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Property prices in Medan are showing strong upward momentum as we reach mid-2025, with houses experiencing exceptional growth of 67.8% annually and apartments surging by 47.7% year-over-year. As Indonesia's fourth-largest city and North Sumatra's economic hub, Medan's strategic location, infrastructure investments, and growing foreign investment are driving sustained demand across all property segments, making it an increasingly attractive market for both domestic and international buyers.
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Medan's property market is experiencing robust growth in 2025, with house prices up 67.8% and apartments rising 47.7% annually, driven by strategic location, infrastructure development, and increasing foreign investment.
The market shows strong fundamentals with government policy support, favorable exchange rates for foreign buyers, and continued urbanization creating sustained demand across residential and commercial segments.
| Property Type | Average Price (IDR) | Price per sqm (IDR) | Annual Growth Rate |
|---|---|---|---|
| Houses | 1.3 billion (~$79,300) | 9.8 million (~$598) | +67.8% |
| Townhouses | 693 million (~$42,273) | 7.8 million (~$476) | Steady growth |
| Apartments | 2.2 billion (~$134,200) | 27.1 million (~$1,653) | +47.7% |
| Commercial | 2 billion (~$122,000) | 9.2 million (~$561) | +13.8% |
| Land (suburbs) | 4.2 billion (~$256,200) | 10.2 million (~$622) | +6.0% |
| Land (city center) | Higher premium | Higher per sqm | +7.5% |
| Luxury condos (city center) | 2-3 billion range | Premium pricing | Strong demand |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
How much have property prices increased in Medan during the past 12 months?
Property prices in Medan have experienced remarkable growth over the past 12 months, with different segments showing varying levels of appreciation.
Houses have led the market with an exceptional 67.8% annual increase, making them the top-performing property type in Medan's residential market. This surge reflects strong domestic demand and limited supply in desirable neighborhoods.
Apartments, particularly luxury condos in Medan's city center, have seen substantial growth of 47.7% year-over-year. High-end developments in areas like Medan Baru command prices between IDR 2-3 billion, driven by proximity to business and entertainment centers.
Commercial properties have shown steady appreciation at 13.8% annually, with hotspots like Kampung Baru expected to see continued growth due to vibrant markets and new developments. Land prices have also appreciated, with suburban areas growing 6% and city center land climbing 7.5% over the same period.
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What are the current average property prices in Medan as of June 2025?
As of June 2025, Medan's property market displays a diverse range of pricing across different property types and locations.
| Property Type | Average Price (IDR) | USD Equivalent | Price per Square Meter |
|---|---|---|---|
| Houses | 1.3 billion | ~$79,300 | IDR 9.8 million (~$598/sqm) |
| Townhouses | 693 million | ~$42,273 | IDR 7.8 million (~$476/sqm) |
| Apartments | 2.2 billion | ~$134,200 | IDR 27.1 million (~$1,653/sqm) |
| Commercial Properties | 2 billion | ~$122,000 | IDR 9.2 million (~$561/sqm) |
| Land (General) | 4.2 billion | ~$256,200 | IDR 10.2 million (~$622/sqm) |
| City Center Condos | Varies significantly | $1,900/sqm average | Premium pricing structure |
| Suburban Condos | More affordable | ~$800/sqm average | Budget-friendly options |
Which neighborhoods in Medan are experiencing the fastest price growth in 2025?
Several key neighborhoods in Medan are outpacing the city's overall market growth, driven by strategic location advantages and development activity.
Medan Baru leads the premium segment with luxury condos commanding IDR 2-3 billion, experiencing high demand due to proximity to business and entertainment centers. This area represents the city's most upscale residential market with continued investor interest.
Kampung Baru is emerging as a commercial hotspot, with property prices expected to rise by 10.7% in 2025. The area's vibrant markets and new developments are attracting both commercial and mixed-use investment.
Sunggal has gained attention for affordable land and increasing developer interest, positioning it for significant future residential growth. The area offers attractive entry points for investors seeking growth potential in emerging neighborhoods.
Suburban areas across Medan have shown consistent growth, with land prices appreciating 6% in 2024 and continuing this trend into 2025. These areas benefit from improved infrastructure connectivity and more affordable pricing compared to central locations.
What property types are seeing the biggest price increases in Medan?
The Medan property market shows distinct performance patterns across different property categories, with residential leading commercial segments.
Houses dominate with the highest appreciation at 67.8% annually, reflecting strong demand from local buyers and limited supply in established neighborhoods. This growth represents exceptional performance compared to other Indonesian secondary cities.
Luxury apartments, especially in Medan's city center, have surged 47.7% year-over-year. High-end condominiums benefit from foreign investment interest and growing middle-class demand for premium amenities and locations.
Commercial properties show steady but more moderate growth at 13.8% annually, with specific hotspots like Kampung Baru experiencing accelerated appreciation due to commercial development and business activity concentration.
Land appreciation varies by location, with city center land growing 7.5% and suburban land increasing 6% annually. The suburban land market offers better value propositions while still delivering solid returns for investors seeking entry points into Medan's market.
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What economic factors are driving Medan's property price increases in 2025?
Multiple economic factors are converging to drive Medan's property market growth, creating a robust foundation for continued appreciation.
Medan's strategic location as North Sumatra's capital and its proximity to Malaysia significantly boost trade and investment opportunities. This geographic advantage attracts multinational companies and drives employment growth, directly supporting housing demand.
Economic diversification through multinational investment in energy, food, and telecommunications sectors is creating job opportunities and increasing disposable income. This employment growth directly translates to increased housing demand across all market segments.
Infrastructure development represents a major catalyst, with government spending on airports, toll roads, and public transport improving accessibility and property values. Major projects like the Medan-Binjai-Stabat toll road and airport improvements enhance connectivity and economic activity.
Foreign Direct Investment reached IDR 3.87 trillion during the first half of 2023, demonstrating growing international confidence in Medan's economic prospects. This investment flow supports both residential and commercial property demand from expatriate workers and international businesses.
Population growth of 1.64% annually, combined with Medan's 2.5+ million inhabitants, creates sustained housing demand. Government incentives including VAT exemptions and relaxed loan-to-value ratios further stimulate market activity and accessibility for buyers.
How have recent Indonesian interest rate changes in June 2025 affected Medan's property market?
The Indonesian central bank's interest rate adjustment in June 2025 has created mixed but generally positive effects on Medan's property market.
The BI rate cut has made mortgages more affordable, directly supporting property demand among first-time buyers and middle-class purchasers. Lower borrowing costs increase purchasing power and expand the pool of qualified buyers in Medan's market.
Extended VAT incentives, combined with reduced interest rates, are stimulating property purchases across price segments. The government's coordinated monetary and fiscal policy approach creates favorable conditions for sustained market growth.
However, the weakening rupiah partly offsets interest rate benefits by raising costs for imported construction materials. This dynamic may constrain affordability for some buyers while creating opportunities for foreign investors benefiting from favorable exchange rates.
The policy changes particularly benefit domestic buyers seeking entry into Medan's property market, while foreign investors gain from both lower financing costs and advantageous currency exchange rates. This dual benefit supports continued international interest in Medan real estate.
What are property price forecasts for Medan through 2030?
Property price forecasts for Medan show consistent optimism based on fundamental economic drivers and infrastructure development momentum.
The 5-year outlook (2025-2030) projects steady appreciation with annual growth rates of 1-3% for standard residential properties, aligning with national trends. Premium areas and infrastructure-connected neighborhoods may achieve higher growth rates of 5-7% annually.
Infrastructure-driven growth areas are expected to outperform the market average, particularly neighborhoods near new toll roads, public transport nodes, and commercial developments. These locations benefit from improved accessibility and economic activity concentration.
Foreign investment momentum suggests continued international interest, especially from Malaysian and Singaporean investors attracted by Medan's proximity and economic ties. This sustained foreign demand supports price stability and growth in premium market segments.
The 10-year outlook (2025-2035) anticipates cumulative price growth of 30-50% as infrastructure matures and economic diversification accelerates. Premium and well-connected neighborhoods are positioned for the strongest performance within this range.
Long-term projections (2025-2045) suggest Medan could outperform many secondary Indonesian cities, with property values potentially doubling over two decades. This growth trajectory depends on continued urbanization, population growth, and strategic infrastructure investments maintaining Medan's competitive advantages.
How do Medan's property prices compare to other Indonesian secondary cities in 2025?
Medan's property market positioning relative to other Indonesian secondary cities reveals both competitive advantages and growth opportunities.
| City | Average House Price | Price per Square Meter | Market Position |
|---|---|---|---|
| Surabaya | IDR 2.4 billion | IDR 14.2 million/sqm | Leading secondary city |
| Medan | IDR 1.3 billion | IDR 9.8 million/sqm | Strong growth market |
| Bandung | IDR 724 million | IDR 11.7 million/sqm | Rapid growth phase |
| Makassar | Lower than Medan | Competitive pricing | Emerging market |
| Palembang | Lower than Medan | Budget-friendly | Value market |
| North Jakarta | IDR 1.85 billion | Higher premium | Established market |
| Bali (comparison) | Significantly higher | Premium pricing | Tourism-driven |
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What are expert predictions for Medan's property market through 2030?
Real estate experts and analysts maintain optimistic outlooks for Medan's property market based on fundamental economic and demographic drivers.
Market analysts expect Medan to remain a key investment destination due to its strategic location, ongoing infrastructure improvements, and sustained economic growth. The city's position as a regional trade hub provides long-term stability for property values.
Infrastructure-driven growth is anticipated to continue, with properties near new toll roads, public transport, and commercial developments expected to outperform the broader market. Expert analysis suggests these connectivity improvements will create lasting value premiums.
Foreign investment interest is projected to remain strong, particularly from neighboring countries benefiting from Medan's proximity and economic ties. This international demand provides market stability and supports premium pricing in desirable locations.
Government policy support through continued incentives and infrastructure investment creates a favorable environment for sustained growth. Expert consensus suggests this policy framework will maintain market momentum through the forecast period.
The combination of domestic urbanization trends, population growth, and international investment interest positions Medan for resilient performance even during broader economic uncertainties. Analysts view the market as well-positioned for sustained appreciation through 2030 and beyond.
How are infrastructure projects impacting property values in Medan?
Infrastructure development represents a primary driver of property value appreciation across Medan, with multiple projects creating measurable impacts.
Major toll road projects, including the Medan-Binjai-Stabat and Tebingtinggi-Indrapura-Limapuluh corridors, have improved connectivity and directly boosted property values in adjacent areas. Properties along these corridors experience faster appreciation than city averages.
Airport improvements and expanded accessibility make Medan more attractive for both residential and commercial real estate investment. Enhanced air connectivity supports business development and attracts international residents and investors.
Public transportation development, including BRT system expansion, creates value premiums for properties near transit nodes. Historical patterns in other Indonesian cities suggest these premiums intensify as systems mature and ridership increases.
Improved logistics infrastructure reduces business costs and makes Medan more competitive for commercial and industrial development. This economic activity enhancement supports residential demand from workers and business owners.
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What is the current level of domestic versus foreign investor interest in Medan as of mid-2025?
Medan's property market benefits from strong interest across both domestic and international investor segments, each contributing distinct dynamics.
Foreign investor interest is rising significantly, particularly from Malaysia and Singapore, driven by Medan's proximity and favorable exchange rates. The Indonesian Rupiah's position at favorable levels for foreign currencies makes property acquisitions more attractive for international buyers.
Malaysian and Singaporean investors represent the largest foreign investor groups, attracted by cultural familiarity, geographic proximity, and established business connections. These investors focus primarily on premium residential and commercial properties in central locations.
Domestic demand remains robust, fueled by steady population growth of 1.64% annually and urbanization trends drawing residents from surrounding regions. Local buyers drive demand across all market segments, from affordable housing to luxury developments.
Government incentives, including VAT exemptions and relaxed loan-to-value ratios, stimulate domestic purchasing activity. At least 18 new residential projects launched in 2024, reflecting strong developer confidence in sustained demand from both local and international buyers.
The balanced mix of domestic and foreign demand creates market stability, with neither segment dominant enough to create excessive vulnerability to external economic changes. This diversity supports sustained growth and market resilience.
How is the weakening rupiah in Q2 2025 affecting Medan's property market?
The Indonesian rupiah's depreciation in Q2 2025 creates complex effects on Medan's property market, with different impacts on various participant groups.
Construction costs have increased due to more expensive imported materials, potentially raising development costs and ultimately property prices. The rupiah's 2.7-2.8% depreciation since late 2024 affects building materials, equipment, and other imported construction inputs.
Foreign buyers benefit from more favorable exchange rates, making Indonesian property purchases more affordable in USD, EUR, and other foreign currencies. This currency advantage stimulates international investment interest in Medan's market.
Local affordability faces pressure as wage growth may not keep pace with rising costs and property prices. This dynamic could constrain demand from middle-income domestic buyers while benefiting those with foreign currency exposure.
Developer strategies may adjust to manage cost pressures while maintaining project viability. Some developers might increase prices to offset higher input costs, while others may seek efficiencies or alternative materials to maintain competitive pricing.
The overall market impact depends on the balance between increased foreign demand and potential domestic affordability constraints. Current trends suggest foreign investment interest growth may offset domestic demand pressures, maintaining overall market momentum.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property prices in Medan are definitively going up significantly in 2025, with houses experiencing exceptional growth of 67.8% and apartments surging 47.7% annually, driven by strategic economic positioning, infrastructure development, and sustained investor demand.
The convergence of favorable government policies, foreign investment interest, infrastructure improvements, and demographic growth creates a robust foundation for continued appreciation, making Medan an attractive market for both domestic and international property investors seeking growth opportunities in Indonesia's secondary cities.
Sources
- Own Property Abroad - Foreign Property Purchase in Medan
- BambooRoutes - Medan Real Estate Market Analysis
- Global Property Guide - Indonesia Price History
- BambooRoutes - Medan Area Analysis
- BambooRoutes - Indonesia Real Estate Trends
- PwC - North Sumatra Toll Road Infrastructure
- LMI Consultancy - Indonesian Real Estate Investment 2025
- Mordor Intelligence - Indonesia Real Estate Market Report