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
Indonesia's residential property market in 2026 is a tale of two worlds: modest national price growth under 2% annually, and specific micro-markets in Jakarta and Bali where foreign buyers can still find compelling opportunities.
Whether you want stable rental yields in Jakarta's commuter belt or higher returns in Bali's tourism-driven villa market, knowing the right neighborhoods makes all the difference.
We constantly update this blog post to reflect the latest data and market shifts, so you always have current information at your fingertips.
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
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What's the Current Real Estate Market Situation by Area in Indonesia?
Which areas in Indonesia have the highest property prices per square meter in 2026?
As of early 2026, the three areas in Indonesia with the highest property prices per square meter are Menteng in Central Jakarta for landed housing, the SCBD corridor along Sudirman-Senayan in South Jakarta for apartments, and Berawa-Batu Bolong in Bali's Canggu area for villas.
In these most expensive neighborhoods, prices range from IDR 45 million to over IDR 120 million per square meter, with Menteng's heritage land plots often exceeding IDR 100 million per square meter and prime Bali villa locations reaching IDR 70 million per square meter for built area.
Each of these areas commands premium prices for very different reasons:
- Menteng (Central Jakarta): heritage scarcity, embassy belt proximity, and strict zoning limit new supply.
- SCBD corridor (South Jakarta): direct MRT access, Grade A office buildings, and corporate tenant demand.
- Berawa and Batu Bolong (Canggu, Bali): walkability to beach clubs, strong Airbnb revenues, and digital nomad demand.
Which areas in Indonesia have the most affordable property prices in 2026?
As of early 2026, the most affordable property areas in Indonesia with reasonable rental liquidity are Cakung and Duren Sawit in East Jakarta, Bekasi Timur and Tambun in West Bekasi, and Curug in Tangerang Regency, all within Greater Jakarta's commuter belt.
In these affordable neighborhoods, property prices typically range from IDR 10 million to IDR 20 million per square meter, roughly one-third to one-half of prime Jakarta pricing, making them accessible entry points for investors seeking workforce housing exposure.
The main trade-off in these lower-priced areas is longer commute times and less developed amenities, with Cakung offering industrial tenant demand but basic infrastructure, Bekasi Timur providing value but traffic congestion during rush hours, and Curug facing competition from similar oversupplied housing stock nearby.
You can also read our latest analysis regarding housing prices in Indonesia.
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.
Which Areas in Indonesia Offer the Best Rental Yields?
Which neighborhoods in Indonesia have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Indonesia delivering the highest gross rental yields are Pererenan and Umalas in Bali at 7% to 12%, Sanur in Bali at 6% to 9%, and Tebet-MT Haryono corridor in South Jakarta at 5% to 7%.
Across Indonesia as a whole, typical gross rental yields for investment properties range from 4% to 8%, with Jakarta averaging toward the lower end due to higher purchase prices and Bali tourism areas pushing toward double digits for well-managed properties.
Here is why these top-yielding neighborhoods outperform the rest:
- Pererenan (Badung, Bali): spillover from overcrowded Canggu with lower land costs but similar rental demand.
- Umalas (Kerobokan, Bali): remote worker and digital nomad monthly rental demand with less traffic friction.
- Sanur (Denpasar Selatan): family expat base with steadier occupancy and less party-season volatility.
- Tebet-MT Haryono (South Jakarta): affordable pricing near CBD with strong commuter tenant pool.
Finally, please note that we cover the rental yields in Indonesia here.
Make a profitable investment in Indonesia
Better information leads to better decisions. Save time and money. Download our guide.
Which Areas in Indonesia Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Indonesia perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Indonesia that perform best on Airbnb are Seminyak with 74% occupancy and IDR 2.4 million average daily rate, Canggu's Berawa-Batu Bolong area with strong year-round demand, and Ubud's Tegallalang corridor with consistent wellness tourism bookings.
Top-performing Airbnb properties in these Bali neighborhoods typically generate monthly revenues ranging from IDR 25 million to IDR 55 million, with premium villas in Seminyak and Uluwatu capable of earning over IDR 80 million during peak season in July and August.
Each neighborhood succeeds on Airbnb for distinct reasons:
- Seminyak (Kerobokan Kelod, Badung): highest average daily rates in Bali due to beach club and restaurant proximity.
- Berawa and Pererenan (Canggu area): best mix of occupancy and rate for surfer and remote worker demographics.
- Ubud (Gianyar): different seasonality with wellness retreat demand providing year-round baseline occupancy.
- Uluwatu and Bingin (Pecatu, Badung): premium cliff-view rates during peak season offset lower shoulder months.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Indonesia.
Which tourist areas in Indonesia are becoming oversaturated with short-term rentals?
The three tourist areas in Indonesia becoming most oversaturated with short-term rentals are central Batu Bolong in Canggu, core Seminyak around Petitenget, and some cliff-view Uluwatu micro-pockets where villa supply has grown faster than booking demand.
In these oversaturated areas, active Airbnb listings have grown to over 37,000 across Bali, with Canggu alone seeing median occupancy rates drop to around 49% for typical properties, compared to 87% for top-performing listings, indicating a significant quality and visibility gap.
The clearest sign of oversaturation is not just high listing counts but the growing disparity between professional operators achieving strong occupancy and amateur-managed properties sitting empty even during high season, as Airbnb's algorithm rewards quality and punishes poor management.
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 Areas in Indonesia Are Best for Long-Term Rentals?
Which neighborhoods in Indonesia have the strongest demand for long-term tenants?
The neighborhoods in Indonesia with the strongest demand for long-term tenants are Kemang in Mampang Prapatan for family expats, Kuningan and Mega Kuningan for corporate professionals, Tebet for young Jakarta professionals, and Sanur in Bali for long-stay foreigners.
In these high-demand neighborhoods, vacancy rates typically stay below 5% for well-maintained properties, with average time-to-rent ranging from two to four weeks, compared to two months or more in oversupplied suburban areas.
Each neighborhood attracts a distinct tenant profile:
- Kemang (South Jakarta): expat families seeking villa-style homes near international schools and Western amenities.
- Kuningan and Mega Kuningan (South Jakarta): corporate lease tenants from multinational companies and embassies.
- Tebet (South Jakarta): young Indonesian professionals prioritizing affordability and commute convenience.
- Sanur (Denpasar Selatan, Bali): families, retirees, and divers wanting a quieter Bali long-stay experience.
What makes these neighborhoods attractive to long-term tenants is the combination of established amenities, reliable infrastructure, and proximity to either workplaces in Jakarta or lifestyle conveniences in Bali, reducing the friction of daily life.
Finally, please note that we provide a very granular rental analysis in our property pack about Indonesia.
What are the average long-term monthly rents by neighborhood in Indonesia in 2026?
As of early 2026, average long-term monthly rents in Indonesia's main neighborhoods range from IDR 4.5 million for modest apartments in East Jakarta to over IDR 100 million for premium family houses in Pondok Indah, with Bali villas typically falling between IDR 30 million and IDR 120 million depending on location.
In the most affordable Jakarta neighborhoods like Cakung and Duren Sawit, entry-level apartments rent for IDR 4 million to IDR 7 million per month, offering basic but functional living space for budget-conscious tenants.
In mid-range neighborhoods like Tebet, Kelapa Gading, and Cawang, two-bedroom apartments typically rent for IDR 7 million to IDR 16 million per month, striking a balance between affordability and commute convenience.
In premium neighborhoods like SCBD, Kuningan, and Kemang, rents climb to IDR 18 million to IDR 90 million per month, with high-end family houses in Pondok Indah commanding IDR 45 million to IDR 120 million and Bali's Umalas villas reaching IDR 45 million to IDR 120 million for three-bedroom properties.
You may want to check our latest analysis about the rents in Indonesia here.
Get fresh and reliable information about the market in Indonesia
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which Are the Up-and-Coming Areas to Invest in Indonesia?
Which neighborhoods in Indonesia are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Indonesia that are gentrifying and attracting new investors include Blok M and Melawai in Kebayoran Baru benefiting from lifestyle revival, Glodok and Kota Tua-adjacent areas anticipating MRT Phase 2A completion, and Pererenan in Bali absorbing spillover from overcrowded Canggu.
These gentrifying neighborhoods have experienced annual price appreciation in the range of 5% to 10% over the past two years, outperforming the national average of under 2%, as infrastructure improvements and shifting lifestyle preferences draw both local and foreign capital.
Which areas in Indonesia have major infrastructure projects planned that will boost prices?
The areas in Indonesia with major infrastructure projects expected to boost property prices are the seven station catchments along MRT Jakarta Phase 2A, specifically Thamrin, Monas, Harmoni, Sawah Besar, Mangga Besar, Glodok, and Kota.
MRT Jakarta Phase 2A is a 5.8-kilometer underground extension currently under construction, with the Bundaran HI to Harmoni segment targeting 2027 completion and the Harmoni to Kota segment targeting 2029, representing a total investment of around IDR 25 trillion funded by Japanese development assistance.
Historically, property prices in Jakarta neighborhoods within 800 meters of new MRT stations have appreciated 10% to 20% faster than surrounding areas in the years following station opening, as transit-oriented development improves accessibility and attracts commercial activity.
You'll find our latest property market analysis about Indonesia here.
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.
Which Areas in Indonesia Should I Avoid as a Property Investor?
Which neighborhoods in Indonesia with lots of problems I should avoid and why?
The neighborhoods in Indonesia that present significant challenges for property investors include low-lying coastal areas in North Jakarta like Penjaringan and Pademangan, overbuilt party zones in central Canggu, and any location where someone proposes a nominee structure for freehold ownership.
Each of these problem areas has distinct risk factors:
- Penjaringan and Pademangan (North Jakarta): subsidence and flooding risk increases maintenance costs and limits resale appeal.
- Central Batu Bolong (Canggu, Bali): traffic congestion, overtourism backlash, and community pushback hurt guest experience.
- Nominee structure locations (anywhere): legal risk of losing your entire investment if the arrangement is challenged.
For these neighborhoods to become viable investment options, North Jakarta would need significant flood mitigation infrastructure, Canggu would need traffic solutions and community reconciliation, and nominee structures would need to become legally enforceable, which is unlikely given current Indonesian property law.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Indonesia.
Which areas in Indonesia have stagnant or declining property prices as of 2026?
As of early 2026, areas in Indonesia with stagnant or declining property prices include generic suburban housing tracts in outer Tangerang and Bekasi without transit access, older apartment towers with weak strata management across Jakarta, and secondary city developments without clear tenant demand drivers.
These stagnant areas have experienced real price declines of 5% to 10% over the past five years when adjusted for inflation and currency depreciation, with official Bank Indonesia data showing national residential price growth under 1% annually through late 2025.
Here is what is causing stagnation in each type of area:
- Outer Tangerang and Bekasi suburbs: oversupply of similar housing stock with no differentiation or transit connectivity.
- Older Jakarta apartment towers: deferred maintenance, rising vacancies, and competition from newer buildings nearby.
- Secondary city developments: lack of tourism appeal, limited employer base, and thin rental demand.
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.
Which Areas in Indonesia Have the Best Long-Term Appreciation Potential?
Which areas in Indonesia have historically appreciated the most recently?
The areas in Indonesia that have historically appreciated the most over the past five to ten years are Bali's prime villa pockets like Seminyak and Canggu, select Jakarta transit-connected corridors, and emerging Bali spillover areas like Pererenan and Umalas.
Here are the approximate appreciation figures for these top performers:
- Seminyak and Petitenget (Bali): 50% to 80% total appreciation over ten years, driven by sustained tourism demand.
- Canggu core (Berawa, Batu Bolong): 70% to 100% appreciation over eight years, though now showing maturity signs.
- Pererenan and Umalas (Bali): 40% to 60% appreciation over five years as spillover from congested areas.
- South Jakarta MRT corridor: 15% to 25% faster appreciation than non-transit areas since Phase 1 opening.
The main driver of above-average appreciation in these areas is a separate demand engine from Indonesia's slow national housing market, whether tourism flows in Bali or transit infrastructure in Jakarta, creating localized price momentum.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Indonesia.
Which neighborhoods in Indonesia are expected to see price growth in coming years?
The neighborhoods in Indonesia expected to see the strongest price growth in coming years are Harmoni, Sawah Besar, and Glodok along Jakarta's MRT Phase 2A corridor, plus Pererenan and select Sanur pockets in Bali where demand remains strong but prices have not yet peaked.
Here are projected annual growth rates for these high-potential neighborhoods:
- Glodok and Kota Tua catchment (Central Jakarta): 8% to 12% annual appreciation expected through 2030 as MRT opens.
- Harmoni and Sawah Besar (Central Jakarta): 6% to 10% annual growth tied to transit completion milestones.
- Pererenan (Badung, Bali): 5% to 8% annual growth as it absorbs demand from saturated Canggu.
- Sanur (Denpasar Selatan, Bali): 4% to 7% stable growth with less volatility than party-zone areas.
The single most important catalyst for future price growth in these neighborhoods is the completion of MRT Phase 2A for Jakarta areas and continued tourism demand normalization for Bali areas, both providing sustained buyer and tenant interest.
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 Do Locals and Expats Really Think About Different Areas in Indonesia?
Which areas in Indonesia do local residents consider the most desirable to live?
The areas in Indonesia that local residents consider most desirable to live are Menteng in Central Jakarta for prestige and heritage, Kebayoran Baru neighborhoods like Senopati and Dharmawangsa for lifestyle and accessibility, and Pondok Indah for family amenities and international schools.
Each area is valued by locals for specific qualities:
- Menteng (Central Jakarta): historic colonial architecture, tree-lined streets, and government and embassy proximity.
- Senopati and Dharmawangsa (Kebayoran Baru): walkable cafes and restaurants with modern urban lifestyle appeal.
- Pondok Indah (South Jakarta): top international schools, malls, golf course, and gated community security.
These locally-preferred areas typically attract upper-middle-class Indonesian families, senior executives, and established professionals who prioritize stability, prestige, and access to premium amenities over rental yield optimization.
Local preferences in Indonesia often align with foreign investor targets for high-end properties but diverge in that locals also value heritage, family roots, and social networks that foreigners cannot easily replicate, making some premium areas better for living than for investment returns.
Which neighborhoods in Indonesia have the best reputation among expat communities?
The neighborhoods in Indonesia with the best reputation among expat communities are Kemang in South Jakarta for family expats, Kuningan and Mega Kuningan for corporate assignees, Sanur in Bali for quiet long-stays, and Umalas-Pererenan in Bali for remote workers.
Expats prefer these neighborhoods for practical reasons:
- Kemang (South Jakarta): villa-style houses, Western restaurants, international schools, and English-speaking services.
- Kuningan and Mega Kuningan (South Jakarta): modern high-rises, corporate amenities, and embassy security.
- Sanur (Bali): calmer beach atmosphere, family-friendly, and established long-stay expat services.
- Umalas and Pererenan (Bali): digital nomad community, co-working spaces, and less party noise than Canggu core.
The expat profiles in these neighborhoods differ significantly, with Kemang attracting families on corporate packages, Kuningan drawing single professionals and diplomats, Sanur appealing to retirees and families, and Umalas-Pererenan hosting younger remote workers and entrepreneurs.
Which areas in Indonesia do locals say are overhyped by foreign buyers?
The areas in Indonesia that locals commonly say are overhyped by foreign buyers are central Canggu around Batu Bolong, Seminyak's most tourist-centric streets, and some Uluwatu cliff developments marketed primarily to overseas investors.
Locals believe these areas are overvalued for specific reasons:
- Central Batu Bolong (Canggu): traffic gridlock, inflated villa prices, and quality-of-life decline for actual residents.
- Seminyak tourist core: peak pricing relative to rental returns and heavy competition from similar properties.
- Uluwatu cliff developments: car-dependent access, water supply challenges, and marketing that overstates rental potential.
Foreign buyers typically see these areas as prestigious Instagram-worthy locations with perceived rental income potential, while locals view them as congested, overpriced, and less livable than less-hyped alternatives that offer better value.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Indonesia.
Which areas in Indonesia are considered boring or undesirable by residents?
The areas in Indonesia that residents commonly consider boring or undesirable are far-flung commuter suburbs in outer Tangerang and Bekasi without lifestyle amenities, industrial-adjacent housing in Cakung and Cibitung, and generic developments in secondary cities without clear identity.
Residents find these areas undesirable for understandable reasons:
- Outer Tangerang suburbs: long commutes, limited dining and entertainment, and car-dependent daily life.
- Cakung and Cibitung industrial areas: functional for workers but lacking parks, cafes, or community spaces.
- Secondary city generic developments: copy-paste housing without local character or unique attractions.
Don't lose money on your property in Indonesia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
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 | Indonesia's central bank publishing official property price surveys. | We used BI's Residential Property Price Index to establish the national baseline of modest price growth. We relied on it to justify conservative appreciation assumptions outside tourism markets. |
| BPS (Statistics Indonesia) | National statistics office with structured surveys and official data. | We used BPS data to anchor where Indonesia stands on national price trends. We also used provincial BPS Bali data for tourism and occupancy statistics. |
| Savills Asia | Major global real estate consultancy with published quarterly research. | We used Savills Jakarta reports as a professional benchmark for apartment pricing. We calibrated our neighborhood-level price ranges against their metro-wide figures. |
| Colliers Indonesia | Top-tier research consultancy publishing recurring market reports. | We cross-checked Jakarta apartment market direction including launches and absorption. We used their data to keep rental yield discussions realistic for Jakarta condos. |
| JLL Southeast Asia | Global consultancy publishing standardized market commentary. | We triangulated Jakarta residential market sentiment with JLL's quarterly updates. We used their insights to identify which submarkets favor yields versus appreciation. |
| AirDNA | Leading short-term rental analytics provider with consistent methodology. | We estimated Bali STR occupancy, ADR, and revenue using AirDNA metrics. We flagged oversupply risk where listings grew faster than demand. |
| MRT Jakarta | Official project operator with authoritative station and timeline data. | We named specific station catchments benefiting from Phase 2A infrastructure. We mapped investment opportunities along the future station corridor. |
| Pinhome | Large Indonesian property platform with data-driven market reports. | We tracked secondary-market inventory shifts and demand patterns. We identified up-and-coming satellite corridors using their quantitative analysis. |
| BPS Bali Province | Official provincial statistics with tourism and occupancy data. | We used Bali hotel occupancy and foreign arrival data as demand proxies. We explained why Bali behaves differently from Indonesia's national housing market. |
| FRED (St. Louis Fed) | Central data portal republishing BIS-linked housing price series. | We used FRED as an independent, verifiable time-series reference. We sanity-checked the slow national growth narrative into 2025 and early 2026. |
Get the full checklist for your due diligence in Indonesia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.