Indonesia's accelerating economic growth and rapidly expanding consumer market make it an ideal place for foreign investors. With a relatively straightforward process for foreigners to purchase real estate, the country offers numerous investment opportunities. However, before taking advantage of these opportunities, it's important to know which cities and regions in Indonesia are the most promising for investment. In this article, we will explore the most attractive locations for buying houses and apartments, discuss prices, and outline the steps involved in purchasing real estate.
Content:
- Jakarta: Real estate prices
- Surabaya: Property prices and investment returns
- Yogyakarta: Investment opportunities
- Buying property in Bandung
- Steps to buying property in Indonesia
- Let us help you buy property in Indonesia!
Jakarta: Real estate prices
Jakarta, the capital of Indonesia and the country's largest commercial center, is one of the most densely populated cities in the world and a highly competitive market for foreign investors. Small and medium-sized enterprises play a key role in the economy, accounting for nearly half of the GDP.
Here are the average prices for different types of housing in the city:
- House. The average purchase price is 3.4 billion Indonesian rupiah ($220,140), with an average cost per square meter of 18.2 million Indonesian rupiah ($1,180).
- Townhouse. The purchase price is 1.4 billion Indonesian rupiah ($90,645), with an average cost per square meter of 18.1 million Indonesian rupiah ($1,170).
- Apartment. The purchase price is 906 million Indonesian rupiah ($58,660), with an average cost per square meter of 18 million Indonesian rupiah ($1,165).
Housing is in high demand, especially in recent years due to economic growth and increased tourism.
Surabaya: Property prices and investment returns
Surabaya, the second largest city in Indonesia, is one of the best places to invest in real estate. It offers numerous opportunities for commercial activities thanks to its developed transportation infrastructure, including trains, taxis, airports, and seaports. It is located on the island of Java.
The average housing prices at the end of the first half of 2023 are as follows:
- House: The purchase price is 2.4 billion Indonesian rupiah ($160,685), with a cost of 14.2 million Indonesian rupiah ($950) per square meter.
- Townhouse: The purchase price is 2 billion Indonesian rupiah ($133,900), with a price per square meter of 14.6 million Indonesian rupiah ($980).
- Apartment: The purchase price is 472 million Indonesian rupiah ($31,600), with a cost per square meter of 12.8 million Indonesian rupiah ($860).
Surabaya is an attractive option for real estate purchase due to low cost of living, lower level of environmental pollution and excellent transportation accessibility.
Yogyakarta: Investment opportunities
Yogyakarta is the administrative center of the province of the same name on the island of Java. It is also a world-renowned tourist destination, attracting millions of visitors annually. The number of visitors is expected to increase in the future. The city has excellent transportation links to other parts of Java and major locations in the country.
Here are the average real estate prices:
- House. The purchase price is 709 million Indonesian Rupiah ($45,735). The cost per square meter is 10.2 million Indonesian Rupiah ($655).
- Townhouse. Purchase price is 1.4 billion Indonesian Rupiah ($90,305), with an average price of 11.5 million Indonesian Rupiah ($740) per square meter.
- Apartment. The purchase price is 980.4 million Indonesian Rupiah ($63,240). The cost per square meter is 19.9 million Indonesian Rupiah ($1,285).
In addition, Yogyakarta is home to some of Indonesia's most prestigious universities, attracting students from all over the world.
Buying property in Bandung
The capital of West Java, the picturesque city of Bandung is located near Jakarta at an elevation of 768 meters above sea level. This makes it one of the highest cities in Southeast Asia.
The average real estate prices in Bandung are as follows:
- House. The purchase price is 724 million Indonesian rupiah ($48,475), with a cost of 11.7 million Indonesian rupiah ($785) per square meter.
- Townhouse. Purchase price is 1.1 billion Indonesian rupiah ($73,650), with a price of 12.2 million Indonesian rupiah ($815) per square meter.
- Apartment. The purchase price is 562.2 million Indonesian rupiah ($37,650), with a cost of 15 million Indonesian rupiah ($1,005) per square meter.
Known for its pleasant cool climate and scenic landscapes, Bandung is often referred to as the "City of Flowers". With a rich colonial history linked to the Dutch East Indies, it has a unique culture and architecture that sets it apart from other Indonesian cities.
Steps to buying property in Indonesia
Before entering into a purchase agreement in Indonesia, it is recommended that you thoroughly inspect the property of interest to ensure that it complies with all legal requirements. Real estate agents usually assist in this process. The next steps include:
- Entering into a preliminary sale and purchase agreement. Before transferring title, the seller and buyer will usually sign a preliminary purchase agreement. This document may be considered a preliminary lease for an extended period of time and may require a down payment.
- Draft a final purchase and sale agreement. Before formalizing the title documents, the buyer and seller are required to sign a final purchase agreement. Finalize the remaining payment. The agreement outlines how the payment will be made.
- Register title. The certificate of title and related documents are processed within 7 days of signing the document. To complete the agreement remotely, you can give power of attorney to an attorney.
Please note that when completing a transaction in Indonesia, a commission of 5% of the property value is charged and is payable by both the buyer and the seller. The new owner also pays a fee of 1% of the property value. Lawyer's fees range from 0.5% to 1.5% of the transaction amount, while the registration fee is 0.2% and the broker's fee is 5%. In addition, notary services are subject to a 1% fee.
Costs may vary depending on the specific conditions and location of the property in Indonesia. It is advisable to work with trusted real estate professionals who can guide you through the local market offerings and help you make the right choices.
Let us help you buy property in Indonesia!
The quickest and most convenient way to find a property that meets your requirements for permanent residence or investment is to browse the listings on our aggregator website. Convenient filters allow you to sort options by city, district, property type, area, price, and other parameters. We encourage you to start your search for in-demand Indonesian real estate now. We wish you the best of luck!