Real Estate Market In Indonesia Market Size (2024 - 2029)

The real estate market size in Indonesia is poised for significant growth, driven by improved macroeconomic and structural policies over the past 15 years. The sector has remained resilient, with rising property demand and prices fueled by rapid population growth and urbanization. Government initiatives, such as the 'One Million Houses' program, alongside support from foreign investors and international organizations, are expected to further propel market expansion. The emergence of Proptech, spurred by increased middle-class demand, is also contributing to the market's dynamic growth trajectory.

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Market Size of Real Estate Industry In Indonesia

Indonesia Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 64.78 Billion
Market Size (2029) USD 85.97 Billion
CAGR (2024 - 2029) 5.82 %
Market Concentration Low

Major Players

Indonesia Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Real Estate Market Analysis

The Real Estate Market In Indonesia Market size is estimated at USD 64.78 billion in 2024, and is expected to reach USD 85.97 billion by 2029, growing at a CAGR of 5.82% during the forecast period (2024-2029).

  • Indonesia has improved its macroeconomic and structural policies over the last 15 years. With a strong and stable growth rate, its economy is catching up with other countries in the region, allowing Indonesia to focus on its development agenda.
  • As property demand and prices rise due to rapid population growth and high urbanization, the real estate market in Indonesia is one of the most vital sectors in the region. It was one of the few sectors not significantly affected by the COVID-19 crisis in the country.
  • The official figures from Statistics Indonesia reflected that the GDP from real estate activities in Indonesia amounted to IDR 488.31 trillion (USD 31 billion) in 2022. Indonesian GDP derived from real estate activities has gradually increased over the decade.
  • The affordable housing projects in Indonesia supported by the government, foreign investors, and associations such as the World Bank are anticipated to enhance the real estate market's growth during the forecast period.
  • The Indonesian government introduced the 'One Million Houses' (OMH) program to construct at least 1 million units annually. According to the Ministry of Public Works and Public Housing (PUPR), about 634,132 housing units were recorded until August 2023 under the program.
  • Due to a better, growth-stimulating economy, the first wave of Proptech in Indonesia began with increased demand for homes from the middle-class populace. With a large concentration of selling, purchasing, and leasing on search portal firms, the proptech segment is gaining popularity.

Indonesia Real Estate Industry Segmentation

The real estate sector includes various phases of property dealings, such as developing, selling, buying, leasing, and management processes in the industrial sector, residential sector, etc. A complete background analysis of the Indonesian real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

The market is segmented by property type (residential, office, retail, hospitality, and industrial) and city (Jakarta, Bali, and the rest of Indonesia). The report offers market size and forecasts for the real estate market in Indonesia in value (USD) for all the above segments.

By Property Type
Residential
Office
Retail
Hospitality
Industrial
By City
Jakarta
Bali
Rest of Indonesia
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Real Estate Market In Indonesia Size Summary

The Indonesian real estate market is poised for significant growth, driven by robust economic policies and a focus on development. The sector has shown resilience, remaining largely unaffected by the COVID-19 pandemic's impact on other industries. The market is experiencing increased demand due to rapid population growth and urbanization, making it a crucial component of the country's economic landscape. Government initiatives, such as the 'One Million Houses' program, aim to address housing shortages and are supported by foreign investments and international organizations like the World Bank. The emergence of Proptech is further stimulating the market, catering to the growing middle-class demand for housing. In urban areas like Jakarta, serviced apartments are witnessing improved occupancy rates, reflecting a resurgence in business activities and heightened demand from expatriates.

Despite these positive trends, the residential property market in Indonesia faces challenges, with slow growth in property prices and a competitive, fragmented market landscape. National regulations restrict foreign ownership and impose minimum price thresholds for real estate purchases, which can limit foreign investment. The market's competitiveness is driving innovation and adaptation to technological advancements, as seen in the activities of major players like Agung Podomoro Land and Sinar Mas Land. Recent developments, such as new condominium projects and collaborations between major developers, indicate ongoing opportunities for growth. However, the market also contends with issues of oversupply and fluctuating rental rates, particularly in non-central business districts.

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Real Estate Market In Indonesia Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Policies and Regulations

    3. 1.3 Insights into Interest Rate Regime for General Economy, and Real Estate Lending

    4. 1.4 Insights into Real Estate Tech and Startups Active in the Real Estate Segment

    5. 1.5 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate

    6. 1.6 Real Estate Buying Trends - Socioeconomic and Demographic Insights

    7. 1.7 Impact of COVID-19 on the Market

    8. 1.8 Value Chain/Supply Chain Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Property Type

      1. 2.1.1 Residential

      2. 2.1.2 Office

      3. 2.1.3 Retail

      4. 2.1.4 Hospitality

      5. 2.1.5 Industrial

    2. 2.2 By City

      1. 2.2.1 Jakarta

      2. 2.2.2 Bali

      3. 2.2.3 Rest of Indonesia

Real Estate Market In Indonesia Market Size FAQs

The Real Estate Market In Indonesia Market size is expected to reach USD 64.78 billion in 2024 and grow at a CAGR of 5.82% to reach USD 85.97 billion by 2029.

In 2024, the Real Estate Market In Indonesia Market size is expected to reach USD 64.78 billion.

Indonesia Real Estate Market Report Snapshots

Indonesia Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)