Villas for sale in Surabaya
Today, any foreign national can buy a villa in Surabaya. The city in the Indonesian island of Java is the capital of the province of East Java and the second largest in the country after Jakarta. It has a high industrial potential and dynamic economic development. Located on the coast of the Madura Strait, the city is an important center of trade and shipping industry in the region. It is also known for beautiful parks, museums, temples, and historical buildings.
In the province of East Java, the minimum cost of property in Indonesia available to foreigners for purchase is $328,000. It should also be taken into account that the country has various types of ownership, in particular:
- Hak Milik (right to own)
- Hak Pakai (right to use)
- Hak Guna Bangunan (right to build)
Hak Milik is not available to foreigners who want to buy a house in Surabaya. Alternative options are Hak Pakai and Hak Guna Bangunan. That is, in Indonesia, citizens of other countries cannot receive full ownership of detached homes—only long-term leases are possible.
The validity period of the right to use is 30 years, and it is extendable for another 20 years and then another 30 years, to a total of up to 80 years. Thus, an overseas buyer is entitled to use houses and apartments in Indonesia for a long period of time, according to the current regulations. However, the country’s government is gradually lifting restrictions, making real estate more accessible to foreign investors. The last relaxation took place in 2021.
Investment house in Surabaya
There is a number of reasons why houses for sale in Surabaya are investment-worthy. One of the main ones is the city's economic growth. In recent years, more and more companies have been relocating their offices to Surabaya, which will make it even more investment-attractive.
The average cost of renting a villa in Surabaya is currently $3,940, and the rental yield can reach 30%. As for the rising prices in the real estate market, they are increasing along with overall prices in East Java. As of the end of 2022, secondary housing in the province’s capital went up in price by 0.1–0.6% monthly.
There are 10 attractive districts for buying villas in Surabaya. Rungkut ranks first, with landlords here accounting for 11.07% of the total demand for homes in the entire city. The strategic location close to Juanda Airport and the Middle East Ring Road (MERR) makes it a desirable area among buyers and tenants.
The top five also includes the following suburban districts:
- Wiyung (6.39%)
- Gununganyar (5.66%)
- Citraland (4.86%)
- Medokan Ayu (3.88%)
They rank high largely due to the Waru-Juanda and Surabaya-Porong highways. These toll roads allow you to quickly get to the desired destination inside and outside the city.
Another very attractive district is Lakarsantri (3.52%). It features affordable new properties. In addition, the district is near Surabaya State University (UNESA).
Other popular locations to live or invest along the east coast include:
- Kenjeran (3.12%)
- Mulyorejo (2.93%)
- Sukolilo (2.59%)
They are home to campuses of well-known universities such as Airlangga University (UNAIR), Sepuluh Nopember Institute of Technology (ITS), and Muhammadiyah University of Surakarta (UMS).
Gunung Anyar Tambak (2.24% of the total housing demand) rounds out the list of the top 10 popular areas. It is located next to the beach surrounded by mangroves.
Villas prices in Surabaya
Real estate prices in the city are above average. As more companies are relocating their offices to East Java’s capital, experts expect overall housing prices to rise in the coming years. Houses prices in Surabaya today average $160,000. However, when it comes to foreigners, the threshold to enter the market will be higher.
All in all, the cost of villas in Surabaya will depend on the characteristics of the selected unit: its location, living space area, condition, year of construction, number of bedrooms, and available amenities.
An example of a property available to foreigners is a 2-storey house worth $392,000. The total area is 300 m², it has 5 bedrooms and 4 bathrooms. The mansion is sold unfurnished, but comes with all necessary utilities and its own plot of land.
For $615,000, you can get a premium 160 m² unit with 4 bedrooms, 4 bathrooms, and full furnishings.
Another option is a 300 m² home near Galaxy Mall, also with 4 bedrooms and 4 bathrooms. It sells for $490,000.
Buying house in Surabaya
Our real estate aggregator allows users to browse villas in Indonesia by price, area, district, and other parameters. This makes the selection process easier and faster. What’s more, the site provides an excellent opportunity to compare offers from trusted agencies and developers in a single place. Check out the latest and up-to-date listings of villas in Surabaya for investment and living and start your search for your ideal property now.