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If you are looking to rent or invest in rental property in Palembang, you probably want to know what rents look like right now.
In this guide, we break down typical rents for studios, 1-bedroom, and 2-bedroom homes in Palembang, along with neighborhood insights and landlord costs.
We update this blog post regularly to keep the numbers fresh and accurate for 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Palembang.
Insights
- A typical studio in Palembang rents for around IDR 1.3 million per month, which is roughly $82 or €76, making it one of Indonesia's most affordable city rental markets.
- Palembang landlords should expect rent growth between 3% and 5% in 2026, which tracks closely with Bank Indonesia's inflation target corridor of 2.5% plus or minus 1%.
- Most Palembang rentals are landed houses priced per year, not apartments priced per month, so always divide annual quotes by 12 to compare apples to apples.
- Ilir Barat I and Ilir Barat II command Palembang's highest rents because of their central location, better road access, and proximity to office clusters.
- The vacancy rate for formal rentals in Palembang sits around 8%, but prime central pockets like Kemuning can drop to 5% to 7%.
- Correctly priced rentals in Palembang typically find a tenant within 30 days, but overpriced listings can sit for 45 to 90 days or longer.
- Furnished rentals dominate the monthly kos and guesthouse segment in Palembang, while family houses on annual leases are almost always unfurnished.
- Peak tenant demand in Palembang hits during June to August and again in January to February, driven by student moves and mid-year job changes.
- Palembang landlords pay a 10% final income tax on gross rent under Indonesia's PP No. 34/2017 regulation, which simplifies tax planning significantly.
- Adding air conditioning to bedrooms and ensuring reliable water pressure are the two renovations that most reliably boost rent in Palembang.
What are typical rents in Palembang as of 2026?
What's the average monthly rent for a studio in Palembang as of 2026?
As of January 2026, the average monthly rent for a studio in Palembang is around IDR 1.3 million, which works out to approximately $82 or €76.
The realistic range for most studios in Palembang falls between IDR 1.0 million and IDR 2.0 million per month, or roughly $63 to $127 (€59 to €118), depending on quality and location.
The main factors that cause studio rents in Palembang to vary are whether the unit is furnished, whether it has a private bathroom, and how close it is to university campuses or job centers.
What's the average monthly rent for a 1-bedroom in Palembang as of 2026?
As of January 2026, the average monthly rent for a 1-bedroom in Palembang is around IDR 2.5 million, which is approximately $158 or €147.
The realistic range for most 1-bedroom rentals in Palembang spans from IDR 2.0 million to IDR 3.5 million per month, or roughly $127 to $222 (€118 to €206).
Outer districts like Alang-Alang Lebar tend to have the cheapest 1-bedroom rents in Palembang, while central areas like Ilir Barat I and Ilir Barat II command the highest prices.
What's the average monthly rent for a 2-bedroom in Palembang as of 2026?
As of January 2026, the average monthly rent for a 2-bedroom in Palembang is around IDR 3.5 million, which is approximately $222 or €206.
The realistic range for most 2-bedroom rentals in Palembang falls between IDR 2.5 million and IDR 5.0 million per month, or roughly $158 to $316 (€147 to €294).
Outer districts like Alang-Alang Lebar and Gandus tend to have the cheapest 2-bedroom rents in Palembang, while central Ilir Barat II commands the highest prices, often reaching IDR 5 million per month for renovated homes.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Palembang.
What's the average rent per square meter in Palembang as of 2026?
As of January 2026, the average rent per square meter in Palembang is around IDR 50,000 per month, which is approximately $3.20 or €2.90.
The realistic range for rent per square meter in Palembang spans from IDR 40,000 to IDR 80,000 per month, or roughly $2.50 to $5.00 (€2.35 to €4.70), depending on the neighborhood and property type.
Compared to Jakarta or Surabaya, Palembang's rent per square meter is significantly lower, often 40% to 60% cheaper than Indonesia's largest cities, which makes it attractive for budget-conscious tenants.
Small furnished units in Palembang tend to push rent per square meter above average, while larger family houses typically fall on the lower end of the range because tenants pay less per square meter as size increases.
How much have rents changed year-over-year in Palembang in 2026?
As of January 2026, rents in Palembang have increased by an estimated 3% to 5% compared to the same time last year.
The main factors driving rent changes in Palembang this year include steady regional economic growth of around 5.2% and Bank Indonesia's inflation target, which keeps price increases moderate across the board.
This year's rent change in Palembang is consistent with the previous year's trend, as the city continues to see gradual growth rather than dramatic spikes or crashes.
What's the outlook for rent growth in Palembang in 2026?
As of January 2026, projected rent growth in Palembang is expected to remain between 3% and 5% for the year, with prime areas trending toward the higher end.
The key factors likely to influence rent growth in Palembang include continued regional economic expansion and steady job creation, which support tenant demand without creating speculative pressure.
Neighborhoods like Ilir Barat I, Kemuning, and parts of Sukarami are expected to see the strongest rent growth in Palembang because they offer the best commuting access and flood-safe streets.
Potential risks that could cause rent growth in Palembang to differ from projections include unexpected inflation spikes, changes in national interest rates, or a slowdown in the Sumatera Selatan regional economy.
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Palembang as of 2026?
Which neighborhoods have the highest rents in Palembang as of 2026?
As of January 2026, the top three neighborhoods with the highest average rents in Palembang are Ilir Barat I (including Bukit Besar and Bukit Lama), Ilir Barat II, and Kemuning, where 2-bedroom homes can reach IDR 5.0 million per month, or about $316 (€294).
These neighborhoods command premium rents in Palembang because they offer central locations, easy commuting to office districts, flood-safe streets, and well-maintained residential clusters.
The typical tenant profile in these high-rent Palembang neighborhoods includes corporate professionals, business owners, and expats who prioritize convenience, safety, and access to services over budget.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Palembang.
Where do young professionals prefer to rent in Palembang right now?
The top three neighborhoods where young professionals prefer to rent in Palembang are Kemuning, Ilir Barat I, and Sukarami, which offer a balance of affordability and commute convenience.
Young professionals in these Palembang neighborhoods typically pay between IDR 1.5 million and IDR 3.0 million per month, or roughly $95 to $190 (€88 to €176), for furnished monthly units or small houses.
These neighborhoods attract young professionals in Palembang because they have practical everyday amenities like cafes, co-working spaces, and easy access to main roads without the higher prices of the most central areas.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Palembang.
Where do families prefer to rent in Palembang right now?
The top three neighborhoods where families prefer to rent in Palembang are Alang-Alang Lebar, Sukarami, and Gandus, which offer more space, parking, and quieter streets.
Families in these Palembang neighborhoods typically pay between IDR 2.5 million and IDR 4.0 million per month, or roughly $158 to $253 (€147 to €235), for 2-3 bedroom houses on annual leases.
These neighborhoods attract families in Palembang because they feature cluster-style housing developments, lower flood risk, and room for parking multiple vehicles.
Families in these areas have access to well-regarded local schools and several private educational options, though many Palembang families also prioritize proximity to major roads for daily school commutes.
Which areas near transit or universities rent faster in Palembang in 2026?
As of January 2026, the top three areas that rent fastest in Palembang are central Ilir Barat, Kemuning, and parts of Sukarami, because they offer easy commuting corridors and proximity to major campuses.
Properties in these high-demand Palembang areas typically stay listed for only 10 to 20 days when correctly priced, compared to the city-wide average of around 30 days.
The typical rent premium for properties within easy reach of transit routes or universities in Palembang is around IDR 300,000 to IDR 500,000 per month, or roughly $19 to $32 (€18 to €29), compared to similar properties in less accessible locations.
Which neighborhoods are most popular with expats in Palembang right now?
The top three neighborhoods most popular with expats in Palembang are Ilir Barat I, Ilir Barat II, and Sukarami, which offer central comfort, newer housing options, and better access to services.
Expats in these Palembang neighborhoods typically pay between IDR 3.5 million and IDR 5.0 million per month, or roughly $222 to $316 (€206 to €294), for furnished houses with reliable utilities.
These neighborhoods attract expats in Palembang because they offer easier access to international-standard services, better road infrastructure, and homes that are more likely to have air conditioning and fast internet.
Palembang's expat community is relatively small compared to Jakarta or Bali, and tends to be dominated by professionals from neighboring Asian countries and project-based workers from industrial or logistics companies.
And if you are also an expat, you may want to read our exhaustive guide for expats in Palembang.
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Who rents, and what do tenants want in Palembang right now?
What tenant profiles dominate rentals in Palembang?
The top three tenant profiles that dominate the rental market in Palembang are students and early-career workers, local families, and project-based corporate tenants.
Students and young professionals represent roughly 45% of Palembang's rental market, local families account for about 40%, and corporate or project-based tenants make up the remaining 15%.
Students and young workers typically seek small furnished units or kos-style rooms, local families look for 2-3 bedroom houses on annual leases, and corporate tenants prefer furnished homes with flexible terms and better finishes.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Palembang.
Do tenants prefer furnished or unfurnished in Palembang?
In Palembang, roughly 60% of kos and monthly-stay tenants prefer furnished rentals, while about 80% of family house tenants on annual leases prefer unfurnished properties.
The typical rent premium for furnished apartments in Palembang is around IDR 300,000 to IDR 600,000 per month, or roughly $19 to $38 (€18 to €35), compared to similar unfurnished units.
Tenant profiles that tend to prefer furnished rentals in Palembang include students, young professionals, and expats or corporate tenants on shorter assignments who want to avoid the hassle of buying furniture.
Which amenities increase rent the most in Palembang?
The top five amenities that increase rent the most in Palembang are air conditioning in bedrooms and living areas, reliable water pressure with a pump or tank setup, secure car parking, a flood-safe micro-location, and fast internet readiness with fiber availability.
Air conditioning typically adds IDR 200,000 to IDR 400,000 per month (about $13 to $25 or €12 to €24), reliable water adds IDR 100,000 to IDR 200,000 (about $6 to $13 or €6 to €12), and car parking can add IDR 150,000 to IDR 300,000 (about $9 to $19 or €9 to €18) to the monthly rent in Palembang.
In our property pack covering the real estate market in Palembang, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Palembang?
The top five renovations that get the best ROI for rental properties in Palembang are fresh paint and improved lighting, bathroom refresh with new fixtures and ventilation, kitchen usability upgrades, adding or upgrading AC units, and fixing damp or heat issues with better ventilation.
Fresh paint typically costs IDR 2 million to IDR 5 million (about $127 to $316 or €118 to €294) and can increase rent by IDR 100,000 to IDR 200,000 per month, while adding an AC unit costs IDR 4 million to IDR 7 million (about $253 to $443 or €235 to €412) and can boost rent by IDR 200,000 to IDR 400,000 per month in Palembang.
Renovations that tend to have poor ROI in Palembang include luxury kitchen upgrades, high-end imported flooring, and expensive landscaping, because tenants in this market prioritize practical comfort over premium finishes.
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 strong is rental demand in Palembang as of 2026?
What's the vacancy rate for rentals in Palembang as of 2026?
As of January 2026, the estimated vacancy rate for rental properties in Palembang is around 8% for formal rentals including houses and apartment-style units.
Vacancy rates in Palembang vary from about 5% to 7% in prime central neighborhoods like Ilir Barat and Kemuning, up to 9% to 12% in less accessible outer areas.
The current vacancy rate in Palembang is roughly in line with historical averages, reflecting stable demand without the extreme tightness seen in boom markets or the oversupply seen in struggling ones.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Palembang.
How many days do rentals stay listed in Palembang as of 2026?
As of January 2026, the average rental property in Palembang stays listed for around 30 days when correctly priced.
Days on market in Palembang range from about 10 to 20 days for well-priced properties in desirable locations, up to 45 to 90 days or longer for overpriced or poorly presented listings.
The current days-on-market figure in Palembang is similar to one year ago, as the rental market remains steady without major shifts in either tenant demand or landlord supply.
Which months have peak tenant demand in Palembang?
The peak months for tenant demand in Palembang are June through August and January through February, when most moves and new lease signings happen.
These seasonal demand patterns in Palembang are driven by student relocations before new academic terms, mid-year job changes, and the fresh-start mentality that comes with the new year.
The lowest tenant demand in Palembang typically occurs during September through November and March through April, when most existing leases are stable and fewer people are actively looking to move.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Palembang as of 2026?
What property taxes should landlords expect in Palembang as of 2026?
As of January 2026, a typical landlord in Palembang with a property valued at around IDR 1.2 billion should expect to pay approximately IDR 2.1 million per year in property tax (PBB-P2), which is about $133 or €124 annually.
Annual property taxes in Palembang range from around IDR 500,000 (about $32 or €29) for modest homes up to IDR 5 million or more (about $316 or €294) for higher-value properties in prime locations.
Property taxes in Palembang are calculated by applying tiered rates (from 0.085% to 0.275%) to the property's assessed value (NJOP) after subtracting a non-taxable threshold of IDR 10 million.
Please note that, in our property pack covering the real estate market in Palembang, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What utilities do landlords often pay in Palembang right now?
In Palembang, most landlords do not pay utilities on behalf of tenants, as electricity, water, and internet are typically the tenant's responsibility under standard rental agreements.
When landlords do include utilities in kos-style or furnished monthly rentals, they typically budget around IDR 200,000 to IDR 500,000 per month (about $13 to $32 or €12 to €29) for electricity and water combined.
The common practice in Palembang is for tenants to pay their own electricity directly to PLN, pay water to the local utility, and arrange their own internet, while landlords focus on property maintenance and taxes.
How is rental income taxed in Palembang as of 2026?
As of January 2026, rental income from land or buildings in Palembang is subject to a 10% final income tax on gross rent under Indonesia's PP No. 34/2017 regulation.
The main deductions landlords can claim against rental income in Palembang are limited under the final tax regime, which means the 10% is calculated on gross rent without subtracting expenses like maintenance or mortgage interest.
A common tax mistake Palembang landlords should avoid is failing to properly document rental payments, especially for annual leases paid in cash, which can create compliance issues during tax audits.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Palembang.
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Palembang, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| BPS Kota Palembang | This is the official city statistics office, so it's the most reliable source for local economic and price data in Palembang. | We used it to anchor our understanding of local inflation trends and housing-related spending patterns. We also used it as a reality check to ensure our rent estimates stay in line with official price dynamics. |
| BPS Sumatera Selatan | This is the official regional GDP release, so it's a reliable signal for local income and demand fundamentals. | We used it to understand the economic backdrop supporting 2026 rental demand in Palembang. We also used it to explain why Palembang rent growth is steady rather than volatile. |
| Bank Indonesia Monetary Policy Review | Bank Indonesia is the central bank, and its inflation target is a core macroeconomic anchor for all Indonesian markets. | We used it to build a 2026 rent-growth outlook consistent with the national inflation corridor. We also used it to keep our year-over-year rent change estimates realistic and not sensational. |
| Bank Indonesia Sumatera Selatan Report | This is BI's provincial economic report, specifically designed for tracking local economic momentum. | We used it to support the demand story for Palembang rentals including growth drivers and consumption trends. We also used it to ground our 2026 outlook in an official, repeatable publication. |
| Perda Kota Palembang No. 4/2023 | This is the city's official tax law text, so it's the highest-authority source for local property tax rules. | We used it to state the actual PBB-P2 rate tiers and non-taxable threshold used in Palembang. We also used it to create a simple landlord example showing what property tax to expect. |
| Direktorat Jenderal Pajak | This is Indonesia's official tax authority, providing definitive guidance on income tax withholding. | We used it to explain the standard final tax treatment landlords face on rental income. We also used it to align our tax section with official wording and scope. |
| JDIH BPK RI on PP No. 34/2017 | JDIH BPK is a trusted public law repository that hosts exact regulation texts and metadata. | We used it to confirm that rental income from land and buildings is specifically regulated under PP 34/2017. We also used it to support our practical summary of the final-tax approach. |
| PLN Electricity Tariffs | PLN is the national electricity utility, so its tariff page is the most direct reference for electricity costs. | We used it to provide realistic electricity-cost expectations for landlords and tenants budgeting utilities. We also used it to explain why electricity is typically a tenant-paid variable cost. |
| Rumah123 | Rumah123 is a major national property portal with transparent listing details for price verification. | We used it to observe real asking-rent examples and convert annual quotes into monthly ranges. We also used it to identify neighborhood price differences within Palembang. |
| Travelio | Travelio is a large booking platform that shows unit size and monthly prices in a consistent, comparable format. | We used it as our best transparent proxy for studio-like monthly rentals with square meters shown. We also used it to compute rough rent-per-sqm from real Palembang examples. |
| Lamudi Indonesia | Lamudi is a long-running property portal that serves as a useful second opinion on asking-rent levels. | We used it to cross-check that annual rent levels we saw on Rumah123 were not a single-site anomaly. We also used it as supporting evidence for the upper end of Palembang house rents. |
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