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What will happen in Bandung’s real estate market? Will prices go up or down? Is Bandung still a hotspot for foreign investors? How is Indonesia’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Bandung, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

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1) Property prices in Bandung will keep rising due to urbanization and population growth
In 2025, Bandung's population has grown to 2,758,000, a clear sign of increasing housing demand.
Indonesia is seeing a big move towards city living, with over half of its people now in urban areas. Bandung, being a key city, is right in the middle of this shift. This urbanization trend is expected to continue, with the urban population projected to hit 208 million by 2030.
Property prices in Bandung have been on the rise, showing a consistent upward trend over the years. The city faces a housing shortage, meeting only about a third of its annual needs. This gap between supply and demand is pushing property prices higher as developers race to catch up.
Bandung is part of a booming economic region, which usually means more real estate investment and rising property prices. Young Indonesians prefer city life, adding to the demand for urban homes and driving prices up.
With Bandung's growing population and its role as a major urban hub, the city's real estate market is set for continued growth. The combination of urbanization, economic expansion, and a young population eager for city living is a recipe for increasing property values.
As developers work to meet the housing demand, the imbalance in supply and demand will likely keep pushing prices up. This makes Bandung an attractive spot for property investment, with the potential for long-term value growth.
Sources: CEIC Data, Macrotrends, Kompas, Global Property Guide
2) Foreign investment in Bandung's affordable housing will stay low because of limited returns
Foreign interest in Bandung's affordable housing market is likely to remain low due to limited investment returns.
In Bandung, rental yields are notably low compared to other Southeast Asian cities. For instance, in 2024, properties outside the city center offered a gross rental yield of just 3.22%, which pales in comparison to cities like Jakarta. This makes Bandung less appealing for investors seeking higher returns.
Property prices in Bandung have seen limited capital appreciation over recent years. When you compare the cost per square meter in Bandung to Bangkok, it's clear that Bandung's prices are much lower, indicating slower growth. This sluggish appreciation, combined with high transaction costs and taxes for foreign buyers, makes investing in Bandung less attractive.
Foreign investors face restrictions on land and property ownership in Indonesia, which limits their ability to fully engage in the market. This is a significant barrier, reducing the appeal of Bandung's affordable housing market for international buyers.
Bandung also falls short in terms of infrastructure development compared to other major Indonesian cities. Investors often seek locations with good connectivity and amenities, and Bandung's lag in these areas makes it less enticing.
High transaction costs and taxes further add to the overall expense of purchasing property in Indonesia, deterring foreign investment. These financial burdens make Bandung's market less competitive compared to other regions.
Sources: Numbeo

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.
3) Mid-range property prices in Bandung will grow steadily because demand remains consistent
Mid-range properties in Bandung are seeing stable price growth thanks to consistent demand.
One reason for this is the rising property transaction volumes in the area. As more people are interested in investing in property, the total transaction value in Indonesia's real estate market is expected to grow significantly from 2024 to 2029. This trend is particularly noticeable in Bandung, where the market is buzzing with activity.
Bandung's population is also on the rise, with Indonesia's urban population growth reported at nearly 2% in 2023. This steady influx of people into urban areas like Bandung fuels the demand for housing, especially in the mid-range segment. More people moving to the city means more homes are needed, keeping the market lively.
Government infrastructure projects have made Bandung more accessible, enhancing its appeal to both residents and investors. Improved connectivity can lead to increased demand for mid-range properties, as people find it easier to commute and access amenities. This makes Bandung a more attractive place to live and invest.
West Java's economy is also doing well, with a GDP growth rate of 5% in early 2023. This stable economic environment supports property investment, adding to the demand for mid-range properties. When the economy is strong, people feel more confident about investing in real estate.
All these factors combined make Bandung a promising spot for property buyers looking for stable growth in the mid-range market.
Sources: Statista, Trading Economics, OECD
4) Affordable housing demand in Bandung will moderately raise lower-end market prices
The demand for affordable housing in Bandung is on the rise, leading to a moderate price increase in the lower-end market.
Bandung's population is growing, with numbers expected to jump from 2,674,000 in 2023 to 2,758,000 by 2025. This steady influx of new residents is boosting the demand for housing in the city. People are drawn to Bandung for its economic opportunities, which is a common trend in urban areas.
As more folks move to Bandung for jobs and a better life, the city's infrastructure, including housing, feels the squeeze. The Indonesian government is trying to keep up by building 1 million homes each year, but the demand still outstrips supply. This gap is particularly noticeable in the affordable housing sector.
Economic growth in Indonesia means people have more money to spend, which can push up housing prices. With more disposable income, residents are better positioned to buy or rent homes, especially in the lower-end market. This increased purchasing power is a key factor in the rising demand.
Favorable mortgage options for low-income buyers are also playing a role. These financial products make it easier for more people to enter the housing market, further driving demand and potential price hikes in affordable housing.
In Bandung, the combination of population growth, economic opportunity, and financial accessibility is creating a perfect storm for a moderate price increase in the lower-end housing market. It's a dynamic situation that potential buyers should keep an eye on.
Sources: Macrotrends, ITB News, Jurnal Saintek
5) Property prices in Bandung's western suburbs will rise as young families move in
The western suburbs of Bandung are becoming a hotspot for young families, leading to a rise in property prices.
Young families are flocking to these suburbs, drawn by the quality of life and access to amenities. With 60% of Bandung City's population under 40, it's no surprise that these areas are buzzing with youthful energy. Improved infrastructure and transportation links make commuting a breeze, adding to the suburbs' charm.
New schools and family-friendly amenities like parks and community centers are popping up, specifically catering to young families. This development is part of a broader government push to enhance suburban living, making these areas even more appealing.
Government investment in suburban projects is transforming the landscape, improving the quality of life for residents. This investment is a key factor in why young families are choosing the western suburbs over other areas.
As more families move in, the demand for housing continues to grow, driving up property prices. This trend is expected to continue as the area becomes even more desirable.
For those considering a move, the western suburbs of Bandung offer a vibrant community with plenty of opportunities for families to thrive.
Sources: Indonesia Real Estate, OECD Report
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6) Mid-range property yields in Bandung will stay stable as supply and demand are balanced
The yield on mid-range properties in Bandung is expected to remain stable thanks to a balanced supply and demand.
Bandung is buzzing with students and young professionals, especially with new enrollments at the Institut Teknologi Bandung for the 2023/2024 academic year. This influx keeps the rental market lively, as the city's creative economy draws in even more young talent.
On the flip side, there's been a dip in new multifamily properties, dropping from 588,000 units in 2023 to 533,000 in 2024. This slowdown in construction might lead to fewer available rentals, which helps keep rental yields steady. Plus, Bandung's improved infrastructure and amenities make it a more appealing place to settle down.
Economically, Bandung is on solid ground. Indonesia's GDP is projected to grow by 5.1% in 2024 and 5.2% in 2025, which bodes well for real estate and rental markets. This economic health supports a balanced property market in the city.
With these factors in play, the supply and demand for properties in Bandung are well-matched, ensuring stability in rental yields. The city's appeal continues to grow, making it a smart choice for property investment.
As the local government invests in infrastructure, Bandung's livability and attractiveness increase, drawing more residents and maintaining demand. This balance is key to the stable property yields expected in the coming years.
Sources: Statista, Rental Housing Journal, OECD Economic Surveys
7) Rents for affordable properties in Bandung will rise significantly because of high demand
Bandung's population is on the rise, expected to grow from 2,674,000 in 2023 to 2,758,000 by 2025.
This growth is not just numbers; it's about the influx of students and young professionals flocking to the city. They are on the hunt for affordable rental properties, especially those close to universities and workplaces, which is putting a squeeze on the rental market.
Adding to the pressure, there aren't many new rental properties popping up. With limited new constructions, the existing homes are becoming hot commodities, and this is pushing rental prices up.
Real estate experts have been watching this closely. They've noticed these demand spikes and are predicting a trend towards higher rents in the near future.
For those considering a move to Bandung, it's crucial to understand that the rental market is getting tighter. The combination of increased demand and limited supply is setting the stage for significant rent hikes.
So, if you're eyeing a property in Bandung, be prepared for a competitive market. The city's charm is drawing more people in, and with rising demand, rental prices are expected to climb.
Sources: Macrotrends, International Journal of Social Science and Humanity, Credaily
8) Rents in Bandung will rise as it becomes more popular with students and professionals
Bandung's rental prices are on the rise as the city gains popularity among students and professionals.
Universities in Bandung are seeing a surge in enrollment, with a 10% increase in dual-enrolled high school students. This uptick in educational activity is boosting the demand for rental properties near campuses. Since 2023, this trend has been gaining momentum, showing no signs of slowing down.
New businesses and startups are popping up all over Bandung, further fueling the housing demand. The property market has been expanding rapidly, requiring more housing and office spaces to support these ventures. This growth has been a constant since Indonesia bounced back from the 2008 financial crisis, and it's a key driver of rising rental prices.
Bandung's infrastructure is also getting a facelift, with projects like the Greater Bandung Bus Rapid Transit (BRT) making the city more appealing. Improved public transport is set to enhance the city's livability, likely pushing rental prices even higher.
As Bandung becomes a more attractive place to live, the demand for rental properties is expected to keep climbing. The city's blend of educational opportunities, business growth, and infrastructure improvements is creating a perfect storm for rising rents.
For those considering a move to Bandung, it's worth noting that the city's appeal is only growing. With more students, professionals, and businesses flocking to the area, the rental market is heating up.
Sources: NSC Research Center, The Jakarta Post, Antara News

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.
9) New high-rise construction in Bandung will slow due to stricter property development regulations
Stricter regulations in Bandung are expected to slow down the construction of new high-rise buildings.
One reason is the increased government scrutiny on environmental impact assessments (EIAs), which can delay projects. For instance, the Jakarta-Bandung High-Speed Rail Project faced significant delays when environmental NGOs highlighted flaws in its EIA. This indicates that more rigorous EIAs could similarly slow down new projects in Bandung.
New zoning laws in Bandung now require developers to provide public amenities before calculating the bonus Floor Area Ratio (FAR). This means developers must meet extra requirements, potentially limiting high-rise development. While these regulations aim to align development with public space needs, they also add complexity and time to the construction process.
Public opposition can also lead to stricter regulations. In the case of the Jakarta-Bandung HSR Project, local environmental concerns resulted in more stringent regulatory requirements, including the need for public participation in the EIA process. This kind of public pushback can cause further delays and increased costs for developers.
These factors combined suggest that Bandung's high-rise construction will face significant hurdles due to the new regulations. Developers will need to navigate these challenges carefully to move forward with their projects.
In summary, the combination of stricter EIAs, new zoning laws, and public opposition is likely to slow down high-rise construction in Bandung, making it a challenging environment for developers.
Sources: AidData, Semantic Scholar
10) More foreign investors will enter Bandung’s residential market as the city gains global recognition
Bandung is catching the eye of foreign investors as it gains international recognition.
With more international tourists flocking to Bandung, the city is not just boosting its local economy but also becoming a hotspot for property investment. Vacation rentals and long-term stays are particularly appealing to these visitors, making the residential market more attractive.
The Indonesian government is rolling out initiatives like the Golden Visa and Second Home Visa, which make it easier for foreigners to buy property or secure long-term residency. This creates a welcoming atmosphere for international buyers, encouraging them to consider Bandung as a viable investment option.
Infrastructure developments are also playing a crucial role. The expansion of the Greater Jakarta Commuter Rail and the Mass Rapid Transit (MRT) system is enhancing connectivity. This makes Bandung more accessible and appealing to international investors looking for convenience and growth potential.
Bandung's cultural and economic potential is being highlighted in international media, which is fueling interest from global buyers. The city is being recognized as a cultural and economic hub, drawing attention to its vibrant attractions and opportunities.
Hosting a variety of international conferences, Bandung is attracting participants from around the world. This showcases its academic and professional opportunities, making it an attractive destination for foreign investors eager to enter the residential market.
Sources: European Financial Review, All Conference Alert, UNESCO
11) High-end property prices in Bandung will drop slightly as supply exceeds demand
Bandung's high-end residential market is seeing a surge in luxury property construction.
With a range of options from $246,000 villas to $776,000 mansions, the city is brimming with upscale homes. This boom has led to a potential oversupply, as more properties are available than there are buyers.
Reports show a growing inventory of unsold luxury homes, indicating that supply is outpacing demand. This imbalance is likely to cause a dip in property prices, making it a buyer's market for those interested in high-end real estate.
There's also been a noticeable slowdown in luxury property transactions. Many buyers are shifting their focus to more affordable housing, leaving high-end properties on the market longer.
Economic factors are playing a role too, with a reduction in purchasing power among potential buyers. This means fewer people can afford these luxury homes, further contributing to the potential price decline.
Market analyses predict an oversupply in the luxury segment, reinforcing the likelihood of a price drop as supply continues to outpace demand.
Source: Indonesia Real Estate
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12) Rental yields in Bandung will rise as more people relocate for work and education
As more people flock to Bandung for work and education, rental yields are set to rise.
Bandung's population is on the upswing, with a 1.62% increase expected in 2025 compared to 2024. This steady growth means more folks are hunting for homes, naturally boosting demand for rentals. The city's vibe is changing, and it's becoming a hotspot for newcomers.
Job opportunities are also on the rise. In 2023, Bandung saw a significant drop in unemployment, signaling that more people are landing jobs here. This job boom is a magnet, drawing even more people to the city and further cranking up the need for housing. The local government's push to brand Bandung as a business and education hub is paying off, attracting a steady stream of new residents.
Urbanization is another key player. As more people migrate to Bandung, economic activity is ramping up. This means more businesses are setting up shop, creating even more job opportunities. The city's allure for work and education is undeniable, and as it grows, so does the demand for rental properties, which in turn, nudges rental yields higher.
Bandung is not just a city; it's becoming a lifestyle choice. With its growing reputation as a center for business and learning, the influx of people is inevitable. This trend is a win-win for property investors, as the demand for rentals is only going to climb.
For those considering investing in Bandung's property market, the signs are promising. The city's transformation into a bustling hub means rental yields are poised for growth, making it an attractive option for potential buyers.
Sources: Macrotrends, Jabarprov, APEC
13) Property values in eastern Bandung will grow more slowly due to worries about overdevelopment
In eastern Bandung, property development has surged in recent years.
With this boom, the number of apartments in Jakarta, including eastern Bandung, hit 225,977 units by the end of 2023. This rapid growth is raising eyebrows about potential overdevelopment, as more buildings and infrastructure crowd the area.
Locals are feeling the pinch, as traffic congestion and air pollution have worsened. The OECD report on Green Growth in Bandung highlights how vehicle numbers skyrocketed between 2004 and 2014, a direct consequence of the area's development frenzy.
Interestingly, property values in Bandung aren't climbing as fast as in other cities. Trading Economics notes a modest 1.16% year-on-year increase in property prices for Bandung in the third quarter of 2024, lagging behind cities like Pekanbaru and Padang.
This slower growth in property values suggests that overdevelopment concerns are impacting the market in eastern Bandung. The infrastructure struggles to keep pace with the rapid construction, affecting the area's appeal to potential buyers.
For those considering a property purchase, it's crucial to weigh these factors. Eastern Bandung's development might not translate to quick property value gains, given the current challenges.
Sources: OECD Report, Trading Economics
14) Property values in Lembang will rise as it becomes a popular spot for vacation homes
Lembang is quickly becoming a prime spot for vacation homes, thanks to its growing popularity among tourists.
In 2024, Indonesia saw a 21% jump in international tourist arrivals, with many flocking to Bandung and nearby areas like Lembang. This surge in visitors is a clear sign of Lembang's potential as a vacation hotspot.
The demand for vacation rentals in Lembang is booming. With 760 properties listed on Airbnb, ranging from cozy villas to charming guesthouses, the area is a hit among travelers. High ratings and glowing reviews show just how popular these accommodations are.
Infrastructure in Lembang is getting a boost, making it even more appealing. Well-maintained roads and affordable public transport make it easy for tourists and potential buyers to explore the area, driving more interest and investment.
The Indonesian government is also playing a part by promoting tourism in West Java, including Lembang. These efforts, along with positive media buzz, are positioning Lembang as a top destination. New real estate developments are popping up, focusing on vacation homes to cater to tourists and future homeowners.
With all these factors in play, Lembang is set to become a hotspot for vacation homes, boosting property values in the area.
Sources: Airbnb, Pear Anderson, Journal UNY

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.
15) Affordable housing yields in Bandung will rise slightly as demand keeps growing
In Bandung, property prices have been climbing steadily, with a 0.73% increase in Q4 2023.
As the city grows, Bandung's population is projected to rise by 1.62% in 2025, fueling demand for housing, especially affordable options. This surge in population means more people are looking for homes, which naturally pushes up the demand and potential yields for affordable housing.
The Indonesian government is making it easier for people to buy property by simplifying purchase qualifications and enhancing foreign ownership rights. These changes are attracting more investors, which in turn boosts demand and potential returns in the housing market.
Investors are particularly interested in subsidized housing programs in Bandung, like those from Ingria Group, because of their strategic locations and promising long-term gains. This interest is another reason why affordable housing yields might see a slight uptick.
Bandung's affordable housing market is becoming more attractive due to these factors, and investors are taking note. The combination of government initiatives, population growth, and strategic housing programs is creating a ripe environment for investment.
With these dynamics at play, affordable housing yields in Bandung are poised for a slight increase as demand continues to grow.
Sources: Global Property Guide, Macrotrends, Ingria Group
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.