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
Are you considering investing in Indonesia's real estate market? Curious about which areas are set to boom in 2025? Want to know where your investment will yield the highest returns?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Indonesia Property Pack
1) Batam in the Riau Islands is booming due to its proximity to Singapore and growing industrial sector boosting housing needs
Batam is a hot property market thanks to its proximity to Singapore.
Singaporean investors are flocking to Batam, with the city accounting for 83.6% of foreign investment in the Riau Islands in early 2023. A standout investment is the USD 11.5 billion glass factory, highlighting Batam's strategic location as a magnet for foreign capital.
The industrial boom in Batam is driving up housing demand. New industrial parks, like the Rempang Eco-City, are popping up, promising a surge in job opportunities. This growth is pulling in workers and expatriates, naturally boosting the need for homes and rentals.
Batam's appeal is further enhanced by its free trade zone system and government incentives. Investors appreciate the ease of handling investment matters and the ability to issue permits across sectors, making it a flexible and attractive option.
Infrastructure is also on the rise, with new roads and bridges supporting Batam's evolution into a major industrial and trade hub. This development is crucial for sustaining the city's growth and meeting the increasing housing demands.
Sources: Future Prediction of the Expansion of Built-Up Areas in Batam Free Trade Zone (FTZ) Using Land Change Modeler, Top 7 Best Business in Batam You Should Consider - InCorp Indonesia, Batam Contributes to Foreign Direct Investment in Riau Islands
2) Tembalang in Semarang is a prime spot for student housing investments near major universities
Semarang's Tembalang district is becoming a hotspot for student housing investments.
With Diponegoro University nearby, which enrolls between 35,000 and 39,999 students, there's a constant influx of students needing accommodation. This large student population creates a steady demand for housing, making it a lucrative opportunity for investors.
The interest in student housing is further fueled by the 55,758 registrants for the UNDIP 2022 SBMPTN entrance exam, with 3,258 students accepted. This high number of applicants highlights the growing need for student accommodation in the area, as more students seek places to live each year.
Infrastructure developments are also playing a key role. New student centers are popping up, offering quiet study rooms, social areas, and wellness facilities. These amenities not only attract students but also make the area more appealing for housing investments.
Moreover, there are reports of new housing projects specifically targeting student tenants. This trend indicates a growing interest in student housing investments, as developers recognize the potential for profit in this sector.
Investors are taking note of these developments, seeing Tembalang as a promising area for student housing investments near major universities. The combination of a large student population and modern amenities makes it an attractive option.
Sources: 4icu.org, UNDIP, NAAHQ
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3) Sleman in Yogyakarta is popular for affordable housing and its proximity to schools boosts rental demand
Sleman in Yogyakarta is a hotspot for affordable housing, drawing in both buyers and renters.
What makes Sleman stand out is its close proximity to top universities like Universitas Gadjah Mada, Universitas Negeri Yogyakarta, and Universitas Islam Indonesia. These institutions attract a large number of students, which naturally boosts the demand for housing, especially for those looking for student accommodations.
The rental market here is thriving, with rental yields ranging from 5.13% to 6.47%. This makes it a lucrative spot for property investors who are eyeing steady returns. The high occupancy rates further underline the strong demand for rental properties in the area.
For those considering buying property, Sleman offers a unique advantage. Property prices here are generally lower than in other parts of Yogyakarta, making it an attractive option for budget-conscious buyers. This affordability, combined with the area's educational appeal, makes it a smart choice for investment.
Living in Sleman also means being part of a vibrant community, thanks to the influx of students and academics. This creates a lively atmosphere, with plenty of cafes, bookstores, and cultural events that cater to a youthful crowd.
Whether you're looking to buy or rent, Sleman's combination of affordability and educational proximity makes it a compelling choice. The area's growth potential and strong rental market are just the icing on the cake.
Sources: Jurnal Saintek, 4ICU, Global Property Guide, Brookfield Oaktree
4) Makassar South Sulawesi sees rising real estate interest due to its strategic trade hub location in Eastern Indonesia
Makassar in South Sulawesi is buzzing with real estate interest due to its strategic role as a trade hub in Eastern Indonesia.
The Makassar New Port (MNP) is a game-changer, boosting the region's port infrastructure with modern facilities and a larger container service capacity. This port, initiated by PT Pelabuhan Indonesia, has transformed Makassar into a key player in the trade sector. With a 150% increase in capacity, MNP is now the second-largest port in Indonesia, supporting both regional and national economic growth.
President Joko Widodo has highlighted the port's development as a way to streamline logistics costs, enhancing connectivity and competitiveness in international trade. This has attracted both foreign and domestic investors to Makassar's real estate market, drawn by its strategic location and ongoing infrastructure improvements. The city's growing population and urbanization rates are further indicators of this rising interest.
Businesses are flocking to Makassar for its strategic advantages, with the port's modern facilities and improved logistics making it an ideal spot for expansion in Eastern Indonesia. The port has even exceeded its yearly throughput target in 2023, showcasing its role in boosting commercial activity and trade volume. This trend is supported by media coverage and government reports emphasizing Makassar's economic growth and its significance in national economic plans.
New transportation projects are enhancing connectivity, making it easier for businesses to operate and for people to move to the city. This has led to a noticeable increase in real estate interest, as more people are drawn to Makassar for employment opportunities. The city's strategic location and infrastructure development make it a hot spot for investors looking to capitalize on its potential.
Makassar's transformation into a trade hub is not just about the port; it's about the city's growing role in the region's economy. With the government's backing and ongoing development, Makassar is poised to become an even more attractive destination for real estate investment.
Sources: ISL News TV, PwC Indonesia, Antara News, Indo Shipping Gazette
5) Manado North Sulawesi is booming for coastal properties and tourism-driven real estate growth potential
Manado in North Sulawesi is quickly becoming a sought-after destination for coastal properties and tourism-driven real estate.
Thanks to a steady rise in international visitors, Manado's tourism has seen impressive growth. Back in 2004, the city welcomed 16,930 international visitors, and by 2018, that number had soared to 122,100. This upward trend continues, drawing more attention to the area.
Traveling to Manado has never been easier, with direct flights now connecting the city to 12 destinations across four countries. The Sam Ratulangi International Airport's improved connectivity is a major attraction for tourists and investors alike, making the city more accessible than ever.
The Indonesian government is also investing heavily in Manado's future. They've earmarked funds to transform the Malalayang Beach area into a vibrant waterfront city, boosting infrastructure like roads and water supply. These developments are set to enhance Manado's appeal to both tourists and investors.
With the influx of visitors, there's a growing demand for new hotels and resorts. This surge in hospitality needs signals a strong potential for real estate growth in the area. International investors are taking notice, drawn by Manado's thriving tourism scene and expanding infrastructure.
As Manado continues to evolve, its real estate market is poised for significant growth, driven by tourism and strategic developments. The city's unique charm and improved accessibility make it an attractive option for those looking to invest in coastal properties.
Sources: Hotel Investment Strategies, Direct Flights, Setkab, Wikipedia
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6) Canggu Bali attracts investors with its booming short-term rental market fueled by tourism and digital nomads
Canggu in Bali is a hotspot for investors due to its booming short-term rental market.
In 2023, Canggu's one-bedroom rentals saw an impressive 83.24% occupancy rate in January, and this trend continued strong throughout the year. This high demand shows just how popular the area is with both tourists and digital nomads. The influx of digital nomads is a big part of Canggu's growth. They're drawn to the area's vibrant lifestyle, beautiful beaches, and excellent surfing conditions.
The rise of co-working spaces and digital nomad communities in Canggu is a testament to the growing demand for flexible workspaces. These spaces cater to the needs of remote workers who want to enjoy a balanced lifestyle. The area's lively atmosphere and stunning beaches are a major draw for young travelers from around the world, including Australia, Europe, and the USA.
Tourism in Bali, especially in Canggu, has been on the rise. From January to July 2024, Bali welcomed over 3.5 million foreign tourists, marking a 22.18% increase compared to the same period in 2023. This surge in visitors highlights Canggu's appeal as a top destination for international travelers.
Investors are taking note of Canggu's potential, as the area continues to attract a diverse crowd. The combination of a thriving rental market and a steady influx of tourists and digital nomads makes Canggu an attractive investment opportunity. The area's unique blend of natural beauty and modern amenities is a key factor in its growing popularity.
With its stunning beaches, vibrant culture, and growing community of digital nomads, Canggu is poised to remain a top choice for investors looking to capitalize on Bali's booming tourism industry. The area's ability to cater to both leisure and work needs makes it a versatile and appealing destination.
Sources: Better Place, Bali Management Villas, Hospitable
7) Property prices in Medan's Setiabudi area are surging due to new shopping centers and better transportation links
Medan's Setiabudi area is buzzing with excitement as property prices are on the rise.
One of the main reasons for this surge is the arrival of new shopping centers like Delipark Mall, which offers luxury shopping and dining experiences that attract both locals and tourists. This modern hub has quickly become a favorite spot, adding a vibrant touch to the neighborhood.
Transportation improvements are also playing a big role in this transformation. While we don't have exact details on new bus routes or train stations, Medan's focus on urban development is making Setiabudi more accessible. This aligns perfectly with what homebuyers are looking for: convenience and connectivity.
In the broader Indonesian property market, especially in Medan, there's a noticeable uptick. Properties priced between Rp 1 billion and Rp 3 billion are seeing a 34.7% increase in demand, highlighting Setiabudi as a prime spot for investment. This demand is fueled by the area's new amenities and better infrastructure.
For those considering a property purchase, Setiabudi offers a promising opportunity. The combination of modern shopping experiences and improved transport links makes it an attractive choice for both living and investment.
Sources: Global Property Guide, Tripadvisor, The Lets Move Group
8) Palembang's Jakabaring area draws investors with sports facilities and infrastructure upgrades after the Asian Games
Palembang's Jakabaring area is now a hotspot for investors, thanks to its post-Asian Games transformation.
After the Asian Games, the area saw a surge in property development projects, driven by a strategic plan to boost infrastructure. This plan is key to drawing in investors who are eager to capitalize on the area's growth potential.
The Indonesian government has been a major player in this transformation, increasing its infrastructure budget by 7.8% in 2024. This boost focuses on essential sectors like transport, renewable energy, manufacturing, and housing, setting the stage for further development in Jakabaring.
Transportation improvements have been a game-changer, with the new LRT line connecting Sultan Mahmud Badaruddin II International Airport directly to the Jakabaring sports center. This makes the area more accessible and appealing to potential investors, who see the convenience as a major plus.
Jakabaring's sports facilities, enhanced for the Asian Games, continue to attract attention. These world-class amenities are a significant draw for investors looking to tap into the sports tourism market.
With these developments, Jakabaring is not just a place to invest; it's a thriving community with a promising future. The combination of improved infrastructure and sports facilities is a winning formula for those looking to invest in the region.
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9) Property values in West Surabaya are rising due to new infrastructure projects and commercial developments
West Surabaya is quickly becoming a prime spot for property investment.
Thanks to increased government investment in infrastructure, the area is more accessible than ever. The Jakarta-Surabaya semi-high speed railway is a key part of this, aiming to boost connectivity and economic growth. This project has made West Surabaya a magnet for property investors.
New toll roads and better public transportation have also made a big difference. These improvements mean it's easier to get around, making the area more appealing for those looking to buy homes. As a result, there's been a noticeable rise in property transaction volumes, showing that buyer interest and property values are on the up.
Commercial developments are another big factor. With large shopping malls like Pakuwon Mall and new business centers popping up, West Surabaya is turning into a bustling commercial hub. These developments not only offer more business opportunities but also help drive up property values.
For anyone considering buying property in the area, these changes mean West Surabaya is a place to watch. The combination of improved infrastructure and commercial growth is creating a dynamic environment for property investment.
As the area continues to develop, it's likely that property values will keep rising, making it an attractive option for potential buyers. The ongoing projects and developments are setting the stage for long-term growth and prosperity in West Surabaya.
Sources: PwC Indonesia, Wikipedia, Indonesia Price Forecasts
10) Balikpapan East Kalimantan is a real estate hotspot due to the nearby capital city relocation plan
Balikpapan in East Kalimantan is buzzing with real estate activity thanks to the Indonesian government's plan to move the capital city nearby.
With the new capital on the horizon, infrastructure in Balikpapan is booming. The Balikpapan – Samarinda Highway and the Sultan Aji Muhammad Sulaiman Sepinggan International Airport have made getting around a breeze, attracting businesses and residents alike. This ease of access is turning Balikpapan into a prime spot for both living and business.
Economic growth in the area is another big draw. In 2023, Balikpapan's economy grew by 6.5 percent, which is quite impressive. This economic upswing is catching the eye of investors, both local and international, who are eager to get in on the action. The demand for homes and commercial spaces is climbing, with a particular interest in landed houses and business properties.
Balikpapan's strategic location near the new capital is a major selling point. Investors see it as a golden opportunity for property ventures. The city's upgraded infrastructure and promising returns make it a hot pick for anyone looking to invest. The buzz in the media about Balikpapan being a top investment spot is only adding fuel to the fire.
For those considering a move or investment, Balikpapan offers a unique blend of opportunity and growth. The city's transformation is hard to ignore, with its strategic position and economic vitality making it a standout choice. As the new capital develops, Balikpapan is set to become even more appealing.
Whether you're looking for a place to call home or a smart investment, Balikpapan is worth a closer look. The combination of infrastructure, economic growth, and strategic location makes it a compelling option in the real estate market.
Sources: Expat Indonesia, Antara News
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.