after obtaining government approval. The site area is approximately 490,000 m2 and will include a hotel, an international convention center, exhibition facilities, commercial entertainment facilities, and a casino.

• The public entities involved are Osaka Prefecture and Osaka City, which have formulated and are promoting the zone development plan in accordance with the IR Development Law. (located in Kita-ku, Osaka City) has been established as the private operator, with major U.S. casino operator MGM Resorts International and ORIX Corporation each investing approximately 40% or more in the core consortium (the remainder being invested by companies in the Kansai business community). (The rest are owned by companies in the Kansai business world.) This "Osaka IR Corporation" will be the main entity responsible for the construction and operation of the Yumeshima IR. The city of Osaka and the operator have concluded an implementation agreement, and the IR is scheduled to open in the fall of 2030, slightly later than the planned opening date of 2029.

• Purpose and Concept: The purpose of attracting IR is to attract tourists to Osaka and the Kansai region and to revitalize the economy. By developing a resort of international standard, including a casino, the project aims to strengthen the tourism sector, a growing industry, as a pillar of "Tourism Nation" and to further grow Osaka's economy. The project concept of the Osaka IR is "the world's highest level of growth-oriented IR ," and a total of 20 million visitors (including 6 million visitors to Japan) are expected to visit the huge facility annually, which integrates a theme park-type entertainment facility, a group of luxury hotels, and MICE (Meeting, Conference, and Exhibition) facilities. The initial investment is estimated to be approximately 1.27 trillion yen, and it is expected to be a catalyst for a sustained boost to the Osaka economy after the Expo is over.

• Progress and Schedule: In 2021, Osaka Prefecture and City selected Osaka IR Corporation as the IR operator, and on April 14, 2023, the government (IR Promotion Headquarters) officially approved the area development plan of Osaka Prefecture and City. After preparatory work, a groundbreaking ceremony was held on April 24, 2025, at the Yumeshima site, and full-scale construction work has begun. Since the Yumeshima site is adjacent to the Osaka-Kansai Expo to be held in 2025, the construction process will be partially adjusted during the Expo while taking noise and scenery into consideration (measures such as installation of soundproof walls and temporary suspension of large-scale construction). The timeline calls for full-scale construction to resume after the Expo closes, with an opening scheduled for the fall of 2030. Although this is expected to be approximately one year later than the originally anticipated 2029, the project is making steady progress, with the operator waiving its contractually granted right to withdraw from the project without penalty (the so-called "right of termination") and announcing that it will continue.

• Impact on the local economy and real estate: The Osaka IR is expected to have an annual economic ripple effect of 1 trillion yen, with direct annual sales estimated at approximately 520 billion yen (in the third year of operation). The opening of the IR is also expected to create jobs and increase tax revenues. The synergy between the IR and the Expo, which will be held on Yumeshima, is also attracting attention. It has been pointed out that the full-scale construction of the IR after the Expo will have the effect of continuing large-scale development without interruption and preventing Osaka's economy from buckling under the strain of growth. Furthermore, the expected expansion of inbound (foreign visitors to Japan) demand has already led to the opening of a number of new luxury hotels in the center of Osaka City. According to the Asahi Shimbun, hotels targeting foreign visitors are opening one after another in central Osaka in anticipation of the opening of the Expo in 2025 and the subsequent opening of the IR. As for direct impact on the real estate market, development plans may become more active in the bay area around Yumeshima, the planned IR site. However, the project must continue to be carefully promoted and monitored, as public opinion is not in favor of including a casino, and the cost of ground improvement and liquefaction countermeasures is also a concern due to the reclaimed nature of the land.

Redevelopment of Osaka Station Area (Osaka Station West District: JP Tower Osaka "KITTE Osaka" and Innogate Osaka)

• Location/Overview: In the area surrounding Osaka Station, large-scale development has progressed not only in the Umekita 2 phase on the north side of the station, but also in the area west of Osaka Station. These are represented by two large buildings: JP Tower Osaka, constructed in the area west of Osaka Station, including the site of the former Osaka Central Post Office, and Innogate Osaka, newly constructed directly above JR Osaka Station. Both facilities are directly connected to Osaka Station and opened simultaneously on July 31, 2024.

• Entities involved: JP Tower Osaka (the commercial portion is called "KITTE Osaka") was jointly developed by the Japan Post Group (Japan Post and Japan Post Real Estate), JR West Group (Osaka Terminal Building Co., Ltd.), and JTB. Innogate Osaka, on the other hand, is a new station building in Osaka Station City, constructed primarily by JR West and Osaka Terminal Building Co. Both projects are a collaboration between railroad companies and private companies, and are positioned as part of the redevelopment of the area at the west exit of Osaka Station.

• Objective/Concept: JP Tower Osaka (KITTE Osaka) is designed to be a commercial facility that "brings together the attractions of various regions of Japan," taking advantage of its location directly connected to Osaka Station. It aims to be a place where people can rediscover the goodness of Japan by collecting and disseminating "good things from the region," such as local products and food culture that are not yet well-known throughout the country. The Innogate Osaka is an office/commercial complex directly connected to the new ticket gates (west exit) of Osaka Station, and is designed to strengthen the station's transportation nodal function, as well as to attract office workers and develop commercial facilities under the elevated railway tracks by utilizing unused space above the station. As the name "Innogate" (Innovation Gate) suggests, the project aims to create a new "gateway of liveliness" to Osaka Station and generate a flow of people to the Nishi-Umeda area.

• Progress/Schedule: On July 31, 2024,JP Tower Osaka (KITTE Osaka) and Innovagate Osaka had their grand opening on the same day on the west side of Osaka Station. The zone houses a total of 114 stores, including antenna shops from the three Hokuriku prefectures, as well as other products and restaurants from around Japan. JP Tower Osaka itself is a 38-story skyscraper with office space on the upper floors. The adjacent Innogate Osaka is a 27-story building with a height of approximately 121.6 m. It is directly connected to the JR Osaka Station "Umekita Underground Exit" (newly built underground platform), which opened in March 2023, by escalators and other means. The new platform is also accessible to the limited express train "Haruka" bound for Kansai International Airport. Some facilities such as the commercial zone under the elevated railway tracks are planned to be opened in phases until spring 2027.

• Impact on the local economy and real estate: Osaka Station is one of the largest terminals in Japan, and the redevelopment has greatly enhanced the convenience and attractiveness of the west exit side of the station. The creation of a new commercial and business center and pedestrian network in the Nishi-Umeda area, which had previously lagged behind the east side (Umeda side) in terms of development, has been recognized as "creating a flow of people to the west side of Osaka Station" by enhancing the circulation of the entire area. In terms of real estate, the area surrounding Osaka Station has always been an area where land prices have risen remarkably, and the completion of the redevelopment is expected to increase the supply of office space and attract more companies to the area. Demand for state-of-the-art office space directly connected to Osaka Station is high, and this will lead to an increase in the value of Umeda as the center of the Kansai economy. In addition, the integration of the pedestrian walkway network directly connected to Osaka Station from Nishi Umeda to the North Yard (Umekita) area will have a ripple effect on surrounding buildings and commercial facilities. All in all, the redevelopment of the west exit of JR Osaka Station, which took place just prior to the 150th anniversary of the station's opening, has contributed to the creation of a space with convenience and splendor befitting a "gateway to Osaka.

Namba Redevelopment (Namba Station Plaza and Osaka Metro Namba Building)

• Location/Overview: The Namba area, the gateway to Osaka's Minami district, has been undergoing urban development through redevelopment in recent years. In particular, the space in front of Nankai Namba Station (Namba, Chuo-ku, Osaka), which used to be a rotary for buses and cabs, has been reorganized into a pedestrian-oriented "Namba Station Square (Namba Plaza)". In addition, construction of a new building complex called "Osaka Metro Namba Building" directly connected to the Namba Subway Station has been completed, and the Namba area is now being redeveloped.

• The Namba Station plaza improvement project , titled "Namba Plaza Remodeling Project," was undertaken in collaboration with local businesses, organizations, and government, and was initiated in 2008 by local neighborhood associations, shopping districts, and businesses in the area. The Osaka Metro Namba Building, on the other hand, is the first commercial/office complex that Osaka Metro has undertaken on its own property on the east side of Namba Station on the Nankai Line.

• Purpose and Concept: Namba Station Square was created by reorganizing the road space in front of the station, including the cab pool and roadway, based on the concept of a"plaza for people.By opening the public space to pedestrians, we aim to transform the area in front of Namba Station into a "high-quality, comfortable space" and make it a fun place to walk around and a gateway to the Minami area and Osaka's hospitality. In the future, the vision is to make the entire Namba area the most "omoroi" (interesting) town in the world.The Osaka Metro Namba Building is a symbolic project that represents the first entry by Osaka Metro into a new business (real estate development) other than the railroad business, and its purpose is to provide new convenience to station users and the community as a commercial and business building directly connected to the Namba subway station. The exterior is a glass curtain wall that reflects the civic pride of the city of Namba, and the latest facilities (biophilic design, circadian rhythm lighting, etc.) have been installed to enhance the health and intellectual productivity of office workers.

• Progress and Schedule: After social experiments (pedestrianization trials) were conducted in 2016 and 2021, the plaza portion of Namba Station Square was opened in November 2023 for full-scale use. Currently, the space in front of Namba Takashimaya Department Store has been transformed from a roadway to a pedestrian plaza, with benches and green areas. The Osaka Metro Namba Building was completed and opened in March 2024 after a two-year construction period. The building has nine floors above ground and one basement floor, with retail floors from the first basement to the third floor, and office floors from the fourth to the eighth floor. The property is also within a 2-minute walking distance from Nankai Namba Station, and in close proximity to a new station on the planned Naniwa-suji Line.

• Impact on the local economy and real estate: The Namba Station Square has transformed the formerly chaotic roundabout in front of the station into an open public space, improving the appearance of the entrance to Minami. The plaza can now be used for events, and has already become lively with locally organized markets and stage events. The improved pedestrian circulation is expected to attract visitors to the shopping district and surrounding facilities, and is attracting attention as a model case of private-sector-led urban development. The opening of the Osaka Metro Namba Building has created new demand for office space in the Namba area, and Osaka Metro has indicated its intention to continue to develop its real estate business by utilizing the know-how it has accumulated through this project, and this building is symbolic of the first such project. In addition, the value of the Namba area is expected to increase further when the Naniwa-suji Line (scheduled to open in 2031) dramatically improves access between Umeda and Namba in the future. In general, the redevelopment of Namba is a private-sector-led attempt to create an attractive space that can compete with the Umeda area, and those involved have been working under the slogan of "creating a town that can compete with other areas. As a result, the updating of Namba with a people-centered plaza and state-of-the-art buildings is having a positive ripple effect on the local economy.

Comparative List of Major Redevelopment Projects in Osaka

The following is a tabular summary of basic information on the major redevelopment projects in Osaka discussed above.