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
What will happen in Makassar’s real estate market? Will prices go up or down? Is Makassar still a hotspot for foreign investors? How is Indonesia’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Makassar, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Interest from foreign buyers will grow in Makassar's new tech districts
Foreign buyers are showing increased interest in Makassar's emerging tech districts for several compelling reasons.
In 2023, South Sulawesi attracted a significant IDR 4.983 trillion in Foreign Direct Investment (FDI) specifically in the tech sector. This influx of investment highlights the region's strong foundation and growing potential for tech development. The local government is making it easier for foreign investors by simplifying the licensing process through the South Sulawesi Investment and Integrated One-Stop Services Agency (SSIIOSSA). This streamlined approach is a big draw for international buyers eager to tap into new opportunities.
Makassar is also becoming a tech hub thanks to the Makassar Livable City Plan (MLCP), which aims to integrate smart technological solutions into urban development. This plan focuses on expanding tech zones, making the city attractive to tech investors who are looking for forward-thinking environments. The MLCP aligns perfectly with the interests of those seeking cities that support technological growth.
Moreover, the local government is actively promoting foreign investment, which is evident in their efforts to simplify the licensing process. This makes it easier for foreign investors to enter the market and establish their businesses. Such initiatives are a big draw for international buyers looking for new opportunities in a supportive environment.
Makassar's tech districts are not just about infrastructure; they are about creating a vibrant ecosystem that supports innovation and growth. The city's commitment to integrating technology into its development plans is a clear signal to investors that Makassar is open for business and ready to embrace the future.
With these developments, it's no wonder that foreign buyers are increasingly interested in Makassar's tech districts. The combination of government support, strategic planning, and a welcoming investment climate makes it an attractive destination for those looking to invest in the tech sector.
Sources: Invest in South Sulawesi, Asian Development Bank
2) Foreign buyers will find the city's real estate market more appealing as infrastructure gets better
Makassar's real estate market is becoming increasingly attractive to foreign buyers due to significant infrastructure improvements.
The construction of the Toll Access Road to Makassar New Port (MNP) is a game-changer, with over 73% completion by mid-2023. This development is set to boost the local economy and make logistics smoother, which is a big plus for investors. Imagine being able to move goods in and out of the city with ease, thanks to this new road.
With better transportation links like the MNP Toll Access Road, Makassar is now more connected to other cities in South Sulawesi. This means foreign investors can easily reach the city, making it a more appealing option. The toll road will also speed up export and import processes through the port, enhancing logistics and transportation efficiency.
The Indonesian government is rolling out the red carpet for foreign investment, especially in real estate. This creates a welcoming environment for foreign buyers who are eyeing Makassar's growing market. The city's expatriate community, making up about 10% of the population, shows that interest in Makassar's real estate is on the rise.
Makassar is not just about business; it's a city with a vibrant culture and a strategic location. The ongoing infrastructure projects are making it a hotspot for those looking to invest in property. As the city becomes more accessible, it's no wonder that more foreign buyers are showing interest.
With these developments, Makassar is positioning itself as a key player in the region's real estate market. The improvements in infrastructure are not just about roads and ports; they're about making the city a more attractive place to live and invest. Foreign buyers are taking note, and the city's real estate market is set to benefit.
Sources: Nusantara Infrastructure, Indonesia Water Portal, Australian Consulate General Makassar, CRE Daily
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.
3) New residential projects in Makassar will be affected by stricter environmental regulations
Stricter environmental regulations are reshaping how new residential projects are developed in Makassar.
In 2023, the Makassar City government started enforcing environmental impact assessments (EIA) for all new construction. This means developers now face tougher rules to ensure their projects don't harm local ecosystems. It's a big shift, especially for those used to more lenient standards.
By 2024, the Asian Resilient City (ARC) project, backed by USAID, made these assessments a core part of the development process. This initiative requires every project to undergo a rigorous EIA, making it harder for developers to move forward without solid environmental plans. It's a game-changer for the city's growth strategy.
There's also been a noticeable uptick in environmental violations reported by construction companies in Makassar. This increase has led to more legal actions against developers who don't meet the standards, adding another layer of complexity to the development process.
For potential property buyers, this means that new developments are likely to be more environmentally friendly, but they might also face delays. The city's commitment to sustainability is clear, but it comes with challenges for those looking to invest in new properties.
As Makassar continues to grow, these regulations are expected to play a crucial role in shaping the city's future, ensuring that development is balanced with environmental preservation.
Sources: Urban Launchpad, Taylor & Francis Online, IOM Indonesia
4) Foreign investment in Makassar's residential real estate will grow because of favorable government policies
The Indonesian government has rolled out policies like the Golden Visa and Second Home Visa to make it easier for foreigners to buy property or secure long-term residency.
Makassar is buzzing with major infrastructure upgrades, including a revamped Bus Rapid Transit (BRT) system, which is making the city more accessible and attractive to both locals and investors.
To sweeten the deal, the government is offering tax incentives and simplified licensing to lure foreign investors into the real estate market.
Reports show a growing interest from foreign investors in emerging Indonesian cities, thanks to favorable policies and economic growth.
Makassar stands out because the government has made it easier to do business by simplifying property purchase qualifications and enhancing the types of titles foreigners can hold.
These changes are making it a breeze for foreign investors to dive into the market, positioning Makassar as a hotspot for foreign investment in residential real estate.
Source: Kompas
5) Demand for modern apartments in Makassar will grow as more young professionals move in
Makassar is buzzing with new job opportunities, making it a hotspot for young professionals.
With the rise of tech startups, Makassar is becoming a magnet for young talent who crave modern living spaces that fit their dynamic lifestyles. These startups are not just about tech; they’re reshaping the city’s vibe and attracting a crowd that values convenience and style.
The government is on a mission to turn Makassar into a business hub, which means more businesses and professionals are flocking to the area. This influx naturally boosts the demand for modern apartments, as these newcomers look for places that match their professional and personal needs.
By 2035, Makassar's population is expected to hit 2.5 million, with many being young adults. This shift means more people will be on the hunt for modern living spaces that cater to their tastes and preferences.
Young professionals are all about modern amenities—think good infrastructure, public transport, and lifestyle facilities. Surveys show they prefer living spaces that offer these perks, which is why the demand for modern apartments is on the rise.
As their disposable incomes grow, young professionals in Makassar are looking for better living conditions. This trend is pushing the demand for modern apartments even higher, as they seek out homes that offer more than just a roof over their heads.
Sources: JobStreet, Migration Letters
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.
6) Luxury property prices in Makassar will surge as demand from wealthy buyers grows
Makassar's luxury property market is set for a boom.
With a 68% increase in ultra-high net worth individuals in Indonesia since 2016, reaching 1,403 in 2021, there's a growing pool of affluent buyers eyeing Makassar. This surge in wealthy individuals is a key driver for the rising demand in luxury properties.
The government's push for better infrastructure, like the Toll Access Road Makassar New Port, is making the city more accessible and attractive. This project is part of a national effort to boost connectivity in Eastern Indonesia, drawing in affluent residents and investors who are keen on high-end real estate.
Indonesia's economic growth is another factor, as it leads to rising disposable incomes. With more money in their pockets, people are more inclined to invest in luxury homes. This economic upswing, paired with the development of upscale amenities in Makassar, makes the city a hot spot for luxury property investment.
Makassar is not just about infrastructure; it's about lifestyle. The city is seeing a rise in high-end amenities and services, which adds to its appeal for luxury property buyers. These developments are transforming Makassar into a prime destination for those seeking a lavish lifestyle.
As Makassar continues to evolve, the demand for luxury properties is expected to grow, driven by increased interest from affluent buyers. This trend is reshaping the city's real estate landscape, making it a key player in Indonesia's luxury property market.
Sources: IJELLACUSH, Nusantara Infrastructure, ET Edge Insights
7) Demand for residential properties in Makassar will rise as the population continues to grow
Makassar's population is on the rise, with 1,704,930 people estimated in 2024.
As a bustling commercial and cultural hub in Eastern Indonesia, Makassar is attracting more residents, boosting the demand for housing. The city's economic development is a magnet for people from surrounding areas, offering numerous opportunities.
The local government is not sitting idle; they're actively investing in infrastructure improvements. Better transportation and public services are making the city more livable and appealing, which in turn drives the demand for residential properties.
With these enhancements, Makassar is becoming a more attractive place to live. The city's growth is not just about numbers; it's about creating a vibrant community that draws people in.
Looking ahead, the urban agglomeration is expected to reach over 2 million by 2035. This projection indicates a continued upward trend in population growth.
All these factors combined make Makassar a promising place for property investment, as the demand for housing is likely to keep increasing.
Sources: World Population Review, Makassar Consulate
8) Makassar’s property prices will rise moderately as urbanization progresses
Makassar's real estate market is set for a moderate price increase as urbanization continues to shape the city.
With more people flocking to Makassar for better living conditions and job opportunities, the city's population has been steadily growing. This influx is not just about numbers; it's about people seeking a slice of urban life, which naturally boosts the demand for housing and commercial spaces.
As the demand for residential and commercial properties rises, property prices are nudged upward. The local government's push for infrastructure projects, like improved roads and public transport, makes Makassar even more appealing, adding fuel to the real estate fire.
Looking back, urbanization has been a constant in Makassar, consistently leading to population growth and rising property prices. This historical pattern suggests that as more people move in, the real estate market will continue its upward trend.
Economic growth indicators also paint a promising picture. Makassar is becoming a hotspot for those chasing better economic opportunities, which in turn, contributes to the ongoing urbanization trend. This economic allure is a key driver behind the city's growing appeal.
In essence, as Makassar continues to urbanize, the real estate market is expected to see moderate price increases, driven by a mix of population growth, infrastructure development, and economic opportunities.
Sources: Journal of Accounting Point of View, Asian Development Bank, Mordor Intelligence
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.
9) Rental yields in Makassar will rise as more expats and professionals move in
Makassar is becoming a hotspot for expatriates and professionals due to its lively atmosphere and rich culture.
With its international schools, top-notch healthcare, and fun recreational activities, Makassar is a favorite among expats. The city has been smart in catering to their needs, making it a go-to destination for those looking to settle in Indonesia.
In the heart of Makassar, rental demand is climbing as more expats and professionals flock to the city. This surge is partly thanks to the Indonesian government's efforts to make property ownership easier for foreigners, which has sparked interest in the rental market.
Makassar's modern amenities, like its bustling shopping malls and exciting food scene, are big draws for expats. The city is also seeing a rise in multinational companies setting up shop, turning it into a business hub and attracting even more professionals.
This business growth is expected to keep pushing up rental demand, which means rental yields are likely to improve. As more companies and expats move in, the city's appeal continues to grow.
Makassar's transformation into a vibrant city with expat-friendly features is a key factor in its rising popularity. The combination of cultural richness and modern conveniences makes it an attractive place for those looking to live and work in Indonesia.
Sources: Global Property Guide, Nomad Offshore Academy
10) City center rental yields will drop as more people choose to live in the suburbs
In Makassar, more people are choosing suburban life over the city center.
Why? Well, it's simple. Suburban homes are more affordable and spacious, making them perfect for families craving extra room. These new developments offer a better quality of life, which is hard to resist.
City life isn't what it used to be. Traffic jams and pollution are driving people away. The air quality in the city center is suffering due to vehicle emissions, pushing folks to seek out the cleaner, greener suburbs.
Suburbs aren't just about peace and quiet anymore. They've got great amenities like schools and shopping centers. With improved infrastructure and public transport, getting around is a breeze, making suburban living even more appealing.
Families are flocking to these areas, and it's not just for the space. Suburban areas offer a better lifestyle, with less hustle and more room to breathe. This shift is impacting the demand for city center rentals.
As more people opt for the suburbs, rental yields in the city center are expected to decline. The trend is clear: suburban living is on the rise, and it's changing the real estate landscape.
Sources: TenantCloud, Norada Real Estate, Planning Malaysia
11) Property prices in Makassar will continue to rise because land is scarce
Residential property prices in Makassar have been climbing steadily over the years.
Back in June 2019, the property price index in Makassar hit an all-time high, showing a clear upward trend that hasn't slowed down. This isn't just a blip; it's a consistent pattern of growth.
One major reason for this rise is the decreasing availability of undeveloped land in the city. As Makassar expands, more land is being used for buildings, leaving less open space for new developments.
Between 2012 and 2022, Makassar experienced a significant shift towards urbanization. Built-up land increased while open fields decreased, meaning there's less land available for new housing projects, which naturally pushes prices up.
Experts predict that this trend will continue, with urbanization further driving up property prices due to limited land availability. The ongoing increase in built-up areas and the reduction of open fields support this outlook.
Sources: CEIC Data, AJER, Global Property Guide
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.
12) Suburban rental yields will rise as demand for larger living spaces grows
In Makassar's suburbs, living preferences are shifting as more people seek larger spaces.
Over the past year, 31,840 new residents have moved to these suburban areas, and this trend is expected to continue. This influx is largely due to the increasing congestion in city centers, pushing people to look for alternatives that offer more room and a better quality of life. Suburban areas, with their spacious homes and less crowded environments, are becoming the go-to choice for those wanting to escape the city's hustle and bustle.
Central Makassar's rising property prices are also making the suburbs more attractive. People are finding that they can get more space for their money outside the city. This isn't just happening in Makassar; it's a global trend where folks are moving to suburbs for more affordable, larger living spaces. The post-pandemic world has only accelerated this shift, as people now prioritize having more room at home.
Remote work is another game-changer. With more people working from home, there's less need to live near city centers. This newfound flexibility allows them to choose larger homes in suburban areas, further boosting the demand for suburban rentals. The trend of working from home is expected to stick around, continuing to drive interest in these areas.
Suburban rental properties are poised to see a yield increase as demand for larger living spaces grows. This is particularly true in areas like Makassar, where the combination of urban congestion, rising city property prices, and remote work opportunities are all contributing to a suburban shift.
Sources: World Population Review, Global Scientific Journal, CRE Daily, Minut Blog
13) Demand for retirement-friendly housing in Makassar will grow as the population ages
The aging population in Makassar is set to boost demand for retirement-friendly housing.
As people get older, they often look for homes that fit their changing needs. In Makassar, the senior population is on the rise, echoing a global trend highlighted in the World Population Ageing 2023 report. This means more folks will be on the hunt for homes that cater to their lifestyle and health needs.
Older adults are not just looking for any place to live; they want communities with amenities that make life easier and more enjoyable. According to the NIC MAP Vision report, there's a strong preference for housing with tailored amenities. This is likely to be the case in Makassar as well, where the demand for such housing is expected to grow.
Healthcare and assisted living facilities are popping up more frequently, as noted in the Administration for Community Living's 2023 report. This trend suggests a growing need for supportive environments for the elderly. In Makassar, this will likely translate into a higher demand for retirement-friendly housing options.
With more healthcare options available, seniors in Makassar will have better access to the services they need. This makes retirement-friendly housing even more appealing, as it offers convenience and peace of mind. The presence of these facilities is a key factor driving housing demand in the area.
As Makassar's population ages, the housing market will need to adapt. Developers and investors should take note of this shift and consider creating more retirement-friendly communities. This demographic change presents a unique opportunity for those looking to invest in the property market.
Sources: United Nations, NIC MAP Vision, Administration for Community Living
14) Property prices on the outskirts will drop slightly as central area developments increase
Makassar's central areas are booming with new property developments, making them a hot spot for potential buyers.
One standout project is the Center Point of Indonesia (CPI), which is reshaping the city's heart with fresh business districts, housing, and public spaces. This transformation is making the city center more appealing to both locals and investors. As these areas get a facelift, infrastructure and amenities are improving, drawing even more interest.
The Makassar Liveable City Plan is a key player in this change, focusing on smart urban development and better infrastructure. This plan is all about making the city more livable, which naturally makes the central areas more attractive. As a result, more people and investments are flocking to these developed spots.
Historically, property prices in central Makassar have always been higher than those on the outskirts. This trend is expected to continue as the city center sees more growth. Experts in real estate suggest that as demand shifts to these bustling central areas, property prices in the outskirts might see a slight dip.
For those considering buying property, this means the outskirts could become more affordable as the central areas continue to develop. The city's outskirts will see a slight decline in property prices as more developments occur in central areas. This shift is largely due to the increased desirability of the central locations, which are becoming the new hubs of activity.
So, if you're eyeing a property in Makassar, keep an eye on these trends. The central areas are where the action is, but the outskirts might offer some hidden gems at a better price. Understanding these dynamics can help you make a savvy investment in this evolving city.
Sources: Future Southeast Asia, Ramboll
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.
15) Rental yields in Makassar will drop slightly as more properties enter the market
Makassar is buzzing with new residential projects, making it a hotspot for property buyers.
Take CitraLand Tallasa City Makassar, for instance, which snagged the "Best Housing Project" award in 2024, showcasing the city's property boom. The Indonesian government is also sweetening the deal with incentives, pushing companies like Paradise Indonesia to dive into high-rise and mixed-use developments. This could mean more rental properties flooding the market.
With all these new builds, rental yields might take a hit as supply outpaces demand. Economic shifts are also at play. Rising home prices and mortgage rates are nudging people towards buying rather than renting. By 2025, mortgage rates are expected to hover between 5.75% and 6.25%, making homeownership a tempting option.
For those eyeing Makassar, this means a potential shift in the rental landscape. As more properties pop up, rental demand could wane, offering a unique opportunity for buyers to snag a deal. The city's growth is undeniable, but it's essential to keep an eye on how these dynamics play out.
Investors should consider the long-term implications of this property surge. While the immediate future might see a dip in rental yields, the city's development could promise future gains. Understanding these trends is crucial for making informed decisions in Makassar's evolving market.
So, if you're thinking about buying property in Makassar, now might be the time to act. With the right strategy, you could capitalize on the current market conditions and secure a promising investment.
Sources: CitraLand Tallasa City Makassar, Buildium, Graystone Investment Group, Hospitality Net
16) New home designs in Makassar will be shaped by the trend of multi-generational living
Multi-generational living is shaping the future of home design in Makassar.
With Indonesia's elderly population expected to soar, reaching 74 million by 2050, homes need to adapt to accommodate more family members under one roof. This shift is not just about numbers; it's about creating spaces that cater to the needs of different generations living together.
As people in Indonesia are living longer, thanks to a steady increase in life expectancy, homes must evolve to meet their changing needs. The cultural values of "gotong royong" and "rukun keluarga" emphasize family unity, making multi-generational living a natural choice for many Indonesian families.
Real estate trends show a clear demand for larger homes or those with flexible spaces, ideal for extended families. Architects are stepping up, designing homes with features like bedrooms on different levels, which offer flexibility and privacy for all family members.
Consumer feedback is loud and clear: there's a preference for homes that support multi-generational living. This is pushing developers in Makassar to create properties that reflect these needs, ensuring that new residential designs cater to diverse family structures.
As the demand for such homes grows, expect to see more properties in Makassar that are not just bigger, but smarter in design, accommodating the unique dynamics of multi-generational households.
Sources: The Situation of the Elderly in Indonesia and Access to Social Protection, All Under One Roof: Trends in Multigenerational Living, Exploring the Surging Trend of Multigenerational Living
17) Property tax law changes will affect the appeal of some Makassar neighborhoods
Changes in property tax laws can make some Makassar neighborhoods more or less appealing.
When property taxes go up, landlords often raise rents, which can make living in those areas less attractive. This is similar to findings from a Kansas State University study, where higher property taxes led to increased residential rents, affecting neighborhood desirability.
In New York City, racial inequities in the property tax system show how different tax rates can impact neighborhood appeal. Areas with higher effective tax rates can become less attractive due to the financial strain on homeowners, leading to demographic changes and shifts in neighborhood dynamics.
Deloitte's survey points out that tax policy changes are a major concern for real estate organizations. This highlights how important tax considerations are when making property investment decisions. Investors and buyers often seek areas with favorable tax conditions, which can boost a neighborhood's attractiveness.
In Makassar, if a neighborhood has lower property taxes, it might draw more buyers and investors, making it a more appealing place to live. This could lead to a surge in interest and development in those areas.
Understanding these dynamics can help potential property buyers in Makassar make informed decisions, as tax laws can significantly influence where people choose to live and invest.
Sources: Furman Center, Kansas State University, Deloitte Insights
Make a profitable investment in Makassar
Better information leads to better decisions. Save time and money. Download our guide.
18) Properties in flood-prone areas of Makassar will become more attractive due to flood mitigation projects
Flood mitigation projects in Makassar are set to make properties in flood-prone areas more attractive by significantly reducing the risk of flooding.
The construction of the Jenelata Dam is a key project that will improve flood control, making the area more resilient. This increased resilience is expected to draw more buyers, as properties in safer areas are generally more appealing.
In other parts of Indonesia, successful flood mitigation efforts, like those under the National Urban Flood Resilience Plan, have shown that integrating local perspectives can lead to effective flood control and community resilience. These projects have reduced flood-related damages, boosting property values as the area becomes more desirable.
Lower flood risks often mean lower insurance premiums, making properties more financially attractive. While specific data for Makassar isn't available, this trend is seen in other regions, suggesting that improved flood defenses can enhance property appeal by reducing costs.
Real estate analysts predict that areas with better flood defenses will see increased property sales rates and higher property values over time. Comparative analyses in other cities support this, showing that properties in areas with improved flood defenses have experienced higher sales rates and increased values.
These insights suggest that Makassar could follow a similar path, with flood mitigation projects enhancing the appeal of properties in flood-prone areas.
Sources: Indonesia Business Post, UNDP Report, FEMA
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.