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Surabaya's property market shows average prices of IDR 20 million per square meter as of September 2025. The city offers diverse investment opportunities across apartments, houses, and commercial properties, with significant price variations between districts and property types that can impact your investment returns.
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Surabaya property prices average IDR 20 million per sqm in 2025, with apartments ranging from IDR 12.8-20 million and houses from IDR 14.2-20 million per sqm.
Premium areas like Citraland and Darmo command the highest prices, while emerging districts like Lakarsantri offer growth potential for investors.
| Property Type | Price Range (IDR/sqm) | Typical Purchase Price |
|---|---|---|
| Apartment | 12.8-20 million | 500 million+ (1-2BR) |
| House | 14.2-20 million | 1-2.4 billion |
| Townhouse | 14.6 million | 800 million-2 billion |
| Commercial | Variable, higher | Case-by-case |
| Total Transaction Costs | 8-10% additional | Includes taxes and fees |
| Rental Yield Potential | Up to 30% residential | 40% commercial prime areas |
What's the current average price per square meter in Surabaya?
The overall average property price in Surabaya is IDR 20 million per square meter as of September 2025.
This represents a significant increase from previous years, with apartments averaging between IDR 12.8-20 million per sqm and city center properties tending toward the higher end of this range. Houses typically cost IDR 14.2-20 million per sqm and generally command higher prices than apartments in comparable locations.
Commercial properties exceed residential prices by considerable margins, especially in sought-after business districts where prime locations can yield substantially higher returns. The current pricing reflects steady market growth driven by infrastructure development and increasing urbanization in East Java's capital city.
These figures place Surabaya in a competitive position within Indonesia's property market, offering more affordable entry points compared to Jakarta while maintaining strong growth potential for both owner-occupiers and investors.
How do prices differ between apartments, houses, and commercial properties?
| Property Type | Average Price per m² (IDR) | Average Purchase Price (IDR) |
|---|---|---|
| Apartment | 12.8-20 million | 500 million+ (for 1-2BR) |
| House | 14.2-20 million | 1-2.4 billion |
| Townhouse | 14.6 million | 800 million-2 billion |
| Commercial | Higher, variable | Case-by-case |
| Luxury Properties | 25+ million | 3+ billion |
| Land Plots | 8-15 million | Varies by size |
| Rental Yields | Up to 30% residential | 40% commercial prime |
Which areas of Surabaya are the most expensive, which are more affordable, and which are seen as up-and-coming?
Citraland, Darmo, and Darmo Permai represent Surabaya's most expensive and prestigious neighborhoods.
These upscale areas offer green environments, family-friendly amenities, excellent international schools, and premium infrastructure that commands the highest property prices in the city. Pakuwon City also ranks among the premium locations, providing a modern lifestyle with balanced quality and cost considerations.
For affordable options, Kertajaya and Manyar stand out as budget-friendly areas close to universities with high rental demand, though infrastructure remains limited. These neighborhoods attract students and young professionals seeking cost-effective housing solutions.
Lakarsantri and Benowo emerge as the most promising up-and-coming districts, featuring spacious plots, rising amenities, and significant government investment. Lakarsantri particularly gains reputation as an excellent spot for mid- to long-term investment, with infrastructure improvements and urban development projects driving future appreciation potential.
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Can you give examples of actual purchase prices for typical properties in different districts?
A centrally located 1-bedroom apartment typically costs around IDR 500 million (approximately USD 35,000) in established areas.
Standard 3-bedroom houses range from IDR 1-2.4 billion (USD 70,000-160,000), with significant variation depending on the specific district and property condition. Premium locations like Darmo and Citraland command prices at the higher end of this range.
In emerging areas like Lakarsantri, a 2-bedroom residential property costs approximately IDR 876 million, while luxury 6-bedroom homes can reach IDR 5.8 billion. These examples demonstrate the substantial price differences between property types and locations within Surabaya.
Townhouses typically fall in the IDR 800 million to 2 billion range, offering middle-ground pricing between apartments and standalone houses. Commercial properties vary significantly by location and purpose, with prime business district locations commanding premium prices well above residential rates.
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How have prices changed compared to five years ago, and compared to just one year ago?
| Year | Average Price per m² (IDR) | Growth Rate |
|---|---|---|
| 2017 | 12.59 million | - |
| 2020 | 15.2 million | 20.7% |
| 2022 | 17.8 million | 17.1% |
| 2024 | 18.7 million | 5.1% |
| 2025 | 20 million | 6.9% |
| 5-Year Growth | +31.6% | Compound annual |
| 1-Year Growth | +6.9% | 2024-2025 |
What are the forecasts for property prices in Surabaya over the next one year, five years, and ten years?
Analysts predict continued moderate growth to IDR 21.5 million per square meter by 2026, representing approximately 7.5% annual appreciation.
This short-term growth will be mainly driven by infrastructure development projects and sustained population growth in the metropolitan area. The city's strategic position as East Java's economic hub supports this positive outlook for immediate price appreciation.
Medium-term forecasts project prices rising to IDR 24.5 million per square meter by 2028, indicating steady compound annual growth of approximately 6-7%. Emerging neighborhoods are expected to experience faster appreciation rates, with newly gentrifying areas potentially outperforming the market average significantly.
Long-term projections suggest Surabaya property prices will sustain above-inflation growth over the next decade if current development trends continue. Up-and-coming neighborhoods like Lakarsantri and Benowo are anticipated to deliver exceptional outperformance, potentially doubling their current values within ten years as infrastructure and amenities mature.
How does Surabaya's price per square meter compare to other big Indonesian cities with similar profiles?
| City | Avg. Price/m² (IDR) | Difference vs Surabaya |
|---|---|---|
| Jakarta | 27.2 million | +36% higher |
| Surabaya | 20 million | Base comparison |
| Bandung | 12.3 million | -38.5% lower |
| Medan | 15.8 million | -21% lower |
| Semarang | 14.2 million | -29% lower |
| Yogyakarta | 16.5 million | -17.5% lower |
| Malang | 13.9 million | -30.5% lower |
What is the typical total purchase cost including notary fees, transfer taxes, and other charges?
Plan for an extra 8-10% above the purchase price for total transaction costs when buying residential property in Surabaya.
Notary fees typically range from 0.5-1% of the purchase value, covering legal documentation and property registration processes. Transfer taxes require buyers to pay 5% while sellers pay 2.5%, representing the largest component of transaction costs.
Additional charges including survey fees, registration costs, agent commissions, and legal fees may total another 2-3% of the purchase price. These costs cover property inspections, title verification, and professional services required for secure property transactions.
For a IDR 1 billion property purchase, expect to budget approximately IDR 80-100 million in additional transaction costs. Cash buyers often negotiate slightly better purchase prices due to immediate settlement capabilities, while financed purchases may incur additional bank processing fees.
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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.
How do financing and mortgage options affect the effective cost per square meter?
Bank mortgages require down payments of 15-30% of the property value, significantly impacting your initial investment requirements.
Interest rates for local buyers average 7-10% annually, while foreign buyers face higher rates and more restrictive lending terms. Loan tenors extend up to 20 years, allowing for manageable monthly payments but increasing total interest costs over time.
The effective cost per square meter increases substantially when using long-tenure, high-interest loans compared to cash purchases. A IDR 20 million per sqm property financed at 8% over 15 years effectively costs approximately IDR 28-30 million per sqm when accounting for total interest payments.
Cash buyers benefit from immediate settlement advantages, often securing 3-5% discounts on purchase prices while avoiding financing costs entirely. This makes cash purchases significantly more cost-effective for investors with adequate liquidity.
What are the smartest buying choices today if you want to live in the property?
Choose well-developed neighborhoods like Pakuwon City, Darmo, or Gubeng for the optimal balance of lifestyle, amenities, and appreciation potential.
These areas offer established infrastructure, international schools, shopping centers, and healthcare facilities essential for comfortable daily living. The combination of amenities and growth prospects makes them excellent choices for long-term residents seeking both quality of life and property value preservation.
New houses in up-and-coming districts like Lakarsantri or Benowo provide excellent opportunities to live while building equity through future appreciation. These areas offer larger properties at lower prices with significant upside potential as infrastructure develops.
Consider proximity to your workplace, children's schools, and essential services when making location decisions. Properties near upcoming infrastructure projects like new roads, shopping centers, or transportation hubs typically offer the best combination of current convenience and future value growth.
What are the best strategies if you want to rent it out, both short term and long term?
City center apartments in Gubeng and Tunjungan areas offer the highest occupancy rates and most attractive yields for short-term rental strategies.
These locations attract business travelers, professionals, and students seeking convenient access to commercial districts and universities. Short-term rental properties in these areas can achieve premium daily rates due to high demand and limited supply of quality accommodations.
For long-term rental investments, target homes near universities in Kertajaya and Manyar, or established family districts like Pakuwon City and Darmo. University areas provide consistent tenant demand throughout academic years, while family districts offer stable, long-term tenants seeking quality housing.
Rental yields can reach up to 30% for well-positioned residential properties and 40% for commercial properties in prime locations. Focus on properties with modern amenities, reliable utilities, and good security systems to command premium rental rates and minimize vacancy periods.
What should you look at if the goal is to buy now and resell later at a higher price?
Prioritize properties near planned infrastructure developments including new roads, transportation systems, shopping centers, and government facilities.
Target up-and-coming districts like Lakarsantri, Benowo, and Kenjeran where significant appreciation potential exists as these areas develop and mature. Look for underpriced units in oversupplied apartment complexes where value recovery opportunities may emerge as market conditions improve.
Avoid overbuilt older apartment complexes with stagnant prices and limited differentiation from competing properties. Instead, opt for unique homes, land plots, or well-situated villas that appeal to expatriate professionals or affluent local families seeking distinctive properties.
Stay informed about upcoming government projects, zoning changes, and demographic shifts that drive price spikes and improve liquidity. Properties positioned to benefit from these macro trends typically offer the strongest resale potential and shortest holding periods for optimal returns.
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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.
Surabaya's real estate market for 2025 offers excellent value, strong rental yields, and diverse investment opportunities across all property types.
The smartest property choices prioritize strategic location, infrastructure connectivity, and growth outlook, whether you plan to live in, rent out, or resell your investment later.