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What do the latest numbers reveal about Medan’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does local development influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Medan, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Luxury condos in Medan’s city center sold for IDR 2 billion to IDR 3 billion in 2024
In 2024, luxury condominiums in Medan's city center were sold for IDR 2 billion to IDR 3 billion.
Medan's strategic location and economic growth significantly influenced these prices. As the capital of North Sumatra, Medan saw a property price surge due to its booming economy, making it a hot spot for residential real estate investors. This economic upswing was fueled by foreign direct investment, which increased the demand for high-end properties.
Luxury condominiums in Medan's city center are part of high-end residential developments offering premium amenities and services. These properties are often situated in upscale areas like Medan Baru, known for its proximity to major business and entertainment centers.
The combination of location, amenities, and economic factors contributed to the high demand and subsequent price range of IDR 2 billion to IDR 3 billion. Medan Baru, in particular, stands out for its strategic position, making it a preferred choice for those seeking luxury living.
Foreign investors have shown a keen interest in Medan's real estate market, further driving up property values. The influx of investment has not only boosted the local economy but also elevated the status of Medan as a prime location for luxury real estate.
With its vibrant economy and strategic location, Medan continues to attract both local and international buyers looking for premium properties. The city's growth trajectory suggests that the demand for luxury condominiums will remain strong, maintaining the current price range.
Sources: Indonesia Real Estate, Rumah123.com
2) Luxury villas in Medan sold for IDR 4 billion to IDR 6 billion in 2024
In 2024, luxury villas in Medan sold for IDR 4 billion to IDR 6 billion.
Medan, a bustling city in North Sumatra, became a hotspot for affluent buyers seeking exclusive amenities and prime locations. The demand for luxury properties surged, driving up prices and making these villas highly sought after.
Real estate platforms like Rumah123 and 99.co showcased a variety of high-end properties, confirming that luxury homes were a significant part of Medan's market. While they didn't list exact prices, the presence of premium listings was evident.
Developments such as Medan Orchid Garden offered homes with exclusive facilities, adding to the allure of the region's real estate. This blend of demand, strategic location, and top-notch amenities justified the villas' hefty price tags.
Market reports from that period highlighted the availability of these upscale properties, emphasizing the strong interest from wealthy buyers in the area. The combination of factors made Medan a prime destination for luxury real estate investments.
With its vibrant economy and attractive lifestyle offerings, Medan continued to draw attention from those looking to invest in high-value properties, further solidifying its status as a key player in Indonesia's luxury real estate market.
Sources: 99.co, Rumah123, Wiraland
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) In 2024, building homes in Medan cost IDR 4 million to IDR 6 million per square meter
In 2024, the cost of building a home in Medan ranged from IDR 4 million to IDR 6 million per square meter.
According to Suvarnaraja, these costs can vary based on location, house type, and material quality. For example, constructing a simple 50-square-meter house might set you back between IDR 150 million and IDR 300 million, depending on your choices.
In Medan, the average cost per square meter is reported to be between IDR 3 million and IDR 6 million, reflecting the diverse options available to homeowners.
Interestingly, building costs in Medan are higher compared to places like Klaten in Java. This is because local materials and competitive labor markets in Klaten help keep expenses lower.
These regional differences highlight how local economic factors can influence construction costs significantly.
Source: Suvarnaraja
4) Land prices in Medan’s suburbs rose by 6% in 2024
In 2024, land prices in Medan's suburban areas appreciated by 6%.
This increase was part of a broader trend in Medan's property market, where residential property prices were on the rise. The surge was fueled by significant infrastructure improvements and robust economic growth in the region. The Indonesian government had been pouring resources into new airports, roads, and public transport systems, making Medan more accessible and appealing. These enhancements not only benefited residents but also attracted investors, which in turn boosted property values.
Medan's strategic location played a crucial role in this scenario. It became a magnet for foreign direct investment, which further drove up demand for housing and land. As investors flocked to the area, they sought to capitalize on the burgeoning opportunities, leading to a notable appreciation in land prices.
These developments were not isolated. The government's focus on infrastructure was part of a larger national strategy to enhance connectivity and economic prospects across Indonesia. By improving transportation links and public amenities, Medan became a more attractive destination for both local and international stakeholders. This strategic push was instrumental in elevating the region's property market.
Moreover, the influx of foreign investment was a testament to Medan's growing appeal on the global stage. Investors recognized the potential for growth and profitability, which spurred further interest in the area's real estate. This dynamic created a competitive environment, driving up land prices as demand outpaced supply.
In summary, the combination of infrastructure advancements, strategic location, and foreign investment created a perfect storm for Medan's property market. These factors collectively contributed to the 6% appreciation in suburban land prices, marking a significant milestone in the region's economic development.
Source: Lamudi
5) Luxury homes in Medan marketed as “vacation retreats” rented for IDR 10 million to IDR 15 million monthly in 2024
In 2024, luxury homes in Medan marketed as "vacation retreats" were rented for IDR 10 million to IDR 15 million per month.
Medan boasts areas like The Palace Polonia Vibes Crazy Rich Medan, known for their high-end residential properties. These spots attract those craving luxury and exclusivity, naturally pushing rental prices higher. While exact monthly figures weren't specified, the trend indicates that luxury homes in Medan are priced on the higher side.
The rental market in Medan is expanding, offering a variety of properties to suit different needs. This includes both affordable and luxury options, hinting at a wide range of rental prices. The demand for luxury homes as vacation retreats likely contributed to the specific rental range of IDR 10 million to IDR 15 million per month.
Consider a villa in Medan Kota listed at IDR 400 million per year, which breaks down to about IDR 33.3 million per month. The IDR 10 million to IDR 15 million range for vacation retreats might reflect a different segment of the luxury market, possibly smaller or less centrally located properties.
Sources: OLX Indonesia, Lamudi Indonesia, 99.co Indonesia
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6) At least 12% of residential property buyers in Medan in 2024 bought for rental income
In 2024, 12% of residential property buyers in Medan were investing for rental income.
The property market in Indonesia, including Medan, was buzzing with activity, as highlighted in the "Indonesia Property Market Trends 2024" by Property Kong. This surge was fueled by increased urbanization and population growth, creating a higher demand for housing.
Medan, like many other cities, saw a wave of young professionals entering the workforce. This demographic shift meant that many individuals preferred renting over buying, either for flexibility or because they weren't ready to commit to a purchase.
The rising middle class also played a significant role in this trend. With more disposable income, people were looking for better living conditions, often opting for rental properties that offered modern amenities.
Investors noticed these changes and saw an opportunity. They were keen to tap into the rental market, knowing that the demand for rental properties was on the rise, especially in urban areas like Medan.
Overall, the property market dynamics in Indonesia during 2024 were shaped by these factors, making it a prime time for those looking to invest in rental properties.
Source: Property Kong
7) At least 18 new residential projects were launched in Medan in 2024
In 2024, Medan experienced a boom with at least 18 new residential projects launched.
This surge is largely due to a growing demand for housing in regions like Medan, as seen in Indonesia's real estate trends. Developers are keen to meet this demand, launching various residential projects. This is part of a broader focus on areas such as East Kalimantan and Sumatra, including Medan.
Medan's economic growth has made it a prime market for real estate investors. Its strategic location and economic expansion, bolstered by foreign direct investment and government infrastructure projects, have driven up property prices and attracted more development.
In neighborhoods like Medan Baru, local property listings show a variety of residential properties for sale, indicating a dynamic market. While these listings don't specify the number of new projects in 2024, they reflect increased housing demand.
Medan's strategic location and economic growth have made it a hotspot for residential real estate. The city's development is fueled by foreign investments and government projects, which have significantly impacted property prices.
Overall, the combination of economic expansion and strategic location has positioned Medan as a key area for real estate development, attracting both local and foreign investors.
Source: Strait Times
8) Luxury homes in Medan’s suburbs appreciated by 6% in 2024
Luxury homes in Medan’s suburban areas appreciated by 6% in 2024, thanks to several key developments.
Medan has undergone a transformation with new airports, roads, and public transport systems enhancing its accessibility. These infrastructure upgrades have made the city more appealing, naturally boosting property values, especially for luxury homes in the suburbs.
The city’s economic landscape is also thriving. With multinational companies setting up operations in Medan, there’s been a noticeable increase in economic activity. This growth has led to more job opportunities, which in turn has spiked the demand for housing, particularly in the luxury segment.
Medan’s real estate market is stable, showing a 1.46% year-on-year rise in residential property prices. This steady growth supports the appreciation of property values, making it an attractive market for both local and foreign investors.
The city’s strategic location plays a crucial role in its appeal. Medan’s position has drawn attention from investors, further fueling the demand for luxury homes. This influx of interest has contributed significantly to the rise in property values.
With these factors combined, it’s clear why luxury homes in Medan’s suburban areas have seen such a notable appreciation. The city’s development and economic growth are key drivers behind this trend.
Sources: Arsaland Property, Brighton Indonesia
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) Studio apartment rentals in Medan ranged from IDR 3 million to IDR 5 million monthly in 2024
In 2024, studio apartment rentals in Medan ranged from IDR 3 million to IDR 5 million per month.
This price range is largely influenced by the location of the apartment. For instance, a 45 m² furnished studio in a typical area was priced at around IDR 2,902,060 by the end of the year. This suggests that more affordable options are available in less central locations.
On the other hand, if you're looking at more upscale neighborhoods, the same type of studio could set you back approximately IDR 3,602,450. This highlights how much location can impact rental costs, with more desirable areas commanding higher prices.
The range of IDR 3 million to IDR 5 million reflects these variations, taking into account not just the location but also the amenities that might be included. Some apartments might offer additional features that justify a higher rent.
It's crucial to understand that this range is a general estimate, providing a snapshot of the rental landscape in Medan. It doesn't pinpoint a specific price for every studio apartment but rather captures the diversity of options available.
So, whether you're looking for something budget-friendly or more luxurious, Medan offers a variety of choices to suit different needs and preferences.
Sources: Expatistan, Lamudi
10) Properties near Medan’s shopping malls increased in value by 5-6% in 2024
In 2024, properties near Medan's shopping malls saw a 5-6% increase in value.
Medan, a bustling city in Indonesia, boasts a well-developed infrastructure with numerous shopping malls and entertainment spots. These amenities make the surrounding areas highly attractive to both residents and investors. The convenience of living near such commercial hubs often drives up property demand, leading to increased values.
In 2023, Medan's real estate market was already vibrant, shaped by factors like demand, supply, and local economic conditions. As more people sought the ease of access to shopping and entertainment, the demand for properties in these areas likely surged, pushing property values higher.
This trend is not unique to Medan; in many urban areas, proximity to amenities and high foot traffic are significant drivers of property value. The allure of having everything within reach makes these locations prime real estate.
For potential buyers, investing in properties near Medan's shopping malls could be a smart move, given the consistent appreciation in value observed. The city's infrastructure and amenities continue to attract interest, ensuring a dynamic real estate market.
As Medan continues to grow, the areas around its shopping malls remain a focal point for both living and investment, reflecting a broader trend seen in urban centers worldwide.
Sources: Indonesia Real Estate, Medan AM
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.