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Bandung's rental market offers some of Indonesia's most affordable rates for a major city, with apartment rents ranging from $111 to $383 monthly depending on location and size. The city center commands premium prices while suburban areas provide excellent value for money, making Bandung attractive for both investors seeking yields of 5-8% and tenants looking for affordable accommodation in West Java's cultural capital.
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As of September 2025, Bandung offers competitive rental rates with 1-bedroom city center apartments averaging $175-176 monthly, while suburban areas cost around $111 monthly.
The rental market shows strong demand from students, professionals, and families, with vacancy rates below 15% in most areas and yields ranging from 5-8% annually.
| Property Type | City Center (Monthly) | Suburban (Monthly) | Yield Range |
|---|---|---|---|
| 1-Bedroom Apartment | $175-176 (Rp2.6-2.7M) | $111 (Rp1.7M) | 5-7% |
| 3-Bedroom Apartment | $383 (Rp6M) | $260-325 (Rp4-5M) | 6-8% |
| Family House (2-4BR) | $325-585 (Rp5-9M) | $130-325 (Rp2-5M) | 5-8% |
| Commercial Space | $39+ per m²/month | $30-35 per m²/month | 7-10% |
| Premium Properties | $455-975 (Rp7-15M) | $260-520 (Rp4-8M) | 5-7% |
What's the average rent right now in Bandung for different property types?
As of September 2025, Bandung's rental market offers competitive rates across all property types, making it one of Indonesia's most affordable major cities for tenants.
For apartments, 1-bedroom units in the city center average $175-176 monthly (Rp2.6-2.7 million), while similar properties outside the center cost around $111 monthly (Rp1.7 million). Three-bedroom city center apartments command $383 monthly (Rp5.8-6 million), representing excellent value compared to Jakarta or other major Indonesian cities.
Family houses show more variation based on size and location, with typical suburban houses renting from Rp2-5 million monthly ($130-325) for 2-4 bedroom properties. Premium family houses ranging 100-150 square meters can reach Rp6-9 million monthly ($390-585) in desirable neighborhoods like Dago, Setiabudi, or Ciumbuleuit.
Commercial spaces in central Bandung's main roads cost approximately Rp600,000+ per square meter monthly, while smaller retail or office units average around Rp700,000 per square meter monthly. These rates have become more competitive in 2025 as vacancy rates decreased due to renewed business activity.
Premium studio apartments targeting short-term rentals typically charge Rp273,000-527,000 per night, reflecting Bandung's growing appeal as a tourist and business destination.
How do rents differ between the main areas and neighborhoods of Bandung?
Bandung's rental market shows significant variation between neighborhoods, with premium areas commanding substantial premiums over suburban locations.
City center locations including the main business district consistently charge the highest rents, with 1-bedroom apartments averaging Rp2.7 million monthly and 3-bedroom units reaching Rp6 million monthly. These central areas offer proximity to business centers, shopping districts, and transportation hubs.
Premium neighborhoods like Dago, Setiabudi, Ciumbuleuit, and Asia Afrika represent the top tier of Bandung's rental market. These areas feature per-square-meter rates of Rp25-30 million annually for apartments, translating to monthly rents of Rp4-5 million for 1-bedroom units and Rp8-9 million for 3-bedroom properties.
Suburban areas provide excellent value, with 1-bedroom apartments starting at Rp1.7 million monthly and family houses ranging from Rp2-5 million monthly. These locations appeal to families seeking more space and students looking for affordable accommodation near universities.
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What's the typical rent per square meter for various property types?
Per-square-meter rental rates in Bandung vary significantly based on property type and location, providing clear benchmarks for both landlords and tenants.
For apartments in central and premium locations, rates range from Rp14-25 million per square meter annually, translating to Rp1.17-2.08 million per square meter monthly. Upper-class developments in prime areas can reach Rp25-30 million per square meter annually, while more affordable central locations typically fall between Rp14-21 million annually.
Suburban apartments offer more affordable rates at Rp12-15 million per square meter annually, making them attractive for budget-conscious tenants and investors seeking higher yields. These properties often provide better space-to-cost ratios for families and long-term residents.
Commercial properties in prime business areas command Rp7-15 million per square meter annually, with main road locations typically charging around Rp7 million per square meter annually. Smaller retail and office spaces average approximately Rp700,000 per square meter monthly.
Houses generally follow similar per-square-meter pricing to apartments but offer additional value through private outdoor space and parking, with purchase prices translating to rental yields of 5-8% annually based on these per-square-meter rates.
What's the total monthly rent once fees, utilities, and management costs are included?
Total monthly housing costs in Bandung extend well beyond base rent, with additional fees typically adding Rp1-2 million to monthly expenses.
Management fees for apartments and houses typically range from Rp300,000-800,000 monthly, covering building maintenance, security, and common area upkeep. Premium developments and high-rise buildings generally charge higher management fees but provide enhanced amenities and services.
Utility costs including electricity, water, and gas average Rp400,000-700,000 monthly for typical residential units, though this varies significantly based on usage patterns and property size. Air conditioning usage during hot months can substantially increase electricity bills.
Internet connectivity, increasingly essential for remote work and entertainment, typically costs around Rp700,000 monthly for reliable high-speed service. Many tenants also budget for cable television and streaming services.
For example, a 1-bedroom city center apartment with Rp2.7 million base rent becomes Rp3.7 million monthly when including Rp500,000 utilities and Rp500,000 management fees. This all-in calculation is crucial for accurate budgeting and investment return calculations.
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What taxes, maintenance, and hidden costs should landlords factor in when renting out property?
Landlords in Bandung face several ongoing costs that significantly impact net rental returns, requiring careful financial planning for profitable property investment.
Income tax represents the largest ongoing expense at 10% of gross rental income, paid annually to Indonesian tax authorities. This rate applies to all rental income regardless of tenant type or rental duration, making it a predictable but substantial cost.
Agent commissions, when used, typically range from 5-8% of annual rent as a one-time fee for tenant placement. While not ongoing, this cost recurs with each tenant turnover and should be factored into long-term return calculations.
Maintenance expenses should consume 5-10% of annual rental value, covering regular cleaning, repairs, repainting, and equipment replacement. Properties targeting short-term rentals often require higher maintenance budgets due to increased wear and more frequent deep cleaning requirements.
Vacancy periods, legal compliance costs, and property insurance create additional ongoing expenses that vary by property type and management approach. Short-term rental properties face particular scrutiny regarding local regulations and safety compliance, potentially increasing administrative costs.
Smart landlords also budget for unexpected major repairs, tenant turnover costs, and periodic property upgrades to maintain competitive rental rates in Bandung's evolving market.
If I finance a property with a mortgage, what's the real cost compared to the rental income I can expect?
Mortgage financing for Bandung rental properties typically creates negative cash flow scenarios, requiring substantial down payments or additional income sources for profitability.
A typical mortgage for a Rp1 billion property requires monthly payments of Rp7-8 million over 10-15 year terms, based on current Indonesian lending rates and typical loan-to-value ratios. These payments often exceed potential rental income by significant margins.
The same Rp1 billion property might generate Rp2-6 million monthly rental income depending on location and property type, creating a monthly shortfall of Rp1-6 million between mortgage payments and rental revenue. This gap must be covered by the investor's other income sources.
Return on investment heavily depends on property appreciation and leverage levels rather than rental cash flow. Investors typically require down payments of 30-50% to achieve positive cash flow, significantly reducing leverage benefits but improving monthly economics.
Successful leveraged rental property investment in Bandung often relies on alternative income streams such as short-term rentals during peak tourist seasons, commercial space conversion, or targeting specific high-paying tenant segments like expatriates or business travelers.
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How do rental returns compare between short-term rentals like Airbnb and long-term tenants?
Short-term and long-term rental strategies in Bandung offer distinctly different risk-return profiles, with short-term rentals providing higher gross yields but requiring intensive management.
| Rental Type | Monthly Revenue Range | Typical Occupancy | Gross Yield | Management Intensity |
|---|---|---|---|---|
| Airbnb (Median) | $2,160 ($35,280 annual) | 28-75% | 7-10% | High |
| Airbnb (Top Performers) | $3,052+ ($36,624+ annual) | 60-75% | 8-12% | Very High |
| Long-Term 2BR | $400-600 ($4,800-7,200 annual) | 95%+ | 5-7% | Low |
| Long-Term 3BR | $600-900 ($7,200-10,800 annual) | 95%+ | 6-7% | Low |
| Long-Term 4BR | $800-1,200 ($9,600-14,400 annual) | 95%+ | 6-8% | Low |
Short-term rentals in tourist areas or near universities can achieve 7-10% gross yields but face seasonal demand fluctuations and require professional management for optimal performance. Top-performing properties often benefit from unique locations, superior amenities, or exceptional guest service.
Long-term rentals provide stability with occupancy rates exceeding 95% in high-demand areas near universities, business parks, or transportation hubs. While gross yields typically range 5-7%, the predictable income and lower management requirements appeal to passive investors.
The choice between strategies often depends on investor involvement capacity, local market dynamics, and risk tolerance rather than purely financial returns.
Can you give me example rental prices for small studios, family houses, and premium apartments?
Specific rental examples across Bandung's property spectrum illustrate the diverse options available to both tenants and investors in September 2025.
Small studios in central areas targeting students or young professionals typically rent for Rp1.5-2.5 million monthly, while premium studio apartments designed for short-term rentals command Rp273,000-527,000 per night. These premium units often feature modern furnishings, central locations, and amenities targeting business travelers.
Family houses show substantial variation based on size and neighborhood. A typical 3-bedroom suburban house rents for Rp3-4 million monthly, while similar properties in premium areas like Dago or Setiabudi reach Rp5-7 million monthly. Four-bedroom houses with gardens in family-friendly neighborhoods typically cost Rp4-6 million monthly.
Premium apartments represent Bandung's luxury rental segment, with 2-bedroom units in high-rise developments costing Rp6-8 million monthly and 3-bedroom penthouses reaching Rp10-15 million monthly. These properties often include amenities like swimming pools, gyms, and 24-hour security.
Commercial space examples include small retail units at Rp2-3 million monthly for 20-30 square meters, while larger office spaces of 100-200 square meters typically cost Rp8-15 million monthly depending on location and building quality.
What kind of renters are most common in Bandung?
Bandung's diverse rental market serves four primary tenant segments, each with distinct preferences and payment capabilities that shape local rental demand patterns.
Students represent the highest volume tenant category, particularly concentrated near universities in areas like Dago and Dipatiukur. This segment typically seeks affordable shared accommodations or small studios, driving consistent demand for properties under Rp2 million monthly and creating opportunities for investors focused on volume over individual unit returns.
Young professionals working in Bandung's growing technology, creative, and service industries prefer inner-city apartments with modern amenities and transportation access. This demographic typically budgets Rp3-6 million monthly for housing and values convenience, internet connectivity, and proximity to entertainment districts.
Families constitute a substantial portion of the rental market, showing strong demand for 2-4 bedroom houses in suburban areas with good schools and family amenities. These tenants typically sign longer leases, making them attractive to landlords seeking stable, low-maintenance rental relationships.
Expatriates, while smaller in number, represent high-value tenants typically seeking premium apartments or houses in gated communities near international schools. This segment often pays Rp8-15 million monthly and values properties with western-style amenities, reliable utilities, and English-speaking property management.
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What are the current vacancy rates by property type and location?
Vacancy rates in Bandung remain relatively low across most property segments as of September 2025, reflecting strong rental demand and effective market pricing.
Central apartments, particularly premium developments, maintain occupancy rates above 90% with vacancy rates consistently below 10%. These properties benefit from strong demand from professionals and expatriates willing to pay premium rents for location and amenities.
Suburban apartments and houses experience vacancy rates of 10-15%, typical for secondary locations but still indicating healthy demand. Properties in well-connected suburban areas near universities or business centers perform better within this range.
Commercial vacancy rates have improved significantly in 2025, dropping from higher levels in previous years due to renewed business activity and urban regeneration projects. Main road retail spaces and modern office buildings show particular strength in occupancy rates.
Student-focused properties near major universities maintain some of the lowest vacancy rates in the market, often achieving 95%+ occupancy during academic periods. However, these properties may experience seasonal fluctuations during holiday periods when students return home.
The overall tight vacancy environment supports landlords' ability to maintain or increase rents while providing tenants with reasonable choices across all budget levels and property types.
What are the average yields today, and how do they compare to one year ago and five years ago?
Bandung's rental yields have shown a declining trend over the past five years as property prices have appreciated faster than rental rates, though yields remain attractive compared to many regional markets.
| Time Period | Bandung Yield Range | Jakarta Comparison | Surabaya Comparison | Market Conditions |
|---|---|---|---|---|
| 2025 (Current) | 5-8% | 4.3% | 7-8% | Rising prices, stable rents |
| 2024 | 6.1% | 4% | 6%+ | Moderate price growth |
| 2020 | 8-10% | 5-6% | 8% | Lower prices, higher yields |
Current yields in 2025 range from 5-8% across different property types and locations, with short-term rentals and well-managed long-term properties achieving the higher end of this range. Premium properties in central locations typically deliver yields closer to 5-6%, while suburban properties and specialized rental strategies can reach 7-8%.
The yield compression from 8-10% in 2020 to 5-8% in 2025 reflects Bandung's property market maturation and increasing investor interest. While yields have declined, they remain superior to Jakarta's 4.3% average and competitive with Surabaya's 7-8% range.
This trend indicates a healthy market where capital appreciation has outpaced rental growth, benefiting property owners while maintaining reasonable rental affordability for tenants. The yield environment suggests continued investor interest while highlighting the importance of careful property selection and management for optimal returns.
What's the rental and yield forecast for the next one, five, and ten years?
Bandung's rental market outlook remains positive through 2035, driven by infrastructure development, university expansion, and the city's growing appeal as an alternative to more expensive Indonesian cities.
Next year's forecast anticipates moderate price growth of 3%+ with stable rental rates in most segments, potentially leading to slight yield compression in premium areas while suburban and specialized properties maintain stronger yields. Infrastructure improvements and business development should support steady rental demand.
The five-year outlook through 2030 shows significant potential from ongoing infrastructure projects including LRT expansion and new toll road connections that will boost outer suburbs and new developments. Yields are likely to stabilize in the 5-7% range as prices continue outpacing rents, though well-managed short-term rentals may outperform with proper positioning.
Ten-year projections through 2035 suggest continued competition with Jakarta and Surabaya, with Bandung maintaining its affordability advantage while strengthening its appeal through lifestyle factors and tourism development. Student rentals and short-term accommodations in scenic locations should remain particularly lucrative segments.
Compared to other major Indonesian cities, Bandung's yields should remain higher than Jakarta's 4-4.5% while potentially trailing Surabaya's 7-8%, making it an attractive entry point for investors seeking balanced risk-return profiles in Indonesia's growing rental market.
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.
Bandung's rental market presents compelling opportunities for both investors and tenants, with competitive rates averaging $175-176 for city center apartments and suburban options from $111 monthly.
Current yields of 5-8% remain attractive despite recent compression, while strong demand from students, professionals, and families supports stable occupancy rates above 85% across most property segments through 2025 and beyond.
Sources
- Agoda Bandung Apartments
- Travel Safe Abroad - Bandung Cost of Living
- Traveloka Bandung Accommodations
- BambooRoutes Bandung Price Forecasts
- BambooRoutes Bandung Real Estate Trends
- Juwai Asia Indonesia Property News
- Rumah123 Bandung Commercial Rentals
- Knight Frank Indonesia Commercial Properties
- Mercury Estate Indonesia Tax Guide
- AirROI Bandung Report