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
Many people are wondering whether January 2026 is the right time to buy property in Indonesia, or if they should wait for better conditions.
In this article, we break down the current housing prices in Indonesia and examine the key signals that tell us whether the market favors buyers or sellers right now.
We constantly update this blog post with the freshest data available, so you always have the most current picture of the Indonesia property market.
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 Indonesia.
So, is now a good time?
Rather yes, January 2026 is a reasonable time to buy property in Indonesia if you are selective about location and negotiate hard, since the market is not overheated and buyers have leverage in most segments.
The strongest signal is that property prices in Indonesia are barely moving, with Bank Indonesia reporting just 0.84% annual growth in Q3 2025, which means you are not buying into a frothy market where prices could crash.
Another strong signal is that primary home sales in Indonesia are still slightly negative year-over-year, confirming that demand is cautious and sellers are motivated to deal.
Other strong signals include the government extending VAT incentives through 2027, Bank Indonesia holding rates at a supportive 4.75%, and no new condo launches in Jakarta during Q3 2025, all pointing to a market that rewards patient buyers.
The best strategies right now involve targeting landed houses in prime Jakarta expat areas like Kemang or Pondok Indah, or well-located apartments near MRT corridors, and holding for at least five to seven years to ride out transaction costs.
This is not financial or investment advice, we do not know your personal situation, and you should always do your own research and consult professionals before making any property purchase in Indonesia.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
Is it smart to buy now in Indonesia, or should I wait as of 2026?
Do real estate prices look too high in Indonesia as of 2026?
As of early 2026, property prices in Indonesia do not look stretched compared to fundamentals, with Bank Indonesia's Residential Property Price Index showing only 0.84% annual growth in Q3 2025, which is near the bottom of the historical range and far from bubble territory.
One clear on-the-ground signal is that Jakarta condo buyers are described as "extremely cautious" by JLL, with many properties sitting longer than usual, which tells us that prices are meeting resistance rather than running away from buyers.
Another supporting signal is that no new condominium projects launched in Jakarta during Q3 2025, which typically happens when developers sense that current prices are at or near what buyers are willing to pay.
You can also read our latest update regarding the housing prices in Indonesia.
Does a property price drop look likely in Indonesia as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Indonesia over the next 12 months is low, mainly because prices are already growing so slowly that there is little room for a sharp correction.
A plausible downside-to-upside range for Indonesia property prices over the next year is roughly flat to up 3%, meaning a crash looks unlikely while modest gains remain possible in select areas.
The single most important factor that could increase the odds of a price drop in Indonesia would be a significant tightening of mortgage rates, which would squeeze affordability for the many buyers who rely on financing.
However, Bank Indonesia held its policy rate at 4.75% in late 2025 and inflation remains within target at around 2.9%, so a sudden rate spike looks unlikely in the near term, keeping downside risk contained.
Finally, please note that we cover the price trends for next year in our pack about the property market in Indonesia.
Could property prices jump again in Indonesia as of 2026?
As of early 2026, the likelihood of a renewed price surge in Indonesia over the next 12 months is low to medium, with any jump most likely to be selective in certain corridors rather than nationwide.
A plausible upside range for Indonesia property prices over the next year is around 2% to 5% in favored areas, with transit-improved Jakarta neighborhoods and prime Bali lifestyle nodes having the best shot at outperformance.
The single biggest demand-side trigger that could drive prices higher in Indonesia would be further interest rate cuts combined with sustained government housing incentives, which would expand the pool of qualified buyers.
Please also note that we regularly publish and update real estate price forecasts for Indonesia here.
Are we in a buyer or a seller market in Indonesia as of 2026?
As of early 2026, Indonesia's property market leans toward buyers in most segments, with sellers needing to price competitively to attract cautious purchasers who have multiple options to choose from.
While Indonesia does not publish a formal months-of-inventory metric, the practical equivalent shows in Bank Indonesia's data: primary sales were still contracting by 1.29% year-over-year in Q3 2025, which typically implies buyers can take their time and negotiate harder.
In Jakarta's condo market specifically, JLL reports that buyers are extremely cautious and activity is constrained, which is a strong proxy for more room for negotiation on asking prices and sellers being more flexible.
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.
Are homes overpriced, or fairly priced in Indonesia as of 2026?
Are homes overpriced versus rents or versus incomes in Indonesia as of 2026?
As of early 2026, homes in Indonesia look fairly priced to slightly stretched versus rents, but more notably stretched versus local incomes, especially in Jakarta and Bali's prime areas where affordability is a real challenge.
The price-to-rent ratio in Indonesia's major cities implies gross rental yields of around 4% to 7% for apartments and 3% to 5% for prime landed houses, which translates to roughly 17 to 25 years of rent to equal the purchase price, a normal-to-moderately-expensive range.
The price-to-income multiple in Jakarta and Bali is roughly 10 to 18 times annual median employee income for a typical middle-market property, which is high by global standards and means many local first-time buyers struggle to qualify.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Indonesia.
Are home prices above the long-term average in Indonesia as of 2026?
As of early 2026, home prices in Indonesia do not look meaningfully above the long-term average, with current annual growth near the bottom of the historical range rather than at a cyclical peak.
The recent 12-month price change in Indonesia was around 0.84% to 1.1% depending on the quarter, which is well below the pre-pandemic pace and the mid-single-digit growth rates seen in stronger years.
When adjusted for inflation, real residential property prices in Indonesia are essentially flat to slightly positive, with BIS data showing the first real increase since Q2 2021 at just 0.5% in early 2025, meaning we are far from a bubble peak.
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What local changes could move prices in Indonesia as of 2026?
Are big infrastructure projects coming to Indonesia as of 2026?
As of early 2026, the biggest infrastructure project likely to move residential prices in Indonesia is the Jakarta MRT Phase 2A expansion, which was nearly 49% complete by May 2025 and continues to progress toward delivery in the coming years.
The timeline for MRT Phase 2A shows construction ongoing through late 2025 and into 2026, with station openings expected to follow, meaning properties along the corridor should see accessibility benefits within the next one to three years.
For the latest updates on the local projects, you can read our property market analysis about Indonesia here.
Are zoning or building rules changing in Indonesia as of 2026?
The most important regulatory framework affecting Indonesia property buyers is not traditional zoning changes but rather the post-Omnibus land rights and registration rules anchored in PP No. 18/2021, which clarifies ownership structures for apartments and landed homes.
As of early 2026, these rules reinforce the importance of title type and registration, particularly for foreigners and for distinguishing freehold-equivalent rights from leasehold structures, which directly affects both purchase security and resale value.
The areas most affected are prime foreign-buyer segments in Bali and Jakarta, where title clarity directly impacts what can legally be purchased, held, and eventually sold to the next buyer.
Are foreign-buyer or mortgage rules changing in Indonesia as of 2026?
As of early 2026, foreign-buyer rules in Indonesia remain stable but restrictive, with foreigners now able to own up to 20% of new residential units in Jakarta under relaxed regulations, though this is not expected to dramatically move overall prices.
The most recent foreign-buyer rule change was the implementation of Ministerial Decree 1241/2022, which sets minimum price thresholds by region for foreign acquisitions, effectively limiting foreign demand to upper-middle and premium segments only.
On the mortgage side, Bank Indonesia's policy rate held at 4.75% in late 2025 supports stable financing conditions, and the extension of VAT incentives through 2027 for eligible new purchases further improves affordability for domestic buyers.
You can also read our latest update about mortgage and interest rates in Indonesia.
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.
Will it be easy to find tenants in Indonesia as of 2026?
Is the renter pool growing faster than new supply in Indonesia as of 2026?
As of early 2026, renter demand is outpacing new supply in Indonesia's prime areas like South Jakarta's expat neighborhoods and Bali's tourism zones, but the balance is more neutral or even oversupplied in generic condo submarkets.
The strongest renter-demand signal in Indonesia comes from Colliers reporting that quality landed houses in Kemang, Cipete, Cilandak, and Pondok Indah are often reserved months in advance, indicating genuine undersupply in the expat-focused segment.
On the supply side, JLL reports no new condominium launches in Jakarta during Q3 2025, which limits new rental inventory, but around 4,860 apartment units are still scheduled for delivery by 2027, with most concentrated in South Jakarta.
Are days-on-market for rentals falling in Indonesia as of 2026?
As of early 2026, days-on-market for rentals in Indonesia's best areas like Kemang, Cipete, Cilandak, and Pondok Indah are effectively near zero, as Colliers reports that quality houses are often reserved months before becoming available.
The difference between best areas and weaker areas is substantial: prime expat neighborhoods in South Jakarta see near-instant absorption, while generic condo buildings in non-prime locations can sit vacant for weeks or months depending on price.
The main reason days-on-market falls in Indonesia's prime rental zones is genuine land scarcity combined with steady expat and corporate tenant demand, which creates structural undersupply that no amount of new apartment construction can fully address.
Are vacancies dropping in the best areas of Indonesia as of 2026?
As of early 2026, vacancies in Indonesia's best rental areas like Kemang, Cipete, Pondok Indah in Jakarta and Canggu, Seminyak, and Ubud in Bali are tight rather than dropping, because they were already at structurally low levels due to land constraints.
In contrast, Jakarta's serviced apartment sector overall saw occupancy fall to 56.8% in Q1 2025 according to Colliers, highlighting the gap between prime owner-occupier neighborhoods with strong fundamentals and the broader corporate-tenant-dependent segment.
One practical sign that the best areas are tightening in Indonesia is that landlords in South Jakarta expat hubs can now require longer lease commitments upfront, as prospective tenants compete for a limited pool of quality properties.
By the way, we've written a blog article detailing what are the current rent levels in Indonesia.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Indonesia as of 2026?
Is for-sale inventory shrinking in Indonesia as of 2026?
As of early 2026, for-sale inventory in Indonesia is mixed: it is tight for prime landed houses in established Jakarta neighborhoods due to land constraints, but not notably shrinking for condos where launches have simply paused rather than stock being absorbed.
Indonesia does not publish a formal months-of-supply metric, but the practical proxy is that JLL reports no new project launches in Jakarta condos during Q3 2025, which limits new inventory flow while existing units sell slowly amid buyer caution.
The single most likely reason inventory is constrained for prime landed houses in Indonesia is structural land scarcity in built-out neighborhoods like Kemang and Pondok Indah, where no amount of demand can create new plots to sell.
Are homes selling faster in Indonesia as of 2026?
As of early 2026, homes in Indonesia are not selling notably faster, with Bank Indonesia data showing primary sales still slightly negative year-over-year in Q3 2025 and JLL describing Jakarta condo buyers as extremely cautious.
The year-over-year change in selling speed is essentially flat to slightly slower, as the improving sales trend from Q2 to Q3 2025 still left overall activity below prior-year levels, meaning sellers cannot count on quick exits.
Are new listings slowing down in Indonesia as of 2026?
As of early 2026, new listings in the form of developer launches have clearly slowed in Indonesia, with JLL reporting zero new condominium project launches in Jakarta during Q3 2025, which is a significant reduction from more active periods.
Seasonally, Indonesia's property market tends to see activity pick up after Eid holidays and slow during Ramadan, but the Q3 2025 pause in launches appears structural rather than seasonal, reflecting developer caution about absorption capacity.
The most plausible reason new listings are slowing in Indonesia is that developers learned from past oversupply episodes and are now matching launches more carefully to actual buyer demand, which remains subdued amid affordability constraints.
Is new construction failing to keep up in Indonesia as of 2026?
As of early 2026, new construction in Indonesia is keeping pace with demand in most segments, but prime landed houses in established Jakarta neighborhoods face a permanent gap because there is simply no land left to build on.
The recent trend in apartment completions shows around 4,860 units scheduled for Jakarta delivery by 2027, with 51% expected in late 2025 and the remainder spread through 2026 and 2027, indicating a measured rather than runaway supply pipeline.
The single biggest bottleneck limiting new construction in Indonesia's prime zones is land availability, particularly in South Jakarta's expat neighborhoods and Bali's coastal lifestyle areas, where developable plots are essentially exhausted.
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.
Will it be easy to sell later in Indonesia as of 2026?
Is resale liquidity strong enough in Indonesia as of 2026?
As of early 2026, resale liquidity in Indonesia is strongest in Jakarta for well-located apartments and standard-format landed houses, weaker for niche properties like large luxury villas, and quite variable in tourism markets like Bali where demand swings with visitor flows.
While Indonesia does not publish formal resale days-on-market statistics, broker reports suggest that realistically priced properties in Jakarta's established districts sell within a few months, which is acceptable but not fast by regional standards.
The property characteristic that most improves resale liquidity in Indonesia is location near established infrastructure and amenities, particularly proximity to MRT stations in Jakarta or year-round tenant demand areas, because these features attract both end-users and investors.
Is selling time getting longer in Indonesia as of 2026?
As of early 2026, selling time in Indonesia has likely increased modestly versus a year ago, as JLL describes buyers as extremely cautious and Bank Indonesia shows sales still slightly negative year-over-year, both of which correlate with longer marketing periods.
The realistic range for selling time in Indonesia is anywhere from two to six months for well-priced, well-located properties, extending to a year or more for overpriced units or properties in weak submarkets with limited buyer pools.
One clear reason selling time can lengthen in Indonesia is affordability pressure, since the high price-to-income ratios in Jakarta and Bali mean fewer local buyers can qualify for mortgages, which narrows the buyer pool and slows transactions.
Is it realistic to exit with profit in Indonesia as of 2026?
As of early 2026, the likelihood of exiting with profit in Indonesia is medium, dependent on buying right, choosing high-demand locations, and holding long enough to absorb substantial transaction costs that can eat into gains.
The minimum holding period that most often makes exiting with profit realistic in Indonesia is five to seven years, which allows time for infrastructure catalysts to materialize and for slow price appreciation to compound past transaction costs.
The estimated total round-trip cost in Indonesia, including buyer's transfer tax, notary fees, agent commissions, and seller's income tax, runs roughly 10% to 15% of the property value, which is around 300 to 450 million IDR on a typical 3 billion IDR property, or roughly 18,000 to 27,000 USD.
One clear factor that most increases profit odds in Indonesia is buying at a discount, either from a motivated seller, an off-market deal, or a developer incentive, because the slow price growth environment means you need a margin of safety built into your entry price.
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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 Indonesia, 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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Bank Indonesia RPPI Survey | Indonesia's central bank publishing the official house price and sales survey. | We used BI's RPPI as our baseline for price growth and sales trends in late 2025. We treat this as the most reliable temperature check for the primary residential market. |
| Bank Indonesia Monetary Policy | The official policy-rate decision from Indonesia's central bank. | We used the BI-Rate decision to anchor financing conditions for 2026. We translated the rate direction into affordability implications for mortgage borrowers. |
| BPS Statistics Indonesia | The national statistics agency publishing official wage data by province. | We used BPS wage data as the income anchor for price-to-income estimates. We paired it with typical home prices to show how stretched buyers are. |
| World Bank Indonesia Outlook | A top-tier international source with transparent economic forecasting. | We used World Bank projections to frame 2026 demand tailwinds. We treat this as the macro backdrop for housing demand. |
| Reuters VAT Coverage | A major wire service reporting a clearly attributable policy announcement. | We used Reuters to explain why prices may not crash due to policy support. We identified who benefits most from VAT breaks on eligible purchases. |
| JLL Jakarta Residential Report | A global real estate research firm with established market coverage. | We used JLL's Q3 2025 report to characterize buyer sentiment in Jakarta. We treat their buyer caution findings as key evidence of market leverage. |
| Colliers Jakarta Expatriate Housing | A major global real estate firm publishing structured research. | We used Colliers to assess rental demand in prime expat neighborhoods. We named specific neighborhoods with strong tenant depth. |
| Global Property Guide Yields | A long-running housing data publisher with transparent methodology. | We used their 7.15% average yield figure for Q3 2025. We triangulated with broker research to validate yield ranges. |
| FRED BIS Property Index | A respected public data portal distributing official BIS price series. | We used the long-run index to put 2025 data in historical context. We checked whether current prices are near boom peaks. |
| MRT Jakarta Official Updates | The project owner publishing direct construction progress figures. | We used MRT Jakarta's Phase 2A progress as infrastructure catalyst. We translated timeline into likely neighborhood uplift. |
| PP No. 18/2021 Legal Database | An official Indonesian regulation in the formal regulatory database. | We used this to ground ownership-rights discussions in real law. We explained why title type matters for different properties. |
| Reuters January 2026 Update | A time-stamped macro snapshot from very close to January 2026. | We used this as our closest-to-date macro pulse for inflation. We assessed what conditions imply for housing affordability. |
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.