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As of September 2025, Medan's rental market shows strong growth with apartments ranging from IDR 500,000 to IDR 5,000,000+ monthly depending on type and location.
The Medan rental market has experienced exceptional appreciation in 2025, driven by infrastructure development and foreign investment. Budget studio apartments start at IDR 500,000 monthly in suburban areas, while luxury city-center condos command IDR 3,000,000-5,000,000+ per month. Commercial units in prime areas can reach IDR 12,500,000 monthly, making Medan an attractive investment destination with rental yields averaging 3.9-4% for long-term leases.
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Medan's rental market offers diverse opportunities from budget studios at IDR 500,000/month to luxury condos exceeding IDR 5,000,000/month, with strongest demand in city center districts.
Investment yields average 3.9-4% for long-term rentals, while short-term rentals can achieve 7-9% with proper management and prime locations.
| Property Type | Monthly Rent Range (IDR) | Monthly Rent Range (USD) |
|---|---|---|
| Budget Studio | 500,000 - 1,500,000 | $31 - $93 |
| Mid-range Apartment | 1,500,000 - 3,000,000 | $93 - $186 |
| Luxury Condo | 3,000,000 - 5,000,000+ | $186 - $310+ |
| Basic House (Suburbs) | 1,600,000+ | $99+ |
| Family Home | 6,900,000 | $428 |
| Commercial Shop | 12,500,000 | $775 |
| Office/SOHO | 5,000,000 - 7,000,000 | $310 - $434 |
What are the typical rent prices in Medan right now for apartments, houses, and commercial units?
Medan's rental market as of September 2025 shows clear segmentation across property types with significant price variations.
Budget studio apartments in suburban areas start at IDR 500,000-1,500,000 monthly (US$31-93), making them accessible for students and young professionals. Mid-range apartments with 1-2 bedrooms command IDR 1,500,000-3,000,000 monthly (US$93-186), while luxury high-rise units in the city center reach IDR 3,000,000-5,000,000+ monthly (US$186-310+).
House rentals show greater variation based on location and size. Basic suburban houses start around IDR 1,600,000 monthly (US$99), while family homes in normal areas average IDR 6,900,000 monthly for 85m² properties. Luxury villas can exceed IDR 10,000,000 monthly (US$620+) depending on amenities and location.
Commercial properties command premium rents with shop houses in prime areas reaching IDR 150,000,000 annually (approximately IDR 12,500,000 monthly or US$775). Smaller SOHO and office units typically rent for IDR 5,000,000-7,000,000 monthly, with purchase prices starting from IDR 600,000,000.
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How do rental prices vary by neighborhood and district in Medan?
Location significantly impacts rental pricing in Medan, with central districts commanding premium rates.
Medan Baru and Kesawan represent the most expensive districts, being in the city center where apartments typically start at IDR 3,000,000+ monthly. Luxury condos in these areas have purchase prices of IDR 2-3 billion, reflecting their premium positioning and proximity to business centers, shopping areas, and transportation hubs.
Suburban areas like Sunggal offer more affordable options with apartments and landed homes starting from IDR 1,000,000-2,000,000 monthly. These areas provide better value for families seeking more space while maintaining reasonable commute times to the city center.
Emerging areas including Sunggal and Kampung Baru are experiencing rising rents due to development and improved infrastructure, but remain more affordable than established central districts. These neighborhoods offer investment opportunities as rental prices are expected to increase with continued urban expansion.
The price differential between central and suburban areas can be as much as 100-200%, making location choice crucial for both tenants seeking affordability and investors targeting specific market segments.
What is the average rent per square meter for different property categories?
Medan's rental rates per square meter vary significantly across property categories and reflect market positioning.
| Property Type | Average Sale Price per Sqm (IDR) | Average Monthly Rent per Sqm (IDR) |
|---|---|---|
| Apartment | 27,100,000 | 250,000 - 450,000 |
| House | 9,800,000 | 81,000 |
| Commercial Unit | 9,200,000 | 108,000 |
| Luxury Apartment | 22,000,000 - 27,000,000 | 350,000 - 500,000 |
| Budget Apartment | 15,000,000 - 20,000,000 | 150,000 - 250,000 |
Apartments command the highest per-square-meter rates due to location advantages, amenities, and maintenance services. Mid to large apartment units typically rent for IDR 250,000-450,000 per square meter monthly, with luxury units reaching the upper end of this range.
Houses offer better space value at approximately IDR 81,000 per square meter monthly, making them attractive for families requiring larger living areas. Commercial units fall between apartments and houses at IDR 108,000 per square meter, reflecting their business use and location requirements.
What does the total rent include and are there hidden fees or charges?
Medan rental agreements often exclude several mandatory costs that tenants must budget beyond the advertised rent.
Monthly maintenance fees for apartments typically range from IDR 150,000-500,000, covering common area upkeep, security, and building management. Security and association fees add another IDR 100,000-400,000 monthly, while utilities including electricity and water can exceed IDR 400,000 monthly depending on usage and property size.
Parking may incur additional charges, especially in condominium developments where spaces are limited. Commercial units face annual repair and association fees, insurance requirements, and potentially higher utility rates due to business usage patterns.
Landlords increasingly pass monthly maintenance and management costs to tenants, making it essential to review lease agreements carefully. Some properties include certain utilities or maintenance in the base rent, while others itemize each service separately.
Total monthly occupancy costs can add 30-50% to the advertised rent, significantly impacting affordability calculations for both residential and commercial tenants.
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How do property taxes and ownership costs affect landlord returns in Medan?
Indonesian property taxes and ownership costs significantly impact net rental returns for Medan landlords.
Annual Property Tax (PBB) ranges from 0.1-0.3% of assessed value for residential rental properties, increasing to 0.5% for commercial properties. Rental income faces a flat 10% tax rate on gross income for individual landlords, reducing net returns substantially.
Property acquisition involves a 5% transfer tax plus approximately 10% of purchase price for notary fees, agent commissions, legal costs, and registration expenses. These upfront costs require careful calculation when projecting investment returns.
Ongoing ownership expenses include annual maintenance, insurance, potential vacancy periods, and property management fees if using professional services. Commercial properties may face additional regulatory compliance costs and higher insurance premiums.
After accounting for all taxes and costs, effective rental yields often drop 1-2 percentage points below gross yields, making accurate cost calculation essential for investment decisions.
What are the financing options and mortgage terms for rental properties?
Indonesian banks offer housing loans for Medan rental properties with specific terms and requirements.
Most banks provide financing up to 95% of property value for qualified borrowers, with mortgage durations commonly spanning 5-20 years. Interest rates typically range between 8-11% annually, varying based on borrower profile, property type, and loan duration.
Local income proof is mandatory for mortgage approval, creating challenges for foreign investors who often require Indonesian nominees for property ownership. Banks prefer borrowers with stable employment history and debt-to-income ratios below 30%.
Down payment requirements start at 5% but many banks prefer 20-30% to reduce lending risk. Commercial property financing may require higher down payments and shorter repayment terms due to increased risk profiles.
Processing times typically span 2-4 weeks with required documentation including income statements, tax returns, property valuations, and legal due diligence reports.
How do short-term rental returns compare with long-term leases?
Medan's rental market offers distinct return profiles for short-term versus long-term rental strategies.
Long-term leases provide stable returns averaging 3.9-4% gross yields with predictable monthly income and lower management requirements. These arrangements suit investors seeking steady cash flow with minimal day-to-day involvement.
Short-term rentals through platforms like Airbnb can achieve 7-9% yields when consistently occupied, particularly for central apartments and serviced units with quality amenities. However, these returns depend heavily on occupancy rates, seasonal demand, and active management.
Short-term rentals face higher operational costs including frequent cleaning, utilities, maintenance, marketing, and guest services. Local regulations may also restrict short-term rental operations in certain areas or building types.
Risk profiles differ significantly, with long-term leases offering stability but limited upside, while short-term rentals provide higher potential returns alongside greater market exposure and management complexity.
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Can you provide concrete rental examples for different property sizes?
Medan's rental market offers clear examples across different property categories and price points.
Small studio apartments in suburban areas typically rent for IDR 500,000-1,000,000 monthly (US$31-62), targeting students and young professionals seeking affordable accommodation near universities or business districts. These units usually include basic furnishing and utilities.
Mid-sized family houses represent the middle market segment, with furnished 85m² properties commanding approximately IDR 6,900,000 monthly. These homes typically feature 2-3 bedrooms, kitchen facilities, and parking, appealing to expatriate families and local professionals.
Luxury condominiums in city center locations like Medan Baru command IDR 3,500,000-6,000,000+ monthly (US$217-372), offering premium amenities including swimming pools, fitness centers, security services, and prime locations near shopping and business centers.
Commercial examples include small office spaces starting at IDR 5,000,000 monthly, while prime shop houses can reach IDR 12,500,000 monthly depending on location and foot traffic potential.
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What is the current tenant profile in Medan's rental market?
Medan's tenant demographics reflect the city's educational and economic landscape with distinct market segments.
Students represent a significant and stable tenant base driven by Medan's 11+ universities, creating constant high demand and occupancy rates near campus areas. This demographic typically seeks affordable housing options including studio apartments and shared accommodations.
Expatriates and professionals are attracted by Medan's business hubs, medical tourism sector, and multinational company presence. These tenants usually prefer furnished apartments or houses with modern amenities and convenient locations, willing to pay premium rents for quality accommodations.
Local families predominantly choose suburban landed homes offering more space and value, while young professionals gravitate toward city apartments for proximity to employment centers and urban lifestyle amenities.
Digital nomads and remote workers increasingly appear in serviced apartments with reliable internet infrastructure, representing a growing segment seeking flexible, well-equipped accommodations for shorter-term stays.
What are the vacancy rates and how do they affect profitability?
Medan's vacancy rates vary significantly by property age, location, and type, directly impacting rental profitability.
New developments typically maintain high occupancy rates with low vacancy, especially those located near business centers or educational institutions. These properties benefit from modern amenities and strategic positioning that attract quality tenants.
Older districts experience rising vacancy rates as renters migrate toward newer buildings offering better facilities and maintenance standards. Properties lacking modern amenities or in declining neighborhoods face longer vacancy periods and rent pressure.
City-wide vacancy rates are estimated at 5-7%, though this varies considerably by specific location and property condition. Prime central locations maintain lower vacancy rates while suburban and older properties may exceed average rates.
Each month of vacancy can reduce annual returns by 8-10%, making property selection and maintenance crucial for investment success. High-quality properties in desirable locations typically experience shorter vacancy periods and stronger rent growth.
What are the smartest investment choices in Medan today?
Current market conditions favor specific property types and locations for optimal rental yields and risk management.
Modern apartments and condominiums in Medan Baru, Kesawan, or new development projects offer the highest growth potential and rental stability. These properties benefit from strong demand, modern amenities, and appreciation potential driven by urban development.
Student rental properties near universities provide constant high occupancy rates and stable returns, though individual unit values may be lower. This segment offers predictable income with established demand patterns throughout academic years.
Commercial units in upcoming business zones including Kampung Baru and areas near Special Economic Zones (SEZs) present opportunities for steady demand and rising rents as business activity expands in these developing areas.
Properties with full amenities including security, swimming pools, and high-speed internet demonstrate stronger tenant interest and rent resilience during market fluctuations. These features increasingly separate successful rentals from struggling properties.
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How have rental prices and yields changed over recent years and what are the forecasts?
Medan's rental market has experienced exceptional growth with strong future prospects based on current trends.
The past five years show rapid property price appreciation with houses increasing 67.8% and condominiums rising 47.7% during 2025 alone. Commercial properties have shown more modest but steady growth at 13.8% annually, reflecting different demand dynamics.
The 2024-2025 period represents exceptional appreciation driven by infrastructure development, foreign investment attraction, and urban expansion projects. This growth has elevated Medan's profile as an emerging investment destination within Indonesia.
Forecasts for the next 1-5 years predict steady growth at 3-5% annually, supported by continued population expansion, economic development, and new project completions. Ten-year projections remain positive based on Medan's strategic position and development plans.
Compared to other major Indonesian cities, Medan offers more affordable entry points than Jakarta or Bali while providing competitive yields. Current yields average 3.9% versus Jakarta's 6.5% and Bali's >10%, though Medan's lower entry costs and growth potential offer different risk-return profiles for investors.
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.
Medan's rental market presents compelling opportunities for both investors and residents seeking quality accommodations in Indonesia's fourth-largest city.
With rental yields averaging 3.9-4% for long-term investments and potential for 7-9% through short-term strategies, combined with strong growth forecasts, Medan offers attractive prospects for property investment when proper due diligence is conducted.
Sources
- Expedia Medan Apartments
- Traveloka Medan Accommodation
- RentByOwner Medan Property
- BambooRoutes Medan Price Forecasts
- Sun-Ski Medan Property
- BambooRoutes Medan Property Investment
- Expatistan Medan Cost of Living
- Juwai Asia Property News
- BambooRoutes Medan Real Estate Forecasts
- Mordor Intelligence Indonesia Real Estate Market