Are Bandung property prices going up now? (June 2025)

Authored by the expert who managed and guided the team behind the Indonesia Property Pack

Everything you need to know before buying real estate is included in our Indonesia Property Pack

Property prices in Bandung are indeed rising as we reach mid-2025, with an upward trajectory supported by strong demographic growth and infrastructure development. The residential market is experiencing consistent demand from young professionals, students, and returning Indonesian workers, creating a supply-demand imbalance that favors price appreciation.

If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.

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.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Bandung. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Jakarta, Bandung, and Surabaya. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How much have property prices increased in Bandung over the past year?

Residential property prices in Bandung have risen by at least 3% from 2024 to 2025, marking a steady upward trend in the city's real estate market.

According to the latest data, the official Residential Property Price Index (IHPR) for Q1 2025 showed a 1.07% year-on-year increase, which represents a slight moderation from the 1.39% growth recorded in Q4 2024. However, this official figure likely understates the actual price appreciation in many neighborhoods.

More significantly, demand metrics reveal the underlying strength of the market. Residential sales demand surged by 37.1% over the past 12 months, while rental demand exploded by 68.6%, indicating robust market fundamentals driving price increases.

The moderate price growth reflects a healthy market that's experiencing sustainable appreciation rather than speculative bubbles. This is particularly evident in strategic locations where infrastructure improvements and demographic trends are creating lasting value.

It's something we develop in our Indonesia property pack.

Which areas in Bandung are experiencing the fastest property price growth in 2025?

The fastest-growing neighborhoods in Bandung are concentrated in premium areas and strategic infrastructure corridors, led by Dago, Ciumbuleuit, Setiabudi, and Bandung Timur.

Dago and Ciumbuleuit have emerged as particular hotspots due to their prime amenities, established infrastructure, and easy access to the city center. These areas are attracting affluent buyers seeking luxury properties with scenic mountain views and proximity to high-end dining and shopping facilities.

Bandung Timur (East Bandung) is experiencing rapid appreciation driven by the Jakarta-Bandung high-speed rail impact and new residential developments. The area benefits from improved connectivity while maintaining relatively affordable entry points compared to central Bandung.

Padalarang and Bandung Barat (West Bandung) have become major investment hotspots due to their strategic location along the high-speed rail corridor and improved access via new toll roads. Properties near the Padalarang station have seen particularly strong appreciation as investors recognize the long-term connectivity benefits.

Emerging areas like Cibiru and Cileunyi are also seeing rapid development and price increases, benefiting from infrastructure projects and their positioning as more affordable alternatives with growth potential.

What are the current average property prices in Bandung as of June 2025?

The average cost for a residential landed house in Bandung in 2025 is approximately IDR 1.3 billion, representing the benchmark for middle-market properties.

Property Type	Price Range	Location Premium
Landed Houses (100-150m²)	IDR 2-3 billion for 3-4 bedrooms	Standard residential areas
Prime Land (per m²)	IDR 15-30 million	Dago, Setiabudi, Ciumbuleuit
Apartments (per m²)	IDR 12-25 million	Upper-class locations
Affordable Housing (Type 36-45)	IDR 900 million - 1.5 billion	Suburban and developing areas
Luxury Properties	IDR 3-8 billion+	Premium neighborhoods
Commercial Land	IDR 20-50 million per m²	Central business areas
Townhouses	IDR 1.5-2.5 billion	Mid-range developments

Which property types are seeing the biggest price surges in Bandung?

Landed houses are experiencing the most significant price increases, particularly in the affordable to mid-range segments that cater to families and returning Indonesian workers.

Small landed houses (type 36-45) have shown exceptional growth, with sales volume increasing by 21.75% year-on-year in Q1 2025, substantially outpacing larger homes. This segment benefits from strong demand from first-time buyers and TKI (Indonesian overseas workers) returning home with savings to invest.

Properties in strategic suburban areas like Buahbatu and Cibiru are seeing annual growth rates of 5-10%, driven by their balance of affordability and accessibility. These areas offer families the opportunity to own landed property without the premium pricing of central locations.

Apartments in prime locations are also appreciating, but the preference for landed property among Indonesian families means houses are seeing stronger demand pressure and consequently higher price growth.

The luxury segment in areas like Dago Atas is experiencing robust appreciation as affluent buyers compete for limited high-end inventory with scenic views and premium amenities.

How do current Bandung property prices compare to five years ago?

Over the past five years, residential property prices in Bandung have increased by approximately 15-25%, translating to consistent annual appreciation of 1.5% to 6.3% depending on location and market conditions.

Land prices in strategic Bandung areas have shown stronger performance, rising 5-20% per year since 2020, with current prices reaching record highs in districts benefiting from infrastructure development. A typical landed house that cost IDR 1 billion in 2020 now commands IDR 1.2-1.3 billion or more in similar locations.

This appreciation has been driven by several sustained trends: urbanization bringing more residents to Bandung, infrastructure improvements enhancing connectivity, and the growing middle class increasing purchasing power throughout the region.

The compound effect of these annual increases means that early investors have seen substantial gains, particularly in areas that were positioned ahead of major infrastructure projects like the high-speed rail.

Compared to other Indonesian cities, Bandung's five-year performance demonstrates steady, sustainable growth rather than volatile speculation, making it attractive to both residents and investors seeking stable appreciation.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Bandung. If you'd like to learn more about us, you can check our presentation page.

What are the property price forecasts for Bandung in 2026 and beyond?

Property prices in Bandung are forecast to continue rising through 2026, with analysts projecting annual increases of 3-6% driven by sustained urbanization and infrastructure development.

The 5-year outlook through 2030 remains positive, with moderate but consistent growth expected as Bandung's population is projected to grow from 2,758,000 in 2025 to over 2.9 million by 2030. This demographic expansion will maintain pressure on housing supply and support price appreciation.

Over the 10-year horizon to 2035, property prices could potentially double from current levels in prime areas, assuming sustained economic growth and continued infrastructure investment. The national residential real estate market is forecast to grow at a compound annual growth rate of 7.95% from 2024 to 2029.

Long-term projections through 2045 suggest prices in Bandung may rise by 2-2.5 times current values, particularly in areas benefiting from major infrastructure and urban expansion. However, these projections assume continued economic stability and population growth trends.

The key risk factors that could affect these forecasts include macroeconomic shocks, significant interest rate increases, or potential oversupply in certain market segments.

How has the Jakarta-Bandung high-speed rail affected property prices?

The Jakarta-Bandung High-Speed Railway, operational since October 2023, has generated significant positive impact on property prices, particularly in East Bandung, Padalarang, and areas near transportation hubs.

Land and property prices along the rail corridor have risen by 5-20% over the past two years, with the most dramatic increases occurring near station locations like Tegalluar and Padalarang. Properties within a 5-kilometer radius of stations have seen premium pricing as buyers recognize the connectivity advantages.

The high-speed rail has fundamentally changed the value proposition of Bandung real estate by reducing travel time to Jakarta from 3 hours to just 40 minutes. This has made Bandung viable as a residential location for Jakarta commuters, expanding the potential buyer pool significantly.

New housing projects like Royal Parahyangan near the rail corridor have experienced rapid sell-outs, demonstrating strong market demand for properties with high-speed rail access. Developers are increasingly positioning their projects around transportation connectivity as a key selling point.

The long-term impact is expected to be even more substantial as the rail system matures and potential extensions to other cities create additional connectivity benefits for Bandung properties.

What impact did the 2024 presidential election have on Bandung's property market?

The 2024 presidential election initially created temporary market uncertainty, but was followed by a strong rebound in investor confidence and transaction activity.

Property markets typically experience reduced transaction volumes before major elections due to policy uncertainty, and Bandung followed this pattern with cautious buyer behavior in the months leading up to the vote. However, prices remained relatively stable during this period as sellers maintained their pricing expectations.

Following the election results, investor confidence rebounded significantly, evidenced by a 30% surge in luxury home searches and a 10% increase in mortgage transactions in Q2 2024. The market recovery accelerated as political stability returned and policy directions became clearer.

The post-election period has seen increased demand across both mid-range and luxury property segments, as buyers who delayed purchases during the election uncertainty returned to the market with pent-up demand.

The new administration's continued focus on infrastructure development and economic growth has provided additional confidence to property investors, supporting the positive momentum in Bandung's real estate market.

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 are current interest rates affecting the Bandung property market in 2025?

Bank Indonesia's monetary policy has created favorable conditions for property investment, with the BI rate reduced from 6.00% to 5.75% in early 2025, stimulating mortgage lending and property transactions.

Current mortgage rates (KPR) range from 5-7%, making property financing more attractive compared to recent years when rates were higher. This reduction in borrowing costs has increased purchasing power for middle-class buyers and investors seeking to enter the market.

The controlled inflation environment, with Bank Indonesia targeting 1.5-3.5% inflation, has provided central bank flexibility to maintain accommodative monetary policy. Lower rates reduce the carrying cost of mortgages, making property ownership more accessible to a broader range of buyers.

Outstanding residential mortgage loans grew by 9.7% year-on-year to IDR 750.08 trillion by November 2024, indicating robust lending activity supporting property demand. However, this growth rate is below the historical average of 13% annually from 2010-2023, suggesting room for further expansion.

The stable interest rate environment is expected to continue supporting property market activity, particularly benefiting first-time buyers and investors seeking leveraged returns through mortgage financing.

What are the main factors driving property demand in Bandung in 2025?

Multiple converging factors are driving robust property demand in Bandung, creating a supply-demand imbalance that supports continued price appreciation.

1. **Population Growth and Urbanization**: Bandung's population reached 2,758,000 in 2025, representing 1.62% growth from 2024, with young professionals and students comprising a significant portion of new residents.2. **Educational Hub Status**: The city hosts major universities like Institut Teknologi Bandung, which enrolled 5,669 new students in the 2023/2024 academic year, creating sustained demand for both rental and ownership properties.3. **Creative Economy Growth**: With 56% of Bandung's economy tied to design-related activities, the city attracts young professionals in fashion, graphic design, and digital media who seek convenient housing near their workplaces.4. **Infrastructure Improvements**: The operational Jakarta-Bandung high-speed rail, new toll roads, and the Regional Development Acceleration Innovation Program have enhanced the city's connectivity and livability.5. **Returning Indonesian Workers (TKI)**: Overseas Indonesian workers returning with savings are investing in Bandung properties, particularly in the affordable housing segment.6. **Government Housing Programs**: Easier mortgage access and housing incentives are making property ownership more achievable for middle-income families.

How do Bandung property prices compare to Jakarta and Surabaya in 2025?

Bandung remains significantly more affordable than Jakarta while being competitively priced with Surabaya, offering better value for money in Indonesia's urban property market.

City	Apartment Price (City Centre, per m²)	Land Price (Prime Area, per m²)	Affordability Ranking
Jakarta	IDR 40-60 million	IDR 50-100 million	Most Expensive
Surabaya	IDR 15-30 million	IDR 20-35 million	Moderate
Bandung	IDR 12-25 million	IDR 15-30 million	Most Affordable
Price-to-Income Ratio	Surabaya: 21.8	Bandung: 12.3	Bandung Advantage
Rental Yields	Jakarta: 4.27% average	Better yields in Bandung	Investment Advantage

While Bandung's premium areas are approaching Surabaya's pricing levels, the overall market remains more accessible. This positioning makes Bandung attractive for both lifestyle buyers seeking quality of life and investors looking for entry points into major Indonesian property markets.

Are there any signs of a potential property price decline in Bandung?

Current market indicators show no strong signs of imminent price decline in Bandung, with the market remaining supply-constrained amid robust demand fundamentals.

The supply-demand balance continues to favor sellers and supports price appreciation, particularly in strategic locations benefiting from infrastructure improvements. New construction has not kept pace with population growth and demand from various buyer segments.

Key risk factors that could potentially cause price corrections include significant macroeconomic shocks, substantial interest rate increases beyond current projections, or oversupply in specific market segments. However, none of these scenarios appear likely in the near term.

Market fundamentals remain strong, with sustained population growth, infrastructure development, and diverse demand sources providing multiple pillars of support for continued price appreciation.

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.

Sources

1. Bamboo Routes - Bandung Real Estate Market
2. Bamboo Routes - Bandung Real Estate Trends
3. Bamboo Routes - Bandung Real Estate Forecasts
4. Global Property Guide - Indonesia Price History
5. Focus Economics - Indonesia Interest Rate
6. Trading Economics - Indonesia Interest Rate
7. InvestAsian - Indonesia House Prices
8. ICIS - Indonesia Central Bank Policy
9. Reuters - Indonesia Economy Expands
10. Lowy Institute - High-Speed Rail Analysis