Buying property in Medan: is it worth it?

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.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Medan, Jakarta, and Surabaya. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average property price per square meter in Medan, and how does it compare with other major Indonesian cities?

The average property price per square meter in Medan is around $1,900 (IDR 27.1 million) in the city center and $800 (IDR 11.4 million) in suburban areas as of September 2025.

Medan remains significantly more affordable than Jakarta, where city center apartments range from $2,200 to $3,600 per square meter. Compared to Surabaya and Bandung, which typically see prices between $1,300 and $2,100 per square meter, Medan offers better value while catching up due to rapid growth.

For landed homes and commercial spaces in Medan's city center, prices average around $600 per square meter, making them particularly attractive compared to similar properties in Jakarta or Surabaya. This price differential creates opportunities for investors looking to enter the Indonesian property market at more accessible price points.

The gap between Medan and other major Indonesian cities is narrowing as infrastructure development and economic growth drive demand. However, Medan still offers approximately 40% lower prices than Jakarta for comparable properties.

How have property prices in Medan changed over the past five years, and what's the short-term trend for the next 12 months?

Medan's property market has experienced remarkable growth over the past five years, with prices rising from IDR 750 million in 2019 to IDR 950 million in 2024 for mid-range homes.

The most dramatic acceleration occurred in the past year, with houses seeing a 67.8% price increase and apartments rising by 47.7%. This steep growth has been driven by infrastructure investments, strong domestic demand, and increasing foreign interest in the market.

For the next 12 months, the Medan property market is expected to experience more moderate growth of 1-3% annually for most areas. However, premium neighborhoods and areas benefiting from new infrastructure developments may see growth rates of 5-7%.

This moderation from the previous year's explosive growth reflects market stabilization rather than weakness. The short-term outlook remains positive, particularly for properties in well-connected areas or those near planned infrastructure projects.

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

What are the medium-term forecasts for property values in Medan over the next three to five years?

The medium-term outlook for Medan property values over the next three to five years shows cumulative growth of 10-20% for most residential areas.

Areas near new toll roads, public transport developments, or emerging commercial hubs are expected to see significantly higher appreciation rates. These infrastructure-linked corridors could experience growth well above the general market average.

The Indonesian government's continued investment in North Sumatra's infrastructure, including transportation networks and industrial zones, supports this positive medium-term outlook. Medan's strategic position as a regional economic hub enhances its property market prospects.

Commercial properties and luxury residential developments in prime locations like Medan Baru and Polonia are positioned for stronger growth, potentially exceeding the 20% cumulative increase projected for standard residential properties.

What's the long-term outlook for property investment in Medan over the next 10 years, considering infrastructure and economic growth?

Growth Driver	Impact on Property Values	Timeline
Infrastructure Development	Major appreciation in connected areas	3-7 years
Economic Hub Status	Sustained demand growth	Ongoing
Population Growth	Increased housing demand	5-10 years
Industrial Expansion	Commercial property appreciation	2-5 years
Regional Connectivity	Enhanced property liquidity	5-10 years
Tourism Development	Service sector property demand	7-10 years
Education Sector Growth	Student housing demand	3-8 years

Which neighborhoods in Medan are the most expensive, and which areas are still considered affordable or undervalued?

The most expensive neighborhoods in Medan include Medan Baru, Polonia, Setiabudi, and premium gated communities like Cemara Asri.

Medan Baru stands out for its fast appreciation and upmarket condominiums, while Polonia attracts luxury home buyers and the expat community. Setiabudi commands high prices due to its proximity to international schools and high-end amenities.

For affordable and potentially undervalued areas, Kampung Baru offers good rental yields and a lively local market atmosphere. Sunggal presents budget land options with future growth potential, while Taman Medan provides entry-level apartment options.

Fringe suburban districts remain the most affordable, though they may require longer holding periods to realize significant appreciation. These areas often benefit from urban expansion over time.

How do property prices differ by type—apartments, landed houses, commercial spaces—and which type shows the strongest growth potential?

Property prices in Medan vary significantly by type, with apartments averaging IDR 27.1 million per square meter, landed houses at IDR 9.8 million per square meter, and commercial spaces at IDR 9.2 million per square meter.

Landed houses have shown the strongest growth potential with a 67.8% increase in the past year, driven by scarcity in the city center and strong demand from families. City center luxury condos, priced around $1,900 per square meter, represent the premium segment with high demand.

Townhouses, averaging IDR 7.8 million per square meter, offer steady growth with less volatility, making them attractive for middle-class buyers. Commercial spaces have grown by 13.8% annually, providing stable rental yields especially in active areas like Kampung Baru.

Suburban land, at IDR 10.2 million per square meter, shows moderate 6% growth but offers redevelopment opportunities, particularly in industrial and logistics zones.

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

What are the typical rental yields in Medan by area and property type, and how do they compare to national averages?

Typical rental yields in Medan range from 4-6% for residential properties and 4-5% for commercial spaces, with premium areas achieving 6-8% for high-demand central condos and student-oriented units.

Kampung Baru delivers solid 4-5% yields due to its active local market and strong rental demand. Medan Baru and city-fringe areas near universities often exceed average yields due to consistent tenant demand from students and young professionals.

These yields compare favorably to Indonesia's national averages, particularly considering Medan's lower property acquisition costs. The combination of affordable entry prices and decent yields makes Medan attractive for rental income investors.

Areas with high rental demand include the city center for executives, university districts for students and young professionals, and industrial precincts for workers and the growing expat population.

What's the current rental demand like in Medan, and is it concentrated more in the city center, near universities, or industrial zones?

1. **City Center Demand**: High demand from executives and business professionals seeking proximity to commercial districts2. **University Areas**: Strong consistent demand from students and young professionals, particularly around major educational institutions3. **Industrial Zones**: Growing demand from workers in expanding manufacturing and logistics sectors4. **Expat Communities**: Increasing demand in areas like Polonia and Setiabudi from foreign workers and families5. **Transport Corridors**: Rising demand along new infrastructure routes due to improved accessibility

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 easy is it to resell property in Medan, and what's the average time it takes to find a buyer depending on the area and property type?

Property resale liquidity in Medan varies significantly by location and type, with premium central properties selling within 2-3 months on average.

Properties in central areas, premium neighborhoods, or emerging infrastructure corridors typically achieve faster sales due to higher demand. Apartments generally sell faster than landed properties due to lower entry costs and broader buyer appeal.

Suburban or lower-end units can take 4-8 months to sell, particularly in areas with limited infrastructure or amenities. Properties in fringe locations may face longer sale periods unless priced competitively.

The best liquidity occurs in areas where new infrastructure is planned or completed, and in districts with young demographics or significant expat populations. Oversupply of basic apartments in distant suburban areas can significantly slow sales.

What are the main risks involved in buying property in Medan, such as oversupply, infrastructure delays, or regulatory issues?

1. **Oversupply Risk**: The affordable apartment sector may experience local oversupply in fringe areas, particularly basic units without distinctive features2. **Infrastructure Delays**: Planned projects could face delays, potentially flattening appreciation in targeted corridors and affecting expected returns3. **Regulatory Restrictions**: Foreign ownership limitations on landed property and potential changes in tax policies could impact market sentiment4. **Economic Volatility**: While more stable than tourist-driven markets, Medan remains vulnerable to national macroeconomic shocks and policy changes5. **Market Concentration**: Heavy reliance on specific industries or infrastructure projects creates vulnerability to sector-specific downturns

For someone buying to live, which areas of Medan are considered best in terms of amenities, safety, and future development?

For residents prioritizing amenities and safety, Polonia, Setiabudi, and Medan Baru represent the top choices in the city.

Polonia offers an established expat community, international amenities, and luxury housing options with good security infrastructure. Setiabudi provides proximity to international schools and high-end shopping, making it ideal for families.

Premium gated communities like Cemara Asri and Bumi Asri offer comprehensive security, recreational facilities, and well-maintained environments. These developments often include parks, community centers, and 24-hour security services.

Medan Baru stands out for future development potential, with major transport upgrades and shopping mall developments planned. For value-conscious buyers seeking vibrant lifestyle options, Kampung Baru offers good amenities at more affordable prices.

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

For someone buying purely as an investment, what's the ideal entry budget, property type, and neighborhood to maximize returns?

Investment Strategy	Ideal Budget	Property Type
High Growth Potential	$80,000-$120,000	Luxury city-center condos
Steady Rental Income	$60,000-$80,000	Student rental apartments
Long-term Appreciation	$100,000-$150,000	Landed property in Medan Baru
Commercial Investment	$120,000-$200,000	Shophouses near infrastructure
Value Play	$40,000-$60,000	Apartments in emerging areas
Premium Investment	$200,000+	Luxury properties in Polonia
Infrastructure Play	$70,000-$100,000	Properties along new transport corridors

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. Indonesia Real Estate - Medan Property
2. BambooRoutes - Medan Price Forecasts
3. BambooRoutes - Medan Real Estate Forecasts
4. BambooRoutes - Medan Real Estate Trends
5. Global Property Guide - Indonesia Price History
6. BambooRoutes - Medan Property
7. BambooRoutes - Medan Which Area
8. HoodMaps - Medan
9. IndonED - Rental Yields in Indonesia
10. AirROI - Medan Report