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
Medan's residential property market in early 2026 is driven primarily by local owner-occupiers and long-term tenants, with short-term rentals playing a smaller, more tactical role compared to tourist-heavy Indonesian destinations like Bali.
Bank Indonesia data shows modest nationwide price growth rather than a boom, which means your edge in Medan comes from picking the right neighborhood and property type rather than riding broad market inflation.
We constantly update this blog post to reflect the latest market conditions and data available.
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.
What's the Current Real Estate Market Situation by Area in Medan?
Which areas in Medan have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive residential areas in Medan are Medan Polonia, Medan Petisah, and Medan Baru, all located in the central belt of the city with strong access to offices, retail, and universities.
In these premium Medan neighborhoods, you can expect to pay between IDR 10 million and IDR 22 million per square meter for apartments, and between IDR 8 million and IDR 18 million per square meter for landed homes and townhouses, depending on the exact street and property condition.
Each of these areas commands high prices for different reasons:
- Medan Polonia: established "premium residential feel" with quieter streets and proximity to central amenities.
- Medan Petisah: very central location with strong demand from professionals and executives seeking convenience.
- Medan Baru: constant rental liquidity driven by Universitas Sumatera Utara (USU) students and staff.
Which areas in Medan have the most affordable property prices in 2026?
As of early 2026, the most affordable residential areas in Medan are the northern coastal belt including Medan Marelan, Medan Labuhan, and Medan Belawan, along with industrial-adjacent pockets in Medan Deli and parts of Medan Denai.
In these lower-priced Medan neighborhoods, landed homes typically range from IDR 3 million to IDR 8 million per square meter, making them accessible entry points for budget-conscious investors.
However, each area comes with specific trade-offs: Medan Marelan, Labuhan, and Belawan face recurring coastal flooding (locally called "rob") that can disrupt tenants and cap long-term appreciation, while Medan Deli's industrial proximity means noise and heavy vehicle traffic that reduce tenant willingness to pay premium rents.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Medan Offer the Best Rental Yields?
Which neighborhoods in Medan have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Medan with the highest gross rental yields are Medan Baru (especially the Padang Bulan and Dr. Mansyur corridor near USU), parts of Medan Selayang, Medan Petisah, and the Kesawan area in Medan Barat, with yields typically ranging from 5% to 9% depending on property type and optimization.
Across Medan as a whole, typical gross rental yields for investment properties range from about 4% to 7%, with smaller apartments and well-located compact houses at the higher end and large luxury homes at the lower end.
Each top-yielding neighborhood delivers higher returns for specific reasons:
- Medan Baru (USU corridor): nonstop tenant turnover from students and university staff keeps occupancy high.
- Medan Selayang: spillover demand from USU creates steady rental liquidity for compact properties.
- Medan Petisah: professional tenants pay premium rents for central access and parking convenience.
- Kesawan (Medan Barat): small units near the station attract short-stay and professional renters.
Finally, please note that we cover the rental yields in Medan here.
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Which Areas in Medan Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Medan perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Medan that perform best for short-term rentals are Medan Barat (particularly the Kesawan and Lapangan Merdeka fringe), Medan Petisah, and Medan Baru near USU, with nightly rates typically ranging from IDR 300,000 to IDR 800,000 depending on property quality and location.
Top-performing Airbnb properties in these Medan neighborhoods can generate monthly revenues between IDR 5 million and IDR 15 million, though this varies significantly by season and property type since Medan's short-term rental market is driven more by business travelers and family visits than pure tourism.
Each neighborhood outperforms for different reasons:
- Kesawan / Lapangan Merdeka (Medan Barat): downtown access and recently upgraded public spaces attract business visitors.
- Medan Petisah: central location near offices and malls appeals to short-stay professionals.
- Medan Baru (near USU): visiting families and academic travelers create consistent short-stay demand.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Medan.
Which tourist areas in Medan are becoming oversaturated with short-term rentals?
In early 2026, the areas in Medan most at risk of short-term rental oversaturation are specific blocks in Kesawan near Medan train station, certain apartment buildings in Medan Petisah, and clusters of units near Lapangan Merdeka where investors have copied each other's strategies.
Medan's overall STR market remains small, with only a few hundred active listings citywide according to recent data, which means oversaturation happens at the micro level rather than across entire neighborhoods.
The clearest sign of oversaturation in these Medan areas is when you see multiple near-identical units in the same building or block competing aggressively on price, often with heavy discounting of daily rates and guest reviews mentioning noise or building management restrictions on short-term guests.
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.
Which Areas in Medan Are Best for Long-Term Rentals?
Which neighborhoods in Medan have the strongest demand for long-term tenants?
The neighborhoods in Medan with the strongest demand for long-term tenants are Medan Baru and Medan Selayang (driven by the USU ecosystem), Medan Petisah and Medan Polonia (driven by professionals), and Medan Helvetia and Medan Sunggal (driven by commuters and young families).
In these high-demand Medan neighborhoods, well-priced rental properties typically find tenants within two to four weeks, with vacancy rates remaining low due to consistent demand from students, university staff, office workers, and households forming in the broader metro area.
Each neighborhood attracts a distinct tenant profile:
- Medan Baru: university students and USU academic staff seeking proximity to campus.
- Medan Selayang: spillover demand from USU plus young professionals priced out of central areas.
- Medan Petisah: mid-level professionals and executives who prioritize central access and parking.
- Medan Helvetia / Medan Sunggal: commuting families seeking affordable landed housing with good road access.
The key amenity that makes these neighborhoods attractive differs by area: Medan Baru and Selayang tenants prioritize walking distance to USU, Medan Petisah tenants value proximity to offices and malls, while Medan Helvetia and Sunggal tenants look for parking space and commuter-friendly road connections.
Finally, please note that we provide a very granular rental analysis in our property pack about Medan.
What are the average long-term monthly rents by neighborhood in Medan in 2026?
As of early 2026, average long-term monthly rents in Medan range from about IDR 2 million in the northern coastal belt to IDR 35 million for premium family homes in central neighborhoods like Medan Petisah and Medan Polonia.
In the most affordable Medan neighborhoods like Medan Marelan, Labuhan, and Belawan, entry-level houses typically rent for IDR 2 million to IDR 6 million per month, though tenants accept flood risk and industrial proximity at these prices.
In average-priced Medan neighborhoods like Medan Helvetia and Medan Sunggal, mid-range family houses typically rent for IDR 3 million to IDR 15 million per month, depending on size and condition.
In the most expensive Medan neighborhoods like Medan Petisah, Medan Polonia, and the USU-adjacent parts of Medan Baru, high-end apartments rent for IDR 3.5 million to IDR 7.5 million monthly, while premium family houses can command IDR 15 million to IDR 35 million per month.
You may want to check our latest analysis about the rents in Medan here.
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Which Are the Up-and-Coming Areas to Invest in Medan?
Which neighborhoods in Medan are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Medan showing the clearest signs of gentrification and investor interest are the Kesawan and Lapangan Merdeka fringe in Medan Barat, select streets near USU in Medan Baru, and pockets along the emerging BRT TransMebidang corridors.
These gentrifying Medan neighborhoods have seen modest annual price appreciation of roughly 3% to 6% in recent years, which is above the citywide average but still far from a speculative boom, consistent with Bank Indonesia's national data showing measured growth.
Which areas in Medan have major infrastructure projects planned that will boost prices?
The areas in Medan most likely to see price boosts from infrastructure are neighborhoods along the TransMebidang BRT corridors, the immediate fringe around the upgraded Lapangan Merdeka civic core, and the northwest edges benefiting from the mature Medan-Binjai toll road.
The specific projects driving this include the TransMebidang BRT system improving city mobility, the completed Lapangan Merdeka revitalization (a IDR 27 billion public realm upgrade completed in 2025), and ongoing management of the Medan-Binjai toll corridor which expands the commuter shed.
Historically in Indonesian cities, areas near completed major transit or public realm projects have seen price premiums of 5% to 15% over comparable locations without such improvements, though gains typically materialize over three to five years rather than immediately.
You'll find our latest property market analysis about Medan here.
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 Areas in Medan Should I Avoid as a Property Investor?
Which neighborhoods in Medan with lots of problems I should avoid and why?
The neighborhoods in Medan that investors should generally avoid unless pricing in significant risk are the northern coastal belt (Medan Belawan, Medan Labuhan, Medan Marelan), industrial-adjacent pockets in Medan Deli, and any micro-area where you cannot verify legal and permit compliance.
Each problem area has distinct issues:
- Medan Belawan / Labuhan / Marelan: recurring coastal flooding (rob) documented in official BMKG warnings.
- Medan Deli (industrial zones): noise, heavy truck traffic, and air quality concerns reduce tenant appeal.
- Unverified legal status (anywhere): messy paperwork can trap foreign buyers in disputes.
For the coastal belt to become viable, significant government investment in flood mitigation infrastructure would be needed, while industrial areas would require rezoning or buffer development to improve livability.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Medan.
Which areas in Medan have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Medan with stagnant or declining property prices (in real terms, after inflation) are primarily the flood-exposed northern coastal belt and any micro-markets where STR or apartment investors have created oversupply.
These stagnant Medan areas have seen flat or slightly negative real price growth over the past three to five years, essentially losing value when accounting for Indonesia's inflation rate of around 2% to 3% annually.
The underlying causes differ by area:
- Medan Marelan / Labuhan / Belawan: recurring flood damage and insurance costs discourage buyers.
- Oversupplied STR blocks (various locations): too many similar units competing on price erodes values.
- Industrial-adjacent Medan Deli: livability concerns limit demand growth despite low entry prices.
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Which Areas in Medan Have the Best Long-Term Appreciation Potential?
Which areas in Medan have historically appreciated the most recently?
The areas in Medan that have appreciated most over the past five to ten years are Medan Baru (driven by USU demand), Medan Petisah and Medan Polonia (the central premium belt), and pockets of Medan Barat near the improving civic core.
Here are the approximate appreciation ranges for these top performers:
- Medan Baru (USU corridor): roughly 4% to 6% annual appreciation due to constant rental demand.
- Medan Petisah: roughly 3% to 5% annual appreciation driven by professional tenant competition.
- Medan Polonia: roughly 3% to 5% annual appreciation supported by limited premium housing supply.
- Kesawan (Medan Barat): roughly 3% to 6% recent gains tied to civic investment momentum.
The main driver of above-average appreciation in these Medan areas is scarcity of conveniently located stock combined with durable demand engines like universities and offices, which means more buyers and renters compete for fewer desirable options.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Medan.
Which neighborhoods in Medan are expected to see price growth in coming years?
The neighborhoods in Medan expected to see the strongest price growth in coming years are the Kesawan and Lapangan Merdeka fringe in Medan Barat, BRT-advantaged nodes along TransMebidang corridors, USU-adjacent Medan Baru and Medan Selayang, and select pockets in the northwest benefiting from toll road connectivity.
Projected growth rates for these high-potential Medan neighborhoods:
- Kesawan / Lapangan Merdeka fringe: roughly 4% to 7% annual growth as civic upgrades mature.
- BRT corridor nodes: roughly 3% to 6% annual growth as transit reduces commute times.
- Medan Baru / Medan Selayang (USU area): roughly 4% to 6% steady growth from structural demand.
- Northwest toll-connected edges: roughly 3% to 5% growth as commuter shed expands.
The single most important catalyst for future price growth in these Medan neighborhoods is improved mobility, whether from BRT expansion, civic realm upgrades that make areas more walkable, or toll connectivity that reduces commute friction for households.
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 Do Locals and Expats Really Think About Different Areas in Medan?
Which areas in Medan do local residents consider the most desirable to live?
The areas in Medan that local residents consider most desirable to live are Medan Polonia (for its quieter premium residential feel), Medan Petisah (for its central convenience), and Medan Baru (for its amenities and university ecosystem).
Each area appeals to locals for specific reasons:
- Medan Polonia: quieter streets and established neighborhoods offer a premium feel without inner-city chaos.
- Medan Petisah: central access to offices, malls, and services makes daily life easier.
- Medan Baru: proximity to USU brings amenities, food options, and a younger, livelier atmosphere.
These locally-preferred Medan neighborhoods tend to attract established middle-class and upper-middle-class families, professionals with stable incomes, and academics connected to the university ecosystem.
Local preferences in Medan largely align with what foreign investors should target, since the same factors that make areas desirable for residents (access, safety, amenities) also support strong rental demand and resale liquidity.
Which neighborhoods in Medan have the best reputation among expat communities?
The neighborhoods in Medan with the best reputation among expat communities are Medan Polonia, Medan Petisah, and select pockets of Medan Baru near international schools and modern apartments.
Expats prefer these Medan neighborhoods for practical reasons:
- Medan Polonia: more modern apartments, quieter environment, and proximity to international services.
- Medan Petisah: central location makes accessing offices, hospitals, and airports straightforward.
- Medan Baru: better selection of restaurants, cafes, and English-friendly services near the university.
The expat profile in these popular Medan neighborhoods tends to be professionals working for multinational companies, NGO staff, academics on exchange programs, and foreign entrepreneurs, most of whom prioritize convenience and modern amenities over budget considerations.
Which areas in Medan do locals say are overhyped by foreign buyers?
The areas in Medan that locals most commonly say are overhyped by foreign buyers are certain downtown blocks in Kesawan (Medan Barat) marketed for Airbnb potential, select apartment buildings in Medan Petisah with aggressive investor marketing, and any property sold primarily on "location vibes" without attention to practical factors.
Locals believe these Medan areas can be overvalued for specific reasons:
- Kesawan STR units: foreign buyers overestimate Airbnb demand without checking Medan's small tourist base.
- Certain Medan Petisah apartments: marketed at Jakarta-style prices but local rents don't support the valuations.
- "Vibes-based" purchases: ignoring parking, flooding, or building management leads to disappointment.
Foreign buyers typically see downtown atmosphere and renovation potential in these areas, while locals know that practical factors like parking availability, building rule enforcement against STR, and flood exposure during rainy season often make the investment math less attractive than it first appears.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Medan.
Which areas in Medan are considered boring or undesirable by residents?
The areas in Medan that residents commonly consider boring or undesirable are the industrial-adjacent belts in parts of Medan Deli, the flood-prone northern coastal strip (Medan Marelan, Labuhan, Belawan), and newer suburban developments far from amenities with limited transport options.
Residents find these Medan areas unappealing for distinct reasons:
- Medan Deli (industrial zones): noise, truck traffic, and limited lifestyle amenities make daily life tedious.
- Medan Marelan / Labuhan / Belawan: flood anxiety during rainy season disrupts routines and damages property.
- Distant new suburbs: lack of established shops, schools, and transport means car dependency and isolation.
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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 SHPR Q1 2025 | Official central bank survey tracking residential prices nationwide. | We used it to anchor Indonesia-wide price growth assumptions for early 2026. We treated it as macro truth and let local data adjust neighborhood rankings. |
| Rumah123 (sales listings) | One of Indonesia's largest property portals with current inventory. | We used it to triangulate asking-price bands by neighborhood. We treated listings as market offers with a discount buffer for realistic estimates. |
| Rumah123 (rental listings) | Large transparent view of current landlord asking rents. | We used it to estimate long-term rent bands and compute gross yield ranges. We cross-checked against BPS inflation data to avoid unrealistic assumptions. |
| BPS Kota Medan | Official statistics agency portal for Medan city-level data. | We used it to ground the real economy backdrop including inflation and local structure. We avoided relying on anecdotal demand claims by using official data. |
| AirROI Medan STR Report | Data aggregator with clear stated periods and listing counts. | We used it for Medan-specific STR scale and performance signals. We cross-checked against BPS tourism to avoid overtrusting platform data. |
| BPS Sumatera Utara (tourism) | Official provincial tourism arrivals publication. | We used it to calibrate realistic tourism-driven rental demand for Medan. We avoided copying Bali-style Airbnb assumptions into a different market. |
| ITDP Indonesia (TransMebidang) | Reputable transport policy organization documenting urban mobility. | We used it to identify transport improvements affecting neighborhood desirability. We justified up-and-coming calls near corridor nodes. |
| Antara News (Lapangan Merdeka) | Indonesia's state news agency with careful reporting on official projects. | We used it to anchor major CBD public realm upgrades with budget and timing. We supported why downtown can slowly re-rate for lifestyle demand. |
| PP No. 18/2021 (BPK) | Official regulation text in Indonesia's legal documentation system. | We used it to ground what property rights exist for foreigners. We avoided blog law when discussing ownership structures. |
| Medan Bisnis Daily | Local business news outlet covering city-specific issues including flooding. | We used it to identify flood and rob risk warnings for northern coastal areas. We kept risk assessments grounded in credible reporting. |
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