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If you are a foreigner thinking about buying property in Medan, you are probably wondering how the real estate market is doing right now and whether it is a good time to invest.
In this guide, we break down what is really happening in Medan's housing market in 2026, including current prices, market momentum, neighborhood trends, and what foreign buyers need to know before making a move.
We constantly update this blog post to reflect the latest conditions, so you always have fresh and reliable information about housing prices in Medan.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Medan.
How's the real estate market going in Medan in 2026?
What's the average days-on-market in Medan in 2026?
As of early 2026, typical residential properties in Medan spend around 75 to 110 days on the market before selling, which reflects a negotiation-friendly environment rather than a fast-moving sellers' market.
The realistic range you will see covers most listings: mid-market houses priced between IDR 700 million and IDR 3 billion usually sit for 75 to 110 days, while apartments move a bit faster at 60 to 95 days, and luxury homes above IDR 5 billion can take 120 to 180 days or even longer.
Compared to one or two years ago, the Medan market has stayed relatively stable, with days-on-market not dramatically shortening or lengthening because Indonesia's broader residential price growth has remained modest and below inflation, according to both Bank Indonesia surveys and Rumah123 data showing that Medan is among the cities with price growth under the inflation rate.
Are properties selling above or below asking in Medan in 2026?
As of early 2026, most residential properties in Medan sell at around 94% to 98% of the asking price, which means discounting is the norm and buyers have room to negotiate.
In the current Medan market, roughly 70% to 80% of properties sell at or below asking price, while only a small share of well-priced homes in prime locations reach full asking price or slightly above, so we are confident that negotiation remains standard practice here.
The neighborhoods most likely to see stronger pricing and occasional above-asking sales in Medan include Medan Polonia, parts of Medan Baru near major activity centers, and newer cluster developments in areas with good toll access, because these locations attract buyers willing to pay a premium for convenience and quality.
By the way, you will find much more detailed data in our property pack covering the real estate market in Medan.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in Medan?
What property types dominate in Medan right now?
In Medan, the residential market is dominated by landed houses, which make up roughly 70% to 75% of available listings, followed by cluster housing in gated communities at around 15% to 20%, and apartments or condos representing only about 5% to 10% of the market.
Single-family landed houses clearly hold the largest share of Medan's real estate market, making this a "houses-first" city unlike Jakarta or Surabaya where vertical living is more common.
Landed houses became so prevalent in Medan because of the city's abundant land availability compared to Java's densely packed cities, strong local preference for ground-level living with outdoor space, and historically affordable land prices that made house construction economically attractive for developers and buyers alike.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Medan right now?
New-build properties represent a meaningful share of Medan's residential listings, estimated at around 25% to 35% of the market, particularly in expanding districts where land assembly is easier and developers are active.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Medan include Medan Tuntungan, Medan Marelan, Medan Helvetia, and Medan Selayang, where you will find many "Official Developer" listings, new cluster projects, and modern housing estates along improving road corridors.
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Which neighborhoods are improving fastest in Medan in 2026?
Which areas in Medan are gentrifying in 2026?
As of early 2026, the neighborhoods in Medan showing the clearest signs of gentrification include Medan Baru, Medan Petisah, parts of Medan Polonia, and Medan Selayang, where commercial upgrading, renovation activity, and middle-class buyer interest have noticeably increased.
The visible changes indicating gentrification in these Medan areas include the arrival of modern cafes, co-working spaces, and upgraded retail along main streets, plus an increase in renovated older homes and new infill cluster developments replacing aging housing stock.
Price appreciation in these gentrifying Medan neighborhoods has been estimated at around 8% to 15% over the past two to three years, outpacing the citywide average of low single-digit growth, though exact figures vary by street and property condition.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Medan.
Where are infrastructure projects boosting demand in Medan in 2026?
As of early 2026, the top areas in Medan where major infrastructure projects are boosting housing demand include the western and northwestern corridors near the Medan-Binjai toll road, districts connected to the broader Trans-Sumatra highway network, and neighborhoods with improved access to the Kualanamu International Airport route.
The specific infrastructure projects driving demand in Medan include the Medan-Binjai toll road, which improves commuting to the west, and the Trans-Sumatra toll corridor being developed by state-owned Hutama Karya, which enhances logistics connectivity and makes previously distant areas more accessible for daily commuters.
The Medan-Binjai toll road is already operational for key sections, while additional Trans-Sumatra segments are scheduled for completion between 2025 and 2028, with ongoing expansions planned through the end of the decade.
In Medan, infrastructure announcements typically generate an initial price bump of 5% to 10% in nearby properties, while completed projects can drive cumulative appreciation of 15% to 25% over several years, depending on how much the infrastructure actually improves daily access and commute times.
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.
What do locals and insiders say the market feels like in Medan?
Do people think homes are overpriced in Medan in 2026?
As of early 2026, local sentiment in Medan is mixed: most residents and market insiders view average resale homes as "priced to negotiate" rather than overpriced, while prime locations like Medan Polonia are seen as expensive but justified given their convenience and quality.
When locals argue homes are overpriced in Medan, they typically point to the gap between asking prices and actual sale prices, the long time properties sit on the market, and the fact that many sellers list high expecting to negotiate down significantly.
Those who believe Medan prices are fair often cite rising construction and land costs, improved infrastructure making certain areas more valuable, and the reality that prime locations with good access and amenities genuinely command premiums because alternatives are limited.
Medan's price-to-income ratio is generally more affordable than Jakarta or Surabaya, with average homes costing roughly 6 to 8 times the median annual household income compared to 10 to 15 times in Indonesia's largest cities, making Medan relatively accessible for local buyers.
What are common buyer mistakes people regret in Medan right now?
The most frequently cited buyer mistake in Medan is failing to verify the land certificate and title status early in the process, which can lead to discovering legal complications, boundary disputes, or unclear ownership only after making a financial commitment.
The second most common regret among Medan buyers is purchasing a property that is cheap but far from daily necessities and workplaces, underestimating how much Medan's traffic congestion affects quality of life and how much convenience premiums matter in this sprawling city.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Medan.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Medan.
Get the full checklist for your due diligence in Medan
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in Medan in 2026?
Do foreigners face extra challenges in Medan right now?
Foreign buyers in Medan face a moderately high difficulty level compared to local buyers, primarily because they cannot hold freehold land title and must navigate a different legal structure that requires more professional guidance and careful documentation.
Under Indonesian law, specifically Government Regulation PP No. 18/2021, foreigners cannot own Hak Milik (freehold) land but can register a Hak Pakai (right to use) title in their name, which provides legal protection for up to 30 years with possible extensions, and in North Sumatra province the minimum purchase price for foreigners is IDR 2 billion (around USD 125,000).
The practical challenges foreigners encounter in Medan include limited English-language documentation, the need to work with a notary (PPAT) who may not be accustomed to foreign transactions, difficulty verifying property boundaries and certificates without local knowledge, and the reality that most developers and sellers in Medan have less experience with foreign buyers compared to Bali or Jakarta.
We will tell you more in our blog article about foreigner property ownership in Medan.
Do banks lend to foreigners in Medan in 2026?
As of early 2026, mortgage financing for foreign buyers in Medan is available but selective, with approval typically requiring a valid KITAS or KITAP stay permit, verifiable income in Indonesia, and a strong documentation package that proves your local ties.
Foreign borrowers in Medan can generally expect loan-to-value ratios between 50% and 70%, meaning you need to bring at least 30% to 50% of the property price as a down payment, with interest rates ranging from 8% to 11% annually depending on the bank and your risk profile.
Banks in Medan typically require foreign applicants to provide proof of Indonesian residency status, employment contracts or business registration in Indonesia, income verification documents, and a clean credit history, with some banks also requiring the property to be under a Hak Pakai title structure.
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.
How risky is buying in Medan compared to other nearby markets?
Is Medan more volatile than nearby places in 2026?
As of early 2026, Medan's property market shows lower price volatility than tourism-driven markets like Bali, with more stable and predictable price movements similar to other large Sumatran cities like Palembang, and less hype-driven than Jakarta's premium segments.
Over the past decade, Medan has experienced modest annual price growth of around 1% to 3% with no dramatic boom-bust cycles, while Bali saw swings of 10% to 20% in both directions during tourism shocks, and Jakarta's luxury market experienced sharper corrections during economic slowdowns.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Medan.
Is Medan resilient during downturns historically?
Medan's property values have shown moderate resilience during past economic downturns, with prices typically holding steadier than speculation-driven markets because demand comes primarily from local owner-occupiers rather than investors chasing quick returns.
During the COVID-19 pandemic period, Medan property prices experienced a shallow dip of roughly 3% to 7% depending on the neighborhood, and recovery to pre-pandemic levels took approximately 18 to 24 months, which was faster than some tourism-dependent Indonesian markets.
The property types and neighborhoods in Medan that have historically held value best during downturns include mid-market landed houses in established residential areas like Medan Johor, Medan Sunggal, and central locations with strong daily amenities, because these attract stable owner-occupier demand rather than speculative interest.
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How strong is rental demand behind the scenes in Medan in 2026?
Is long-term rental demand growing in Medan in 2026?
As of early 2026, long-term rental demand in Medan is growing at a slow but steady pace, supported by the city's role as North Sumatra's economic hub and educational center, though it is not experiencing explosive growth.
The tenant demographics driving long-term rental demand in Medan include university students attending institutions like Universitas Sumatera Utara, young professionals working in trade and services, families relocating for employment opportunities, and a small but growing expat community connected to regional businesses.
The Medan neighborhoods with the strongest long-term rental demand right now include Medan Baru and Medan Petisah for their central convenience, Medan Selayang for its proximity to educational and medical facilities, and newer cluster developments in Medan Helvetia that attract families seeking modern housing.
You might want to check our latest analysis about rental yields in Medan.
Is short-term rental demand growing in Medan in 2026?
Short-term rental regulations in Medan are less formalized than in Bali, but operators should be aware that certain building types and residential zones may have restrictions, and local authorities have begun paying more attention to unlicensed operations.
As of early 2026, short-term rental demand in Medan is growing moderately, driven primarily by domestic business travelers and regional tourists rather than international vacation visitors, with estimated annual growth of around 5% to 8%.
Average occupancy rates for short-term rentals in Medan currently range from 45% to 60% depending on location and property quality, which is lower than Bali's tourist hotspots but sufficient for positive returns when managed efficiently.
The guest demographics fueling short-term rental demand in Medan include domestic business travelers visiting for trade and commerce, families on regional holidays exploring North Sumatra, medical tourists accessing Medan's healthcare facilities, and a modest number of digital nomads seeking affordable Indonesian city living.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Medan.
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 the realistic short-term and long-term projections for Medan in 2026?
What's the 12-month outlook for demand in Medan in 2026?
As of early 2026, the 12-month demand outlook for residential property in Medan is cautiously optimistic, with most analysts expecting mildly improving buyer activity supported by stable economic conditions and potential interest rate easing later in the year.
The key factors most likely to influence Medan's property demand over the next 12 months include Bank Indonesia's interest rate decisions, the government's extension of VAT incentives for housing through 2027, infrastructure project progress on the Trans-Sumatra corridor, and the overall health of Indonesia's economy which is projected to grow around 5%.
Price movement forecasts for Medan over the next 12 months suggest modest growth of around 1% to 3%, roughly in line with or slightly below inflation, meaning real price appreciation will be limited but the market should remain stable without significant corrections.
By the way, we also have an update regarding price forecasts in Indonesia.
What's the 3–5 year outlook for housing in Medan in 2026?
As of early 2026, the 3 to 5 year outlook for Medan housing points to gradual appreciation with total gains potentially reaching 10% to 20% over that period, concentrated in well-connected neighborhoods benefiting from infrastructure improvements and modern housing supply.
Major development projects expected to shape Medan over the next 3 to 5 years include continued Trans-Sumatra toll road expansions improving regional connectivity, new cluster housing developments in outer districts like Tuntungan and Marelan, and potential urban mobility upgrades outlined in the Mebidangro metropolitan planning framework.
The single biggest uncertainty that could alter Medan's 3 to 5 year outlook is macroeconomic instability, particularly if a sharp interest rate spike, significant rupiah depreciation, or global economic slowdown reduces buyer purchasing power and dampens overall demand across Indonesia.
Are demographics or other trends pushing prices up in Medan in 2026?
As of early 2026, demographic trends are exerting moderate upward pressure on Medan housing prices, primarily through steady household formation and urbanization within the broader Mebidangro metropolitan area.
The specific demographic shifts affecting Medan prices include continued migration from surrounding North Sumatra districts into the city for employment and education, a growing middle-class population seeking upgraded housing, and household formation among younger adults who prefer modern cluster developments over traditional housing.
Beyond demographics, non-demographic trends pushing Medan prices include rising construction and land costs, improved infrastructure making previously distant areas viable for commuters, and modest investment interest from buyers in other Indonesian cities seeking more affordable alternatives to Jakarta and Bali.
These demographic and trend-driven price pressures in Medan are expected to persist for at least the next 5 to 10 years, as urbanization and middle-class expansion in Sumatra continue and infrastructure investment remains a government priority.
What scenario would cause a downturn in Medan in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Medan would be a sharp increase in interest rates combined with significant rupiah depreciation, which would simultaneously reduce buyer affordability and increase construction costs.
Early warning signs that a Medan downturn might be beginning would include a sustained increase in days-on-market beyond 120 to 150 days for typical properties, widening gaps between asking and sale prices exceeding 10%, rising inventory levels without corresponding demand, and local developer projects stalling or being delayed.
Based on historical patterns, a potential downturn in Medan could realistically produce price declines of 5% to 15% over 12 to 24 months, which would be uncomfortable but not catastrophic, with recovery typically taking 2 to 3 years once economic conditions stabilize.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Medan, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bank Indonesia Residential Property Price Survey | It's the central bank's official survey-based view of Indonesia's residential property prices and sales conditions. | We used it to anchor the national price momentum backdrop that Medan typically moves within. We also used it to justify why 2026 is more steady than boom or bust. |
| Bank Indonesia Policy Rate | It's the official source for Indonesia's benchmark interest rate and how the central bank communicates monetary stance. | We used it to explain financing conditions that influence mortgage affordability in early 2026. We used it to frame why demand can strengthen if rates ease during the year. |
| BPS Indonesia Property Price Index | It's Indonesia's national statistics agency publishing a standardized house price index methodology. | We used it as a second official check against Bank Indonesia's price story. We used it to confirm that the broad market is not in a rapid inflationary phase going into 2026. |
| BPS Medan Regional Statistics 2024 | It's the local BPS office's annual snapshot of Medan's economy, population, and key indicators. | We used it to ground the demand drivers like jobs and population that shape who lives and works in Medan. We used it to keep our analysis specific to Medan rather than generic Indonesia. |
| Rumah123 Medan Listings | It's one of Indonesia's biggest listing portals, providing real-time data on what is actually available in Medan. | We used it to track January 2026 price movements and listing volumes as a market pulse check. We used it to identify real neighborhoods and price ranges buyers will actually encounter. |
| PUPR Medan-Binjai Toll Project | It's a government infrastructure database describing the project scope, timeline, and economics. | We used it to identify where connectivity upgrades are most likely to shift housing demand. We used it to justify why certain western corridors can appreciate faster than the city average. |
| Hutama Karya Trans-Sumatra Toll Road | It's the official site of the state-owned company mandated to build major Trans-Sumatra toll sections. | We used it to understand the broader corridor logic around Medan and logistics connectivity. We used it to support our infrastructure-driven demand analysis. |
| PP No. 18/2021 Government Regulation | It's an official government portal listing the regulation governing land rights and apartment ownership for foreigners. | We used it to ground the legal reality of what a foreign buyer can and cannot hold in Indonesia. We used it to keep the foreign ownership section rules-first rather than hearsay. |
| Pinhome Market Report 2025 H1 | It's a large Indonesian proptech company publishing a transparent, data-driven residential market report. | We used it to triangulate supply and demand conditions nationally as a baseline for Medan. We used it as a private-sector counterweight to official Bank Indonesia and BPS data. |
| Global Property Guide Indonesia | It's an international property research platform that publishes rental yield and price data across many countries. | We used it to benchmark Medan's rental yields against other Indonesian cities and regional averages. We used it to provide context on what returns investors can realistically expect. |
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