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Everything you need to know before buying real estate is included in our Indonesia Property Pack
Yes, foreigners can legally own and rent out residential property in Bandung, but only through specific ownership structures like Hak Pakai (Right to Use), not traditional freehold.
Bandung offers gross rental yields around 5.5% in 2026, with long-term rentals in student-heavy neighborhoods like Dago and Ciumbuleuit delivering the most stable returns.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Bandung.
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 Bandung.
Insights
- Bandung short-term rentals average only 34% occupancy in 2026, meaning your property sits empty two-thirds of the year unless you outperform the market with prime locations and professional management.
- The gap between gross yield (5.5%) and net yield (3.5%) in Bandung is about 2 percentage points, largely eaten by apartment service charges and property management fees that foreigners typically need.
- Student neighborhoods near ITB and UNPAR in Bandung (Dago, Dipatiukur, Ciumbuleuit) offer the fastest tenant turnover and highest occupancy because demand remains constant across academic cycles.
- Foreigners need valid Indonesian immigration documents to hold property rights under PP 18/2021, which means a tourist visa alone will not qualify you to buy and rent out in Bandung.
- Bandung hotel occupancy hit 55% in July 2025 according to BPS data, confirming that tourism demand exists but is concentrated around weekends and holidays rather than spread evenly throughout the year.
- A furnished apartment in Bandung rents 20% to 30% faster than unfurnished units, but the higher wear-and-tear costs require budgeting IDR 200,000 to 700,000 monthly for replacements.
- The Bandung short-term rental market has over 3,100 active listings according to AirDNA, creating enough supply competition that only professionally managed properties in prime areas achieve above-average returns.
Can I legally rent out a property in Bandung as a foreigner right now?
Can a foreigner own-and-rent a residential property in Bandung in 2026?
As of early 2026, foreigners with valid Indonesian immigration documents can legally own residential property in Bandung and rent it out, but only through approved ownership structures rather than traditional freehold title.
The most common arrangement for foreigners in Bandung is Hak Pakai (Right to Use), which grants up to 80 years of usage rights and allows you to lease your property to tenants under normal private contracts.
The main limitation foreigners face in Bandung is that you cannot hold Hak Milik (full freehold ownership), so your property rights are time-limited and tied to maintaining valid immigration status in Indonesia.
If you're not a local, you might want to read our guide to foreign property ownership in Bandung.
Do I need residency to rent out in Bandung right now?
You do not need to live in Bandung to rent out your property, but you must hold valid Indonesian immigration documents (such as a KITAS or investor visa) to qualify for property ownership in the first place.
If you earn rental income in Indonesia, you should register for an Indonesian tax number (NPWP) because rental income from land and buildings falls under final income tax treatment according to PP 34/2017.
A local Indonesian bank account is not legally required but is practically essential because most Bandung tenants pay rent via local transfer and property managers need to handle utility payments and maintenance costs in rupiah.
Managing a Bandung rental remotely is feasible if you hire a local property manager, but expect to pay 5% to 10% of rent for this service and accept some currency exchange friction when repatriating funds.
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What rental strategy makes the most money in Bandung in 2026?
Is long-term renting more profitable than short-term in Bandung in 2026?
As of early 2026, long-term rentals in Bandung deliver more reliable profit for most investors because short-term rental occupancy averages only 34%, making income unpredictable unless you operate professionally in a prime location.
A well-managed long-term rental in Bandung typically generates IDR 36 million to 60 million per year (around $2,150 to $3,600 or €2,000 to €3,400), while a short-term rental at average occupancy earns roughly the same but with higher operating costs and more effort.
Short-term rentals outperform long-term in Bandung only in specific locations like Dago, Ciumbuleuit, and the Braga tourist corridor, where weekend visitors from Jakarta drive demand during holidays and school breaks.
What's the average gross rental yield in Bandung in 2026?
As of early 2026, the average gross rental yield for residential properties in Bandung is approximately 5.5% per year, which is competitive compared to many Indonesian cities.
Most Bandung residential properties fall within a gross yield range of 4.5% to 6.5%, depending on location, property type, and how well the unit matches local tenant demand.
Studios and small apartments near Bandung's universities (ITB, UNPAR, Telkom University) typically achieve the highest gross yields because purchase prices remain affordable while student rental demand stays consistently strong.
By the way, we have much more granular data about rental yields in our property pack about Bandung.
What's the realistic net rental yield after costs in Bandung in 2026?
As of early 2026, the average net rental yield in Bandung after all costs is approximately 3.5% per year, about 2 percentage points below gross yield.
Most Bandung landlords realistically experience net yields between 2.5% and 4.5%, with the range depending on how efficiently they manage costs and minimize vacancy.
The three main cost categories that reduce gross yield to net yield in Bandung are apartment service charges (IPL) which can reach IDR 1.2 million monthly, property management fees for foreign owners (typically 8% of rent), and the 10% final income tax on rental earnings required under Indonesian tax law.
You might want to check our latest analysis about gross and net rental yields in Bandung.
What monthly rent can I get in Bandung in 2026?
As of early 2026, typical monthly rents in Bandung are IDR 2.5 million ($150/€140) for a studio, IDR 3.9 million ($230/€220) for a 1-bedroom, and IDR 6 million ($360/€340) for a 2-bedroom apartment.
Entry-level studios in Bandung rent for IDR 2 million to 3.2 million per month ($120 to $190 or €115 to €180), with prices varying based on distance from central areas and building quality.
A typical 1-bedroom apartment in Bandung commands IDR 3 million to 4.8 million monthly ($180 to $285 or €170 to €270), with units in Dago and Ciumbuleuit sitting at the higher end of this range.
For 2-bedroom apartments, Bandung landlords typically ask IDR 4.8 million to 7.5 million per month ($285 to $450 or €270 to €425), with premium buildings near city centers and universities fetching top prices.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Bandung.
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.
What are the real numbers I should budget for renting out in Bandung in 2026?
What's the total "all-in" monthly cost to hold a rental in Bandung in 2026?
As of early 2026, the total monthly holding cost for a typical Bandung rental apartment (excluding mortgage) is approximately IDR 2.8 million ($165/€160), covering service charges, utilities, maintenance reserves, and minor repairs.
Most Bandung rental properties fall within a monthly holding cost range of IDR 1.8 million to 3.8 million ($107 to $226 or €100 to €215), plus property management fees if you use one.
The single largest cost category for Bandung apartment owners is the monthly service charge (IPL), which ranges from IDR 350,000 to 1.2 million depending on building amenities and typically includes security, common area maintenance, and building management.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Bandung.
What's the typical vacancy rate in Bandung in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Bandung is approximately 10%, meaning landlords should expect about 1.2 months of vacancy per year on average.
Bandung landlords should budget for 1 to 1.5 months of vacancy annually to account for tenant turnover, marketing time, and small repairs between tenancies, especially if targeting the student market where leases often align with academic calendars.
The main factor driving vacancy differences across Bandung neighborhoods is proximity to demand anchors like universities and commercial centers, with areas like Dago and Pasteur filling faster than peripheral zones.
Tenant turnover in Bandung peaks between June and August when university students graduate or relocate, creating a brief window of higher vacancy that landlords can offset by timing lease renewals strategically.
We have a whole part covering the best rental strategies in our pack about buying a property in Bandung.
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Where do rentals perform best in Bandung in 2026?
Which neighborhoods have the highest long-term demand in Bandung in 2026?
As of early 2026, the three Bandung neighborhoods with the highest overall long-term rental demand are Sukajadi/Pasteur (for accessibility and mall proximity), Dago/Coblong (for the university ecosystem), and Setiabudi (for families and professionals).
Families in Bandung prefer renting in Setiabudi, Buah Batu, and Antapani/Arcamanik because these areas offer more space, quieter streets, good schools, and reasonable commute times to central business districts.
Student rental demand in Bandung is strongest in Dago, Dipatiukur, Lebak Gede, Tamansari (near ITB), and Ciumbuleuit (near UNPAR), where small apartments and kos-kosan fill quickly at the start of each semester.
Expats and international professionals in Bandung gravitate toward Dago, Ciumbuleuit, and Setiabudi because these neighborhoods offer western-style amenities, cooler hillside climates, and proximity to international schools and upscale cafes.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Bandung.
Which neighborhoods have the best yield in Bandung in 2026?
As of early 2026, the three Bandung neighborhoods with the best rental yields are Dago/Coblong, Dipatiukur (student areas near ITB), and parts of Pasteur/Sukajadi where purchase prices remain moderate but rents hold strong.
These top-yielding Bandung neighborhoods typically deliver gross rental yields in the 5.5% to 6.5% range, outperforming the city average by attracting consistent tenant demand without the premium price tags of luxury areas.
The key characteristic that allows these Bandung neighborhoods to achieve higher yields is their combination of affordable entry prices with year-round demand from students, young professionals, and commuters who value connectivity over prestige.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Bandung.
Where do tenants pay the highest rents in Bandung in 2026?
As of early 2026, the three Bandung neighborhoods where tenants pay the highest rents are Dago (hillside luxury), Ciumbuleuit (cool climate and university proximity), and Braga/Asia Afrika (central heritage and tourism core).
Standard apartments in these premium Bandung neighborhoods rent for IDR 5 million to 8 million per month ($300 to $475 or €285 to €450), with fully furnished units in top buildings commanding even higher rates.
These Bandung neighborhoods command the highest rents because they combine cooler microclimates (especially the north hillside areas), walkable access to cafes and restaurants, and a concentration of well-managed modern buildings that appeal to higher-income tenants.
The typical tenant profile in Bandung's highest-rent neighborhoods includes young professionals working remotely, expatriates seeking quality-of-life amenities, visiting lecturers and researchers at nearby universities, and affluent domestic travelers renting monthly during extended stays.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Bandung in 2026?
What features increase rent the most in Bandung in 2026?
As of early 2026, the three property features that increase monthly rent the most in Bandung are a cooler hillside location (north Bandung positioning), dedicated car and motorbike parking, and reliable high-speed internet with a functional workspace corner.
A hillside location in north Bandung (Dago, Ciumbuleuit, Setiabudi) can add a 15% to 25% rent premium because tenants actively seek escape from the city's heat and congestion, making microclimate a genuine differentiator here.
One commonly overrated feature in Bandung is a swimming pool, since many apartments include pools that tenants rarely use and building fees for pool maintenance often outweigh any rent premium they generate.
An affordable upgrade that delivers strong returns for Bandung landlords is installing quality air conditioning and providing a sturdy work desk with good lighting, which appeals directly to remote workers and students without major capital outlay.
Do furnished rentals rent faster in Bandung in 2026?
As of early 2026, furnished apartments in Bandung typically rent 2 to 4 weeks faster than unfurnished units because the city's tenant base (students, young professionals, and short-stay visitors) overwhelmingly prefers move-in-ready spaces.
Furnished apartments in Bandung command a rent premium of 20% to 30% over unfurnished equivalents, though landlords must budget for higher wear-and-tear costs and furniture replacement reserves to maintain profitability.
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How regulated is long-term renting in Bandung right now?
Can I freely set rent prices in Bandung right now?
Landlords in Bandung have full freedom to set initial rent prices because Indonesia does not impose rent control on private residential leases, meaning you negotiate directly with tenants based on market conditions.
Rent increases during a tenancy are also unregulated in Bandung, so landlords can propose any increase at lease renewal, though practical market competition keeps most annual increases in the 5% to 10% range to retain good tenants.
What's the standard lease length in Bandung right now?
The standard lease length for residential rentals in Bandung is 1 year, though 6-month and 2-year leases are also common depending on tenant needs and landlord preferences.
Landlords in Bandung typically require a security deposit of 1 to 2 months' rent (IDR 3 million to 15 million or $180 to $890 or €170 to €850 depending on unit size), with the exact amount negotiated in the lease agreement.
Indonesian law does not strictly regulate deposit return timelines, so most Bandung landlords follow market practice of returning the deposit within 14 to 30 days after move-out, minus any documented deductions for damages or unpaid bills.
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.
How does short-term renting really work in Bandung in 2026?
Is Airbnb legal in Bandung right now?
Airbnb-style short-term rentals are not banned in Bandung, but operating one as an ongoing business requires proper registration through Indonesia's OSS (Online Single Submission) licensing system because daily/weekly accommodation is classified as a hospitality activity.
To legally operate a short-term rental in Bandung, you should register via OSS under the appropriate KBLI code for short-term accommodation, and many apartment buildings also impose their own rules restricting or prohibiting daily rentals.
Bandung does not have a publicly verifiable annual night limit like some Western cities, so the main compliance concerns are business registration, tax obligations, and building management approval rather than a hard cap on rental days.
The most common consequence for operating a non-compliant short-term rental in Bandung is enforcement by building management (fines or lease termination) rather than government penalties, though tax authorities can pursue unreported income.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Bandung.
What's the average short-term occupancy in Bandung in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Bandung is approximately 34%, meaning most listings sit empty about two-thirds of available nights.
Short-term rental occupancy in Bandung typically ranges from 20% for poorly positioned listings to 55% or higher for top-performing properties in prime tourist and weekend-getaway locations.
The highest occupancy months for Bandung short-term rentals are during school holidays (June-July, December), Lebaran/Eid periods, and long weekends when Jakarta residents flood into the city for cooler weather and leisure.
The lowest occupancy periods in Bandung fall during regular weekdays outside holiday seasons and during the rainy season months (November-March), when fewer domestic tourists make spontaneous weekend trips.
Finally, please note that you can find much more granular data about this topic in our property pack about Bandung.
What's the average nightly rate in Bandung in 2026?
As of early 2026, the average nightly rate for short-term rentals in Bandung is approximately IDR 950,000 ($57/€54), though rates vary significantly by location, property size, and season.
Most Bandung short-term rental listings fall within a nightly rate range of IDR 750,000 to 1,350,000 ($45 to $80 or €43 to €76), with budget rooms lower and premium villas commanding considerably more.
The typical nightly rate difference between peak season (school holidays, Lebaran) and off-season (regular weekdays, rainy months) in Bandung is around IDR 200,000 to 400,000 ($12 to $24 or €11 to €23), with savvy hosts using dynamic pricing to capture weekend premiums.
Is short-term rental supply saturated in Bandung in 2026?
As of early 2026, the Bandung short-term rental market shows clear signs of saturation, with over 3,100 active listings competing for limited demand and average occupancy stuck around 34%.
The number of active short-term rental listings in Bandung has been growing steadily, which continues to put downward pressure on occupancy rates and forces hosts to compete harder on price and quality.
The most oversaturated Bandung neighborhoods for short-term rentals are Dago, Lembang, and the Braga/Asia Afrika corridor, where high listing density means only the best-reviewed and best-located properties achieve profitable occupancy levels.
Neighborhoods in Bandung that still have room for new short-term rental supply include emerging areas near Telkom University (Dayeuhkolot) and well-connected pockets of Sukajadi/Pasteur where fewer listings currently compete for business traveler and event-driven demand.
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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 Bandung, 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 |
|---|---|---|
| Government Regulation PP 18/2021 | Official national rule with English translation setting foreigner property rights. | We used it as the legal basis for what foreigners can own in Indonesia. We translated those rights into practical rental implications for Bandung investors. |
| JDIH BPK Legal Database | Indonesia's official repository for verifying laws and regulations. | We used it to confirm PP 18/2021 is valid and currently in force. We also verified which older regulations it replaced. |
| Government Regulation PP 34/2017 | Official rule governing income tax on rental income from land and buildings. | We used it to explain rental income tax obligations for Bandung landlords. We incorporated the 10% final tax rate into net yield calculations. |
| Directorate General of Taxes (DJP) | Indonesia's tax authority explaining official tax treatment categories. | We used it to frame rental income as taxable under final income tax rules. We connected DJP guidance with PP 34/2017 for complete tax context. |
| Bank Indonesia SHPR Survey Q3 2025 | Central bank's formal recurring survey on residential property prices. | We used it to anchor property price trends in our yield calculations. We ensured our returns estimates reflect 2025's modest price growth. |
| BPS Bandung Hotel Occupancy Data | Official national statistics agency release for Bandung hospitality. | We used it to validate tourism demand patterns relevant to short-term rentals. We explained why STR occupancy in Bandung is seasonal. |
| OSS RBA KBLI Classification | Indonesia's official online licensing platform defining business categories. | We used it to explain why short-term rentals require business registration. We grounded Airbnb-style activity in Indonesia's regulatory framework. |
| AirDNA Bandung Market Overview | Leading STR data provider with consistent methodology across markets. | We used it for occupancy rates and average daily rates specific to Bandung. We anchored all STR performance estimates to their data. |
| Rumah123 Bandung Listings | One of Indonesia's largest property marketplaces with extensive Bandung data. | We used it to establish realistic rent ranges by unit type and neighborhood. We cross-checked against other portals to avoid single-source bias. |
| 99.co Bandung Listings | Major Indonesian property portal providing independent rent verification. | We used it to validate rent data from Rumah123. We confirmed neighborhood-level rent differences match across both platforms. |
| Airbnb Indonesia Tax Guide 2025 | Platform-published guidance focused on Indonesia tax compliance for hosts. | We used it to explain practical tax and compliance steps for STR operators. We complemented official DJP rules with platform-specific guidance. |
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.
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