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
Why is Makassar emerging as a prime location for property investment in 2025? Is it the promising rental returns, the rapid urban development, or the competitive pricing compared to other Indonesian cities? What makes it an attractive option for investors?
We often encounter these questions because we are actively engaged in the local market, collaborating with developers, real estate professionals, and investors like you. Given the growing interest in Makassar, we've decided to compile our insights into a detailed article for everyone's benefit.
Our aim is to present a compelling case for investing in Makassar's real estate market, supported by our direct experience and market expertise.
If you feel we've overlooked an important aspect or wish to learn more, please reach out to us (we respond very quickly). Your feedback enhances the quality of our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
1) Makassar’s location as a gateway to Eastern Indonesia increases property demand
Makassar's prime location as the gateway to Eastern Indonesia is a major driver of its booming real estate market.
With the construction of the Makassar New Port Access Toll Road, connectivity is set to improve, making it easier and faster for container transport. This development is part of a larger plan to expand the port, which will increase container turnover capacity fivefold, boosting trade and, in turn, real estate demand.
Makassar's economy has been on a roll, growing at an impressive 8.5% annually thanks to thriving wholesale, retail, manufacturing, and construction sectors. This economic boom has naturally led to a rise in property prices, making it a hot spot for investors.
The Indonesian government is backing this growth with significant investments, including a $250 million highway and a $900 million port expansion. These initiatives are designed to position Makassar as a key trade and business hub, attracting even more investors.
Population growth is another factor, with numbers rising from 1,449,401 in 2015 to 1,526,677 in 2019. People are flocking to Makassar for better living standards and higher wages, which is driving up demand for residential properties.
As the port facilities expand, Makassar is becoming a crucial part of Indonesia’s maritime economy, further increasing the demand for both commercial and residential properties.
Sources: Orbitshub, Indonesia Water Portal, Journal of Accounting Point of View, Asia Green
2) With Makassar’s rich cultural heritage, you can easily invest in short-term rental properties
Makassar's rich cultural heritage is drawing in tourists and creating exciting opportunities for short-term rental investments.
In recent years, events like the Makassar International F8 Festival have attracted over 300,000 visitors, showcasing music, fashion, and art that captivate tourists. This festival is a vibrant display of the region's cultural diversity, making it a must-see for travelers.
With the rise in cultural festivals, hotel occupancy rates have climbed to 53.19% by October 2024, reflecting a growing interest in Makassar's unique blend of cultural and natural attractions. This surge in visitors is driving up demand for accommodations, including short-term rentals.
Makassar's accessibility has improved with new transport links and flight routes, making it easier for tourists to visit. This development is turning the city into a leisure tourism hotspot, enhancing the potential for short-term rental investments.
The government's efforts to promote tourism, even amid challenges, are crucial in boosting Makassar's appeal. Their commitment is evident in the city's growing reputation as a travel destination, attracting more visitors each year.
As Makassar continues to thrive as a cultural hub, the opportunities for short-term rental investments are expanding, offering promising returns for those looking to invest in this vibrant city.
Sources: Enpress Publisher, Invest in South Sulawesi, Travel and Tour World
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.
3) With better healthcare, Makassar is a top choice for retirees seeking quality living conditions
Makassar is becoming a hotspot for retirees due to its improved healthcare infrastructure.
In recent years, the city has seen a surge in healthcare facilities and hospitals, largely because of the Indonesian Government's modernization efforts. This makes Makassar an attractive option for those prioritizing health in their retirement plans.
By 2023, a whopping 97.8% of community health centers in Makassar were accredited, with many achieving high accreditation statuses. This boost in quality is a major plus for retirees who want reliable healthcare services.
The government, with a helping hand from the World Bank, has poured resources into healthcare infrastructure. A $4 billion investment is strengthening health systems, making Makassar even more appealing for those looking to settle down.
These improvements are not just numbers; they translate into better living conditions for retirees. The city's focus on healthcare quality is a game-changer for anyone considering a move here.
With these advancements, Makassar is positioning itself as a top choice for retirees who value both quality of life and healthcare.
Sources: Medico Publication, World Bank Document
4) Makassar's expanding port boosts trade and economy, driving up property values
The city's growing port infrastructure is boosting property values by enhancing trade and economic activity.
In 2023, Makassar New Port handled 257,981 TEUs, surpassing its target by 121.3%. This shows the port's ability to manage more trade, making it a key player in regional commerce. The port's success is a magnet for businesses, which in turn increases the demand for nearby properties.
The Indonesian government is pouring USD 410 billion into infrastructure from 2020 to 2024, highlighting the importance of port development. This investment has improved the port's facilities and connectivity, like the new toll road linking Makassar Port to Sultan Hasanuddin Airport. Such improvements make trade routes more efficient and attract more businesses to the area.
The container terminal's capacity has expanded by 150%, fueling economic growth in Eastern Indonesia. This growth is evident in rising employment rates in port-related industries, with many locals finding jobs thanks to the port's development. As the economy thrives, the demand for housing and commercial properties near the port rises, pushing property values up.
Makassar's port is not just a trade hub; it's a catalyst for local economic prosperity. The port's expansion has created a ripple effect, boosting employment and increasing the area's attractiveness for businesses and residents alike. This dynamic environment is a key factor in the rising property values around the port.
For potential property buyers, the port's ongoing development and the government's commitment to infrastructure investment make the area a promising opportunity. The combination of increased trade, improved connectivity, and economic growth creates a vibrant market for real estate.
Sources: Indo Shipping Gazette, Expat Life Indonesia
5) New sports facilities make nearby residential areas more attractive
New sports facilities can make nearby residential areas much more attractive.
When a sports facility pops up, property values in the area often rise. Take the Tottenham Hotspur Stadium in London, for instance, where homes within a mile have seen a noticeable bump in value. This trend is similar in the US, where properties near sports stadiums have increased by 4.7%. Such boosts make these areas more enticing for homebuyers and investors.
Living close to sports facilities is in high demand, and rents can jump by up to 9% near NFL stadiums. This shows that people are willing to pay a premium for the convenience and excitement of being near these venues. As a result, the community becomes more lively and dynamic.
Sports facilities often bring along better infrastructure and transport links, making the area more accessible. For example, Birmingham's new stadium project includes plans for affordable housing and significant infrastructure investments, enhancing connectivity for everyone.
These developments don't just stop at sports; they often lead to a ripple effect of improvements in the neighborhood. Local businesses thrive as more people flock to the area, creating a bustling environment that benefits everyone.
In essence, the presence of sports facilities can transform a neighborhood, turning it into a sought-after location for both living and investment. The added convenience and community vibe make these areas stand out.
Don't buy the wrong property, in the wrong area of Makassar
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) Makassar’s sustainable urban planning boosts long-term property value
The city's focus on sustainable urban planning can significantly boost property values over time.
In Makassar, the government is pouring resources into green infrastructure projects like waste and flood management systems. These efforts not only make the city more eco-friendly but also attract potential property buyers by improving residents' quality of life.
Where sustainable urban planning is in place, property values are climbing. For instance, the city has increased green open spaces, which, although not yet at the target, are perceived as having 20% green open space. This perception makes people willing to pay more for homes in these lush, sustainable areas.
Electric cars and special green transportation routes are also making waves. They cut down on energy costs, making living in these areas more affordable over time. This, along with better air quality and less pollution, makes properties here even more appealing, pushing values higher.
These initiatives are not just about aesthetics; they are about creating a sustainable lifestyle. The city's commitment to these projects is a big draw for buyers looking for long-term value and a healthier living environment.
Makassar's approach is a win-win, enhancing both the environment and the real estate market. As the city continues to develop these green initiatives, property values are expected to keep rising, making it a smart investment choice.
Sources: EUDL, Development Asia
7) New shopping centers make nearby residential areas more attractive
New shopping centers can make nearby residential areas more appealing by boosting local economic activity.
When a shopping center opens, it draws more people to the area, leading to increased foot traffic and business for local vendors. This creates a lively atmosphere that many find attractive. Imagine a bustling street with cafes, boutiques, and entertainment options right at your doorstep.
New shopping centers often lead to rising property values. People are willing to pay more to live near convenient shopping and entertainment options. This trend was evident in recent years, where new retail spaces saw property values in those areas climb.
Shopping centers can also improve infrastructure and public services. For instance, a new shopping center might lead to better roads or public transportation options to handle more visitors. This makes the area more accessible and desirable for potential residents.
Moreover, shopping centers create job opportunities, attracting more people to live nearby. With more jobs available, people are more likely to move to the area, increasing the demand for housing and making the neighborhood more vibrant.
These developments not only enhance the local economy but also contribute to a sense of community, making residential areas around shopping centers more attractive places to live.
Sources: 2025 Retail Real Estate Outlook, GREATER Revitalization of Shopping Centers Act
8) Makassar’s coastal setting is perfect for investing in waterfront properties
Makassar's coastal location is a hot spot for waterfront property investments.
With property values on the rise, Makassar's coastal areas are becoming increasingly desirable. This trend is mirrored by the hotel occupancy rate hitting 53.19% in December 2024, a clear sign of the growing interest in both cultural and natural tourism in South Sulawesi.
Tourism is booming here. Back in 2022, Makassar saw 7,662 visitors, and the numbers are climbing. The city's unique biodiversity and stunning coastal views are major draws, suggesting that the demand for waterfront properties is only going to grow as more people, both tourists and locals, are captivated by the area's natural beauty.
On top of that, the government is rolling out infrastructure projects that are making the coast more accessible. This focus on developing coastal tourism and improving facilities shows a strong commitment to enhancing the area's appeal, despite some challenges along the way.
These infrastructure improvements are not just about roads and bridges; they're about making the coast a more attractive place to live and visit. This means better access to beautiful beaches and vibrant local culture, which is a big plus for potential property investors.
All these factors combined make Makassar's coastal areas a promising opportunity for those looking to invest in waterfront properties. The blend of rising tourism, government support, and natural allure creates a unique investment landscape.
Sources: Journal of Infrastructure, Policy and Development, Cambridge University Press, Travel and Tour World
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.
9) Makassar’s improved airport links make it ideal for frequent travelers looking for property
Makassar is becoming a hotspot for frequent travelers thanks to its expanding international airport connectivity.
In August 2024, Sultan Hasanuddin International Airport welcomed 1.8 million international passengers, marking a 12.46% increase in traffic. This surge means more flights are available, making it easier for travelers to reach Makassar.
The airport is not just stopping there; it's undergoing major expansions. By 2024, the terminal will handle up to 21 million passengers annually, with plans to boost this to 30.8 million by 2034. This shows a strong commitment to improving connectivity, which is a big plus for those who travel often.
New airline routes are also in the mix, connecting Makassar to major hubs like Kuala Lumpur and Singapore. These new routes offer more travel options, making Makassar a more convenient and appealing destination for international travelers.
The government is backing these changes with investments in airport infrastructure. Terminal expansions and facility improvements are part of the plan, further enhancing the airport's appeal.
10) Makassar’s booming tech sector draws professionals looking for homes
Makassar's tech industry is booming, creating numerous job opportunities for professionals.
In 2023, Makassar saw a significant rise in tech employment, thanks to a 7.1% GDP growth. This economic boost is a major driver of job creation, making the city an attractive place for tech professionals.
Makassar's strategic location is a hub for shipping, logistics, and manufacturing, which continues to draw in businesses. This influx is expected to increase tech job opportunities in 2024. The city also offers flexible coworking spaces and virtual offices, making it easier for tech startups to set up shop.
Government initiatives like the Makassar Livable City Plan provide a supportive framework for the tech industry. These initiatives focus on smart, sustainable development, fostering an environment ripe for innovation and entrepreneurship.
The city's vibrant economy, bolstered by coastal tourism and ecotourism, indirectly supports the tech industry. This lively atmosphere attracts professionals who are looking for both work and lifestyle opportunities.
Makassar's growing tech scene is not just about jobs; it's about creating a community where professionals can thrive. The combination of economic growth, strategic location, and supportive policies makes it a prime destination for tech talent.
Sources: HQ, Asian Development Bank
11) Government incentives for green projects boost the value of eco-friendly properties in Makassar
Eco-friendly properties are becoming more valuable thanks to local government incentives.
In Makassar, the government is offering grants and tax breaks to encourage green building projects. This makes it cheaper for developers to go green, as seen in the Makassar Livable City Plan (MLCP), which aims to cut down the initial costs of sustainable construction.
These incentives are paying off. Properties with sustainable technologies are selling for more because they attract eco-conscious buyers. In Makassar, green buildings are not just trendy; they’re fetching higher prices and selling faster.
People are showing a strong preference for sustainable living, according to surveys. This is pushing up the demand and value of green buildings. Plus, these buildings save energy, which means lower utility bills and more profit for owners.
Investors and buyers are drawn to these financial perks. The combination of energy savings and government incentives makes eco-friendly properties a smart investment.
Sources: Asian Development Bank, Crest Network
Make a profitable investment in Makassar
Better information leads to better decisions. Save time and money. Download our guide.
12) Makassar’s tropical climate and natural beauty make vacation homes highly desirable
Makassar's tropical climate and natural beauty make it a prime spot for vacation homes.
In 2024, Indonesia experienced a tourism boom, with Makassar emerging as a top destination thanks to its lush landscapes and inviting weather. This surge in visitors underscores the city's charm, drawing people in with its natural allure.
The wellness tourism market is on the rise, projected to hit $1.4 trillion by 2027. This trend reflects a growing desire for places that offer both beauty and relaxation, and Makassar fits the bill perfectly with its tropical setting. The city's stunning beaches and unique biodiversity are exactly what modern travelers crave.
Makassar's vacation homes are in high demand, boasting positive reviews and impressive occupancy rates. The Indonesian government has sweetened the deal with initiatives like visa-free policies, making it easier for tourists to visit and stay longer. These efforts are driving up property values, making vacation homes a savvy investment.
With its natural attractions and government support, Makassar is becoming a hotspot for property buyers looking for a slice of paradise. The combination of beautiful scenery and favorable policies is hard to resist.
Investing in Makassar means tapping into a market that's not only growing but also supported by strategic initiatives. The city's appeal is undeniable, offering both a serene escape and a promising investment opportunity.
Sources: Travel and Tour World, Smart Guide Blog
13) Makassar's growing middle class is boosting demand for modern homes
The city's rising middle class is driving the demand for modern housing in Makassar.
As incomes grow, especially among the middle class, people have more money to spend on better homes. This means they want modern housing with improved amenities and infrastructure. The city's urbanization is also on the rise, with more people moving to urban areas for better living conditions, which boosts the demand for these modern homes.
Makassar's population is expected to grow significantly, and this rapid urbanization means more people are looking for homes with modern features. The middle class is particularly interested in amenities like parks and community facilities, pushing developers to include these in their projects.
Government initiatives, such as the Makassar Livable City Plan, are supporting housing development. These plans aim to enhance livability and promote smart urban growth, leading to more investment in modern housing. Additionally, increased mortgage approvals and home loans make it easier for middle-class families to buy these homes.
Developers are focusing on building homes that cater to the needs of the middle class, who are looking for modern living spaces. The city's plans often include strategies to improve livability, which attracts more investment in housing projects. This is further supported by the availability of financial options for homebuyers, making it easier for them to purchase modern homes.
Overall, the combination of a growing middle class, urbanization, and supportive government policies is creating a strong demand for modern housing in Makassar. Developers are responding by building homes that offer the amenities and infrastructure that these buyers are looking for.
Sources: Kompas, Development Asia
14) With many international companies in Makassar, there’s a high demand for expat housing
International companies are flocking to Makassar, especially in 2023 and 2024.
With a whopping IDR 16.451 trillion in investments last year, including IDR 4.983 trillion from foreign direct investment, it's clear that Makassar is becoming a business hotspot. This influx of international businesses means more foreign workers and expatriates are moving to the city, and they all need a place to live.
Expatriates often look for homes that meet international standards, which means properties with good security, modern amenities, and close proximity to international schools and conveniences. As a result, the demand for rental properties tailored to expatriates is on the rise.
The local government is making it even easier for international companies to set up shop by simplifying the licensing process. This not only attracts more businesses but also boosts the need for housing as more expatriates settle in Makassar.
Makassar's appeal isn't just about business; it's also about lifestyle. The city offers a unique blend of cultural experiences and modern living, making it an attractive destination for expatriates looking for a balance between work and leisure.
With these developments, the real estate market in Makassar is buzzing, offering opportunities for investors and property buyers who want to tap into this growing demand for expatriate housing.
Sources: Sulselprov, Australia Indonesia Centre
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.
15) With better internet, Makassar is ideal for remote work-friendly properties
Makassar's internet connectivity has significantly improved, making it a hotspot for remote work-friendly properties.
With more people in Indonesia getting online, Makassar is likely seeing a similar surge, which is great news for remote workers. This connectivity boost has led to a rise in coworking spaces, like the Graha Pena office, which offers flexible setups for both local and international businesses.
These spaces are popping up because there's a growing demand for remote work facilities. People are looking for places that fit their work-from-home lifestyle, and Makassar is stepping up to meet this need.
Makassar's Livable City Plan is also a big player here, focusing on digital solutions and smart city initiatives. This plan likely aims to enhance digital infrastructure, making remote work even more accessible for residents.
As a result, properties with home office spaces are becoming more popular. People want homes that support their remote work needs, and Makassar is adapting to this trend.
So, if you're considering buying property in Makassar, know that the city is embracing the remote work culture with open arms, thanks to its improved internet connectivity and smart city plans.
Sources: Office Space in Makassar, Makassar's Livable City Plan, Internet Penetration in Indonesia
16) With better public transport, Makassar’s suburban real estate is becoming more attractive
Makassar is making big strides in public transportation with its new Bus Rapid Transit (BRT) system.
By investing in the BRT, Makassar aims to create a more efficient and reliable transport network, which is a game-changer for the city. This system is not just about getting from point A to B; it's about reducing emissions and improving the overall climate footprint. The government’s plans, part of Indonesia’s national mid-term development strategy, focus on expanding transit networks to make commuting smoother.
For those eyeing suburban living, this is great news. The improved connectivity means easier commutes from the suburbs to the city center, making suburban areas more appealing. Imagine cutting down your travel time significantly while also contributing to a greener environment.
The BRT system is designed with features like multimodal stations and a smart ticketing system. These enhancements are not just technical upgrades; they are about making daily commutes less of a hassle. For potential property buyers, this means a more attractive suburban lifestyle without the stress of long, tedious commutes.
Makassar’s focus on public transport is not just about convenience; it’s about transforming the way people live and move. With these developments, suburban real estate is becoming increasingly attractive as commuting becomes less of a barrier. The city’s efforts are paving the way for a more connected and sustainable future.
As the public transportation system continues to improve, the interest in suburban real estate is likely to grow. This shift is not just a trend; it’s a reflection of how infrastructure can influence lifestyle choices and property markets.
Sources: data.gov.my, core.ac.uk, eib.org
17) Makassar’s urban development projects enhance infrastructure and make properties more attractive
Makassar's property market is on the rise thanks to the local government's focus on urban development.
With the Makassar Livable City Plan (MLCP) in action, infrastructure is getting a major boost. This plan, backed by the ASEAN Australia Smart Cities Trust Fund, is all about making the city more livable and smart over the next 20 years. It's not just about building roads and bridges; it's about creating a city where people want to live and invest.
As these projects wrap up, they provide a solid framework for future growth. Well-planned urban development leads to better services and higher property values. We've seen this happen in other cities, and Makassar is no exception. When infrastructure improves, property values tend to follow suit.
Makassar's growing urbanization and economic diversification are turning heads in the real estate world. Investors are flocking to the city, drawn by the promise of significant infrastructure spending. This is a common trend in emerging markets like Indonesia, where infrastructure development often leads to a real estate boom.
The MLCP isn't just a one-off plan; it's a comprehensive approach to urban development. It integrates existing spatial plans and sets the stage for future projects. This means Makassar is not just planning for today but is also looking ahead to tomorrow, ensuring sustainable growth.
Sources: Development Asia, PwC
Get fresh and reliable information about the market in Makassar
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
18) With more schools opening, Makassar is seeing a rise in student renters
Makassar is becoming a hotspot for students thanks to its growing educational institutions.
With more universities and schools popping up, the demand for rental properties is on the rise. This isn't just a local trend; across Indonesia, more people are finishing high school and looking to further their education. Makassar is no exception, and it's attracting students from all over.
In Indonesia, about 40% of people aged 15 and above have completed senior high school, showing a keen interest in higher education. This is likely mirrored in Makassar, where educational opportunities are expanding. As more students flock to the city, the need for housing grows.
Real estate agents in Makassar are noticing this shift. Student housing is becoming a booming business, with more students opting for off-campus living. They want privacy and modern amenities, which means rental properties near universities are in high demand.
Across the country, the student housing market is seeing growth in rent, occupancy, and supply. Makassar is likely experiencing similar trends as its educational landscape expands. This makes it a prime spot for property investment, especially in areas close to universities.
As new educational institutions emerge, Makassar's appeal to students continues to grow. This influx of students is a golden opportunity for those looking to invest in rental properties, as the demand is only set to increase.
Sources: Inland Investments, Statista
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.