How much for a property in Medan now?

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

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 Medan. 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 Medan, Jakarta, 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.

What types of properties are available in Medan and who can buy them?

Medan offers four main property categories with different ownership rules for foreign buyers.

Apartments and condominiums represent the most accessible option for international investors, with direct ownership rights available in expat-friendly areas like Setiabudi, Polonia, and Medan Baru. These properties typically range from 40 to 120 square meters and include both new developments and resale units.

Landed houses and townhouses remain primarily available to Indonesian citizens, though foreigners can access these through nominee arrangements, leasehold structures, or company ownership. These properties usually span 100 to 200 square meters for houses and 80 to 160 square meters for townhouses.

Shophouses have gained popularity among business-oriented investors, particularly in emerging commercial districts like Kampung Baru where mixed-use development creates both retail and residential opportunities.

Land purchases are possible for foreigners through leasehold arrangements, especially in suburban areas and city edges, with parcels typically ranging from 100 to 500 square meters and commanding premiums for centrally located plots.

Which Medan neighborhoods offer the best value at different price points?

Medan's neighborhood pricing follows clear patterns based on development status, amenities, and proximity to commercial centers.

Price Category	Top Neighborhoods	Property Types	Key Features
Most Expensive	Medan Baru, Setiabudi, Polonia	Luxury condos, premium houses	Established amenities, international schools
Up-and-Coming	Sunggal, Medan Johor	New developments, townhouses	Growing infrastructure, value appreciation
Budget-Friendly	Kampung Baru, North Medan	Older apartments, suburban houses	Lower entry costs, potential upside
Commercial Hot Spots	Central Medan, Kampung Baru	Shophouses, mixed-use	Business opportunities, foot traffic
Investment Focus	Polonia, Sunggal suburbs	Mid-range condos, houses	Rental demand, appreciation potential

What are current price ranges per square meter across different property types?

As of September 2025, Medan property prices vary significantly by type and location, with condominiums commanding the highest per-square-meter rates.

Central condominiums and apartments average IDR 27.1 million per square meter (approximately $1,653), with luxury developments in Setiabudi and Medan Baru reaching $1,900 per square meter. These units typically offer 40 to 120 square meters of living space with modern amenities and building management services.

Landed houses show more affordable per-square-meter pricing at IDR 9.8 million (around $598), though total purchase costs remain high due to larger lot sizes typically ranging from 100 to 200 square meters. Premium locations in Polonia and Medan Baru command higher rates within this category.

Townhouses offer middle-ground pricing at IDR 7.8 million per square meter ($476), with units generally spanning 80 to 160 square meters and providing a balance between affordability and space for growing families.

Land parcels average IDR 10.2 million per square meter ($622) for general suburban areas, with central locations commanding significant premiums. Commercial land and shophouse properties average IDR 9.2 million per square meter ($561), reflecting their mixed-use potential and business applications.

What does a complete property purchase cost including all fees and taxes?

Total property acquisition costs in Medan extend well beyond listing prices due to various fees, taxes, and legal requirements.

Budget Tier	Property Price	Closing Costs (1%)	Legal/Agent Fees (2%)	Taxes (2%)	Total Investment
Entry Level	IDR 500M ($30K)	IDR 5M	IDR 10M	IDR 10M	IDR 525M ($32K)
Mid-Range	IDR 1.3B ($79K)	IDR 13M	IDR 26M	IDR 26M	IDR 1.365B ($82K)
Premium	IDR 2.2B ($134K)	IDR 22M	IDR 44M	IDR 44M	IDR 2.31B ($140K)
Luxury	IDR 3.5B ($213K)	IDR 35M	IDR 70M	IDR 70M	IDR 3.675B ($224K)

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

What mortgage financing options exist for foreign property buyers?

Foreign buyers in Medan can access mortgage financing through select Indonesian banks, though requirements are stricter than for local buyers.

Loan-to-value ratios typically max out at 60% through banks like Permata and Commonwealth Bank, meaning foreign buyers must provide at least 40% down payment on any property purchase. Interest rates generally range from 7% to 9% annually, with some Islamic banking options available for Sharia-compliant financing.

Eligibility requires a valid KITAS or KITAP residence permit, minimum two years of demonstrated work or business history in Indonesia, and monthly income of at least IDR 25 million. The property value must meet or exceed IDR 2 billion for foreign buyer financing programs.

Loan terms usually span 10 to 20 years maximum, shorter than typical domestic mortgages. For a mid-tier property costing IDR 1.365 billion with 60% financing (IDR 819 million loan) at 8% interest over 20 years, monthly payments would approximate IDR 6.9 million ($420).

Documentation requirements include income verification, bank statements, employment letters, and comprehensive property valuation reports. Processing times typically extend 4-6 weeks from complete application submission.

What ongoing costs should I budget for property ownership?

Medan property ownership involves several recurring expenses that vary by property type and management level.

Property taxes on land and houses range from 0.1% to 0.2% of assessed value annually, translating to roughly IDR 1-2 million per month for mid-tier properties. Tax assessments often lag market values, keeping these costs relatively moderate compared to purchase prices.

Condominium service fees vary significantly by building quality and amenities, typically ranging from IDR 1 million to IDR 2.5 million monthly for centrally managed buildings with security, maintenance, and common area upkeep. Premium buildings with gyms, pools, and 24-hour concierge services command higher fees.

Property insurance costs approximately IDR 300,000 to IDR 1 million monthly depending on property value and coverage level. Basic coverage protects against fire, natural disasters, and structural damage, while comprehensive policies include contents and liability protection.

Professional property management for rental properties typically costs 7-12% of gross rental income, handling tenant relations, maintenance coordination, and rent collection. Self-management reduces costs but requires local presence and Indonesian language capability.

Utility costs for apartments average IDR 500,000-1.5 million monthly including electricity, water, and building services, while landed properties may see higher electricity costs due to air conditioning larger spaces.

How have Medan property prices changed and what's the outlook?

Medan's property market has experienced dramatic price appreciation in recent years, particularly accelerating through 2024 and early 2025.

Over the past five years, mid-range houses have surged from approximately IDR 750 million in 2020 to IDR 950 million in 2024, representing steady annual growth. However, 2024 saw exceptional appreciation with houses increasing 67.8% and apartments rising 47.7% year-over-year.

The rapid price growth reflects Indonesia's economic recovery, urbanization trends concentrating population in major cities like Medan, and increased infrastructure investment in North Sumatra province. New toll roads, airport expansions, and commercial developments have driven particular neighborhoods like Sunggal into premium territory.

Near-term forecasts suggest moderation with 1-2% annual appreciation expected through 2025-2026 as the market stabilizes from recent rapid gains. Infrastructure projects including new shopping centers, university expansions, and transportation links should support continued moderate growth.

Longer-term outlook remains positive with 3-5% annual appreciation likely over 5-10 years, driven by Indonesia's growing middle class, continued urbanization, and Medan's position as North Sumatra's economic center. However, buyers should expect more sustainable growth rates rather than the exceptional 2024 performance.

What are the smartest property investments by budget and neighborhood right now?

Strategic property selection in Medan depends heavily on your investment budget and intended use, with different neighborhoods offering advantages for various strategies.

1. **Budget-Conscious Investors (Under IDR 800M)**: Focus on emerging areas like Sunggal where new developments offer modern amenities at lower entry costs. Small apartments near universities provide steady rental demand from students and young professionals.2. **Mid-Range Investors (IDR 800M-1.5B)**: Target Polonia and outer Medan Baru areas where established infrastructure meets reasonable pricing. Two-bedroom condos in managed buildings offer the best balance of appreciation potential and rental yields.3. **Premium Investors (IDR 1.5B-2.5B)**: Central Medan Baru and Setiabudi properties provide prestige, strong rental demand from expatriate professionals, and long-term appreciation security. These areas maintain value during market downturns.4. **Commercial Investors**: Shophouses in Kampung Baru's growing commercial corridor offer dual-use potential with ground-floor business space and upper-floor residential rental. Mixed-use properties benefit from both commercial and residential demand.5. **Land Banking Strategy**: Suburban plots in Medan Johor and developing areas offer the highest appreciation potential as urban sprawl continues, though requiring longer holding periods and development vision.

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.

Which areas offer the best quality of life for residents?

Medan's residential quality of life varies dramatically between neighborhoods, with established areas offering superior amenities at higher costs.

Medan Baru represents the premium residential choice with international schools, modern shopping centers, healthcare facilities, and well-maintained infrastructure. Properties here cost 30-50% more than comparable units elsewhere but provide expatriate-friendly environments and reliable utilities.

Setiabudi offers similar amenities with slightly lower costs, featuring tree-lined streets, established restaurants, and proximity to business districts. The area attracts both affluent locals and expatriate families seeking suburban comfort with urban access.

Polonia provides middle-ground quality of life with developing amenities, reasonable pricing, and good connectivity to central Medan. The area suits buyers prioritizing value while maintaining access to city conveniences and job centers.

Trade-offs become apparent when considering emerging areas like Sunggal, where modern housing developments offer excellent value but limited nearby amenities, requiring longer commutes for shopping, dining, and entertainment. These areas suit buyers prioritizing space and modern construction over immediate neighborhood maturity.

Transportation considerations heavily impact daily life quality, with central locations providing walking access to services while suburban areas require private transportation for most activities.

What short-term rental opportunities exist and what returns are realistic?

Medan's short-term rental market centers around business travelers, medical tourists, and domestic visitors, creating specific location and property type preferences.

Prime short-term rental locations include Medan Baru and Polonia areas near business districts, hospitals, and shopping centers. Properties within walking distance of Medan's main commercial areas see the strongest occupancy rates and command premium nightly rates.

Typical nightly rates for well-appointed one-bedroom apartments range from IDR 400,000-600,000 ($24-37), while two-bedroom units can achieve IDR 600,000-900,000 ($37-55) depending on location and amenities. University area properties targeting visiting academics and student families show consistent demand.

Gross rental yields for successful short-term rentals typically range 6-8% annually, though achieving these returns requires professional management, consistent marketing, and maintaining high property standards. Net yields after platform fees, cleaning, maintenance, and management typically settle around 4-6%.

Success factors include reliable internet, air conditioning, modern furnishing, and responsive property management. Properties near medical facilities benefit from Indonesia's growing medical tourism sector, while business district proximity attracts corporate travelers.

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

How strong is long-term rental demand and what yields can I expect?

Medan's long-term rental market shows robust demand driven by the city's growing economy, educational institutions, and expatriate business community.

Strongest tenant demand concentrates around university areas in Medan Baru where students and academic staff seek convenient housing, near industrial parks where workers require accommodation, and along new infrastructure corridors attracting business development.

Current rental rates for mid-tier condominiums range from IDR 3.5-6.5 million monthly ($210-390), depending on size, location, and building amenities. Two-bedroom units near business districts command premium rates, while suburban properties offer better value for tenants seeking space.

Net rental yields typically achieve 4-6% annually for residential properties after accounting for vacancy periods, maintenance costs, and management fees. Commercial properties and shophouses may achieve 4-5% yields but require different tenant management approaches.

Property types seeing strongest demand include modern two-bedroom apartments for young professionals, larger units for expatriate families, and affordable options near educational institutions. Properties with parking, security, and reliable utilities maintain higher occupancy rates.

Tenant turnover varies by segment, with business professionals typically signing annual leases while students may prefer semester-based arrangements. Commercial tenants often seek longer-term stability, reducing management complexity.

What opportunities exist for property flipping and resale profits?

Medan's recent rapid appreciation has created both opportunities and risks for buy-and-flip strategies, requiring careful timing and location selection.

Near-term catalysts supporting property values include new mall developments in Sunggal, university expansions creating student housing demand, and infrastructure projects improving connectivity between suburban areas and central Medan. Properties positioned to benefit from these developments show the strongest flip potential.

1. **Infrastructure Beneficiaries**: Properties along new toll road corridors and near planned transit stations offer appreciation upside as accessibility improves urban connectivity.2. **Commercial Development Areas**: Residential properties near announced shopping centers, office complexes, or industrial developments benefit from increased area desirability and foot traffic.3. **Gentrification Opportunities**: Older areas undergoing renewal, particularly neighborhoods receiving infrastructure investment or zoning changes allowing mixed-use development.4. **University Expansion Zones**: Areas near educational institution growth see sustained demand increases from students, faculty, and service businesses.5. **Medical District Development**: Properties near hospital expansions or new medical facilities benefit from healthcare worker housing demand and medical tourism growth.

Key risks include the sustainability of recent 67.8% annual appreciation rates, regulatory uncertainty affecting foreign ownership structures, market volatility from economic changes, and the illiquid nature of Indonesian real estate requiring longer holding periods than anticipated.

Successful flipping requires 12-24 month holding periods minimum, substantial renovation budgets for older properties, and strong local market knowledge to identify emerging areas before mainstream recognition drives up acquisition costs.

How does Medan compare to other Indonesian cities for real estate investment?

Medan's 2024-2025 property performance has significantly outpaced other major Indonesian cities, though this creates both opportunities and valuation concerns.

City	5-Year Price Growth	Avg. Condo Price/sqm	Rental Yield Range	Foreign Ownership Ease
Medan	67.8% (recent surge)	$1,653-$1,900	4-6%	Moderate (apartments only)
Surabaya	30-35%	$1,300-$1,500	4-6%	Slightly easier
Bandung	25%	$1,200-$1,400	4-6%	Moderate
Batam	20-25%	$1,050-$1,350	5-7%	More open
Jakarta	35-40%	$2,200-$3,500	3-5%	Most established

Medan's rapid appreciation has pushed per-square-meter costs above traditionally more expensive markets like Surabaya and Bandung, raising questions about value sustainability. However, the city's economic fundamentals including port commerce, agricultural processing, and regional business center status support continued growth.

Compared to other markets, Medan offers moderate foreign ownership accessibility focused on apartments and condos, while cities like Batam provide more open foreign investment frameworks. Jakarta remains the most established market with comprehensive international buyer services but commands premium pricing.

Investment timing considerations favor cities like Surabaya and Bandung for value-conscious buyers, while Medan suits investors believing in continued North Sumatra economic growth despite current premium pricing levels.

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. Medan Property Market Analysis
2. Buying Property in Indonesia for Foreigners
3. Medan Price Forecasts
4. Indonesia Mortgage Options
5. Indonesia Real Estate Portal
6. Best Areas in Medan
7. Indonesia Property Price History
8. Foreigner Mortgage in Indonesia