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Indonesia's property market presents a mixed picture as we reach mid-2025, with stark regional differences between booming tourist areas and stagnating urban centers.
While national property prices rose by only 1.07% year-on-year in Q1 2025, Bali's villa and land market continues to surge with 10-15% annual growth, driven by tourism recovery and digital nomad demand. Jakarta and Surabaya show much more modest growth, with some segments actually declining when adjusted for inflation.
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Property prices in Indonesia are experiencing minimal growth nationally, with only 1.07% increase in Q1 2025, but significant regional variations exist.
Bali remains the standout performer with 10-15% annual growth in land and villa prices, while Jakarta and Surabaya face flat to modest growth patterns.
| Region | 2024-2025 Price Growth | Average Price | Market Outlook |
|---|---|---|---|
| Bali | 10-15% annually | Land prices vary widely | Strong growth expected |
| Jakarta CBD | Slight increase | IDR 52.89M/sqm (apartments) | Flat to modest growth |
| Surabaya | Steady nominal growth | IDR 20M/sqm | Stable appreciation |
| National Average | 1.07% (Q1 2025) | Varies by region | Modest growth expected |
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.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What are the current property price levels across Indonesia?
Indonesia's property market shows significant price variations across different regions and property types as of June 2025.
In Jakarta's Central Business District, apartment prices have reached IDR 52.89 million per square meter, while landed houses in Central Jakarta command median prices of IDR 3 billion for properties between 91-150 square meters. Surabaya's residential properties average around IDR 20 million per square meter, showing steady growth from previous years.
Bali continues to be the premium market, particularly for villas and land in tourist hotspots like Canggu, Seminyak, and Uluwatu. Land prices in these areas have seen exceptional growth, with some locations experiencing 15-20% annual appreciation. The island's appeal to international buyers and digital nomads has created a unique pricing dynamic that significantly outpaces other Indonesian markets.
Secondary cities and emerging areas offer more affordable entry points. Areas outside major urban centers typically see prices 30-50% lower than prime locations, presenting opportunities for investors seeking higher growth potential over the long term.
The market remains highly segmented, with luxury properties in Bali and Jakarta commanding premium prices while affordable housing segments in suburban areas maintain more stable, modest price points.
How much have property prices increased in the past year?
National property price growth in Indonesia remains subdued, with the latest data showing only a 1.07% year-on-year increase in Q1 2025.
The composite property price index rose by just 1.46% during the year to Q3 2024, but when adjusted for inflation, prices actually declined by 0.47%. This reflects the challenging economic environment and the impact of the weakening rupiah on real purchasing power. Small houses showed the highest growth at 1.84%, while large houses experienced the most significant slowdown.
However, these national figures mask dramatic regional variations. Bali's property market has been the clear winner, with land prices in premium areas rising 10-15% annually. Villas in tourist hotspots like Canggu and Jimbaran have seen even stronger appreciation, with some properties gaining up to 17% in value year-on-year.
Jakarta's market has been relatively flat, with apartment sales particularly sluggish. Developers have shifted focus to landed housing, which continues to show modest growth. Surabaya maintains steady nominal growth, with average prices rising from IDR 12.59 million per square meter in 2017 to IDR 20 million in 2025.
It's something we develop in our Indonesia property pack.
Which Indonesian cities are experiencing the strongest price growth?
Bali dominates Indonesia's property price growth landscape, significantly outperforming all other regions in the country.
Tourist areas in Bali, particularly Canggu, Uluwatu, Seminyak, and Ubud, are experiencing annual price increases of 10-15% for land and even higher for well-positioned villas. The Badung region leads with 48.2% market popularity, offering rental yields approximately 5% higher than Jakarta. This growth is fueled by the island's tourism recovery, with over 6 million international visitors expected in 2025.
| City/Region | Annual Price Growth | Key Growth Drivers |
|---|---|---|
| Bali (Canggu, Uluwatu) | 10-15% | Tourism recovery, digital nomad influx, limited land supply |
| Bali (Other areas) | 7-10% | Spillover effect, infrastructure improvements |
| Surabaya | 3-5% | Economic growth, infrastructure development |
| Jakarta | 0-2% | Urban development, but oversupply in apartments |
| Bandung | 2-4% | Cool climate appeal, proximity to Jakarta |
| East Kalimantan (Nusantara) | 5-8% | New capital city development |
| Lombok | 3-5% | Tourism potential, lower base prices |
What types of properties are seeing the biggest price surges?
Landed houses and villas in tourist areas are experiencing the strongest price appreciation across Indonesia's property market.
In Bali, luxury villas designed for short-term rentals are the top performers, with properties in prime locations commanding rental yields of 7-15% and experiencing annual value appreciation of 15-20%. These properties benefit from the island's booming tourism industry and the growing digital nomad community. Villas with unique design features, sustainable elements, and premium amenities are particularly sought after.
Small to medium-sized landed houses nationally showed better price growth than large houses, with small houses recording 1.84% year-on-year growth. This reflects stronger demand from the growing middle class seeking affordable homeownership options. Properties between 36-70 square meters are particularly popular due to their accessibility to first-time buyers.
Apartments in Jakarta and other major cities have been the weakest performers, with oversupply issues dampening price growth. However, strata-title apartments in special economic zones that allow foreign ownership are beginning to see renewed interest, especially those priced above the minimum threshold for foreign buyers.
Eco-friendly and smart home properties are emerging as a new category showing strong price growth, particularly in urban areas where younger buyers prioritize sustainability and technology integration.
What property price forecasts exist for 2026 and beyond?
Property price forecasts for Indonesia suggest continued but moderate growth, with significant variations between regions and property types.
For 2026, national property prices are expected to rise between 3-7%, driven by steady economic growth projected at 4.7-5.5% GDP expansion. This translates to properties currently valued at IDR 1.5 billion potentially appreciating to IDR 1.545-1.605 billion by next year. Urban markets like Jakarta and Surabaya will likely see growth at the lower end of this range due to existing oversupply issues.
Bali's market is forecast to maintain its outperformance, with land prices potentially rising 10-15% annually through 2026 and beyond. Premium areas like Canggu and Uluwatu may see even higher appreciation as available land becomes increasingly scarce. However, experts warn that some areas may be approaching a tipping point where rapid price growth could stabilize.
Long-term projections through 2030 suggest the Indonesian real estate market could grow from USD 68.55 billion in 2025 to USD 90.96 billion, representing a compound annual growth rate of 5.82%. This growth will be supported by continued urbanization, infrastructure development, and a expanding middle class.
The new capital city Nusantara is expected to create localized price appreciation in East Kalimantan, with spillover effects anticipated as the city matures over the next decade.
How have Indonesian property prices changed over the past 5 to 10 years?
Over the past decade, Indonesian property prices have shown modest nominal growth but struggled to keep pace with inflation.
Nationally, residential property prices rose 16% nominally over 10 years, but actually declined 5.9% when adjusted for inflation. This real decline reflects the impact of currency depreciation and economic challenges. The market experienced its strongest growth during 2017-2018, with annual increases of 3.5% and 2.95% respectively, before moderating to around 1.5% annually in recent years.
Surabaya exemplifies the nominal growth story, with average prices rising from IDR 12.59 million per square meter in 2017 to IDR 20 million in 2025 - a 59% increase over 8 years. However, when factoring in rupiah depreciation and inflation, real returns have been more modest.
Bali has been the exceptional performer, with some areas seeing property values double or even triple over the past decade. Canggu, in particular, has experienced dramatic price increases, transforming from a quiet coastal area to one of Indonesia's most expensive property markets.
Jakarta's property market has shown more stability but lower growth, with luxury apartments actually declining in value in some areas due to oversupply. The shift in buyer preference from apartments to landed houses has been a defining trend of the past five years.
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What economic factors are driving Indonesia's property prices?
Indonesia's property market is influenced by a complex mix of economic factors, creating both opportunities and challenges for price growth.
The primary driver remains Indonesia's demographic dividend, with rapid urbanization and a growing middle class creating sustained housing demand. The country's GDP growth of 4.7-5.5% provides a solid foundation for property appreciation, while government initiatives like VAT waivers and the One Million Houses program support market accessibility.
Tourism recovery plays a crucial role, particularly in Bali where international arrivals are approaching 6.5 million annually. The influx of digital nomads and expatriates, estimated at 30,000 in Bali alone, creates additional demand for both rental properties and purchases through foreign ownership structures.
However, the weakening rupiah poses challenges, with a 4% depreciation in early 2025 affecting purchasing power and development costs. Bank Indonesia's monetary policy, maintaining rates at 6% to control inflation within the 2.5±1% target, influences mortgage affordability and investor sentiment.
Infrastructure development, including the new capital city Nusantara which has attracted over USD 4 billion in private investment, creates localized growth opportunities while potentially redistributing demand from traditional urban centers.
How does Indonesia's new capital project impact property prices?
The Nusantara new capital project in East Kalimantan is creating localized property market impacts while its national influence remains limited.
As of June 2025, the project has attracted over USD 4 billion in private investment, accelerating infrastructure development and creating immediate demand for residential and commercial properties in the surrounding area. Property prices in East Kalimantan have risen 5-8% annually, outpacing many established markets as investors position themselves for long-term growth.
The immediate impact zone includes increased land speculation and development activity within a 50-kilometer radius of the new capital. Early investors are banking on significant appreciation as government offices relocate and supporting infrastructure develops. However, the actual migration timeline remains uncertain, creating both opportunity and risk.
Nationally, Nusantara's impact on property prices remains minimal. Jakarta's market hasn't seen the expected relief from reduced density, as most government workers and businesses maintain their presence in the current capital. The spillover effects are expected to materialize gradually over the next decade as the city becomes operational.
Long-term projections suggest Nusantara could reshape Indonesia's property landscape by creating a new growth corridor in Kalimantan, potentially redistributing investment from Java and creating more balanced national development.
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.
What are the main risks facing Indonesia's property market?
Several significant risks could impact property price growth in Indonesia's diverse real estate market.
Oversupply remains a critical concern, particularly in Jakarta's apartment sector where developers struggle with high inventory levels. This imbalance between supply and demand continues to suppress price growth and rental yields in urban markets. The luxury segment faces particular pressure, with some developments offering significant discounts to attract buyers.
Currency volatility poses ongoing challenges, with the rupiah's 4% depreciation in early 2025 affecting both local purchasing power and foreign investment calculations. Developers with USD-denominated debt face increased costs, potentially impacting project viability and future supply.
Regulatory uncertainty around foreign ownership continues to create hesitation among international investors. While recent changes allow foreign ownership of apartments in special economic zones, restrictions remain complex and could change, affecting market sentiment and demand from overseas buyers.
In Bali, rapid development has created infrastructure stress, with water shortages, traffic congestion, and construction quality issues emerging. Recent structural problems exposed during 2024's rainy season highlight the need for better building standards and maintenance, potentially impacting property values.
Environmental concerns, including flooding in Jakarta and overdevelopment in Bali, present long-term risks to property values in affected areas.
How do Indonesian property prices compare regionally?
Indonesian property prices remain highly competitive within Southeast Asia, offering better value than most neighboring countries.
Indonesia's residential property prices are generally 20-40% lower than comparable properties in Thailand, Malaysia, and significantly below Singapore levels. Jakarta's CBD apartment prices at IDR 52.89 million per square meter (approximately USD 3,242) compare favorably to Bangkok's THB 150,000-200,000 (USD 4,500-6,000) per square meter in prime areas.
However, Indonesia's standout advantage lies in rental yields. Bali offers gross rental yields of 7-15% for villas in tourist areas, substantially higher than Thailand's 4-6% average. This yield differential makes Indonesia particularly attractive for investment properties despite lower capital appreciation rates.
- Singapore remains the most expensive, with prices 5-10 times higher than Jakarta
- Kuala Lumpur properties cost 30-50% more than similar Jakarta properties
- Bangkok's property prices exceed Jakarta's by 20-30% in comparable areas
- Manila offers similar pricing to Jakarta but with lower rental yields
- Ho Chi Minh City presents comparable values but with different foreign ownership rules
Bali's resort property market competes directly with Phuket and Koh Samui, offering similar or better returns at lower entry prices.
What do property experts predict for Indonesia's market?
Real estate experts maintain cautiously optimistic outlooks for Indonesia's property market, with notable regional variations in their predictions.
Industry analysts project national market growth of 5.82% CAGR through 2030, reaching USD 90.96 billion in total market value. This growth will be driven by continued urbanization, with Indonesia's urban population expected to reach 70% by 2035. The expanding middle class, projected to double by 2030, will create sustained demand for both affordable and mid-range housing.
For Bali specifically, experts predict continued outperformance, with Knight Frank Indonesia suggesting 10-15% annual price growth in premium areas through 2027. The island's unique position as a lifestyle destination for digital nomads and retirees supports this bullish outlook. However, some analysts warn of potential market saturation in areas like Canggu, where development density is reaching critical levels.
Major developers like Sinar Mas Land and Agung Podomoro remain confident in long-term prospects, continuing significant investments in mixed-use developments. Their focus on townships and integrated communities reflects expectations of changing buyer preferences toward self-contained developments.
Standard & Poor's projects 5-10% growth in housing sales supported by government policies and improving mortgage accessibility. However, they caution that global economic uncertainty and potential interest rate changes could moderate growth expectations.
Expert insights and detailed analysis are available in our Indonesia property pack.
Conclusion
Based on comprehensive market analysis, property prices in Indonesia are going up, but the growth is modest at the national level - we conclude: Yes.
While national statistics show only 1.07% growth in Q1 2025, this masks significant regional variations. Bali continues its exceptional performance with 10-15% annual growth, driven by tourism recovery and lifestyle migration. Jakarta and Surabaya experience more subdued growth, reflecting urban market maturity and oversupply challenges. For investors, the Indonesian market offers opportunities, but success depends heavily on location selection and property type, with Bali's villas and land remaining the strongest performers.
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.
Indonesia's property market presents a nuanced picture in 2025, with regional variations offering different opportunities for investors and homebuyers. While national growth remains modest, hotspots like Bali continue to deliver strong returns.
Understanding these market dynamics is crucial for making informed investment decisions. Whether you're considering a lifestyle purchase in Bali or an investment property in Jakarta, thorough research and local expertise are essential for success in Indonesia's evolving property landscape.
Sources
- Global Property Guide - Indonesia Price History
- Trading Economics - Indonesia Housing Index
- Cekindo - Indonesian Real Estate Market Outlook
- Bamboo Routes - Indonesia Price Forecasts
- Invest Land Bali - Market Trends 2025
- Mordor Intelligence - Indonesia Real Estate Market Report
- OXO Living - Bali Property Market Insights
- Bukit Vista - Bali Property Market Analysis