Executive Summary
- Meguro, Ebisu and Nakameguro exhibit distinct pricing structures and tenant profiles despite close geographic proximity.
- Nakameguro shows strong rent resilience and lifestyle appeal, but competition can inflate GRM on renovated layouts.
- Meguro tends to be the most balanced market — strong fundamentals, diversified demand and moderate pricing tension.
- Ebisu usually delivers extremely low vacancy risk but suffers from compressed yields and elevated GRM bands.
For investors, the key is not to treat this triangle as one homogeneous "good location", but to align strategy with the specific risk–return profile of each station.
1. Market Overview
These three stations form one of Tokyo's highest-demand residential clusters. From a commuter's point of view, the differences can appear small: excellent access, broad amenity base, strong dining and lifestyle options.
From a data perspective, however, they behave differently — with distinct rent elasticity, GRM norms and tenant profiles.
Meguro (目黒)
A multi-line transport hub connecting JR, Metro and private rail. Meguro attracts professionals, dual-income households and families. Well-balanced stock across 1K, 1LDK and 2LDK layouts means both rental and resale liquidity are strong.
Ebisu (恵比寿)
Historically positioned as a prestige lifestyle district, Ebisu commands premium pricing. Tenant demand is extremely strong, but yields tend to compress as competition pushes prices higher.
Nakameguro (中目黒)
A lifestyle favourite, especially among creatives and young professionals. Cafés, riverside promenades and design culture make Nakameguro highly desirable. Rent levels remain robust even on older stock, and renovated units can trade at aggressive GRM.
2. GRM & Yield — How the Triangle Prices Risk
When we map listings and transactions into station-level datasets, each station develops a recognizable GRM and yield profile.
Typical patterns observed in 2025
- Meguro: mid–high GRM bands, with yields that can still be reasonable when investors accept slightly older stock or 6–10 minute walk distances.
- Ebisu: consistently high GRM, especially for smaller, highly liquid layouts. Gross yields are often compressed, but vacancy and rent risk are exceptionally low.
- Nakameguro: wide dispersion. Renovated 1LDK and 2LDK units near the station price aggressively, while older stock a bit further out can occasionally sit at more balanced GRM.
For an investor screening opportunities across this triangle, the implication is clear: the same GRM number means something different at each station.
3. Layout Behaviour by Station
Layout often explains more of the investment outcome than the ward name. Within this triangle, three patterns stand out.
Compact stock: 1R / 1K
- In Ebisu, compact units price like blue-chip assets: very low structural vacancy, but aggressive GRM bands.
- In Meguro, 1R/1K units can still offer more balanced combinations of GRM and gross yield, particularly beyond the five-minute radius.
- In Nakameguro, demand is lifestyle-driven. Tenants are willing to pay for design-led renovations, but raw, unrenovated stock may require discounting to move.
1LDK
- Strong segment across all three stations, attracting professionals, couples and DINK households.
- Nakameguro 1LDK often commands a lifestyle premium, particularly for good floor plans with balconies or river-proximity.
- Meguro 1LDK tends to be slightly more rationally priced relative to rent — a good hunting ground for risk-balanced deals.
2LDK and family layouts
- Meguro stands out for relatively deep 2LDK demand from families who value transport, schools and daily-life convenience.
- In Ebisu, 2LDK assets are often lifestyle or status-driven, with yields compressed accordingly.
- Nakameguro offers a thinner but highly motivated family segment, especially for renovated units in quiet streets within 10 minutes of the station.
4. Walk-Time Sensitivity
The impact of walking distance on rent and GRM behaves differently in each market.
- In Ebisu, rent premiums remain strong inside a tight 0–7 minute radius; beyond that, many tenants simply shift to Meguro or Nakameguro where value is better.
- Meguro shows smoother rent elasticity: the six–ten minute band can still produce healthy demand, especially for 1LDK and 2LDK.
- In Nakameguro, tenants may tolerate slightly longer walks in exchange for a quiet street or superior interior finish, but pricing must reflect this trade-off.
Investors should avoid applying a single "max 8 minutes" rule across the triangle and instead calibrate walk-time tolerance by layout and station.
5. Strategy Playbook by Station
Meguro — Balanced risk, data-friendly
- Look for 1LDK and 2LDK within 6–10 minutes of the station.
- Focus on assets where GRM sits near or slightly below station averages for the same layout and build year.
- Use Meguro as a core holding in a portfolio, not a speculative bet.
Ebisu — Blue-chip, low-yield core
- Appropriate for investors prioritising liquidity and downside protection over nominal yield.
- Compact units near the station behave like "bond proxies" — expensive but extremely liquid.
Nakameguro — Lifestyle growth
- Focus on well-renovated 1LDK/2LDK with strong design and liveability.
- Accept slightly lower initial yield when the asset can justify rental growth or strong resale demand.
Investor Takeaways
- The Meguro–Ebisu–Nakameguro triangle is not one single "good location", but three distinct micro-markets.
- Station-level GRM and yield reveal where each station sits on the risk–return spectrum.
- Layout and walk-time sensitivity must be analysed separately for each station.
For serious investors, the right question is not "Which of the three is best?" but "Which station and layout combination best fits my risk profile and strategy?"
Request a Data-Backed Investor Brief
If you are considering an acquisition in this triangle, Tokyo-Insights can translate your budget and risk tolerance into a structured, station-level short list.
Your first investor brief is complimentary; follow-up deep-dive advisory is offered as a paid service.
Submit an Investor Request, and you will receive a data-backed view of where capital is most likely to be effective across Meguro, Ebisu and Nakameguro.