Cost of Living in Osaka

Japan is infamous for its high cost of living, especially in big cities such as Osaka and Tokyo. That said, the cost of living in the country is gradually reducing. Still, it's best to budget according to income earned in Osaka rather than continually converting to your familiar home currency.

Osaka ranked 146th out of the 226 expat destinations in Mercer's 2024 Cost of Living survey. Depending on where you come from, you may be overwhelmed by the cost difference, but local purchasing power is likely to be much stronger. It's important to estimate whether your expected income will cover all the necessary costs and negotiate your employment contract accordingly.

Cost of accommodation in Osaka

The cost of accommodation in Osaka is likely to take up a sizeable portion of your income. In Osaka, the larger properties with more rooms charge higher rents, even outside the city centre. That said, if you're moving to Osaka, you will be relieved to see significantly lower rental costs than in Tokyo.

You must also account for utilities in your monthly budget, as these are fairly pricey. Budget for reikin, or key money, a non-refundable payment to the landlord, as well as shikikin, the refundable security deposit.

Cost of transport in Osaka

While getting around in Osaka with public transport is efficient and affordable, you should consider the various options before deciding on your preference. Getting a monthly pass and public transport card lowers the cost significantly. Bicycles are also common in Osaka and are another cost-effective, not to mention healthy, way to travel.

Although they are popular and convenient, taxis and ride-hailing services are costly and largely an unsustainable way to travel daily. The cost of owning a car in Japan is substantial. Besides the car's purchase price, you must factor in mandatory bi-annual inspections (shaken), car tax, insurance, parking, and fuel costs.

Cost of groceries in Osaka

In Osaka, eating out may sometimes be cheaper than buying groceries, but this depends on the quality of food and the cuisine that you prefer. While vegetables and fruit might seem rather expensive at first, bear in mind that they are always top quality, super fresh and usually locally grown. Seafood can be found at reasonable prices, and many supermarkets offer evening discounts to get rid of the day's stock.

Cost of entertainment and eating out in Osaka

Renowned for its culinary scene and vibrant nightlife, Osaka offers a range of entertainment options. However, the cost of these can vary considerably based on the type of activity and location. If you're keen on exploring the city's attractions, you will find that many of them, such as Osaka Castle or Sumiyoshi Taisha, are reasonably priced or even free. Festivals and annual events in Osaka also offer excellent entertainment opportunities at varying costs.

From classy bars to hole-in-the-wall whiskey spots, Osaka has something to suit all nightlife lovers. Drink prices and cover charges at bars and clubs can accumulate quickly, requiring careful budgeting.

Osaka, known as the 'Kitchen of Japan,' offers diverse dining options, from affordable street food like takoyaki to pricey upscale restaurants, particularly in districts such as Dotonbori and Namba. Depending on the cuisine and place, eating out can be comparable in cost to groceries.

Cost of education in Osaka

Education in Osaka, like in much of Japan, is known for its high standards but also for its substantial costs, especially for international schools. If you're enrolling your children in local schools, you will find prices relatively lower, but the language of instruction (Japanese) could be a significant barrier.

While offering a more familiar curriculum and language of instruction, international schools in Osaka are a costlier option. There may also be additional costs for enrolment, uniforms and extracurricular activities. You will need to budget for this significant expense and consider it when negotiating your employment contract.

Cost of healthcare in Osaka

The cost of healthcare in Osaka can be somewhat steep, especially for non-residents. Japan has a national health insurance system that generally covers 70 percent of healthcare costs, but you may need to consider additional private health insurance to cover all your healthcare needs.

The cost of private health insurance will depend on various factors, including age and health status. Be sure to factor in the cost of prescription medication, which can vary widely and typically has a 30 percent copay.