Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Everything you need to know before buying real estate is included in our Indonesia Property Pack
Indonesia's property market offers diverse opportunities across major cities like Jakarta, Bali, and Surabaya, with house prices varying significantly by location and property type.
As of September 2025, the average house price in Indonesia ranges from 1 billion IDR ($65,000) in smaller cities to over 9 billion IDR ($585,000) for luxury villas in prime Bali locations, with Jakarta's central areas averaging around 3 billion IDR ($192,000) for mid-sized properties.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Indonesia's property market shows strong regional variations, with Bali leading in price appreciation (10-15% annually) while Jakarta and Surabaya offer more stable but moderate growth.
Foreign buyers should expect total costs 8-12% above purchase price, with mortgage rates currently at 8-10% annually for those eligible.
| City/Area | Average Price per m² | Typical House Price (100m²) |
|---|---|---|
| Jakarta Central | 25-35 million IDR | 2.7-3.8 billion IDR |
| Bali Prime Areas | 70-90 million IDR | 5.9-9.9 billion IDR |
| Surabaya | 20 million IDR | 1-2 billion IDR |
| Yogyakarta | 10-20 million IDR | 1.1-2.2 billion IDR |
| Smaller Towns | 5-15 million IDR | 150 million-1.5 billion IDR |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What's the current average house price in Indonesia?
As of September 2025, the average house price in Indonesia varies dramatically by location and property type.
In Jakarta's central areas, mid-sized houses (91-150sqm) typically cost around 3 billion IDR ($192,000), while apartments range from 2.5 to 3.8 billion IDR for 100sqm properties. Bali's prime locations command significantly higher prices, with villas and land in popular areas starting at 5.9 to 7.3 billion IDR for 100sqm, and luxury properties reaching 7.6 to 9.9 billion IDR or more.
Surabaya offers more affordable options, with houses averaging 1 to 1.7 billion IDR for 100sqm properties, while apartments range from 500 million to 2 billion IDR. Yogyakarta sits in the middle range, with houses typically priced between 1.1 to 2.2 billion IDR.
In smaller towns and regional areas, prices can be 30 to 50% lower than major cities, with entry points starting from as little as 150 million IDR ($10,500) for basic suburban homes, though these are not representative of main city markets.
It's something we develop in our Indonesia property pack.
How do prices vary between big cities like Jakarta, Bali, and Surabaya compared to smaller towns?
Price variations between Indonesia's major cities and smaller towns show significant disparities based on economic activity, tourism, and infrastructure development.
Jakarta, as the capital and economic hub, maintains high property prices due to business demand and limited land availability. Central Jakarta areas command premium prices of 25 to 35 million IDR per square meter for both apartments and houses. Bali's tourist-driven market creates the highest prices in the country, particularly in areas like Seminyak, Canggu, and Uluwatu, where villa prices can reach 70 to 90 million IDR per square meter.
Surabaya, Indonesia's second-largest city, offers more moderate pricing at around 20 million IDR per square meter, making it attractive for both investors and residents seeking urban amenities at lower costs. Yogyakarta, known for its cultural significance and university presence, ranges from 10 to 20 million IDR per square meter.
Smaller towns and regional areas typically offer prices 30 to 50% below major cities, with some areas starting at just 5 to 15 million IDR per square meter. These locations appeal to buyers seeking affordability but may lack the infrastructure, amenities, and resale liquidity found in major urban centers.
What's the difference in prices between apartments, houses, and villas?
Property type significantly impacts pricing in Indonesia's real estate market, with clear hierarchies based on land ownership, amenities, and target markets.
Apartments generally represent the most affordable entry point into property ownership, particularly in urban areas like Jakarta and Surabaya. These typically cost 20 to 35 million IDR per square meter in major cities, offering modern amenities and security but without land ownership rights.
Houses in metropolitan areas cost more per square meter than apartments due to land inclusion, though the land portion may be minimal in dense urban areas. In Jakarta, houses average 25 to 35 million IDR per square meter, similar to apartments but with additional land value and privacy benefits.
Villas command the highest prices, especially in tourist destinations like Bali or coastal locations. These properties can cost double or triple apartment prices per square meter, reaching 70 to 90 million IDR per square meter in prime Bali locations. Villas typically include substantial land, premium amenities like pools and gardens, and strong rental income potential that justifies the price premium.
The price gap between property types widens in tourist areas where villas can generate significant short-term rental income, while it narrows in purely residential markets focused on owner-occupation.
How much does surface area and number of bedrooms usually affect the total price?
Surface area and bedroom count directly impact property prices in Indonesia, though the relationship isn't always linear due to premium thresholds and market preferences.
| Property Size | Typical Bedrooms | Price Impact vs Base |
|---|---|---|
| 50-70 sqm | 1-2 bedrooms | Base price |
| 80-100 sqm | 2-3 bedrooms | +40-60% |
| 120-150 sqm | 3-4 bedrooms | +80-120% |
| 200+ sqm | 4+ bedrooms | +150-300% |
| Luxury (300+ sqm) | 5+ bedrooms | +400-800% |
Premium jumps occur at popular size thresholds like 100sqm and 150sqm, where buyer demand concentrates. Properties with 3-4 bedrooms command disproportionate premiums as they suit family needs and rental market demands.
Villas and houses on large plots with extra amenities like pools, gardens, or security features command significant premiums over basic properties of similar indoor square footage. Land size often matters more than building size for long-term value appreciation, particularly in areas with development restrictions or high land scarcity.
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What is the typical all-in cost once you add fees, taxes, and legal expenses?
Total acquisition costs in Indonesia typically add 8 to 12% to the base property purchase price through various mandatory fees and taxes.
Buyer-side costs include transfer tax (typically 2.5% of transaction value), notary fees (0.5-1%), legal fees (1-2%), and agent commissions (2-5% if using a buyer's agent). Additional costs may include due diligence expenses, survey fees, and administrative charges for title transfers and permits.
For a typical 2.5 billion IDR apartment purchase, expect total costs between 2.7 to 2.8 billion IDR after adding all official expenses. Foreign buyers may face additional costs related to legal structure setup, nominee arrangements, or corporate entity formation if pursuing indirect ownership methods.
Land and building tax (PBB) becomes an ongoing annual expense, typically ranging from 0.1 to 0.3% of the property's assessed value. These costs vary by region and property type, with some areas offering reduced rates for primary residences or smaller properties.
Budget planning should include these additional costs from the outset, as they represent significant capital requirements beyond the advertised purchase price and can impact financing calculations and investment returns.
How do mortgages work in Indonesia, and what's the average interest rate right now?
Indonesia's mortgage market operates differently for local residents, expatriates, and foreigners, with varying access and terms based on residency status and ownership structures.
As of September 2025, typical interest rates for IDR mortgages range from 8 to 10% annually, which is higher than neighboring countries like Singapore or Malaysia but reflects Indonesia's monetary policy and market conditions. Rates vary by lender, loan-to-value ratio, and borrower profile.
Local Indonesian citizens and residents can access standard mortgage products with down payments typically requiring 30 to 40% of the property value. Loan terms usually extend 10 to 20 years maximum, shorter than many developed markets. Banks require proof of income, employment history, and may impose debt-to-income ratios not exceeding 30-40%.
Foreigners face significant limitations, as they cannot directly own freehold property and therefore cannot secure traditional mortgages for freehold purchases. Foreign financing typically requires leasehold arrangements, corporate ownership structures (PT PMA), or other legal frameworks that banks will finance.
Alternative financing options include developer financing schemes, private lending, or international banks with Indonesian operations that may offer specialized products for qualified expatriate clients.
Can you share some real example purchase prices for different property types and areas?
Real market examples from September 2025 provide concrete insight into current Indonesian property pricing across major markets.
| Location & Type | Size/Bedrooms | Actual Price Range |
|---|---|---|
| Jakarta Premium Apartment | 100sqm / 2BR | 2.7 billion IDR |
| Jakarta Mid-range House | 120sqm land / 3BR | 3 billion IDR |
| Bali Villa (Canggu/Seminyak) | 200sqm / 3BR | 8-10 billion IDR |
| Surabaya Condo | 80sqm / 2BR | 700 million-1 billion IDR |
| Surabaya House | 100sqm / 3BR | 1.4 billion IDR |
| Yogyakarta House | 90sqm / 2BR | 1.2 billion IDR |
These examples reflect current market conditions and represent typical transactions rather than exceptional deals or luxury outliers. Bali villa prices show the strongest premium due to tourism demand and rental income potential, while Surabaya offers the best value proposition for buyers seeking urban amenities at moderate prices.
Jakarta prices reflect the capital's economic importance but also show the impact of land scarcity on pricing. Yogyakarta's growing reputation as a digital nomad destination and university town supports steady price appreciation despite being smaller than other major cities.
Which areas are considered the most expensive, which ones are upcoming, and which are more budget-friendly?
Indonesia's property market shows clear geographic pricing hierarchies based on economic activity, tourism appeal, and development status.
Most Expensive Areas:
- Central and South Jakarta, particularly areas like Menteng, Kebayoran Baru, and SCBD business district
- Bali's prime coastal areas including Seminyak, Canggu, Nusa Dua, and Uluwatu
- Upmarket Surabaya suburbs like Citraland and Pakuwon City
- Premium Jakarta satellite cities like BSD City and Alam Sutera
- Established expatriate areas in major cities with international schools and amenities
Upcoming Areas with Growth Potential:
- Jakarta's outer ring districts including Bekasi, Tangerang, and Depok with new infrastructure
- North Bali regions like Lovina and Singaraja with developing tourism infrastructure
- Yogyakarta's expanding districts attracting digital nomads and universities
- Surabaya's eastern expansion areas with new shopping centers and business districts
- Secondary cities benefiting from government infrastructure investment programs
Budget-Friendly Options:
- Smaller Javanese towns outside major metropolitan areas
- Outlying Indonesian islands with limited tourism development
- Suburban Yogyakarta areas beyond the city center
- Secondary Balinese towns away from main tourist corridors
- Industrial areas in major cities with good public transport connections
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
If I want to live there myself, what are the smartest buying options today?
For personal residence purposes, the smartest buying strategy in Indonesia focuses on balancing lifestyle preferences, legal constraints, and long-term value preservation.
Jakarta residents should consider outer or middle ring districts that offer better value than the CBD while maintaining good infrastructure and amenities. Premium apartments in these areas provide security, modern facilities, and easier maintenance compared to houses, particularly for expatriates unfamiliar with local property management.
Bali buyers should carefully evaluate leasehold versus freehold options based on their residency status and long-term plans. Seminyak and Berawa remain popular for lifestyle appeal, but North Bali offers lower entry costs with potential upside as infrastructure develops. Villa ownership provides the best lifestyle experience but requires active management or professional property services.
Surabaya presents excellent value for residents seeking modern urban amenities at affordable prices. Look for areas with new mall developments or infrastructure projects that signal ongoing improvement and appreciation potential.
All buyers should prioritize properties with clear legal title, especially foreigners who must navigate ownership restrictions. Consider proximity to international schools, healthcare facilities, and expatriate communities for long-term livability and resale potential.
It's something we develop in our Indonesia property pack.
If I want to rent out, how do the numbers look for short-term rentals vs long-term rentals?
Rental yield potential varies significantly between short-term and long-term strategies, with location and property type determining optimal approaches.
Short-term rentals (STR) in Bali deliver the highest yields, typically achieving 10 to 20% annual returns on villas, especially in coastal areas popular with tourists. However, STR income faces seasonality challenges, regulatory risks, and higher management costs including cleaning, maintenance, and guest services.
Long-term rentals offer more stable but lower returns across major cities. Jakarta and Yogyakarta typically yield 4 to 6% annually, while Surabaya can achieve 7 to 10% on smaller apartments due to strong local rental demand and lower property prices.
Yield calculations should factor in management costs, vacancy periods, maintenance, and local regulations. Bali has introduced new tourism taxes and zoning restrictions that may impact STR profitability, while long-term rentals face fewer regulatory changes but depend on local economic conditions.
Higher-end properties generally produce lower percentage yields but may offer better tenant quality and capital appreciation. The optimal strategy depends on hands-on management capability, risk tolerance, and local market knowledge for navigating regulations and tenant relations.
If I plan to buy and resell later, where are the best opportunities for price appreciation?
Capital appreciation opportunities in Indonesia concentrate in specific geographic and property type segments with strong fundamental drivers.
Bali continues to lead national price appreciation with annual gains of 7 to 15%, particularly for land and villas in established tourist areas. The combination of limited developable land, strong international demand, and ongoing infrastructure improvements supports sustained price growth. Areas like Canggu, Seminyak, and emerging North Bali locations offer the strongest appreciation potential.
Yogyakarta shows impressive recent appreciation of 8 to 10%+ annually, driven by its growing reputation among digital nomads, university expansion, and cultural tourism development. Properties near university areas and the city center benefit most from these trends.
Surabaya offers moderate but steady gains of 5 to 7% with lower volatility, making it suitable for conservative investors seeking stable appreciation. The city's industrial growth and infrastructure development support consistent demand.
Jakarta's appreciation varies by location, with outer districts potentially outperforming central areas as infrastructure improves and prices remain more accessible to growing middle-class demand.
Land-based properties generally appreciate faster than apartments due to land scarcity and development restrictions. Properties in areas with confirmed infrastructure projects or zoning changes for commercial development offer additional upside potential.
How have house prices changed compared to one year ago and five years ago, and what's the forecast for the next one, five, and ten years?
Indonesian property price trends show regional variations with Bali leading national performance and other markets showing more modest but steady growth.
Over the past year (2024-2025), national price growth averaged 0.9 to 1.4%, with significant regional differences. Bali villas and land appreciated 10 to 15%, driven by continued international buyer interest and tourism recovery. Jakarta showed minimal growth of 0 to 2%, reflecting economic headwinds and oversupply in some segments. Surabaya achieved moderate gains of 2 to 5%, supported by steady local demand.
Five-year cumulative performance shows Jakarta with steady but modest growth of 5 to 10%, while Bali achieved spectacular gains of 30 to 60% driven by global demand and limited supply. Yogyakarta matched Bali's performance range of 30 to 60% as it emerged as a preferred destination for domestic and international buyers.
Ten-year forecasts project cumulative growth of 25 to 80% depending on location, with Bali expected to continue outperforming other markets, followed by Surabaya and Yogyakarta showing similar appreciation, and Jakarta trailing due to supply constraints and economic factors.
Compared to regional markets, Indonesia's major cities appreciate slower than Singapore but faster than Malaysia and most areas of Thailand, except for Bali which rivals or exceeds appreciation rates in Manila or Bangkok. Economic diversification, infrastructure investment, and tourism growth support positive long-term outlooks despite short-term volatility.
It's something we develop in our Indonesia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Indonesia's property market offers compelling opportunities for both investors and residents, with Bali leading in appreciation potential and rental yields while other major cities provide more stable, moderate growth prospects.
Success in the Indonesian market requires understanding regional differences, legal ownership structures, and the impact of tourism and economic development on local property values.
Sources
- Statista - Indonesia House Prices by City
- Investasian - Indonesia House Prices
- BambooRoutes - Average House Price Indonesia
- Bali Villa Realty - Cost of Property in Bali
- Centrarium - Indonesia Property Prices
- BambooRoutes - Surabaya Property
- Juwai Asia - Indonesia Property Market
- BambooRoutes - Indonesia Price Forecasts
- Global Property Guide - Indonesia Price History
- Trading Economics - Indonesia House Price Index