What are the price trends and forecasts in Indonesia right now? (2026)

Indonesia's property market is one of Southeast Asia's most dynamic, shaped by rapid urbanization, strong tourism recovery, and a growing middle class of over 280 million people.

In this article, we break down the current housing prices in Indonesia, track recent price movements, and share our forecasts for the years ahead.

We constantly update this blog post to reflect the latest data and market shifts.

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.

Fact-checked and reviewed by our local expert

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Daniel Rouquette 🇫🇷

CEO & Co-Founder at Villa Finder

Daniel Rouquette has deep expertise in Indonesia’s short-term rental market, thanks to Villa Finder’s strong presence across the country. As the CEO and Co-Founder of Villa Finder, he has been managing one of the largest villa rental platforms in the Asia-Pacific region since 2012. The company offers a carefully curated selection of over 4,000 villas in 28 destinations, ensuring guests receive high-end accommodation and tailored services.

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 Indonesia. If you’d like to learn more about us, you can check our presentation page.

What are the current property price trends in Indonesia as of 2026?

What is the average house price in Indonesia as of 2026?

As of early 2026, the average price for a typical middle-market landed house in Indonesia sits at approximately IDR 1.6 billion, which works out to around $100,000 or roughly 95,000 euros.

When we look at price per square meter, landed houses in Indonesia average about IDR 17 million per square meter (around $1,050 or 1,000 euros), while apartments in major cities like Jakarta command higher rates of about IDR 30 to 36 million per square meter ($1,850 to $2,200).

The realistic price range that covers roughly 80% of property purchases in Indonesia spans from IDR 500 million to IDR 5 billion ($31,000 to $310,000 or 29,000 to 290,000 euros), though this varies dramatically between affordable suburbs and prime urban locations like South Jakarta or Bali's villa corridors.

How much have property prices increased in Indonesia over the past 12 months?

Over the past 12 months, property prices in Indonesia increased by an estimated 2% on a nominal basis, marking one of the slowest years for growth in recent memory.

Across different property types, the range of price increases varied considerably: Jakarta apartments grew by just 0.3% to 2.4%, while Bali villas in hotspots like Canggu and Berawa appreciated by 7% to 15%, and affordable landed houses in Jabodetabek suburbs saw moderate gains of 1% to 3%.

The single most significant factor behind this muted price movement was a decline in purchasing power combined with rising layoffs across several sectors, which dampened buyer confidence despite lower interest rates.

Which neighborhoods have the fastest rising property prices in Indonesia as of 2026?

As of early 2026, the top three neighborhoods with the fastest rising property prices in Indonesia are Canggu in Bali (including nearby Berawa and Pererenan), BSD City in Tangerang, and Kelapa Gading in North Jakarta.

Canggu and its surrounding areas have seen annual price growth of 10% to 15%, BSD City has experienced appreciation of around 5% to 8%, and Kelapa Gading has recorded gains of approximately 4% to 6% year-on-year.

The main demand driver behind these neighborhoods is the combination of lifestyle appeal and improved infrastructure: Bali attracts international buyers and digital nomads seeking rental income, while BSD City and Kelapa Gading benefit from modern amenities, good schools, and better transport connectivity that appeal to young Indonesian families.

By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Indonesia.

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.

Which property types are increasing faster in value in Indonesia as of 2026?

As of early 2026, the ranking of property types by value appreciation in Indonesia goes as follows: villas (especially in Bali) lead with the highest growth, followed by suburban landed houses and cluster homes, then townhouses, and finally apartments and condominiums which trail behind.

The top-performing property type, Bali villas in prime locations, has appreciated by approximately 10% to 15% annually, with some micro-markets like Berawa and Uluwatu seeing even stronger gains.

The main reason villas are outperforming other property types in Indonesia is the dual demand from both lifestyle buyers and rental investors: strong tourism recovery (Bali welcomed over 6.3 million international visitors in 2024), combined with digital nomad inflows, creates a buyer pool that is not solely dependent on local wages or mortgage availability.

Finally, if you're interested in a specific property type, you will find our latest analyses here:

• How much do properties cost in Indonesia?
• How much should you pay for a house in Indonesia?

What is driving property prices up or down in Indonesia as of 2026?

As of early 2026, the top three factors driving property prices in Indonesia are the central bank's accommodative interest rate policy (BI-Rate at 4.75%), the strength of tourism recovery particularly in Bali, and ongoing infrastructure development including MRT Jakarta Phase 2 and LRT Jabodebek expansion.

The single factor with the strongest upward pressure on Indonesia property prices is the lower benchmark interest rate environment: after cutting rates by 150 basis points since late 2024, Bank Indonesia has made mortgages more affordable for middle-income families, supporting demand especially in the affordable housing segment.

If you want to understand these factors at a deeper level, you can read our latest property market analysis about Indonesia here.

What is the property price forecast for Indonesia in 2026?

How much are property prices expected to increase in Indonesia in 2026?

As of early 2026, we estimate that property prices in Indonesia will increase by approximately 4.5% over the course of the year, marking a mild acceleration from the subdued growth seen in 2025.

The realistic range of forecasts from different analysts for property price growth in Indonesia spans from 3% on the conservative end to 6% on the optimistic end, depending on assumptions about interest rate cuts and economic momentum.

The main assumption underlying most price increase forecasts for Indonesia is that Bank Indonesia will maintain its accommodative monetary policy stance while GDP growth stays within the 4.7% to 5.7% range, keeping household purchasing power stable enough to support housing demand.

We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Indonesia.

Which neighborhoods will see the highest price growth in Indonesia in 2026?

As of early 2026, the neighborhoods expected to see the highest price growth in Indonesia are the Bali villa corridors (Canggu, Pererenan, Berawa, and Uluwatu), Greater Jakarta's western clusters (BSD City, Gading Serpong, and Alam Sutera), and select North Jakarta coastal developments like PIK 2.

For these top neighborhoods, we project price growth of 8% to 12% in Bali's prime villa zones, and 5% to 8% in the leading Jabodetabek clusters, outpacing the national average significantly.

The primary catalyst driving expected growth in these neighborhoods is the combination of scarcity (limited remaining developable land in mature areas) and strong demand from both domestic upgraders and international investors seeking rental yields.

One emerging neighborhood in Indonesia that could surprise with higher-than-expected growth is Pererenan in Bali, which sits just north of Canggu and offers similar lifestyle appeal at somewhat lower entry prices, attracting buyers who were priced out of Canggu proper.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Indonesia.

What property types will appreciate the most in Indonesia in 2026?

As of early 2026, the property type expected to appreciate the most in Indonesia is Bali villas, particularly those in established tourist zones with professional rental management.

We project the top-performing property type, Bali villas in prime locations, to appreciate by 8% to 12% in 2026, driven by continued tourism growth and limited new supply in restricted development zones.

The main demand trend driving appreciation for villas in Indonesia is the shift toward experiential travel and remote work: international visitors increasingly prefer private villa stays over hotels, while digital nomads seek longer-term rentals, creating year-round demand that supports both rental yields and capital values.

The property type expected to underperform in Indonesia in 2026 is Jakarta apartments, particularly those in oversupplied submarkets, where Colliers projects growth of just 1% to 2% due to high inventory levels and buyer preference shifting toward landed homes with more space.

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.

How will interest rates affect property prices in Indonesia in 2026?

As of early 2026, the impact of current interest rate trends on property prices in Indonesia is moderately positive, as the accommodative stance from Bank Indonesia makes mortgages more accessible to middle-income buyers and supports demand in the mass-market housing segment.

Bank Indonesia's benchmark rate currently stands at 4.75%, its lowest level since October 2022, and most analysts expect the rate to remain stable or see modest further cuts in 2026 if inflation stays within the 2.5% plus or minus 1% target corridor.

A 1% change in interest rates typically affects property affordability in Indonesia by shifting monthly mortgage payments by roughly 8% to 10%, which can translate to a 3% to 5% change in property prices over 12 to 18 months as buyer purchasing power adjusts.

You can also read our latest update about mortgage and interest rates in Indonesia.

What are the biggest risks for property prices in Indonesia in 2026?

As of early 2026, the top three biggest risks for property prices in Indonesia are rupiah volatility triggered by global risk-off sentiment, oversupply in certain apartment submarkets (particularly South Jakarta), and potential regulatory changes affecting foreign property participation in Bali.

The single risk with the highest probability of materializing in Indonesia is rupiah weakness, as persistent foreign capital outflows and uncertainty around US Federal Reserve policy could limit Bank Indonesia's ability to cut rates further and may dampen buyer confidence in the near term.

We actually cover all these risks and their likelihoods in our pack about the real estate market in Indonesia.

Is it a good time to buy a rental property in Indonesia in 2026?

As of early 2026, our overall assessment is that it is a reasonably good time to buy a rental property in Indonesia, provided you target locations with proven tenant demand such as Bali villa corridors or family-friendly suburbs near Jakarta's business districts.

The strongest argument in favor of buying a rental property now in Indonesia is that interest rates are at multi-year lows while property prices have been relatively flat, creating an entry point where yields (7% to 15% gross in Bali, 5% to 6% in Jakarta) look attractive compared to recent years.

The strongest argument for waiting before buying a rental property in Indonesia is the risk of further rupiah depreciation and the possibility that some apartment submarkets remain oversupplied, which could pressure rental rates and occupancy in the short term.

If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Indonesia.

You'll also find a dedicated document about this specific question in our pack about real estate in Indonesia.

Where will property prices be in 5 years in Indonesia?

What is the 5-year property price forecast for Indonesia as of 2026?

As of early 2026, we estimate that cumulative property price growth in Indonesia over the next 5 years will be approximately 25% to 40% in nominal terms.

The range of 5-year forecasts spans from around 20% total growth in a conservative scenario (if macro conditions weaken or rates rise) to about 45% in an optimistic scenario (if growth accelerates and infrastructure projects deliver faster-than-expected benefits).

This translates to a projected average annual appreciation rate of 4.5% to 7% per year over the next 5 years in Indonesia, depending on economic conditions.

The key assumption most forecasters rely on for their 5-year property price predictions in Indonesia is that GDP growth will remain in the 4.5% to 5.5% range while inflation stays controlled, allowing Bank Indonesia to maintain a supportive monetary environment without triggering currency instability.

Which areas in Indonesia will have the best price growth over the next 5 years?

The top three areas in Indonesia expected to have the best price growth over the next 5 years are Bali's prime villa corridors (Canggu, Uluwatu, Pererenan), Greater Jakarta's western growth clusters (BSD City, Gading Serpong, Alam Sutera), and the IKN spillover region around Balikpapan and Samarinda in East Kalimantan.

For these top-performing areas, we project 5-year cumulative price growth of 50% to 70% in Bali prime zones, 35% to 50% in leading Jabodetabek clusters, and 30% to 60% in IKN-adjacent areas (though with higher variance).

This longer-term forecast differs from our 1-year outlook mainly in the inclusion of IKN spillover areas, which carry more uncertainty in the short term but could see substantial appreciation as government relocation progresses and infrastructure matures over 3 to 5 years.

The currently undervalued area in Indonesia with the best potential for outperformance over 5 years is Tabanan in Bali, which offers lower entry prices than Canggu but benefits from similar coastal appeal and is attracting developers seeking land for new projects as Canggu becomes saturated.

What property type will give the best return in Indonesia over 5 years as of 2026?

As of early 2026, the property type expected to give the best total return over 5 years in Indonesia is Bali villas in prime tourist zones, combining strong rental income with capital appreciation.

We project the 5-year total return (appreciation plus rental income) for well-located, professionally managed Bali villas to be in the range of 80% to 120%, assuming average rental yields of 10% to 15% annually plus capital growth of 8% to 12% per year.

The main structural trend favoring Bali villas over the next 5 years is the continued growth of experiential tourism and remote work, with Indonesia targeting over 6.5 million international visitors to Bali annually and the digital nomad population showing no signs of slowing.

For investors seeking a better balance of return and lower risk over 5 years in Indonesia, mid-market landed houses in liquid suburbs of major metros like Tangerang or East Surabaya offer steady appreciation of 5% to 7% annually with lower volatility and easier resale than villas.

How will new infrastructure projects affect property prices in Indonesia over 5 years?

The top three major infrastructure projects expected to impact property prices in Indonesia over the next 5 years are MRT Jakarta Phase 2 (extending the north-south corridor), LRT Jabodebek (connecting Jakarta to Bekasi, Depok, and Bogor suburbs), and the ongoing development of Nusantara (IKN), Indonesia's new capital in East Kalimantan.

Properties near completed infrastructure projects in Indonesia typically command a price premium of 10% to 25% compared to similar properties without transit access, with the effect being strongest for homes within 1 kilometer of rail stations.

The specific neighborhoods that will benefit most from these infrastructure developments in Indonesia are stations along the MRT Phase 2 corridor in North Jakarta, LRT-connected suburbs in Bekasi and Cibubur, and the Balikpapan-Samarinda corridor in East Kalimantan as IKN development accelerates.

How will population growth and other factors impact property values in Indonesia in 5 years?

Indonesia's population is projected to grow at approximately 1% per year, adding roughly 3 million people annually, which translates to sustained housing demand particularly in urban areas where over 60% of the population now lives.

The demographic shift that will have the strongest influence on property demand in Indonesia is the continued expansion of the middle class, with household incomes rising and more families able to afford their first home or upgrade to larger properties.

Migration patterns are expected to support property values in Indonesia over 5 years through two channels: rural-to-urban migration will continue to fuel demand in Greater Jakarta and other major metros, while international migration (digital nomads and retirees) will keep pressure on Bali's villa and rental markets.

The property types and areas that will benefit most from these demographic trends in Indonesia are affordable-to-mid-range landed houses in Jabodetabek commuter suburbs (serving young families), and rental-oriented villas in Bali (serving the growing international resident community).

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 is the 10 year property price outlook in Indonesia?

What is the 10-year property price prediction for Indonesia as of 2026?

As of early 2026, we estimate that cumulative property price growth in Indonesia over the next 10 years will be approximately 60% to 110% in nominal terms.

The range of 10-year forecasts spans from around 50% total growth in a conservative scenario (if Indonesia faces prolonged economic headwinds) to about 120% in an optimistic scenario (if structural reforms accelerate growth and infrastructure investments pay off strongly).

This translates to a projected average annual appreciation rate of 4.8% to 7.6% per year over the next decade in Indonesia.

The biggest uncertainty factor in making 10-year property price predictions for Indonesia is the trajectory of the new capital city (IKN) project: if it succeeds in shifting economic activity to East Kalimantan, it could reshape regional property dynamics in ways that are difficult to model today.

What long-term economic factors will shape property prices in Indonesia?

The top three long-term economic factors that will shape property prices in Indonesia over the next decade are productivity and wage growth (the fundamental driver of purchasing power), the interest rate regime (determining mortgage affordability across cycles), and urbanization combined with infrastructure development (reshaping where people live and work).

The single long-term economic factor that will have the most positive impact on property values in Indonesia is sustained GDP growth in the 5% range, which would support continued income gains and household formation, particularly among the 125 million Indonesians currently under age 30.

The single long-term economic factor that poses the greatest structural risk to property values in Indonesia is the potential for climate-related costs to rise significantly: flooding in Jakarta and coastal erosion in parts of Bali could increase maintenance expenses and reduce desirability of certain locations over time.

You'll also find a much more detailed analysis in our pack about real estate in Indonesia.

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	Why It's Authoritative	How We Used It
Bank Indonesia (RPPI Q3 2025)	Indonesia's central bank publishing official price index data from recurring surveys.	We used this as our anchor for nationwide primary market price growth. We also referenced their commentary on demand and credit conditions.
BPS Statistics Indonesia	Official national statistics agency with defined survey methodology.	We cross-checked national and city-level price direction to avoid relying on a single dataset.
Bank Indonesia (BI-Rate Decision Dec 2025)	Official central bank policy decision directly affecting mortgage rates.	We used this to establish the interest rate backdrop as of the first half of 2026 and assess affordability impacts.
Bank Indonesia (Growth Outlook 2026)	Official macro outlook from Indonesia's central bank.	We used GDP growth projections to frame demand expectations and cross-checked against international forecasts.
World Bank Indonesia Economic Prospects	Major international institution with transparent methodology.	We triangulated growth and inflation expectations and pulled risk themes affecting housing confidence.
IMF World Economic Outlook (Oct 2025)	Global reference for macro projections with standardized methods.	We used this as a second check on growth, inflation, and external risks alongside BI and World Bank data.
BIS Residential Property Prices via FRED	Internationally recognized data series with transparent access.	We used this for long-run context on multi-decade price trends to ground our 5 and 10 year forecasts.
Colliers Indonesia (Jakarta Apartment Reports)	Major global consultancy with consistent market tracking.	We used their price-per-sqm data for Jakarta apartments and their forward-looking growth expectations.
Pinhome Research	Large Indonesian proptech with named index and regular updates.	We used this to understand secondary market dynamics and regional momentum shifts.
Pinhome Market Report 2025 H1	Primary document with structured commentary and segment breakdowns.	We extracted neighborhood signals and house size segment trends from this report.
Rumah123	Major Indonesian property portal with own index and city coverage.	We cross-checked secondary market growth rates across major cities to bound our estimates.
MRT Jakarta (Phase 2)	Official operator explaining project scope and connectivity.	We used this to explain how transport upgrades can reshape property values near stations.
KAI (LRT Jabodebek)	Official rail operator reporting service levels and ridership.	We used this to support the case that rail usage is becoming meaningful for suburb property values.
Otorita IKN (Strategic Plan 2025-2029)	Official IKN authority document with formal planning horizon.	We grounded the IKN spillover narrative in official plans rather than speculation.
Reuters (IKN Funding)	Top-tier wire service with sourced figures and quotes.	We used specific spending figures to contextualize IKN development timing.
Trading Economics	Widely referenced data aggregator with clear sourcing.	We used their historical price index data and econometric projections as validation checks.
Global Property Guide	International property data platform with standardized metrics.	We referenced their rental yield and price trend data for international comparison context.
Bali Villa Realty	Established local agency with direct market access.	We used their price ranges and market commentary for Bali villa segment analysis.
Rumavi	Property management firm with ROI tracking data.	We used their rental yield and appreciation figures for Bali villa return calculations.
Worldometer	Real-time population data based on UN estimates.	We used current population and urbanization figures to frame long-term demand drivers.
Cushman & Wakefield (Jakarta MarketBeat)	Global real estate services firm with quarterly market reports.	We cross-referenced their condominium and retail data for Greater Jakarta analysis.