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Everything you need to know before buying real estate is included in our Indonesia Property Pack
Thinking about buying a 3-bedroom apartment in Menteng? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Kebayoran Baru or Pondok Indah where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Indonesia Property Pack.
Will property prices increase in Indonesia in 2025?
Yes, property prices in Indonesia are expected to rise in 2025, driven by a combination of economic growth and urban development.
Backed by our fresh, in-depth market analysis, we’re confident that Indonesia remains an attractive market for both domestic and international investors.
While there are challenges such as inflation and potential regulatory changes, the main drivers behind Indonesia’s property price growth are strong and persistent.
Rapid urbanization and infrastructure development continue to fuel demand, particularly in major cities like Jakarta and Surabaya, making significant price declines unlikely. Additionally, Indonesia's growing middle class and favorable demographics contribute to a robust property market.
Signals pointing to a property price increase in Indonesia
Here are some factors suggesting prices could increase:
Indonesia's economy is projected to grow steadily in 2025, boosting consumer confidence and increasing purchasing power, which is likely to drive demand for residential and commercial properties.
The government's ongoing infrastructure projects, such as new highways and public transportation systems, are expected to enhance connectivity and accessibility, making certain areas more attractive for property investment.
Urbanization trends continue to rise, with more people moving to cities for better job opportunities. This urban migration is expected to increase demand for housing in urban centers, pushing property prices upward.
The Indonesian government is likely to continue implementing policies that support the real estate sector, such as tax incentives for property developers and buyers, which could stimulate market activity and price growth.
Foreign investment in Indonesia's property market is expected to increase, driven by favorable economic conditions and regulatory reforms that make it easier for foreigners to invest in real estate.
The growing middle class in Indonesia is expected to drive demand for quality housing, as more people seek to upgrade their living conditions, contributing to price increases.
Technological advancements in property development and management are likely to improve efficiency and attract more investors, further boosting the property market.
Signals pointing to a property price decrease in Indonesia
Here are some factors suggesting prices could fall:
Rising inflation could erode purchasing power, making it more difficult for potential buyers to afford property, which could dampen demand.
Potential regulatory changes or government interventions in the property market could create uncertainty and deter investment, potentially leading to a slowdown in price growth.
An oversupply of properties in certain areas, particularly in the luxury segment, could lead to price corrections as developers compete to attract buyers.
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If property prices go up in Indonesia, how much would they increase by?
If real estate prices in Indonesia were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Indonesia appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a lovely 2-bedroom apartment in Jakarta for 1.5 billion IDR today, don't be surprised if it's priced between 1.545 billion and 1.605 billion IDR this time next year.
To give you a better understanding, here is a table that shows 7 types of Indonesian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (IDR) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment (60 sqm) | 1,500,000,000 | 1,545,000,000 | 1,575,000,000 | 1,605,000,000 |
| Modern House (100 sqm) | 2,500,000,000 | 2,575,000,000 | 2,625,000,000 | 2,675,000,000 |
| Luxury Villa (200 sqm) | 5,000,000,000 | 5,150,000,000 | 5,250,000,000 | 5,350,000,000 |
| Studio (30 sqm) | 800,000,000 | 824,000,000 | 840,000,000 | 856,000,000 |
| Loft (80 sqm) | 2,000,000,000 | 2,060,000,000 | 2,100,000,000 | 2,140,000,000 |
| Townhouse (150 sqm) | 3,500,000,000 | 3,605,000,000 | 3,675,000,000 | 3,745,000,000 |
| Investment Property (50 sqm) | 1,200,000,000 | 1,236,000,000 | 1,260,000,000 | 1,284,000,000 |
Everything you need to know is included in our Property Pack for Indonesia
If real estate prices go up in Indonesia, which areas are likely to see the biggest increases?
Today, people who want to move to Indonesia seek the blend of cultural richness and modern amenities, which Ubud, Bali offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Jakarta's Kemang area has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Indonesian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Ubud, Bali | High | Recent development of luxury villas and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Seminyak, Bali | High | Expected rise due to limited land availability, upcoming renovations to resorts, and growing demand for prime properties in Bali. |
| Kemang, Jakarta | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| BSD City, Tangerang | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Canggu, Bali | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Menteng, Jakarta | Medium | Investment in local infrastructure, such as the extension of MRT lines and renovation of historic areas, is boosting long-term value. |
| Kuta, Bali | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Sudirman, Jakarta | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Pondok Indah, Jakarta | Medium-High | Its proximity to central Jakarta, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Sanur, Bali | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Senayan, Jakarta | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Nusa Dua, Bali | High | Upcoming restoration of cultural sites and high-profile tourism projects are driving a renewed focus on this prime location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Indonesia?
In 2025, Indonesia's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban centers like Jakarta and Surabaya.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Jakarta and Bandung are seeing increased interest. Proximity to green spaces, schools, and transportation hubs is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Jakarta, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Indonesia's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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