Is it worth it buying property in Medan in 2025?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Indonesia, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Indonesia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Jakarta, Medan, and Surabaya. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties can you buy in Medan right now?

Medan's property market offers a comprehensive selection of residential and commercial properties as of mid-2025.

The residential market includes apartments and condominiums in both city center and suburban locations, terrace houses and link houses for families, semi-detached and detached houses in established neighborhoods, modern townhouses in gated communities, luxury villas in premium areas, and residential land for custom development. For budget-conscious buyers, low-cost flats are available starting from IDR 170 million.

Commercial properties include traditional shophouses popular with small businesses, modern office spaces in business districts, and mixed-use developments combining retail and residential units. The diversity ensures options for various investment strategies and lifestyle preferences.

Foreign buyers can purchase apartments with strata titles directly, while landed property requires structuring through local companies or leasehold arrangements. Most international buyers focus on condominiums in expat-friendly areas like Setiabudi and Polonia, where property management and community amenities cater to international residents.

It's something we develop in our Indonesia property pack.

Should you buy or rent property in Medan in 2025?

The decision between buying and renting in Medan depends on your timeline, financial goals, and lifestyle preferences.

Buying makes financial sense for those planning to stay in Medan for several years or seeking investment returns. Property values have shown consistent growth, rising from IDR 750 million in 2019 to IDR 950 million in 2024 for mid-sized homes. Infrastructure upgrades including the Bus Rapid Transit system, road improvements, and airport expansions are driving demand and property appreciation. Foreign investment continues flowing into Medan, supporting market stability.

Renting remains attractive for short-term residents or those wanting flexibility. Monthly rental costs are affordable compared to ownership expenses, and you avoid property taxes, maintenance costs, and transaction fees. The rental market offers diverse options from budget apartments to luxury villas, with lease terms typically ranging from one to three years.

For investment purposes, buying generates rental yields of 4-6% annually, which covers ownership costs while building equity. However, if you value mobility or plan to stay less than three years, renting provides better financial flexibility without the complexity of property transactions and foreign ownership structures.

How have property prices changed in Medan and what's the forecast?

Year	Average Property Price (IDR Million)	Price per m² (City Center)
2019	750 million (91-150 m²)	Data not available
2024	950 million (91-150 m²)	Data not available
2025	950+ million (91-150 m²)	$1,900/m² (center), $800/m² (suburbs)
2026 Forecast	1-2% YoY growth expected	Continued moderate appreciation
Long-term Outlook	Steady growth with infrastructure	Infrastructure-driven value increases

What are the main real estate trends in Medan this year?

Medan's real estate market in 2025 is shaped by five major trends driving property values and investment opportunities.

Infrastructure development leads market growth with the Bus Rapid Transit system expansion, major road upgrades, and Kualanamu Airport improvements enhancing connectivity. These projects reduce commute times and increase property accessibility, particularly benefiting areas like Medan Baru and transportation corridors.

Foreign direct investment continues increasing as multinational companies establish operations in Medan, creating demand for quality housing and commercial space. This trend particularly benefits upscale residential areas like Polonia and Setiabudi where expat communities concentrate.

Residential demand remains strong due to population growth and urban migration from rural North Sumatra. Job creation in manufacturing, services, and technology sectors supports steady housing demand across all price segments.

Commercial real estate shows robust growth, especially in vibrant markets like Kampung Baru where rental yields reach 4-5%. Mixed-use developments combining retail, office, and residential components attract both local and international investors seeking diversified returns.

What is the complete property buying process in Medan?

1. **Budget setting and area research** - Determine your maximum budget including taxes and fees, then research preferred neighborhoods based on your lifestyle and investment goals.2. **Real estate agent engagement** - Work with a reputable local agent familiar with Medan's market and foreign buyer regulations to access exclusive listings and navigate negotiations.3. **Due diligence and legal verification** - Verify all property documents including land titles, building permits, and ownership history through a qualified legal professional to avoid future complications.4. **Sales Purchase Agreement signing** - Sign the SPA in front of a notary public and pay the required deposit, typically 10-30% of the purchase price, to secure the property.5. **Payment completion** - Transfer the remaining balance through approved banking channels such as wire transfer or SWIFT, ensuring all transactions comply with Indonesian foreign exchange regulations.6. **Ownership transfer and registration** - The notary finalizes the ownership transfer and registers the property with relevant government authorities, updating official records.7. **Certificate acquisition** - Receive your ownership certificate, either Hak Pakai (right of use) for foreigners or leasehold agreement, depending on your ownership structure.8. **Tax and fee settlement** - Pay the Building and Land Rights Transfer Tax (BPHTB) and other government fees, typically 2-5% of the property value.9. **Property possession** - Take physical possession of the property and update utility accounts, local authority registrations, and insurance policies to complete the purchase process.

Where can you find property listings and reliable agents in Medan?

Multiple online platforms and local networks provide access to Medan's property market for both buyers and investors.

Major online property portals include PropertyGuru which offers comprehensive listings with detailed photos and neighborhood information, DotProperty featuring both local and international properties with price comparisons, Indonesia Real Estate specializing in foreign buyer services and investment properties, iRumah focusing on residential properties with virtual tours, and Properstar providing multilingual support for international buyers.

Local real estate agencies offer deeper market knowledge and personal service, particularly valuable for foreign buyers navigating legal requirements and cultural nuances. Established agencies maintain relationships with developers and exclusive property access, while also providing ongoing support for property management and rental services.

Expat communities and forums provide valuable insights and recommendations based on real experiences. Online expat groups share agent reviews, neighborhood advice, and market updates that complement formal property searches with practical, user-generated information.

It's something we develop in our Indonesia property pack.

What property types are available for different budget levels?

Budget Range (IDR Million)	Property Types Available	Typical Features
170-300 million	Low-cost flats, small apartments, older terrace houses	1-2 bedrooms, basic amenities, public transport access
300-500 million	Modern apartments, renovated houses, small townhouses	2-3 bedrooms, parking, security, community facilities
500-700 million	Large apartments, new terrace houses, duplexes	3-4 bedrooms, modern fixtures, gated community
700-950 million	Premium condos, semi-detached houses, small villas	Luxury finishes, private garden, expat-friendly areas
950+ million	Luxury villas, large detached houses, prime land	Multiple bedrooms, pool, premium locations, full amenities

What common mistakes should you avoid when buying property in Medan?

Five critical mistakes can derail property purchases in Medan, potentially costing buyers significant money and legal complications.

Skipping thorough legal verification represents the most dangerous oversight. Always verify land titles, building permits, and ownership history through qualified legal professionals. Properties with unclear titles or permit issues can result in forced demolition or ownership disputes that render investments worthless.

Failing to use a notary public invalidates property transactions under Indonesian law. All property sales must be notarized to ensure legal validity and government registration. Attempting to save money by avoiding notarial services creates unenforceable agreements that provide no legal protection.

Misunderstanding foreign ownership regulations leads to inappropriate investment structures. Foreigners cannot directly own landed property, requiring proper legal structures through local companies or leasehold arrangements. Improper ownership structures can result in property forfeiture.

Underestimating total costs beyond the purchase price causes budget shortfalls. Include transfer taxes (2-5% of property value), notary fees, agent commissions, renovation costs, and ongoing maintenance in your financial planning to avoid unexpected expenses that strain your investment returns.

Neglecting thorough area research compromises both lifestyle satisfaction and investment returns. Location determines property appreciation potential, rental demand, and daily living quality, making neighborhood analysis essential for successful property investment.

How much does it cost to live in Medan monthly and yearly?

Living costs in Medan remain among Indonesia's most affordable for a major city, making it attractive for both locals and expats as of June 2025.

A single person requires approximately IDR 11.6 million (€616) monthly for comfortable living including housing, food, transportation, and entertainment. This covers a modest apartment rental, local dining, public transport usage, and moderate lifestyle expenses without luxury spending.

Families of four need around IDR 26.7 million (€1,416) monthly for housing, groceries, children's education, healthcare, and family activities. This budget accommodates international school fees, private healthcare, and family recreation while maintaining a middle-class lifestyle.

Housing typically represents 25-35% of total living costs, with utilities, internet, and maintenance adding another 10-15%. Food costs remain low when eating local cuisine, while international dining and imported goods increase expenses significantly. Transportation costs stay minimal with Medan's affordable public transport and ride-sharing services.

Annual living costs therefore range from IDR 139 million (€7,392) for singles to IDR 320 million (€16,992) for families, making Medan significantly more affordable than Jakarta, Singapore, or Kuala Lumpur while offering comparable urban amenities and infrastructure.

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 best areas to buy property in Medan?

Medan's neighborhoods offer distinct advantages for different buyer profiles and investment strategies.

Affordable areas include Kampung Baru, known for vibrant traditional markets and strong rental yields of 4-5% due to high local demand and commercial activity. Taman Medan offers budget-friendly flats and apartments suitable for first-time buyers or rental property investors seeking lower entry costs with steady tenant demand from local workers and students.

Up-and-coming neighborhoods show strong growth potential. Medan Baru benefits from ongoing infrastructure upgrades including road improvements and public transport expansion, driving rapid property appreciation. The area attracts young professionals and families seeking modern amenities at reasonable prices, making it ideal for medium-term investment strategies.

Upscale areas command premium prices but offer luxury living and strong expat communities. Polonia, near the former airport site, features green spaces, large homes, and established international resident networks. Setiabudi remains popular with expat families due to proximity to international schools, modern shopping centers, and quality healthcare facilities.

Gated communities like Cemara Asri and Bumi Asri provide resort-style living with comprehensive amenities, security services, and international school access. These areas attract high-income professionals and offer stable property values with lower maintenance concerns, though entry costs and monthly fees are substantially higher than other neighborhoods.

What is expat life like in Medan?

Medan offers a comfortable and affordable expat lifestyle with strong international communities and growing amenities as of mid-2025.

Established expat neighborhoods include Setiabudi, which hosts the largest international community with easy access to international schools, modern healthcare facilities, and expat-friendly restaurants and services. Polonia provides a quieter, more residential environment with tree-lined streets and larger homes popular with families. Bumi Asri and Cemara Asri offer gated community living with comprehensive amenities including pools, gyms, and 24-hour security.

Daily lifestyle amenities meet international standards with multiple shopping malls featuring international brands and restaurants, diverse dining options including Western, Asian, and local cuisine, reliable internet connectivity supporting remote work, and English-speaking services in expat areas. Cultural attractions include traditional markets, historical sites, and easy access to natural destinations like Lake Toba and Berastagi highlands.

Healthcare services include quality hospitals and clinics with English-speaking staff, though some expats travel to Singapore for specialized treatments. International schools serve the expat community with curricula from various countries, while local transportation options include reliable ride-sharing services and the expanding public transit system.

Active expat communities organize social events, business networking, and cultural activities, making integration easier for newcomers. The cost of living remains significantly lower than Singapore or Kuala Lumpur while offering comparable urban conveniences and international connectivity.

Can you rent out property long-term in Medan for good returns?

Long-term rental properties in Medan generate steady returns with diverse tenant demand supporting stable income streams.

Target tenants include local professionals seeking quality housing near business districts, expatriate workers from multinational companies, university students attending Medan's numerous higher education institutions, and relocated Indonesian families from other provinces. Each tenant category offers different rental terms and price points, allowing property owners to select appropriate investment strategies.

Rental yields range from 4-6% annually for residential properties, with higher yields possible in emerging neighborhoods like Medan Baru and Kampung Baru. Commercial properties in strategic locations achieve 4-5% yields with longer lease terms providing more stable income streams.

Prime rental locations include Setiabudi and Polonia for expat tenants willing to pay premium rents for quality amenities and international community access. Medan Baru attracts young professionals seeking modern apartments with good transport links, while areas near universities provide steady student rental demand throughout the academic year.

Property management considerations include tenant screening, maintenance coordination, and rent collection, which local property management companies can handle for 8-12% of rental income. Regular property maintenance and timely repairs ensure tenant satisfaction and protect long-term property values while maximizing rental returns.

It's something we develop in our Indonesia property pack.

What about short-term rental opportunities in Medan?

Short-term rental markets in Medan show potential but require careful attention to regulations and tourist demand patterns.

Local zoning regulations and building management rules vary by area, with some residential complexes restricting short-term rentals to maintain community character. Always verify building policies and local government regulations before investing in short-term rental properties to avoid legal complications or forced closure.

Tourist demand centers around business travelers visiting Medan for meetings and conferences, domestic tourists exploring North Sumatra's cultural attractions, and international visitors using Medan as a gateway to Lake Toba and highland destinations. Peak seasons include holidays, festivals, and school vacation periods when demand and pricing increase significantly.

Strategic locations for short-term rentals include city center areas near major hotels and business districts, properties close to cultural attractions and shopping centers, and areas with easy airport access for business travelers. Properties near tourist departure points for Lake Toba and Berastagi also perform well during peak tourist seasons.

Profitability can exceed long-term rental yields during high seasons, but requires active management including cleaning services, guest communication, and marketing across multiple booking platforms. Property owners must factor in higher maintenance costs, utility expenses, and management time when calculating actual returns from short-term rental strategies.

So is buying property in Medan worth it in 2025?

Property investment in Medan offers solid value for money with moderate but consistent returns across different investment strategies.

For residents planning to live in Medan long-term, buying provides financial advantages over renting while securing housing in a stable, affordable city with improving infrastructure. Property ownership builds equity while living costs remain among Indonesia's lowest for major urban centers, making homeownership accessible and practical.

Investment properties generate reliable rental income with 4-6% annual yields supported by steady tenant demand from locals, expats, and students. The market lacks the speculation and rapid price swings seen in Jakarta or Bali, providing more predictable returns suitable for conservative investors seeking steady income and gradual appreciation.

Property flipping opportunities exist in emerging neighborhoods like Medan Baru where infrastructure improvements drive value increases, but returns are more modest than speculative markets. Success requires local market knowledge, proper timing, and realistic expectations about appreciation rates and holding periods.

Overall, Medan represents good value for money compared to other Indonesian cities, especially for investors seeking stable returns rather than dramatic appreciation. The combination of affordable entry costs, reasonable rental yields, and ongoing infrastructure development creates favorable conditions for both residential and investment property purchases, provided buyers conduct proper due diligence and understand foreign ownership requirements.

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.

Sources

1. PropertyGuru Malaysia - Medan Properties
2. Indonesia Real Estate - Medan Property Market
3. Indonesia Incorp Asia - Property Buying Guide
4. BambooRoutes - Indonesia Real Estate Trends
5. BambooRoutes - Medan Area Guide
6. Global Property Guide - Indonesia Price History
7. CEIC Data - Medan Property Price Index
8. Wise - Buying Property in Indonesia
9. Trading Economics - Indonesia House Price Index
10. Expatistan - Medan Cost of Living