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Everything you need to know before buying real estate is included in our Indonesia Property Pack
Rental yields in Indonesia vary widely depending on whether you're looking at Jakarta apartments, Bali villas, landed houses in commuter belts, or kos-kosan boarding houses near universities.
We constantly update this blog post to reflect the latest market conditions and data available.
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.
Insights
- Indonesia's average gross rental yield sits around 7% in early 2026, but Jakarta apartments can reach over 11% in certain districts like Kemayoran and Tebet.
- The 10% final income tax on gross rent is one of the biggest cost factors eating into net yields for Indonesian landlords, reducing returns by roughly 0.7 percentage points.
- Bali villa yields cluster around 6% gross, but actual returns swing dramatically based on occupancy rates that can drop below 60% in slower seasons.
- Kos-kosan boarding houses near Indonesian universities often deliver the highest yields per square meter, though they require significantly more hands-on management.
- Jakarta's serviced apartment segment showed only 55.6% occupancy in mid-2025, a warning sign that vacancy can hit nearly 45% in hospitality-style rentals.
- The spread between high-yield and low-yield neighborhoods in Jakarta can be as much as 2x, meaning location choice matters more than property type in many cases.
- MRT Phase 2 stations along corridors like Thamrin, Harmoni, and Kota are expected to tighten rental markets and push rents higher once fully operational.
- IPL service charges for Indonesian apartments typically range from IDR 15,000 to IDR 35,000 per square meter per month, making them one of the largest recurring expenses for condo investors.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What are the rental yields in Indonesia as of 2026?
What's the average gross rental yield in Indonesia as of 2026?
As of early 2026, the average gross rental yield in Indonesia across all residential property types sits at approximately 7%, which means investors typically collect around IDR 7 million in annual rent for every IDR 100 million of property value.
Most typical residential properties in Indonesia fall within a gross yield range of 6% to 8.5%, with the variation depending on location, property type, and how well the unit matches local renter demand.
Indonesia's average gross yield of around 7% is competitive within Southeast Asia, sitting above markets like Singapore and on par with other emerging regional hubs where property prices haven't outpaced rental growth.
The single most important factor currently influencing gross rental yields in Indonesia is the mismatch between where prices have risen fastest (prime Jakarta towers and trophy Bali villas) and where rental demand remains strongest (affordable units near transit, universities, and employment centers).
What's the average net rental yield in Indonesia as of 2026?
As of early 2026, the average net rental yield in Indonesia after typical recurring costs is approximately 5.2%, which represents what landlords actually keep after paying taxes, fees, and covering vacancies.
The typical gap between gross and net yields in Indonesia runs about 1.5 to 2 percentage points, meaning investors should expect to lose roughly a quarter of their gross return to operating costs.
The expense that most significantly reduces gross yield to net yield in Indonesia is the 10% final income tax on gross rental income (PPh Pasal 4 ayat 2), which alone can shave 0.7 percentage points off your yield before you even account for other costs.
Realistic net yields for most standard investment properties in Indonesia range from 4.3% to 6.5%, with the variation driven by whether you pay for property management, how much vacancy you experience, and whether your property is an apartment with high IPL service charges or a landed house with lower recurring fees.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Indonesia.
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 yield is considered "good" in Indonesia in 2026?
A gross rental yield of 7% or higher is generally considered "good" by local investors in Indonesia, as it matches or exceeds the national average and provides a reasonable buffer against unexpected costs or vacancies.
The threshold that typically separates average-performing properties from high-performing ones in Indonesia is around 8.5% gross yield, and anything above that usually signals either a well-located unit in a high-demand area or a property type like kos-kosan that generates premium rent per square meter.
How much do yields vary by neighborhood in Indonesia as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Indonesia can be as much as double, with some Jakarta districts reaching over 11% while prime prestige areas dip below 5%.
Neighborhoods that typically deliver the highest rental yields in Indonesia are working-class and middle-class areas with strong rental demand relative to purchase prices, such as Kemayoran, Tebet, Grogol, and Kelapa Gading in Jakarta, or student-heavy zones like Depok near Universitas Indonesia.
Neighborhoods that typically deliver the lowest rental yields in Indonesia are ultra-prime prestige areas where purchase prices have risen faster than rents can follow, such as Menteng, Senopati, and core SCBD along the Sudirman-Thamrin corridor in Jakarta.
The main reason yields vary so much across neighborhoods in Indonesia is that property prices and rents don't move in lockstep: prestige drives prices up in wealthy areas, while functional demand drives rents up in accessible working areas.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Indonesia.
How much do yields vary by property type in Indonesia as of 2026?
As of early 2026, gross rental yields across different property types in Indonesia range from around 5% for luxury family apartments in prime towers to over 10% for efficiently managed kos-kosan boarding houses in student areas.
The property type currently delivering the highest average gross rental yield in Indonesia is kos-kosan boarding houses, which can generate exceptional rent per square meter, though they require significantly more management effort and carry regulatory considerations.
The property type currently delivering the lowest average gross rental yield in Indonesia is large family apartments (2-3 bedrooms) in premium Jakarta towers, where capital values have risen faster than corresponding rental rates.
The key reason yields differ between property types in Indonesia is rent per square meter efficiency: smaller, more functional units extract more rent relative to their purchase price, while larger prestige properties carry price premiums that rental income can't fully offset.
By the way, you might want to read the following:
What's the typical vacancy rate in Indonesia as of 2026?
As of early 2026, the typical residential vacancy rate in Indonesia for long-term rentals is approximately 12%, meaning landlords should expect their properties to sit empty for roughly 6 to 7 weeks per year on average.
Vacancy rates across different neighborhoods in Indonesia range from as low as 5% in tight markets near major universities and employment hubs to over 18% in oversupplied segments or premium-priced areas that struggle to attract tenants.
The main factor currently driving vacancy rates in Indonesia is the balance between new supply entering the market and the strength of local employment or education demand, with areas near universities like UI in Depok or UGM in Yogyakarta consistently showing lower vacancy.
Indonesia's residential vacancy rate is roughly in line with other developing Southeast Asian markets, though certain segments like Jakarta's serviced apartments have shown much higher vacancy (around 44% in mid-2025), highlighting how hospitality-style rentals carry greater occupancy risk.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Indonesia.
What's the rent-to-price ratio in Indonesia as of 2026?
As of early 2026, the average rent-to-price ratio in Indonesia is approximately 0.58% monthly (or about 7% annually), which means a property worth IDR 1 billion would typically rent for around IDR 5.8 million per month.
A rent-to-price ratio of 0.6% monthly or higher is generally considered favorable for buy-to-let investors in Indonesia, and this metric is essentially the gross rental yield expressed differently, so a 0.6% monthly ratio equals roughly 7.2% annual gross yield.
Indonesia's rent-to-price ratio is competitive compared to more developed Asian markets like Singapore or Hong Kong where ratios are much lower, making Indonesian property relatively attractive for income-focused investors seeking cash flow rather than pure capital appreciation.
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 neighborhoods and micro-areas in Indonesia give the best yields as of 2026?
Where are the highest-yield areas in Indonesia as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Indonesia are Kemayoran and Tebet in Jakarta (both offering strong rent relative to purchase prices), and Canggu in Bali (where villa rental demand from tourists and remote workers keeps occupancy high).
The estimated average gross rental yield range in these top-performing areas runs from 8% to over 11%, with Kemayoran and parts of the MT Haryono corridor in Jakarta often hitting the higher end of that range.
The main characteristic these high-yield Indonesian areas share is that they offer functional, well-connected locations where purchase prices haven't been inflated by prestige, meaning rents remain strong relative to what you pay to acquire the property.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Indonesia.
Where are the lowest-yield areas in Indonesia as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Indonesia are Menteng, Senopati, and core SCBD along the Sudirman-Thamrin corridor in Jakarta, where prestige pricing has pushed property values well above what rental income can justify.
The estimated average gross rental yield range in these low-yield areas typically falls between 3.5% and 5%, significantly below the national average of around 7%.
The main reason yields are compressed in these areas of Indonesia is that buyers pay a premium for prestige, status, and scarcity, but tenants aren't willing to pay proportionally higher rents, so the math simply doesn't favor income-focused investors.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Indonesia.
Which areas have the lowest vacancy in Indonesia as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Indonesia are Depok near Universitas Indonesia, Sleman in Yogyakarta near UGM and UNY, and parts of Bandung around Dago and Setiabudi where student and young professional demand overlaps.
The estimated vacancy rate range in these low-vacancy Indonesian areas typically falls between 5% and 8%, meaning landlords can expect their units to be occupied 11 months or more per year.
The main demand driver that keeps vacancy low in these areas of Indonesia is the presence of major universities and the steady stream of students who need housing every academic cycle, creating reliable, recurring demand that doesn't depend on economic conditions.
The trade-off investors typically face when targeting these low-vacancy areas is that yields may be moderate rather than exceptional, and tenant turnover at the end of each academic year can mean higher management effort even if overall occupancy stays high.
Which areas have the most renter demand in Indonesia right now?
The top three neighborhoods currently experiencing the strongest renter demand in Indonesia are Kuningan and Setiabudi in Jakarta (driven by corporate tenants and expatriates), Canggu in Bali (fueled by remote workers and tourists), and Sukolilo in Surabaya (anchored by ITS university and industrial employers).
The type of renter profile driving most of the demand in these areas includes young professionals working in Jakarta's business districts, digital nomads and long-stay tourists in Bali, and students plus entry-level workers in Surabaya's industrial and educational zones.
Rental listings in these high-demand Indonesian neighborhoods typically get filled within 2 to 4 weeks when priced correctly, compared to 6 to 8 weeks or longer in areas with weaker demand or overpriced units.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Indonesia.
Which upcoming projects could boost rents and rental yields in Indonesia as of 2026?
As of early 2026, the top three upcoming infrastructure projects expected to boost rents in Indonesia are Jakarta MRT Phase 2 (connecting key business and residential corridors), the continued IKN Nusantara development in East Kalimantan (creating new housing demand), and various toll road extensions improving access to Greater Jakarta commuter zones.
The neighborhoods most likely to benefit from these projects include areas along the MRT Phase 2 corridor such as Thamrin, Harmoni, Mangga Besar, and Kota in Jakarta, plus the core development zones around IKN and commuter belt areas like BSD City and Serpong in South Tangerang.
Investors might realistically expect rent increases of 10% to 20% in neighborhoods directly adjacent to new MRT stations once operations stabilize, though the timeline and exact magnitude depend on how quickly commercial activity follows the infrastructure.
You'll find our latest property market analysis about Indonesia here.
Get fresh and reliable information about the market in Indonesia
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What property type should I buy for renting in Indonesia as of 2026?
Between studios and larger units in Indonesia, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments generally outperform larger units in Indonesia when measured by rental yield and occupancy, especially in Jakarta and other major cities where young professionals and students drive rental demand.
The typical gross rental yield for studios in Indonesia ranges from 7% to 10% (around IDR 70 to 100 million annual rent per IDR 1 billion property value, or roughly USD 4,500 to 6,400 / EUR 4,100 to 5,800), compared to 5% to 7% for larger two or three-bedroom units.
The main factor that explains why studios outperform in Indonesia is that rent doesn't fall proportionally when unit size shrinks, so smaller units generate more rent per square meter than larger ones do.
However, larger units might be the better investment choice in suburban family-oriented areas like BSD City or parts of Tangerang, where families seeking landed houses or spacious apartments provide steadier long-term tenancy with lower turnover.
What property types are in most demand in Indonesia as of 2026?
As of early 2026, the most in-demand property type in Indonesia is affordable apartments near transit and employment nodes, as young urban professionals increasingly prioritize location and commute times over space.
The top three property types ranked by current tenant demand in Indonesia are well-located urban apartments (particularly near MRT or LRT stations), landed houses in established commuter belts like BSD and Alam Sutera, and Bali villas in proven rental neighborhoods like Canggu and Seminyak.
The primary demographic trend driving this demand pattern in Indonesia is urbanization combined with the growth of the middle class, as more Indonesians move to cities for work and seek rental housing that balances affordability with accessibility.
One property type currently underperforming in demand is oversized luxury apartments in Jakarta's premium towers, where high prices have outpaced the pool of tenants willing to pay the corresponding rents, leading to elevated vacancy in that segment.
What unit size has the best yield per m² in Indonesia as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Indonesia is between 20 and 35 square meters, which typically covers studio apartments and compact one-bedroom units in urban locations.
The typical gross rental yield per square meter for that optimal unit size in Indonesia runs around IDR 2.5 to 3.5 million per square meter annually (approximately USD 160 to 225 / EUR 145 to 205 per square meter per year), significantly higher than larger units.
The main reason smaller units have better yield per square meter in Indonesia is that tenants pay a premium for functional, well-located space regardless of size, while buyers of larger units pay extra for prestige square footage that doesn't generate proportionally more rent.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable 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.
What costs cut my net yield in Indonesia as of 2026?
What are typical property taxes and recurring local fees in Indonesia as of 2026?
As of early 2026, the estimated annual property tax (PBB-P2) for a typical rental apartment in Indonesia ranges from IDR 1 million to IDR 5 million (roughly USD 65 to 320 / EUR 60 to 290), depending on the property's assessed value and which city or province it's located in.
Other recurring local fees landlords must budget for in Indonesia include apartment service charges (IPL), which commonly run IDR 15,000 to IDR 35,000 per square meter per month (approximately USD 1 to 2.25 / EUR 0.90 to 2 per square meter monthly), adding up to IDR 5 to 15 million annually for a typical unit.
These taxes and fees typically represent 5% to 12% of gross rental income in Indonesia, with apartments carrying heavier IPL burdens and landed houses having lower recurring fees but potentially higher maintenance costs.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Indonesia.
What insurance, maintenance, and annual repair costs should landlords budget in Indonesia right now?
The estimated annual landlord insurance cost for a typical rental property in Indonesia ranges from IDR 1 million to IDR 3 million (roughly USD 65 to 195 / EUR 60 to 175), though coverage varies widely based on property type and location.
The recommended annual maintenance and repair budget in Indonesia is approximately 0.7% of property value, or around 8% to 12% of gross rental income, which works out to roughly IDR 7 to 15 million (USD 450 to 960 / EUR 410 to 875) for a typical rental unit.
The type of repair expense that most commonly catches Indonesian landlords off guard is water damage and plumbing issues, particularly in older buildings and in tropical climate areas like Bali where humidity accelerates wear on fixtures and finishes.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Indonesia is approximately IDR 10 to 20 million (USD 640 to 1,280 / EUR 580 to 1,170), representing roughly 1% of property value or 10% to 15% of gross rent.
Which utilities do landlords typically pay, and what do they cost in Indonesia right now?
In Indonesia, landlords typically cover IPL service charges and sometimes internet for apartments, while tenants usually pay metered electricity and water, though furnished or serviced rentals may bundle all utilities into an inclusive rate.
The estimated monthly cost for landlord-paid utilities in a typical Indonesian rental unit ranges from IDR 500,000 to IDR 1.5 million (approximately USD 32 to 96 / EUR 29 to 88), primarily covering service charges and any shared facilities, with electricity tariffs regulated by PLN at rates specified in current ESDM regulations.
What does full-service property management cost, including leasing, in Indonesia as of 2026?
As of early 2026, full-service property management fees in Indonesia typically run 5% to 10% of collected rent monthly, which translates to roughly IDR 500,000 to IDR 2 million per month (USD 32 to 128 / EUR 29 to 117) for a typical rental generating IDR 10 to 20 million in monthly rent.
The typical leasing or tenant-placement fee charged on top of ongoing management in Indonesia is approximately one month's rent (IDR 10 to 20 million / USD 640 to 1,280 / EUR 580 to 1,170 for a standard unit), payable each time a new tenant is placed.
What's a realistic vacancy buffer in Indonesia as of 2026?
As of early 2026, landlords in Indonesia should set aside approximately 10% to 15% of annual rental income as a vacancy buffer, which accounts for the typical gap between tenants and any time needed for unit turnover and repairs.
The typical number of vacant weeks per year landlords experience in Indonesia is 5 to 8 weeks for standard long-term rentals, though this can extend to 10 or more weeks in oversupplied areas or premium-priced units that take longer to fill.
Buying real estate in Indonesia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
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 |
|---|---|---|
| Global Property Guide - Indonesia Rental Yields | It publishes a consistent, cross-country yield dataset with a clearly stated calculation method. | We used its city-and-district yield table (Jakarta, Tangerang, Surabaya, Bali) as the backbone for gross yield levels. We then adjusted toward a nationwide estimate by blending major markets and property types. |
| Global Property Guide - Rental Yields Tracker | It's the same dataset presented in a standardized country comparison format. | We used it to sanity-check Jakarta's yield level against a wider Asia benchmark. We also confirmed the timing and last update date for our early 2026 framing. |
| Bank Indonesia - Residential Property Price Survey Q3 2025 | Bank Indonesia is the central bank, and this is its official residential property survey publication. | We used it to anchor the direction and pace of price changes in Indonesia's primary residential market. We used it to avoid yield calculations that imply implausible price growth versus rents. |
| BIS Data Portal - Residential Property Prices | The BIS is an international financial institution that standardizes cross-country indicators. | We used it as a cross-check that Indonesia's residential price indicators exist in an internationally comparable framework. We used it to support our triangulation approach. |
| Colliers - Jakarta Apartment Quarterly Q2 2025 | Colliers is a major global real estate consultancy with recurring market reports and transparent metrics. | We used it to anchor Jakarta price-per-square-meter levels and serviced-apartment occupancy as a proxy for vacancy pressure. We used it to keep our vacancy assumptions realistic. |
| Directorate General of Taxes - PPh Pasal 4(2) | It's the Indonesian tax authority stating the rental income tax rate in plain language. | We used it to quantify a key net yield cost: the 10% final income tax on gross rent. We included it in our net-yield calculations so readers understand why net is lower than gross. |
| BPK Regulations - PP No. 34/2017 | It's the official regulation listing on the state regulation portal. | We used it to back up the existence and scope of the final tax regime on rental income. We used it to support credibility when translating tax rules into yield impacts. |
| Peraturan.go.id - UU No. 1/2022 (HKPD) | It's the official published law text from Lembaran Negara. | We used it to frame that property tax (PBB-P2) is local and set within a national legal framework. We used it to avoid overstating a single national property tax rate. |
| Jakarta Bapenda - PBB-P2 Policy | It's the official Jakarta local tax authority website showing how PBB-P2 works in practice. | We used it as a concrete example of how local governments implement property tax policies. We used it to illustrate why net yield differs by city, not only by building. |
| PLN - Electricity Tariff Page | PLN is the state electricity utility and the page links tariffs to the relevant regulation. | We used it to anchor utility-cost expectations since electricity is often the biggest variable utility item. We used it to keep our utility estimates tied to official tariff references. |
| ESDM Regulation - Permen ESDM No. 7/2025 | It's the Ministry's official legal document serving as the highest-quality tariff rulebook. | We used it to support that tariffs are regulated and periodically adjusted, which matters when stress-testing net yield. We used it as the authoritative backstop behind PLN tariffs. |
| Astra Land - IPL/Service Charge Explanation | It's a recognized developer explaining standard cost ranges with Jakarta-specific examples. | We used it to quantify typical apartment service charge (IPL) ranges per square meter per month. We used it in the net-yield bridge because IPL is one of the biggest recurring costs for apartments. |
| MRT Jakarta - Phase 2 Project Page | It's the official operator's project information page. | We used it to identify transit nodes and corridors that can lift rental demand around stations. We used it to keep upcoming project information grounded in official definitions. |
| Antara News - MRT Phase 2A Timeline | Antara is Indonesia's state news agency and typically quotes officials directly. | We used it to anchor the publicly stated timeline milestones for infrastructure projects. We used it to connect infrastructure timing to likely rent pressure in nearby neighborhoods. |
| OIKN Strategic Plan - IKN 2025-2029 | It's an official document from the Nusantara Capital Authority. | We used it to frame why East Kalimantan (IKN area) is a special-case demand story within Indonesia. We used it to support projects that could boost rents outside Jakarta and Bali. |
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