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Where are the best places to invest in Medan right now? Is the city center still the top pick, or are areas like Setiabudi, Medan Baru, and Polonia gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Medan and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
1) Medan Baru is booming with infrastructure upgrades driving rapid property appreciation, making it a real estate investment hotspot
Medan Baru is quickly becoming a prime spot for real estate investment thanks to its ongoing infrastructure upgrades.
One of the major projects is the development of Medan City's first Bus Rapid Transit (BRT) line. This line stretches 24 km with 12 direct service routes and 45 stations, significantly boosting public transport in the area. This means getting around Medan Baru will be much easier, making it a more attractive place to live and work.
Beyond public transport, the city is also enhancing road connections to nearby areas like Berastagi. This is part of a larger plan that includes setting up a Metropolitan Transport Authority. Such efforts show a strong commitment to sustainable urban growth, which is a big plus for potential investors.
These improvements are not just about convenience; they are making Medan Baru a hot spot for both residential and commercial investments. With better transport links, traffic congestion is expected to decrease, making the area even more appealing. This is great news for anyone looking to invest in property here.
Medan's economy is also on the rise, thanks to a thriving IT industry and policies that welcome investors. This economic growth is helping to drive up property values in Medan Baru, making it a smart choice for real estate investment.
Sources: Mobilise Your City, ET Edge Insights, World Economic Forum
2) Medan Johor is attracting affluent buyers with its upscale housing developments, driving up property prices
Medan Johor is drawing in affluent buyers, causing property prices to rise.
Over the past five years, residential property prices in Johor have climbed by 3-5% annually, largely due to strong interest from Singaporean buyers. This demand is reshaping the local market, making it a hotspot for those looking to invest in upscale living spaces.
The area is buzzing with new upscale housing projects, with a 10% increase in luxury apartments expected in 2024. Developments like Avira Garden Terraces Medini are setting the tone, with median prices now hitting RM1,017,000. These premium projects are not just about homes; they’re about lifestyle, drawing in more affluent residents who are keen on modern amenities and exclusive communities.
Foreign demand is a big part of the picture, especially from Singaporeans. Favorable currency exchange rates and supportive policies are making Johor an attractive investment spot. This influx of international interest is reshaping the local real estate landscape, turning it into a vibrant, cosmopolitan area.
For those considering a move or investment, Medan Johor offers a unique blend of luxury and opportunity. The area’s transformation is not just about buildings; it’s about creating a community that appeals to a global audience. Affluent buyers are finding value in the lifestyle and potential returns that Johor’s real estate market promises.
As more upscale developments rise, the area is becoming a symbol of modern living, attracting those who value both comfort and investment potential. Medan Johor is not just a place to live; it’s a place to thrive, with a community that reflects a blend of cultures and aspirations.
Source: NST
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) Kampung Baru is gaining interest for its vibrant markets and commercial real estate opportunities
Kampung Baru is quickly becoming a prime spot for commercial real estate investors.
In 2024, property prices in Kampung Baru were expected to rise by an average of 10.7% in 2025, signaling a growing interest in property investment. This uptick in property value clearly shows that the area is becoming more attractive to investors.
The local markets, like the bustling Taman Medan market, draw large crowds every week, creating a vibrant atmosphere and a strong customer base. This increase in foot traffic not only boosts consumer satisfaction but also enhances the area's appeal as a commercial hub. The lively market scene is a major draw for commercial real estate investors.
Nearby developments in areas like Kampung Datuk Keramat are also playing a role. High-rise projects with amenities such as hotels, serviced apartments, and shopping malls are transforming the landscape. These changes are likely to spill over into Kampung Baru, making it even more attractive to investors.
Rental yields for commercial properties in Kampung Baru are promising, with stable rates and yields of 4% to 5%. This indicates a favorable investment environment, adding to the area's allure.
Sources: Rabobank, Mighty Travels, The Edge Malaysia
4) Sunggal is attracting interest for its affordable land and potential for future residential projects
Sunggal is catching eyes for its affordable land prices and potential for future residential projects.
Medan's population is on the rise, with 2,494,512 residents in 2022, driving a strong demand for housing. This surge means more people need homes, and Sunggal is perfectly positioned to meet this need thanks to its budget-friendly options. Real estate reports highlight Sunggal's appeal to both developers and homebuyers seeking cost-effective solutions.
Take a look at developments like Manhattan Times Square in Sunggal, which offers leased retail space. This project, with a total lettable area of 89,855 sqm by PT Greenland Garden Realty, shows significant investment in the area, hinting at its growth potential. While we don't have exact numbers, Sunggal's affordability suggests its land prices are competitive compared to other parts of Medan.
Even though there aren't specific announcements about new residential projects, the buzz around Sunggal indicates that developers are eyeing the area for future ventures. This interest, coupled with the demand for affordable housing, underscores Sunggal's potential for new residential developments.
Sources: KF Map
5) Medan Selayang is gaining interest with new public transport links boosting its appeal
Medan Selayang is becoming a hot spot thanks to new public transport links that are making it more attractive to buyers.
The city has been pouring resources into public transport, with Bus Rapid Transit (BRT) and Light Rail Transit (LRT) systems leading the charge. This isn't just about cutting down traffic; it's about making Medan Selayang a place where people want to live and invest.
Part of this transformation is the Medan Inclusive Mobility Plan, crafted with ITDP's help. This plan is all about connecting Medan Selayang to key areas through new bus and train routes, making it easier and faster to get around.
With these new transport links, travel times are dropping, and accessibility is improving, which is a big win for both residents and businesses. The area is set to become even more appealing as these changes take hold.
There's also a push for sustainable transport systems, thanks to the Medan Inclusive Mobility Plan and the UK-PACT project. This could mean new residential and commercial projects popping up to support the growing community.
Iswar Lubis, head of the Medan Transport Agency, is optimistic about these inclusive mobility plans. The focus is on developing Medan Selayang as a key urban area, which could mean exciting times ahead for the region.
Sources: World Economic Forum, ITDP, UGM News
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.