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If you're a foreigner thinking about buying property in Makassar to rent it out, you're probably wondering whether it's legally possible, how much money you can actually make, and what the real costs look like on the ground.
Makassar is emerging as one of Indonesia's secondary cities attracting foreign interest, but the rental market here works differently than in Bali or Jakarta.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Makassar.
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 Makassar.
Insights
- Makassar's short-term rental occupancy sits around 34%, meaning properties average only 10 booked nights per month, which is significantly lower than Bali's 50% to 60% occupancy rates.
- Foreigners must spend at least IDR 2 billion (about $120,000) to buy a landed house in South Sulawesi, which naturally pushes gross yields down compared to local investors buying cheaper properties.
- The 20% withholding tax on rental income for non-resident foreigners in Makassar is double the 10% final tax that Indonesian residents pay, making your tax structure a major yield factor.
- Tamalanrea, the university district near Hasanuddin University, offers some of Makassar's best yield potential because student demand keeps vacancy rates low while property prices remain affordable.
- Makassar is now being promoted by Indonesia's Ministry of Tourism as an emerging destination, which could boost short-term rental demand in coming years as infrastructure improves.
- Building service charges for apartments in Makassar can vary wildly from IDR 500,000 to IDR 2 million per month, so this cost can make or break your net yield calculation.
- The Panakkukang area commands Makassar's highest long-term rents because of its proximity to malls, offices, and established residential clusters with security.
- Indonesia's rental income tax is "final," meaning you cannot deduct expenses like maintenance, management fees, or repairs to reduce your tax bill in Makassar.
Can I legally rent out a property in Makassar as a foreigner right now?
Can a foreigner own-and-rent a residential property in Makassar in 2026?
As of early 2026, foreigners can legally acquire certain residential property rights in Makassar under Indonesia's PP 18/2021 regulation, though full freehold ownership (Hak Milik) remains reserved for Indonesian citizens only.
The main ownership structures available to foreigners in Makassar include Hak Pakai (Right to Use) for those with valid immigration documents, leasehold agreements typically running 25 years, or purchasing through a PT PMA foreign investment company for rental business purposes.
The single biggest restriction foreigners face in Makassar is the minimum purchase price requirement, which is set at IDR 2 billion (approximately $120,000 or €110,000) for landed houses and IDR 1 billion (approximately $60,000 or €55,000) for apartments in South Sulawesi province.
If you're not a local, you might want to read our guide to foreign property ownership in Makassar.
Do I need residency to rent out in Makassar right now?
You do not need to be a resident of Indonesia to rent out property in Makassar, but you do need valid immigration documents (such as a visa or permit) to qualify for property ownership under the Hak Pakai pathway.
A local tax identification number (NPWP) is strongly recommended to rent out property in Makassar cleanly, because without one you will face the higher 20% withholding tax rate instead of the standard 10% final tax on rental income.
While not legally mandatory in all cases, having an Indonesian bank account in Makassar is practically essential because most tenants pay rent via local bank transfer and your property expenses like utilities, HOA fees, and repairs are all denominated in IDR.
Managing a rental property in Makassar entirely remotely is feasible if you hire a local property manager, though you should expect management fees of 8% to 10% for long-term rentals and 15% to 25% for short-term rentals to handle tenant relations, maintenance, and tax compliance.
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What rental strategy makes the most money in Makassar in 2026?
Is long-term renting more profitable than short-term in Makassar in 2026?
As of early 2026, long-term renting in Makassar tends to be the safer and more predictable income strategy for most foreign investors, while short-term renting can generate higher gross revenue only if you achieve above-average occupancy and manage operations well.
A well-managed long-term rental in Makassar might generate IDR 60 million to 84 million per year ($3,600 to $5,000 or €3,300 to €4,600), while a well-managed short-term rental could generate IDR 80 million to 120 million per year ($4,800 to $7,200 or €4,400 to €6,600), though the short-term option comes with significantly higher costs and operational complexity.
Properties in Makassar that favor short-term renting over long-term include apartments near Sultan Hasanuddin Airport in Biringkanaya for business travelers, units in the Tanjung Bunga beach area for leisure tourists, and well-located properties in Panakkukang close to the city's main business and shopping districts.
What's the average gross rental yield in Makassar in 2026?
As of early 2026, the average gross rental yield for residential properties in Makassar sits around 5.0% to 5.7% per year, which is moderate compared to other Indonesian secondary cities but reasonable given Makassar's lower risk profile.
The realistic gross rental yield range in Makassar spans from about 4.5% on the low end (premium central properties with higher purchase prices) to around 6.5% on the high end (value-priced properties in student or suburban areas with strong rental demand).
Studios and small one-bedroom apartments near Makassar's universities or business districts typically achieve the highest gross yields because their lower purchase prices relative to rent create a more favorable ratio than larger or luxury properties.
By the way, we have much more granular data about rental yields in our property pack about Makassar.
What's the realistic net rental yield after costs in Makassar in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Makassar falls between 3.5% and 4.5% per year for long-term rentals, and can reach 4.5% to 6.0% for well-managed short-term rentals.
The realistic net yield range that most landlords in Makassar actually experience spans from about 2.5% (if you have high vacancy, expensive management, or poor cost control) to around 5.5% (if you keep occupancy high and costs tight).
The three main cost categories that reduce gross yield to net yield in Makassar are the 10% to 20% rental income tax depending on your residency status, the building service charges and maintenance reserves that are especially high in Makassar's humid tropical climate, and the property management fees which run higher than average because the city lacks the professional property management infrastructure found in Bali or Jakarta.
You might want to check our latest analysis about gross and net rental yields in Makassar.
What monthly rent can I get in Makassar in 2026?
As of early 2026, typical monthly rents in Makassar are approximately IDR 3 million to 5 million ($180 to $300 or €165 to €275) for a studio, IDR 4 million to 7 million ($240 to $420 or €220 to €385) for a one-bedroom, and IDR 7 million to 10 million ($420 to $600 or €385 to €550) for a two-bedroom apartment in decent condition and location.
A realistic entry-level monthly rent for a decent studio in Makassar ranges from IDR 2.5 million to 3.5 million ($150 to $210 or €140 to €190), typically found in older buildings or locations further from the city center like Manggala or outer Biringkanaya.
A realistic mid-range monthly rent for a typical one-bedroom apartment in Makassar sits between IDR 4.5 million and 6 million ($270 to $360 or €250 to €330), usually in areas like Panakkukang or Rappocini with reasonable amenities and security.
A realistic mid-to-high monthly rent for a typical two-bedroom apartment in Makassar ranges from IDR 7.5 million to 10 million ($450 to $600 or €415 to €550), often in newer buildings with good facilities near Panakkukang Mall or in premium Ujung Pandang locations.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Makassar.
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 are the real numbers I should budget for renting out in Makassar in 2026?
What's the total "all-in" monthly cost to hold a rental in Makassar in 2026?
As of early 2026, the total "all-in" monthly cost to hold and maintain a typical rental apartment in Makassar ranges from IDR 1.5 million to 3 million ($90 to $180 or €85 to €165) for apartments, and IDR 2 million to 4 million ($120 to $240 or €110 to €220) for landed houses.
The realistic monthly holding cost range that covers most standard rental properties in Makassar spans from IDR 1.2 million ($70 or €65) for a basic studio with minimal services, up to IDR 4.5 million ($270 or €250) for a larger house with security, garden maintenance, and premium building facilities.
The single largest contributor to monthly holding costs in Makassar is typically the building service charge (Iuran Pengelolaan Lingkungan or IPL) for apartments, which can range from IDR 500,000 to over IDR 2 million per month depending on the building's age, facilities, and management quality.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Makassar.
What's the typical vacancy rate in Makassar in 2026?
As of early 2026, the typical vacancy rate for long-term rental properties in Makassar runs between 6% and 10% per year, which translates to roughly 0.7 to 1.2 months of vacancy annually.
Landlords in Makassar should realistically budget for about one month of vacancy per year as a conservative planning assumption, because tenant turnover, lease gaps, and the time needed to find quality tenants in this secondary market tend to be longer than in Jakarta or Bali.
The main factor that causes vacancy rates to be higher or lower in different Makassar neighborhoods is proximity to employment and education centers, with areas like Panakkukang and Tamalanrea experiencing lower vacancy due to consistent demand from professionals and students.
The highest tenant turnover and vacancy in Makassar typically occurs between June and August when university students complete their studies and relocate, creating a seasonal dip in demand especially for properties in the Tamalanrea university district.
We have a whole part covering the best rental strategies in our pack about buying a property in Makassar.
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Where do rentals perform best in Makassar in 2026?
Which neighborhoods have the highest long-term demand in Makassar in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Makassar are Panakkukang (the city's main commercial and mall district), Rappocini (dense residential with good access to main roads), and Tamalanrea (home to Hasanuddin University and its large student population).
Families looking for long-term rentals in Makassar tend to concentrate in Panakkukang for its established residential clusters with security, Tamalate for its more spacious landed house options, and Biringkanaya for families seeking newer developments with more affordable pricing.
Students seeking long-term rentals in Makassar overwhelmingly prefer Tamalanrea due to its proximity to Hasanuddin University, with secondary demand in Manggala for those seeking more affordable options within commuting distance of campus.
Expats and international professionals in Makassar tend to seek long-term rentals in Ujung Pandang near the Losari waterfront, premium pockets of Panakkukang with newer well-managed buildings, and Mariso for those wanting central city living with character.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Makassar.
Which neighborhoods have the best yield in Makassar in 2026?
As of early 2026, the top three neighborhoods with the best rental yield potential in Makassar are Tamalanrea (strong student demand with affordable property prices), Manggala and outer Biringkanaya (value purchases with decent rental demand from airport and industrial workers), and Rappocini (stable mid-market demand without premium pricing).
The estimated gross rental yield range for these top-yielding Makassar neighborhoods spans from about 5.5% to 6.5% annually, compared to 4.5% to 5.0% in premium but more expensive areas like central Ujung Pandang or prime Panakkukang.
The main characteristic that allows these neighborhoods to achieve higher yields than others in Makassar is their combination of consistent rental demand from price-sensitive tenants (students, young workers, airport employees) with property prices that have not yet been bid up by premium buyers or speculative investors.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Makassar.
Where do tenants pay the highest rents in Makassar in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Makassar are Ujung Pandang (especially near the Losari waterfront), Mariso (central city with character properties), and premium pockets of Panakkukang (newer buildings with high-end facilities).
The typical monthly rent range for a standard two-bedroom apartment in these premium Makassar neighborhoods runs from IDR 9 million to 15 million ($540 to $900 or €495 to €825), with the highest rents commanded by furnished units in well-managed buildings with 24-hour security and modern amenities.
The main characteristic that makes these neighborhoods command Makassar's highest rents is their combination of established prestige, proximity to the city's limited waterfront and heritage areas, and the concentration of newer apartment developments with international-standard building management.
The typical tenant profile in these highest-rent Makassar neighborhoods includes senior managers and executives of regional companies, visiting professionals on corporate assignments, successful local business owners, and the small but growing community of foreign expats working in South Sulawesi's trade and resources sectors.
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.
What do tenants actually want in Makassar in 2026?
What features increase rent the most in Makassar in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Makassar are reliable air conditioning with modern inverter units (essential in this hot and humid climate), secure parking for both cars and motorbikes (critical because most Makassar households rely on personal vehicles), and consistent water pressure with a good water filtration system (a common pain point in older buildings).
Reliable air conditioning in Makassar can add a rent premium of approximately 15% to 25% compared to units with older or unreliable cooling systems, because tenants know that AC is not optional in Makassar's tropical heat and they will pay more for units where they trust the system works well.
One commonly overrated feature that landlords in Makassar invest in but tenants do not pay much extra for is high-end kitchen finishes, because many Makassar tenants eat out frequently or use simple cooking setups, making expensive countertops and appliances less valued than in Western markets.
One affordable upgrade that provides a strong return on investment for Makassar landlords is installing a quality water heater and improving bathroom fixtures, because good hot water is appreciated by tenants yet the upgrade cost is modest compared to the rent premium it can support.
Do furnished rentals rent faster in Makassar in 2026?
As of early 2026, furnished apartments in Makassar typically rent 2 to 4 weeks faster than unfurnished units, with the speed advantage being most pronounced for studios and one-bedroom apartments targeting young professionals and students who want to move in immediately.
Furnished apartments in Makassar command a rent premium of approximately 15% to 30% over unfurnished equivalents, though this premium comes with the trade-off of higher maintenance costs and furniture replacement expenses over time.
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How regulated is long-term renting in Makassar right now?
Can I freely set rent prices in Makassar right now?
Landlords in Makassar have essentially complete freedom to set initial rent prices at whatever level the market will bear, as Indonesia does not impose rent control or maximum rent regulations on private residential rentals.
Rent increases during a tenancy in Makassar are not capped by law and are governed entirely by what you negotiate in your lease contract, so smart landlords include clear rent escalation clauses (commonly 5% to 10% annually) to protect against inflation over multi-year tenancies.
What's the standard lease length in Makassar right now?
The standard lease length for residential rentals in Makassar is 12 months paid in full upfront, which is the dominant pattern across Indonesia and means you typically receive a full year's rent at the start of each lease period.
Landlords in Makassar commonly require a security deposit of one to two months' rent (IDR 3 million to 20 million or $180 to $1,200 or €165 to €1,100 depending on the property), though there is no strict legal maximum and the amount is negotiable between parties.
Security deposit return rules in Makassar are governed by your lease contract rather than specific legislation, so landlords should clearly document the property condition at move-in and specify in writing what deductions can be made for damage, unpaid utilities, or cleaning.
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.
How does short-term renting really work in Makassar in 2026?
Is Airbnb legal in Makassar right now?
Airbnb-style short-term rentals in Makassar are generally legal but operate in a regulatory gray zone where frequent guest turnover can classify your property as an accommodation business subject to tourism licensing requirements.
If you operate short-term rentals commercially in Makassar, you may need to obtain business licensing through Indonesia's OSS (Online Single Submission) system under the tourism accommodation category, though enforcement varies and many hosts operate without formal permits.
Makassar does not currently enforce strict annual night limits or caps on short-term rentals like some European cities do, but your building's strata rules or HOA regulations may separately restrict or prohibit Airbnb-style hosting.
The most common consequence for operating a non-compliant short-term rental in Makassar includes potential local tax assessments if authorities determine you should have been paying accommodation taxes, plus the risk of complaints from neighbors or building management that could force you to stop hosting.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Makassar.
What's the average short-term occupancy in Makassar in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in the Makassar area (using South Sulawesi as a proxy) sits around 34%, which means a typical listing is booked roughly 10 nights per month.
The realistic occupancy range that most short-term rentals in Makassar experience spans from about 20% (poorly located or managed listings) to around 50% (well-optimized listings in prime locations with strong reviews).
The highest occupancy rates for short-term rentals in Makassar typically occur during major local events, the Eid holiday periods (especially Eid al-Fitr), and the domestic travel peak around December and January when Indonesian families visit relatives or take vacations.
The lowest occupancy rates for short-term rentals in Makassar typically occur during the quieter months of February through April and again in September through November, when business travel slows and there are fewer domestic tourism drivers.
Finally, please note that you can find much more granular data about this topic in our property pack about Makassar.
What's the average nightly rate in Makassar in 2026?
As of early 2026, the average nightly rate (ADR) for short-term rentals in the Makassar area is approximately IDR 810,000 ($48 or €44), based on South Sulawesi market data converted at January 2026 exchange rates.
The realistic nightly rate range that covers most short-term rental listings in Makassar spans from about IDR 400,000 ($24 or €22) for basic rooms and budget listings, up to IDR 1,500,000 ($90 or €82) for well-appointed apartments or villas with premium amenities.
The typical nightly rate difference between peak season and off-season in Makassar is approximately IDR 150,000 to 250,000 ($9 to $15 or €8 to €14) per night, with rates climbing 20% to 30% during high-demand periods like Eid holidays and year-end travel season.
Is short-term rental supply saturated in Makassar in 2026?
As of early 2026, the short-term rental market in Makassar is not saturated in the way that Bali or major European tourist cities are, but the modest 34% occupancy rate suggests that supply already exceeds the current level of demand in many micro-locations.
The number of active short-term rental listings in Makassar has been gradually growing as more property owners experiment with platforms like Airbnb, though growth is slower than in Indonesia's primary tourist destinations.
The neighborhoods in Makassar that are most oversaturated with short-term rentals include central Panakkukang (where many apartment owners list units) and areas around Losari Beach (where listings compete for the limited tourist traffic).
The neighborhoods in Makassar that still have room for new short-term rental supply include Biringkanaya (near the airport with genuine business traveler demand), Tanjung Bunga (emerging beach tourism area), and areas near the expanding port facilities where maritime industry workers seek short-stay accommodation.
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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 Makassar, 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 |
|---|---|---|
| PP 18/2021 (BPK Legal Database) | Official Indonesian government regulation on land and property rights. | We used it to verify what foreigners can legally own in Makassar. We cross-checked foreign ownership pathways and minimum price requirements against this primary source. |
| PP 34/2017 (Rental Tax Regulation) | Primary legal basis for Indonesia's final income tax on rental properties. | We used it to establish the 10% final tax rate on rental income. We verified the tax treatment for both residents and non-residents using this regulation. |
| AirDNA South Sulawesi Data | Industry-standard vacation rental analytics provider with transparent methodology. | We used it to extract occupancy rates and average daily rates for short-term rentals. We applied these metrics to estimate realistic short-term rental revenue in Makassar. |
| Jendela360 Makassar Rentals | Indonesian rental platform with structured data by unit type. | We used it to anchor monthly rent estimates for studios, one-bedrooms, and two-bedrooms. We converted their annual ranges to monthly figures for our analysis. |
| Rumah123 Makassar Listings | One of Indonesia's largest property portals with active market data. | We used it to sanity-check property prices and rent ranges. We analyzed listing patterns to identify which neighborhoods command premium rents. |
| DetikProperti | Major Indonesian news outlet that cites official ministerial decrees. | We used it to extract the specific minimum purchase prices for South Sulawesi. We verified that their figures align with Ministerial Decree 1241/2022. |
| PwC Tax Summaries Indonesia | Reputable global accounting firm's tax reference guide. | We used it to confirm the 10% final tax on rental income and 20% withholding for non-residents. We cross-referenced their interpretation with official regulations. |
| X-Rates Currency Data | Transparent exchange rate database with monthly averages. | We used it to convert USD figures to IDR using January 2026 rates. We kept all currency conversions consistent throughout the analysis. |
| OSS Tourism Licensing Standards | Official ministerial regulation for tourism business licensing. | We used it to explain why short-term rentals may require business licensing. We referenced it when discussing Airbnb compliance requirements in Makassar. |
| Bamboo Routes Makassar Analysis | Specialized Indonesia property research with local market focus. | We used it to triangulate property prices and yield estimates. We cross-checked their findings against other data sources for consistency. |
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.
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