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, Thailand, 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 Medan. If you'd like to learn more about us, you can check our presentation page.

What kinds of properties are actually available to buy in Medan in 2025?

Medan's real estate market offers a comprehensive range of property types to suit different budgets and investment strategies.

Houses represent the largest segment, with typical mid-size homes ranging from 91-150 m² priced between IDR 950 million to IDR 1.3 billion. The market also includes luxury villas, townhouses, and budget flats starting from around IDR 170 million and extending to hundreds of millions for premium properties.

Apartments and condominiums have gained significant traction, particularly luxury city-center units averaging IDR 2.2 billion. These high-end developments are driving much of the price growth in 2025. Budget apartments remain available in suburban areas, making them accessible entry points for first-time buyers. Foreign buyers can purchase apartments but face restrictions on landed houses.

Commercial properties and land parcels round out the available options, with commercial units starting around IDR 2 billion and land parcels at IDR 4.2 billion. The emerging segments of Medan Baru and Kampung Baru are becoming hotspots for new residential, mixed-use, and commercial projects.

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

Is it generally smarter right now to buy or just rent in Medan?

The current market conditions in Medan favor buying over renting for most situations, particularly given the rapid property price appreciation.

Property prices have surged dramatically in 2025, with houses experiencing annual growth rates up to 67% and apartments growing 47%. This rapid appreciation makes buying attractive for capital gains, especially if you can secure properties in growth districts with active infrastructure development.

Rental yields remain moderate at 4-6% for residential properties and 4-5% for commercial units. While these yields make long-term holding viable for rental income, they're not explosive enough to justify purely short-term rental strategies. The steady yields do support long-term ownership strategies effectively.

Your decision should hinge on your timeline and objectives. If you're planning a multi-year stay or want exposure to capital appreciation, buying becomes increasingly favored given the current growth trajectory. However, if you need flexibility or are only planning short-term residence, renting offers better mobility without the transaction costs and legal complexities of ownership.

As of September 2025, it's becoming smarter to buy if you can identify growth districts with active infrastructure development, as these areas show the strongest price momentum and rental demand.

How have property prices changed over the last few years, what are they like now, and what's the forecast for the next few years?

Medan's property market has experienced substantial price evolution, with particularly dramatic growth in recent years.

The price trajectory shows steady appreciation from 2019 when average mid-size houses cost IDR 750 million, reaching IDR 950 million by 2024. In 2025, prices have continued climbing to the current range of IDR 950 million to 1.3 billion for similar properties, representing strong year-over-year appreciation with houses gaining 67.8% and apartments rising 47.7%.

Current pricing varies significantly by location and property type. Prime condominiums in the city center average around $1,900 per square meter, while suburban apartments cost approximately IDR 800 per square meter. This pricing differential creates opportunities across different market segments.

The forecast for the next few years projects more moderate but steady growth of 1-2% annually. This growth will be driven by continued urbanization trends and ongoing infrastructure upgrades throughout the city. Both residential and commercial sectors show rising demand, though the pace of appreciation is expected to normalize from the exceptional gains seen in 2025.

Market experts anticipate that areas benefiting from infrastructure development will continue outperforming the broader market, making location selection crucial for maximizing returns.

What are the current real estate market trends in Medan, and what do experts expect to happen soon?

Several key trends are shaping Medan's real estate landscape in 2025, with infrastructure development leading the charge.

The BRT expansion, airport upgrades, and road improvements are creating significant value increases, particularly in Medan Baru and areas along main transport corridors. These infrastructure projects represent the most influential factor driving property values upward across multiple districts.

Rising foreign investment has become another major trend, with international companies and expat influx driving demand for upscale residential properties, especially in established expat-friendly areas like Setiabudi and Polonia. This foreign capital is elevating standards and prices in premium segments.

Population growth and urban migration continue supporting residential demand across all price bands. The steady flow of people moving to Medan from rural areas maintains pressure on housing supply and supports rental markets.

Commercial real estate is experiencing its own hotspot emergence, with Kampung Baru showing particularly strong price growth and rental demand for business operations. This commercial development is creating mixed-use opportunities and supporting property values in surrounding residential areas.

Experts expect these trends to continue through 2026, though at a more measured pace than the exceptional growth seen in 2025.

Don't lose money on your property in Medan

100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Download Now

How exactly does the buying process work step by step for a foreigner or local in Medan?

The property buying process in Medan follows different paths depending on your citizenship status, with additional complexity for foreign buyers.

For Indonesian citizens, the process is relatively straightforward: locate a property through online listings, agents, or direct developer contact, place an offer and agree on pricing, conduct due diligence including title verification, zoning compliance, and debt clearance, then execute the sale agreement at a PPAT (Land Deed Official/notary) while completing payment and registration.

Foreign buyers face more complex procedures and ownership restrictions. Foreigners can purchase apartments but cannot directly own landed houses. They can acquire property through Hak Pakai leasehold rights, Hak Guna Bangunan permits, or by establishing a PT PMA (foreign-owned company) structure.

The foreign buying process requires additional steps: obtaining approval from relevant authorities for foreign ownership, completing notarization and title registration with proof of valid residential permits, and if using a PT PMA structure, completing company setup before the property transaction. Foreigners cannot obtain freehold ownership but can secure long-term use and lease rights.

Both locals and foreigners benefit from working with experienced local agents who understand the legal requirements and can navigate the bureaucratic processes efficiently.

Where can you actually find good properties for sale—are real estate agencies the best option or are there better channels?

Multiple channels exist for finding properties in Medan, each with distinct advantages and considerations for different buyer types.

Official real estate agencies remain the most reliable option for foreigners and unfamiliar buyers due to local paperwork complexities and negotiation challenges. These agencies provide legal vetting, market knowledge, and ongoing support throughout the transaction process.

Online property portals offer extensive listings and market transparency, but buyers must exercise caution as quality and legal vetting can vary significantly between platforms. These portals work well for initial research and price comparison but require additional verification.

Direct developer purchases provide safety for new units, particularly in emerging areas like Medan Baru. This approach often offers better pricing and guarantees but limits options to new construction rather than established properties.

Networking and local connections can surface off-market deals and unique opportunities, but this approach carries higher risks without local expertise. Personal referrals often lead to good deals but require careful verification of legal status and fair pricing.

For most buyers, a combination approach works best: using online portals for initial research, agencies for transaction support, and networking for additional opportunities.

For a given budget, which types of properties can you realistically get in Medan?

Budget allocation in Medan's property market determines both property type and location options across a wide spectrum of choices.

What are the most common mistakes buyers make when entering the Medan property market, and how can you avoid them?

Several critical mistakes can derail property purchases in Medan, but all are preventable with proper preparation and local expertise.

The most costly mistake involves not using trusted agents or legal experts, which risks unclear ownership, overpaying, or title issues that can invalidate purchases. Always engage qualified local professionals who understand Indonesian property law and can verify all legal documentation.

Insufficient local research represents another major pitfall, as neighborhoods can vary dramatically block by block in terms of infrastructure, safety, and future development projects. Spend time physically visiting areas at different times and research upcoming government projects that could affect property values.

Hidden costs frequently surprise buyers who focus only on purchase prices. Taxes, fees, repairs, insurance, and agent commissions can add substantial amounts to the total investment. Budget an additional 10-15% beyond the purchase price for these ancillary costs.

Assuming future price surges without market analysis leads to speculative overpaying. While Medan shows growth, it's moderate and location-dependent. Avoid emotional bidding and base decisions on comparable sales and rental yield analysis.

Blind trust in agents or developers without independent verification creates vulnerability to misrepresentation. Always conduct independent due diligence and never skip professional inspections or legal reviews.

What's the overall cost of living in Medan, and how does it tie in with owning property there?

Medan offers an attractive cost of living structure that makes property ownership economically viable for many buyers.

As of September 2025, living costs remain reasonable with single individuals averaging around IDR 11.6 million monthly and families of four spending approximately IDR 26.7 million monthly for comfortable living standards. These costs include food, transportation, entertainment, and basic services but exclude housing.

Property ownership affects monthly budgets differently than renting. Homeowners face ongoing costs including property taxes, insurance, utilities, and maintenance expenses, while renters only handle rental payments and utilities. However, homeowners build equity while renters do not, making ownership financially advantageous for long-term residents.

Medan's affordability advantage compared to Jakarta or Bali makes property ownership more accessible. The lower overall living costs mean that property-related expenses represent a smaller percentage of total monthly budgets, making higher-end properties financially feasible for middle-income buyers.

The combination of moderate living costs and appreciating property values creates favorable conditions for building wealth through real estate ownership, particularly for residents planning extended stays in the city.

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

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.

Which neighborhoods or areas are the most affordable, which are upcoming, and which are upscale—and what are the strengths and weaknesses of each?

Medan's diverse neighborhoods offer distinct investment profiles and lifestyle characteristics across different price segments.

Affordable areas include Sunggal and suburban edges where entry prices remain low and developer interest is growing. These areas offer the best value for first-time buyers but may lack infrastructure and amenities found in more established districts. Transportation to city center can be challenging, though improving with ongoing development.

Upcoming areas show the strongest growth potential, led by Medan Baru which drives much of the city's appreciation due to new infrastructure development. Kampung Baru offers excellent commercial and rental yield opportunities, while Sunggal provides affordable entry points with development upside. These areas balance growth potential with reasonable entry costs but may experience construction disruption during development phases.

Upscale neighborhoods include Setiabudi and Polonia, which attract expat clusters, and city center apartments offering premium amenities and higher prices. These areas provide stable rental demand, proximity to international schools and shopping, and established infrastructure. However, they require higher entry prices and face potential overvaluation risks if growth stalls.

Each area's strengths center around specific buyer needs: affordability seekers benefit from suburban options, growth investors target upcoming districts, while lifestyle buyers prefer established upscale areas with complete amenities and services.

What is life like for an expat living in Medan, both day-to-day and in terms of community?

Expat life in Medan combines cultural richness with modern convenience, supported by growing international communities.

The city's multiethnic character creates a welcoming environment for foreigners, with vibrant food scenes and increasing numbers of international schools. Most expats gravitate toward Setiabudi, Polonia, and Medan Baru for their combination of amenities and expat-friendly infrastructure.

Daily life offers affordability and variety, with lively traditional markets, modern shopping malls, and diverse international cuisine options. The local population generally shows friendliness toward foreigners, though cultural adaptation requires patience and openness to local customs and business practices.

Community networks are expanding as more international businesses establish operations in Medan. Expat groups typically form around business sectors, educational institutions, and recreational activities. Professional networking opportunities exist through international chambers of commerce and business associations.

Challenges include language barriers for those not speaking Indonesian or local languages, occasional bureaucratic complexities, and adjusting to tropical climate patterns. However, support networks continue growing as the expat population expands, making integration easier for newcomers.

Overall, expats find Medan offers authentic Indonesian cultural experiences with sufficient modern amenities and growing international communities to maintain comfortable lifestyles.

If you plan to rent out long term, which areas should you target, what kind of tenants are looking, and what rental income and yield can you expect?

Long-term rental success in Medan depends heavily on location selection and understanding tenant demographics across different market segments.

Target areas for strong rental performance include Setiabudi, Polonia, and Medan Baru, which show consistent expat and professional demand. Kampung Baru offers excellent opportunities for retail and commercial rentals. These areas benefit from good schools, transport links, and growing infrastructure that attract quality tenants.

Tenant profiles vary by area but generally include expats working for international companies, Indonesian professionals, growing families, and students attending local universities. Expat tenants typically seek modern amenities and proximity to international schools, while local professionals prioritize transport connections and value for money.

Rental income expectations show yields of 4-6% for residential properties and 4-5% for commercial units. Prime units in excellent locations may achieve better returns, while yields remain stable rather than explosive across most market segments. Properties with good schools, transport links, and modern amenities command premium rents.

Successful rental strategies focus on properties in areas experiencing infrastructure growth, as these locations attract better tenants and support rental rate increases over time. Maintaining good property condition and responsive management helps ensure consistent occupancy and tenant retention.

If you plan to rent out short term, what areas work best, what type of guests come, what income could you make, and what regulations do you need to be aware of?

Short-term rental opportunities in Medan cater primarily to business travelers and tourists, with specific areas showing stronger performance.

Top performing districts include city center locations and Medan Baru for business travelers, while Polonia attracts expats and international visitors. These areas offer proximity to business districts, restaurants, and cultural attractions that short-term guests prioritize.

Guest profiles consist mostly of business travelers using platforms like Airbnb and Agoda, along with tourists exploring North Sumatra. Business travelers typically stay mid-week and prefer modern amenities and reliable internet, while tourists may stay longer and prioritize location and cultural access.

Income potential shows higher returns during peak business and tourist seasons, though market volatility applies. Earnings depend heavily on property quality, location, and management effectiveness. Professional property management often increases occupancy rates and guest satisfaction.

Regulatory requirements include property registration with local authorities, potential licensing depending on property type and location, compliance with zoning and safety regulations, and adherence to local tourist tax laws. Regulations continue evolving, so staying current with local requirements is essential for legal operation.

Success factors include professional photography, responsive guest communication, excellent cleanliness standards, and competitive pricing based on local market conditions.

So, in the end, is it worth it to buy property in Medan in 2025—for living, for renting out, or for buying and reselling later?

Property investment in Medan presents compelling opportunities across multiple strategies, with each offering distinct advantages in the current market environment.

For lifestyle and living purposes, Medan delivers exceptional value compared to larger Indonesian cities. The combination of much lower costs than Jakarta or Bali, strong infrastructure development, affordable overall living expenses, and rich cultural experiences makes it highly attractive for long-term residents. The growing expat community and improving amenities support comfortable international lifestyles.

Rental investment strategies show good fundamentals with moderate but stable yields. The 4-6% residential returns, combined with rising population, growing expat influx, and infrastructure development, create sustainable rental demand. Areas like Medan Baru and Polonia show particularly strong tenant demand and rental rate stability.

Resale and capital appreciation strategies benefit from the current growth trajectory, though expectations should remain realistic. The moderate 1-2% annual growth predicted for coming years, combined with exceptional 2025 gains, suggests long-term holding rather than quick flipping. Growth areas with infrastructure development offer the best appreciation potential.

The bottom line favors Medan as a strategic choice for long-term owner-occupiers and rental investors, especially in growth hotspots like Medan Baru and Polonia. Foreign buyers should focus on apartments and consult local experts for proper legal structure. While renters enjoy flexibility, buyers can benefit from both capital appreciation and lifestyle advantages.

Success requires avoiding common mistakes, researching neighborhoods thoroughly, and budgeting realistically for all ownership costs. With careful selection and local expert guidance, property investment in Medan offers promising value and quality of life in 2025.

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

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. Own Property Abroad - Foreign Property Purchase Guide Medan
2. BambooRoutes - Medan Property Market Analysis
3. BambooRoutes - Medan Price Forecasts
4. BambooRoutes - Best Areas in Medan
5. BambooRoutes - Medan Property Investment Guide
6. Juwai Asia - Indonesia Property Market Update
7. BambooRoutes - Medan Real Estate Trends
8. Expatistan - Cost of Living in Medan
9. Global Property Guide - Indonesia Rental Yields
10. Indonesia Incorp Asia - Property Buying Guide