The real estate market in Indonesia is developing steadily. The rapid economic upturn of the construction industry and the further strengthening of the property sector are most noticeable in the major areas of Jakarta, Surabaya, Bandung, Bekasi, and Medan. Bali remains the leading resort destination, where not only local buyers but also overseas investors are showing interest in housing stock. Let’s dive into the state of the housing market, its prospects, and real estate price trends in Indonesia.
Content:
- Features of the Indonesian real estate market
- Dynamics of real estate prices in Indonesia after the crisis
- Legislation in Indonesia
- Prospects for the real estate market in Indonesia in 2024
- Real estate prices in Indonesia
- We will help you buy real estate in Indonesia!
Features of the Indonesian real estate market
On our website, you can calculate real estate prices in Indonesia in dollars and euros and get the latest market analytical data. It has been more than 15 years that the island nation has been improving its macroeconomic policy. Production is growing at a stable pace, and GDP is increasing annually. Population growth and urbanisation stimulate demand in the country’s property market, whose main feature is its affordability. Despite the rise in prices, associated, among other things, with the growing interest of foreign investors, housing here is still affordable. If you compare the real estate price in Indonesia in dollars and euros today with that in European and US resort cities, you can clearly see the benefits of investing in the offerings of Southeast Asia.
It is important to factor in the local landscape. The central part of most islands, including Bali, is rocky. Development amid mountains and jungles is difficult and expensive. Land plots on the coast, however, are limited in area. As a natural result, the less space for new developments, the higher the apartment prices in Indonesia. When the vacant land plots run out, only secondary housing will be available to buyers.
Dynamics of real estate prices in Indonesia after the crisis
Housing prices in Indonesia, in popular resort locations, have risen steadily over the past decade. Even the closure of borders did not significantly affect demand. At the end of 2021, sales of spacious homes increased by 11.26%, but property prices increased by an average of only 1%. During the quarantine period due to COVID-19, many people were forced to stay at home. This led to the need to search for multi-bedroom units so that all family members could live and work in comfort.
Real estate prices in Indonesia after the crisis are increasing, but demand is changing too. Developers of inexpensive rental homes have shifted their focus to more affordable segments of the market to meet consumer demands. With the opening of borders, the situation stabilised and listed property prices began to climb. According to Q1 2023 data, the changes in real estate prices in Indonesia amounted to 1.8% compared to last year, and in Q2, they increased by another 1.9%.
Legislation in Indonesia
Amendments have been made to the legislation to make it easier for overseas nationals to acquire housing. According to the Government Regulation, foreign citizens need to present only an international passport to make a purchase. Previously, to close a deal, they had to have limited and permanent stay permit cards, or KITAS and KITAP. However, there are several limitations here:
- The area of land under a villa in Indonesia cannot be more than 2,000 m². An exception is made only for expats who can prove their usefulness to the state.
- A house or apartment price in Indonesia must exceed the minimum established by law. It is individual for each region. For example, in Jakarta, it is $197,600 for an apartment in Indonesia.
The government also increased the minimum price threshold for paying taxes on premium property. This measure is intended to stimulate the purchase of housing in the country. The 20% tax will now only apply to units worth $2.1 million or more. Government incentives are expected to attract overseas investors and increase property sales in the country in the future.
Prospects for the real estate market in Indonesia in 2024
The island nation’s property market is expected to grow from $61.22 billion in 2023 to $81.24 billion in 2028. The projected average growth rate is 5.82%.
Speaking of apartment prices in Indonesia, 2024 is seeing a rise due to a rapidly increasing population, which leads to the property market remaining one of the region’s strongest sectors. Affordable housing projects supported by the government and overseas investors are expected to propel the market during the forecast period.
The country’s government has introduced the One Million Houses programme aiming at the construction of at least 1 million housing units per year. It is set to provide the population with affordable flats. Upmarket properties are more aimed at wealthy buyers. So, how much is real estate in Indonesia? There is no universal answer to this question. Prices can reach up to $1 million or more. They will only keep going up. If you want to invest in real estate in Indonesia, prices in dollars and euros for specific properties can be found on our website.
Real estate prices in Indonesia
In general, property in Indonesia is valued at an average of around $131,252. The average cost per square metre is $1,572.
Much depends on the specific region. For example, the building density in Bali today is 95–97%, so the remaining vacant plots are much more expensive than in other locations.
The lack of land, its high cost, the island’s landscape—all these contribute to an increase in housing values by 15–20% per year. At the time of publication of this article, you can see the following apartment prices in Indonesia in 2024:
- A 1-bedroom apartment in Denpasar costs $127,000. A similar unit in Canggu is for sale for $140,000.
- The cost of a 2-bedroom apartment in Canggu is $144,000. $320,000 can buy a residence in Bali.
If you want to buy an apartment in Indonesia, prices are lower than for detached houses. A townhouse in Uluwatu is offered for $160,000. A 3-bedroom villa can be purchased for $450,000. Another example of house prices in Indonesia is a 5-bedroom home that is on the market for $1.65 million.
We will help you buy real estate in Indonesia!
The listing database contains information with real estate prices in Indonesia in dollars and euros. Offers are published directly from developers and agencies. The search system is equipped with filters allowing you to select a specific type of housing, region of location, and cost range. The catalogue is regularly updated and contains only current information and contacts. On the website, you can also examine analytical information about the state of the market and calculate the cost of real estate in Indonesia in dollars and euros. To get advice, just ask a question in the contact form. Find out the real estate price in Indonesia now and start searching for your ideal home!