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Where are the best places to invest in Palembang right now? Is the city center still the top pick, or are areas like Jakabaring, Ilir Barat, and Seberang Ulu 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 region. 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 Palembang 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.

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1) Sukarami is attracting investors with affordable housing and growth potential from upcoming infrastructure projects
Sukarami is becoming a hotspot for investors thanks to its affordable housing market.
With a median sales price of around Rp5,950,000,000 and a median price per square meter of Rp672,000, Sukarami offers a budget-friendly alternative compared to other districts in Palembang. This affordability is drawing attention from those looking to invest in property without breaking the bank.
Investors are also eyeing Sukarami for its growth potential. The infrastructure budget for 2025 has seen a significant boost, with the Public Works and Housing Ministry receiving an additional Rp40.59 trillion. This increase in funding indicates that infrastructure projects might soon wrap up, which could greatly benefit areas like Sukarami.
Real estate developers are not missing out either. Platforms like FazWaz.id show a growing number of property projects for sale in Sukarami, signaling developers' confidence in the area's potential. This interest from developers suggests that Sukarami is on the brink of development and growth.
As infrastructure projects progress, Sukarami's appeal is likely to rise, making it a promising spot for future investments. The combination of affordable housing and upcoming infrastructure improvements makes it a compelling choice for those looking to invest in property.
2) Alang-Alang Lebar is attracting developers and investors with its vast land and potential for large-scale residential projects
Alang-Alang Lebar is becoming a hotspot for developers and investors due to its abundant land perfect for large residential projects.
In recent years, particularly in 2023 and 2024, there has been a surge in residential project permits in the area. This aligns with a strategic initiative to enhance governance and infrastructure, paving the way for more housing developments. The local government is actively working on infrastructure projects, aiming to transform Palembang into a city known for quality services and self-sufficiency.
Alang-Alang Lebar is not just about available land; it's about a vision for growth. Its strategic location and improved connectivity make it a prime investment spot. Rising property prices in nearby areas are pushing developers to seek more affordable options, making Alang-Alang Lebar an attractive choice.
The general trend of population growth in Palembang further supports the need for more residential projects, adding to the area's appeal for developers and investors. This trend is particularly notable as it aligns with the local government's efforts to boost the region's development.
Insider knowledge suggests that the area's development is not just about housing; it's about creating a community with improved infrastructure and services. This makes Alang-Alang Lebar a compelling option for those looking to invest in a growing area.
With the local government's commitment to development and the area's strategic advantages, Alang-Alang Lebar is poised to become a key player in the region's real estate market.
Sources: RENSTRA Document, Just Auto Magazine, DEC and OPRHP Land Acquisition Report

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) Gandus is gaining attention for its scenic views and eco-friendly projects, appealing to environmentally conscious buyers
Gandus is quickly becoming a hotspot for real estate thanks to its stunning landscapes and eco-friendly projects.
One standout project is the Sriwijaya CBD, which is designed with a green belt concept. This means you'll find plenty of parks and green spaces, perfect for those who love nature and sustainability. Imagine living in a place where lush greenery is just a step away.
But it's not just about the greenery. The Sriwijaya CBD also boasts advanced infrastructure like water treatment plants and flood control systems. These features not only keep the area beautiful but also ensure a clean and healthy environment for everyone living there.
What's interesting is that this trend isn't just happening in Gandus. Globally, there's a growing demand for eco-friendly properties, and Gandus is right in line with this shift. This makes it a promising spot for real estate investment, especially if you're looking for sustainable living options.
For those who are environmentally conscious, Gandus offers a unique opportunity. The combination of scenic views and planned eco-friendly developments is attracting buyers who care about the planet. It's a place where you can enjoy nature while living sustainably.
So, if you're considering buying property, Gandus might just be the perfect place. With its focus on sustainability and beautiful surroundings, it's no wonder it's becoming a focal point for real estate.
4) Ilir Barat I is gaining interest for its strategic location near business districts, attracting those seeking capital appreciation
Ilir Barat I is becoming a hot spot for property buyers due to its strategic location near bustling business districts.
Imagine living or investing in a place that's just a stone's throw away from Jalan Demang Lebar Daun, a key business hub in Palembang. This proximity makes Ilir Barat I a magnet for those eyeing capital appreciation. The area is not just about business; it's also about lifestyle. Take the Excelton Hotel, for instance, a luxurious haven for both business and leisure travelers, right in the heart of Ilir Barat I.
The demand for both residential and commercial properties here is climbing. Why? It's all about location, location, location. Being close to major business districts like Sudirman and Demang Lebar Daun is a big draw. People want to live where they work and play, and Ilir Barat I offers just that.
But there's more to the story. Palembang's urban development plans are set to transform the area even further. New roads and public transport links are in the pipeline, which means getting around will be a breeze. These improvements are not just about convenience; they are expected to boost property values in Ilir Barat I.
Investors and residents alike are keeping a close eye on these developments. The broader commitment to urban development in the region is a signal that Ilir Barat I is on the rise. It's not just about the present; it's about the future potential of the area.
So, if you're considering buying property in the country, Ilir Barat I should definitely be on your radar. With its strategic location and ongoing urban improvements, it's a place where your investment could really pay off.
Sources: Traveloka, Asian Development Bank, National Association of REALTORS
5) Jakabaring is booming with its proximity to the sports complex and improved infrastructure, attracting investors seeking high rental yields
Jakabaring is buzzing with property demand, and it's easy to see why.
One major reason is the rising property prices, signaling a growing interest from investors eager for solid returns. This trend is catching the eye of those looking to make a smart investment move.
Local real estate agencies are reporting increased rental yields, which is a big deal. While places like Surabaya and South Tangerang boast high yields, Jakabaring is shaping up to offer similar, if not better, returns. This makes it a magnet for anyone eyeing high rental income.
Infrastructure is another game-changer here. Thanks to the government's investment in the Trans-Sumatera toll road, Jakabaring is now more accessible than ever. Plus, the Light Rail Transit (LRT) system connects it seamlessly to other city parts, making it even more appealing.
Then there's the proximity to Jakabaring Sport City (JSC), a major attraction. Known for hosting big events like the Asian Games 2018, this sports complex draws both local and international crowds, boosting Jakabaring's profile significantly.
Media outlets are buzzing about Jakabaring as an emerging property hotspot, increasing its visibility among investors. This added attention is making it a prime spot for those looking to invest in a promising area.
Sources: Bisnis Ekonomi, Poltekpar Journal, Global Property Guide
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6) Kalidoni is gaining interest with new transport links enhancing accessibility and promising future property appreciation
Kalidoni is buzzing with real estate activity thanks to new transportation links that make it more accessible.
With the Indonesian government pouring resources into transportation, especially in Palembang, Kalidoni is becoming a hotspot for property buyers. The Committee for the Acceleration of Priority Infrastructure Provision (KPPIP) has been pivotal in boosting connectivity in the region.
The Light Rail Transit (LRT) in Palembang, completed in August 2018, is a game-changer. It links important spots like the Sultan Mahmud Badaruddin II International Airport and Jakabaring Sport City, making daily commutes a breeze. This ease of travel is drawing in potential buyers and investors to Kalidoni.
Big players like PT Waskita Karya are jumping on board these projects, signaling a strong interest from property developers. Their involvement in the LRT construction shows the area's potential for growth and further investment.
For those eyeing property in Kalidoni, this developer interest is a promising sign. Future property appreciation seems likely as the area continues to develop and attract more attention.
Kalidoni's transformation is not just about better transport; it's about becoming a prime location for real estate. Investors are taking note, and the buzz is only getting louder.
Source: Knepublishing
7) Seberang Ulu I is gaining attention for its urban renewal projects, promising to boost property values
Seberang Ulu I is becoming a hotspot for real estate investors due to its exciting urban renewal projects.
These projects are not just about sprucing up the area; they have the potential to significantly boost property values. We've seen this happen before in places like China, where massive urban renewal investments have transformed entire regions. Back in 2024, China kicked off thousands of projects to breathe new life into old urban areas, and the results were impressive.
Vietnam offers another great example. There, infrastructure improvements have made cities much more attractive to investors. This trend suggests that Seberang Ulu I could be on a similar path, with property values likely to rise as the area becomes more developed and accessible.
In Indonesia, better public transport and reduced pollution have been key factors in enhancing property values. As Seberang Ulu I continues its urban renewal journey, these improvements could make the area more appealing to both residents and investors. The focus on infrastructure is not just about convenience; it's about creating a more livable and attractive environment.
Investors are keenly watching these developments, knowing that improved accessibility can lead to higher property values. The ongoing projects in Seberang Ulu I are expected to follow this pattern, making it a promising area for real estate investment.
With urban renewal in full swing, Seberang Ulu I is poised to become a prime location for those looking to invest in property. The combination of government investment and infrastructure upgrades is a powerful driver of property value growth.
Sources: Source of Asia, Urban Land Institute, Government of China
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.