Residential Real Estate Market in Indonesia Market Trends

Statistics for the 2023 & 2024 Residential Real Estate Market in Indonesia market trends, created by Mordor Intelligence™ Industry Reports. Residential Real Estate Market in Indonesia trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Team License

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Corporate License

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Market Trends of Residential Real Estate Industry in Indonesia

This section covers the major market trends shaping the Indonesia Residential Real Estate Market according to our research experts:

Jakarta Emerging as a Prime Rental Market

Despite the rapid growth of the Indonesian property market in recent years, houses and apartments are still among the cheapest in the region. As per market estimates, the average price for a 120 sq. m property in Jakarta is USD 2,692 per sq. m, which is significantly cheaper than the prime locations in Malaysia, Cambodia, the Philippines, and Thailand. Increasing disposable incomes and migration of Indonesians to Jakarta, in search of better employment, makes Jakarta an attractive rental market for both buyers and investors. As per reports, Indonesia is amongst the list of countries where buy-to-let property earns the highest returns. 

Indonesia Residential Real Estate Market Size

Government Incentives is Expected to Boost the Housing Starts Trend in the Country

As per estimates, the residential construction starts in Indonesia decreased by nearly 10% Y-o-Y in 2021, compared to 2020. In 2020 housing starts declined 5.6% compared to 2019. Small properties led the demand surge, followed by medium houses and big houses. In order to meet the property demand, the Indonesian government adopted several measures, such as lowering the key interest rates, giving tax incentives to Indonesian REITs, easing restrictions on individual foreign ownership, and increasing loan-to-value ratios.

The government also increased the price threshold for luxury property taxes, to encourage home buying in Indonesia. The 20% tax will now be applied only to any purchase of landed property or apartment worth at least IDR 30 billion (USD 2.10 million). The government support to the residential construction sector is expected to increase property sales in the country during the forecast period.  

Indonesia Residential Real Estate Market Report

Indonesia Residential Real Estate Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)