In urban areas of the country, 79% of home buyers complain about the lack of real estate. Indonesia is facing a shortage of housing stock and a significant gap between the number of houses built and the demand.
The real estate market remains stable despite relatively high mortgage rates, reaching 5.5%. Foreign buyers are as active in choosing a property in the country as locals, as investing in Indonesian real estate remains potentially profitable:
- The country's rapidly growing economy contributes to stability in the construction sector. The current situation is caused by the delay in construction due to the pandemic. As the construction recovers, the supply and demand gaps will even out;
- Affordable prices. Housing in Indonesia does not show a spike in value, which gives buyers a wide choice of quality properties.
To solve the real estate shortage problem, developers are focusing on the construction of large residential complexes. For instance, 21,319 property units are expected to be completed between 2023 and 2025 in Jakarta. The capital of Indonesia is becoming a center of luxury housing, and so far you can find residences under development at competitive prices.