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Surabaya's rental market offers strong yields and diverse opportunities for both investors and residents. The city provides competitive pricing compared to Jakarta while maintaining healthy rental demand across residential and commercial sectors.
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As of September 2025, Surabaya rental prices range from IDR 2.6 million monthly for 1BR apartments outside the center to IDR 12 million for family homes, with commercial spaces achieving yields up to 40%.
The city offers better rental yields averaging 7.21% compared to Jakarta's 4.27%, making it an attractive investment destination for property investors seeking balanced growth and income.
| Property Type | Average Monthly Rent (IDR) | Rental Yield Range |
|---|---|---|
| 1BR Apartment (City Center) | 5,083,333 | 7-10% |
| 1BR Apartment (Outside Center) | 2,642,003 | 8-12% |
| 3BR Apartment (City Center) | 7,500,000 | 8-12% |
| Family House (3-4BR) | 10,000,000-12,000,000 | 10-15% |
| Commercial Space | 10,000,000-80,000,000+ | 30-40% |
| Premium Properties | 25,000,000-40,000,000 | 15-25% |
| Studio Apartments | 2,800,000-5,000,000 | 7-10% |
What are the current average rental prices across Surabaya's main districts?
Surabaya's rental market shows clear pricing distinctions between central and outer districts as of September 2025.
In the city center, one-bedroom apartments average IDR 5,083,333 monthly, with prices ranging from IDR 3 million to IDR 7 million depending on building quality and exact location. Three-bedroom apartments in central areas command IDR 7,500,000 monthly on average, though premium units can reach IDR 16 million.
Outside the city center, rental costs drop significantly with one-bedroom apartments averaging IDR 2,642,003 monthly, typically ranging between IDR 2 million to IDR 3.5 million. This price difference makes outer districts attractive for budget-conscious tenants and investors seeking higher rental yields.
Premium districts including Citraland, Gubeng, Darmo, and Rungkut command the highest rental rates across all property types. These areas attract affluent tenants and expatriate families, supporting premium pricing structures that can exceed average market rates by 30-50%.
How do rental rates differ between apartments, houses, and commercial properties?
The Surabaya rental market demonstrates significant variation between property types, with commercial spaces offering the highest yields.
| Property Category | Typical Monthly Rent Range (IDR) | Average Rental Yield |
|---|---|---|
| Studio/1BR Apartments | 2,800,000 - 5,083,333 | 7-10% |
| 2BR Apartments | 6,000,000 - 8,000,000 | 8-12% |
| 3BR Apartments | 7,500,000 - 16,000,000 | 8-12% |
| Family Houses (3-4BR) | 10,000,000 - 13,000,000 | 10-15% |
| Premium Houses/Villas | 25,000,000 - 40,000,000 | 15-25% |
| Small Commercial Spaces | 10,000,000 - 25,000,000 | 30-40% |
| Large Commercial/Office | 25,000,000 - 80,000,000+ | 30-40% |
Commercial properties consistently deliver the strongest rental yields, often reaching 30-40% annually due to high demand from businesses targeting Surabaya's growing retail and office sectors.
What is the typical rent per square meter for different property sizes?
Surabaya's rent per square meter varies significantly based on location, property type, and building quality as of September 2025.
For residential properties in prime areas, monthly rent typically ranges from IDR 60,000 to IDR 70,000 per square meter. This rate applies to well-located apartments in central districts with modern amenities and good accessibility to shopping centers and business areas.
Smaller apartments generally command higher per-square-meter rates due to fixed costs being spread over less space. Studio apartments often reach IDR 80,000-100,000 per square meter monthly, while larger family homes may drop to IDR 40,000-60,000 per square meter due to economies of scale.
Outer district properties typically offer 30-40% lower per-square-meter rates compared to central locations. Suburban areas and developing neighborhoods provide opportunities for tenants seeking more space at reduced costs, though with potentially longer commute times to business centers.
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What is the total monthly cost including all fees, utilities, and taxes?
Understanding the complete monthly housing cost in Surabaya requires accounting for rent plus additional mandatory expenses.
For a typical 85 square meter apartment in a standard location, total monthly costs breakdown as follows: base rent of IDR 4-5 million, utilities averaging IDR 1,142,041 monthly covering electricity, water, and gas, and building maintenance fees of approximately IDR 1 million monthly.
Property taxes remain favorable in 2025 due to government VAT incentives. Houses valued up to IDR 2 billion qualify for 50-100% VAT exemptions, significantly reducing tax burdens for most residential properties. This policy supports both property owners and tenants through reduced overall housing costs.
The complete monthly cost for an average apartment totals IDR 6-7.5 million including all fees, utilities, and applicable taxes. Premium properties or larger homes can reach IDR 12-15 million total monthly cost when including higher-end utilities and maintenance requirements.
Additional costs may include parking fees (IDR 200,000-500,000 monthly), internet services (IDR 300,000-800,000 monthly), and occasional special assessments for building improvements or repairs.
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How much do property owners spend on maintenance and operational costs?
Property maintenance and operational expenses in Surabaya vary significantly based on property type, age, and location.
Standard apartment owners typically spend IDR 15,000-35,000 per square meter monthly on maintenance fees, with an average apartment incurring approximately IDR 1 million monthly for routine upkeep. These fees cover common area maintenance, security services, elevator maintenance, and basic building management.
House owners face different maintenance patterns, often spending IDR 1-2 million monthly on regular upkeep including garden maintenance, security systems, and general repairs. Older properties or those in coastal areas may require higher maintenance budgets due to humidity and salt air exposure.
Major renovation costs average IDR 2.5-4 million per square meter for mid to high-quality improvements. Complete family home renovations typically cost around IDR 200 million, representing a significant but often necessary investment to maintain competitive rental rates and property values.
Additional owner expenses include property insurance, vacancy provisions, and professional property management fees ranging from 5-10% of rental income for investors who prefer hands-off management approaches.
How do mortgage payments compare to rental income for typical properties?
Surabaya's mortgage market presents challenges for property investors due to high payment-to-income ratios and interest rates.
Mortgage payments often reach 244% of average local income, making property financing difficult for most Indonesian buyers. This situation creates opportunities for cash investors and foreign buyers with stronger financial positions, as local competition remains limited by financing constraints.
Typical mortgage terms offer 20-30 year financing at interest rates ranging from 9-12% for local residents. Banks generally provide financing up to 70-80% of property value, requiring substantial down payments that further limit the buyer pool and support rental demand.
For investment properties generating strong rental yields, mortgage payments can often be covered by rental income on high-yield properties achieving 10-15% annual returns. Commercial properties with 30-40% yields easily service debt payments while providing positive cash flow to investors.
Foreign investors face additional restrictions and higher down payment requirements, but may access alternative financing structures through international banking relationships or developer financing programs designed to attract overseas investment.
What are the rates and occupancy patterns for short-term versus long-term rentals?
Surabaya's rental market supports both short-term and long-term strategies with distinct pricing and occupancy characteristics.
Short-term rentals command higher daily rates, with studio and one-bedroom units in Pakuwon or city center locations earning $18-45 per night (IDR 300,000-650,000). These properties typically achieve 60-75% occupancy rates depending on location, amenities, and seasonal demand patterns.
Long-term rental markets offer more stable income streams with lower vacancy rates. Monthly rentals for studios range from IDR 3-6 million, while family apartments command IDR 7-12 million monthly with typical lease terms of 6-12 months and occupancy rates exceeding 85% in well-managed properties.
Short-term rental yields benefit from higher nightly rates but face seasonal fluctuations and higher operational costs including cleaning, utilities, and platform fees. Long-term rentals provide predictable income with lower management intensity, making them attractive for investors seeking passive income generation.
Tourist areas and properties near major shopping centers achieve the strongest short-term rental performance, while residential neighborhoods and areas popular with families and professionals excel in long-term rental markets.
Can you provide specific rental examples for different property types?
Concrete rental examples demonstrate Surabaya's diverse pricing across property segments as of September 2025.
Small apartments and studios:
- Furnished studio in central Surabaya: IDR 2,800,000-3,500,000 monthly
- One-bedroom apartment with modern amenities: IDR 4,500,000-5,500,000 monthly
- Two-bedroom apartment in premium building: IDR 6,500,000-8,000,000 monthly
- Serviced apartment near business district: IDR 7,000,000-9,000,000 monthly
- Luxury one-bedroom with pool and gym access: IDR 8,000,000-12,000,000 monthly
Family homes show different pricing patterns:
- Three-bedroom suburban house: IDR 10,000,000-13,000,000 monthly
- Four-bedroom house with garden in Citraland: IDR 15,000,000-20,000,000 monthly
- Modern townhouse in gated community: IDR 18,000,000-25,000,000 monthly
- Luxury villa in premium location: IDR 30,000,000-45,000,000 monthly
- Executive home near international school: IDR 25,000,000-35,000,000 monthly
Commercial properties offer the highest returns with office spaces near major malls renting for IDR 10-80 million monthly depending on size and specific location within business districts.
What types of tenants are currently renting in Surabaya?
Surabaya's rental market serves diverse tenant segments with distinct preferences and requirements.
Students and young professionals represent a significant portion of apartment renters, preferring modern properties near universities, shopping centers, and transportation links. This demographic typically seeks furnished units with good internet connectivity and reasonable commuting distances to educational institutions or business districts.
Family tenants dominate the suburban house rental market, seeking larger properties with multiple bedrooms, outdoor space, and access to good schools. These renters often sign longer-term leases and prioritize community amenities, security, and proximity to family-friendly facilities.
Expatriate executives and international workers typically rent premium apartments or luxury homes in exclusive neighborhoods. They often require furnished properties, international school access, and higher-end amenities, supporting premium rental rates in top-tier locations.
Digital nomads represent a growing tenant segment, increasingly attracted to Surabaya's modern infrastructure and reasonable living costs. They prefer short to medium-term rentals with excellent internet, workspace areas, and convenient access to cafes and co-working spaces.
Business tenants occupy commercial and retail spaces, with strong focus on locations within or near major malls and mixed-use developments that provide foot traffic and accessibility for customers and employees.
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What are the vacancy rates across different neighborhoods and property types?
Vacancy rates in Surabaya vary significantly by location and property type, reflecting supply-demand imbalances across market segments.
Central district residential properties experience higher vacancy rates of 8-12% due to oversupply conditions. This oversupply situation creates opportunities for tenants to negotiate favorable terms while challenging landlords to differentiate their properties through amenities, pricing, or property management quality.
Suburban areas maintain lower vacancy rates typically below 8%, as demand from families and local residents remains strong while new supply additions occur more gradually. These areas benefit from established communities and proven rental demand patterns.
Commercial real estate shows more positive trends with retail and office occupancy projected to reach 76% in 2025, growing by approximately 3% annually. This improvement reflects Surabaya's economic growth and increasing business activity requiring office and retail space.
Short-term rental properties experience seasonal vacancy variations, with lower vacancy rates in areas adjacent to major malls, tourist attractions, and business centers. Well-managed properties with strong online reviews consistently achieve occupancy rates 15-20% above market averages.
Premium properties and luxury segments maintain lower vacancy rates due to limited supply and specific tenant requirements that reduce direct competition among similar properties.
How have rental yields evolved and what are the forecasts?
Surabaya's rental yields have demonstrated consistent upward trends with positive forecasts supporting investor confidence.
| Year | Average Rental Yield | Market Conditions |
|---|---|---|
| 2020 | 5.9% | Stable baseline performance |
| 2022 | 6.6% | Post-pandemic recovery |
| 2025 | 7.21% | Strong demand, up to 40% for commercial |
| 2026 (Forecast) | 7.4% | Moderate growth expected |
| 2027 (Forecast) | 7.7% | Infrastructure-driven demand growth |
| 2030+ (Forecast) | 8-9% | Continued urban development |
Current rental yields of 7.21% average across property types represent significant improvement from 5.9% in 2020. Commercial properties achieving yields up to 40% demonstrate exceptional performance in specific market segments driven by business expansion and retail development.
Forecasts through 2030 suggest continued yield improvements driven by infrastructure development, population growth, and economic expansion. However, potential oversupply in central apartment markets may create temporary yield pressure in specific property segments.
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How does Surabaya compare to Jakarta and Bandung in rental markets?
Surabaya positions favorably among Indonesia's major cities, offering attractive investment characteristics compared to Jakarta and Bandung.
| City | Avg Price/sqm (IDR Million) | 1BR Monthly Rent (IDR Million) | Average Rental Yield | Price-to-Income Ratio |
|---|---|---|---|---|
| Surabaya | 20.0 | 5.08 | 7.21% | 21.83 |
| Jakarta | 27.17 | 6.26 | 4.27% | 25+ |
| Bandung | 12.33 | 3.86 | 8-10% | 12.33 |
Surabaya offers significantly better rental yields than Jakarta while maintaining reasonable entry costs compared to Indonesia's capital city. Jakarta's premium market status results in higher property prices but lower yields, making it less attractive for yield-focused investors.
Compared to Bandung, Surabaya provides higher absolute rental income and more diverse tenant markets, though Bandung offers lower entry costs and potentially higher percentage yields for budget-conscious investors. Surabaya's larger economy and business center status support more stable long-term rental demand.
Surabaya represents a balanced investment opportunity combining reasonable purchase prices, strong rental yields, and diverse economic fundamentals that support sustained rental demand across multiple property types and tenant segments.
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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 rental market presents compelling opportunities for both investors and residents in 2025, with rental yields averaging 7.21% and diverse property options supporting various investment strategies.
The city's competitive positioning relative to Jakarta and Bandung, combined with ongoing infrastructure development and economic growth, supports positive long-term rental market fundamentals for informed property investors.
Sources
- Surabaya Price Forecasts
- Numbeo Surabaya Property Investment
- Indonesia House Prices Analysis
- Surabaya Property Market
- Surabaya Real Estate Trends
- Surabaya Real Estate Market Analysis
- Cost of Living Surabaya
- Indonesia Cost of Living Guide
- VAT Incentive Indonesia Property 2025
- Indonesia Rental Yields Analysis