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Property prices in Surabaya are experiencing steady growth as of June 2025, driven by infrastructure development, foreign investment, and urbanization trends. With average residential prices reaching IDR 20 million per square meter and strong economic fundamentals supporting continued demand, the market shows positive momentum despite some localized oversupply in certain segments.
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Surabaya's residential property market is experiencing moderate price increases, with average costs at IDR 20 million per square meter in 2025, representing nearly 59% growth since 2017.
Government incentives, infrastructure investment, and foreign buyer interest are driving demand, though apartment oversupply poses some localized risks.
| Metric | Current Status (2025) | Market Outlook |
|---|---|---|
| Average Price per m² | IDR 20 million (USD 1,330) | Expected to continue moderate growth of 3-5% annually |
| Median Property Price | IDR 2.21 billion (USD 150,000) | Stable with price appreciation in prime locations |
| Rental Yields | 4.91% - 9.82% (average 7.21%) | Attractive returns compared to Jakarta (4.27%) |
| Foreign Investment | 35% increase (2022-2023) | Growing due to relaxed ownership rules |
| Mortgage Rates | 6% average in 2024 | Stable, tied to BI Rate at 5.5% |
| Market Forecast | Moderate growth | CAGR 7.95% for Indonesia residential market through 2030 |
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.
What are the current property prices in Surabaya as of June 2025?
Property prices in Surabaya have reached IDR 20 million per square meter for residential properties as we reach mid-2025.
The median sales price for a typical residential property stands at approximately IDR 2.21 billion (USD 150,000), with significant variation based on location and property type. Apartments average around IDR 500 million (USD 35,000), while houses command higher prices at IDR 1 billion (USD 70,000) and townhouses fall in between at IDR 800 million (USD 56,000).
These price levels represent a substantial increase from previous years, reflecting Surabaya's growing economic importance and infrastructure development. The city's status as Indonesia's second-largest metropolitan area continues to drive demand from both domestic and international buyers. Foreign investment has particularly accelerated, with FDI in real estate reaching $55.18 million by September 2024.
Rental markets also show strength, with two-bedroom apartments averaging IDR 5 million monthly rent in 2025. It's something we develop in our Indonesia property pack, providing detailed neighborhood-by-neighborhood pricing analysis.
Regional variations within Surabaya show premium areas commanding higher prices, while suburban developments offer more affordable entry points for first-time buyers.
How much have property prices increased in Surabaya over the past five years?
Surabaya residential property prices have increased by approximately 33-43% over the five-year period from 2020 to 2025.
Starting from around IDR 14-15 million per square meter in 2020, prices have climbed steadily to reach IDR 20 million per square meter in 2025. This represents a compound annual growth rate of roughly 6-8% during this period. The growth has been particularly pronounced in the post-pandemic recovery phase, as Indonesia's economy rebounded and government stimulus measures supported the housing market.
Looking at a longer timeframe, the ten-year change from 2015 to 2025 shows even more dramatic appreciation, with prices roughly doubling from approximately IDR 10 million to IDR 20 million per square meter. This longer-term trend reflects Surabaya's transformation into a major economic hub and the sustained urbanization pressures throughout East Java.
The VAT incentive program, which provides 100% tax relief on the first IDR 2 billion of property purchases through June 2025, has helped maintain transaction momentum during this growth period. Additionally, relaxed loan-to-value ratios have made financing more accessible to buyers, supporting continued price appreciation.
Foreign investment has accelerated this trend, with the simplified ownership qualification process attracting international capital to Surabaya's property market.
Which neighborhoods in Surabaya are experiencing the fastest price growth?
Gubeng, Darmo, and Rungkut are currently experiencing the fastest property price growth in Surabaya as of 2025.
Gubeng benefits from its central location and proximity to business districts, making it highly attractive to professionals and investors. The area has seen consistent development of modern residential projects and improved connectivity infrastructure. Darmo's strategic positioning and established commercial presence have driven substantial price appreciation, particularly for both residential and mixed-use developments.
Rungkut has emerged as a growth hotspot due to major infrastructure investments and its developing status as a key suburban center. The neighborhood attracts families seeking modern amenities while maintaining reasonable proximity to central Surabaya. All five major districts of Surabaya - West, East, Central, South, and North - are experiencing investment-driven growth, supported by the government's record IDR 422.7 trillion infrastructure budget.
Transportation improvements, including enhanced road networks and connectivity projects, have particularly benefited these areas. The focus on regional road development and improved public facilities has made these neighborhoods more accessible and desirable for both residents and investors.
Foreign buyers have shown particular interest in these areas, contributing to accelerated price growth as international investment in Surabaya's real estate sector continues expanding.
What property types are seeing the biggest price increases in 2025?
Landed houses are experiencing the strongest price increases in Surabaya during 2025, outperforming apartments and other property types.
Demand for landed housing remains robust, driven by families seeking more space and privacy, particularly following pandemic-influenced lifestyle changes. These properties have shown more resilient price growth compared to apartments, which face oversupply challenges in certain segments. Family-sized homes in suburban and peripheral areas command premium pricing due to limited land availability and strong buyer preference.
Tech-smart and energy-efficient apartments represent another high-growth segment, appealing particularly to younger buyers and professionals who prioritize modern amenities and sustainability features. These properties command premium prices due to their advanced technology integration and energy-saving capabilities, aligning with growing environmental consciousness among Indonesian consumers.
Traditional apartments face mixed conditions, with strong demand in central areas but oversupply issues leading to price pressures in some developments. It's something we develop in our Indonesia property pack, analyzing specific segments and their performance trajectories.
Green-certified buildings and residences with ESG compliance features are experiencing increased demand from both consumers and investors, reflecting global sustainability trends reaching Indonesian property markets.
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What are the property price forecasts for Surabaya through 2030?
Property prices in Surabaya are projected to continue moderate growth through 2030, with annual appreciation expected at 3-5% based on current market fundamentals.
The Indonesian residential real estate market overall is forecast to grow at a CAGR of 7.95% from 2025 to 2030, reaching USD 114.11 billion by 2030 from USD 77.84 billion in 2025. Surabaya, as a major metropolitan area, is expected to participate in this growth trajectory while potentially outperforming the national average due to its strategic economic position.
Short to medium-term projections through 2027-2028 remain positive, supported by Indonesia's projected GDP growth of 4.7-5.5% annually and continued infrastructure investment. The government's commitment to urban development and the ongoing expansion of transportation networks provide fundamental support for sustained property value appreciation.
Long-term forecasts through 2030 suggest continued but potentially slower growth as the market matures and supply catches up with demand in some segments. However, ongoing urbanization trends and Surabaya's developing role as an eastern Indonesia economic hub support optimistic long-term outlooks.
Risks to these forecasts include potential economic slowdowns, policy changes affecting foreign ownership, or oversupply in specific property segments, particularly apartments where inventory levels remain elevated.
How do current mortgage rates affect property demand in Surabaya?
Current mortgage rates in Surabaya averaged 6% in 2024, closely tracking Indonesia's benchmark BI Rate, which supports sustained property demand.
With Bank Indonesia maintaining its key rate at 5.5% as of June 2025, mortgage rates remain relatively attractive for homebuyers. The BI Rate influences all major lenders including BCA and BTN, creating consistent lending conditions across Surabaya's market. This rate environment has supported a 7% increase in residential property loan approvals in 2024.
The competitive lending environment, combined with government VAT incentives providing 100% tax relief through June 2025 and 50% relief for the remainder of 2025, has maintained strong financing accessibility. KPR (mortgage) disbursements reached IDR 637.90 trillion nationally by March 2024, reflecting an 8.75% increase year-over-year.
For foreign buyers, improved financing options following regulatory changes have opened new opportunities, though cash purchases remain common due to simplified ownership processes. The combination of reasonable interest rates and government incentives continues supporting buyer activity across all market segments.
Banks actively compete for mortgage business in Surabaya's dynamic property market, helping maintain rate competitiveness and accessible lending terms for qualified borrowers.
What impact has foreign investment had on Surabaya property prices?
Foreign investment has significantly boosted Surabaya property prices, with FDI in real estate increasing by 35% between 2022 and 2023.
The relaxation of ownership rules allowing foreigners to purchase property with just a passport has attracted substantial international capital. Golden Visa programs for major investors have further incentivized foreign participation in Surabaya's real estate market. By September 2024, FDI in Indonesia's real estate sector reached $55.18 million, with Surabaya capturing a meaningful portion of this investment.
Favorable exchange rates have enhanced Surabaya's appeal to foreign buyers, with the Indonesian Rupiah trading around IDR 15,416 per USD in 2023, making property purchases attractive for international investors. This currency advantage has drawn particular interest from buyers in stronger-currency countries seeking value opportunities.
International real estate agencies, including Colliers, have reported surging interest from foreign investors attracted by Surabaya's stable economy and improving infrastructure. Foreign buyers have shown particular preference for premium and centrally-located properties, contributing to price appreciation in these segments.
It's something we develop in our Indonesia property pack, providing detailed analysis of foreign investment patterns and their market impact.
The trend toward foreign investment is expected to continue as Indonesia implements additional measures to attract international capital to its property sector.
Which areas of Surabaya offer the best value for property investment?
Suburban areas and emerging neighborhoods in Surabaya's outer districts currently offer the best value for property investment in 2025.
The shift toward suburban living, supported by Surabaya's metropolitan area growth to 3.138 million people by 2025, has created investment opportunities in previously overlooked areas. Infrastructure development with the IDR 422.7 trillion government budget has improved connectivity to suburban locations, making them more accessible and attractive while maintaining lower entry prices.
Areas benefiting from new transportation links and road improvements offer particular value, as these infrastructure investments typically drive future property appreciation. Neighborhoods near planned or under-construction developments present opportunities for capital gains as projects complete and areas mature.
Properties with high-speed internet access, which now covers approximately 50% of Surabaya's residential areas, command premium pricing and offer better rental prospects. Green-certified buildings and energy-efficient properties represent another value opportunity, as 60% of new residential developments embrace sustainable technologies.
Rental yields averaging 7.21% in Surabaya compare favorably to Jakarta's 4.27%, suggesting good income-generating potential for investment properties across multiple price segments and locations.
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.
How do Surabaya property prices compare to Jakarta and Bandung?
Surabaya property prices position between Jakarta and Bandung, offering better value than the capital while commanding premium pricing compared to smaller cities.
| Metric | Surabaya | Jakarta | Bandung |
|---|---|---|---|
| Avg. Price per m² (2025) | IDR 20 million | IDR 27.17 million | IDR 12.33 million |
| 1BR Apt. Monthly Rent | IDR 5.08 million | IDR 6.26 million | IDR 3.86 million |
| Price per sq. ft. (City Centre) | IDR 3.11 million | IDR 2.75 million | IDR 1.32 million |
| Price-to-Income Ratio | 21.83 | Higher (25+) | 12.33 |
| Rental Yield Average | 7.21% | 4.27% | 8-10% |
| Investment Appeal | Balanced growth/value | Premium but expensive | Affordable entry point |
| Foreign Interest Level | Growing rapidly | Established high | Emerging |
Surabaya rent and purchase prices are generally 30-60% lower than Jakarta while running 20-100% higher than Bandung, creating a middle-ground positioning that attracts investors seeking better value than the capital.
The price-to-income ratio of 21.83 in Surabaya suggests more affordable homeownership compared to Jakarta's higher ratios, while Bandung's 12.33 ratio reflects its lower absolute prices and income levels.
What government policies are currently affecting Surabaya property prices?
The Indonesian government's VAT incentive program significantly supports Surabaya property prices through June 2025, providing 100% tax relief on the first IDR 2 billion of property purchases.
This VAT DTP (tax subsidy) program reduces buyer costs substantially, with the benefit dropping to 50% for the remainder of 2025. The policy particularly stimulates demand among first-time buyers and middle-income households, supporting transaction volumes and price stability across residential segments.
Foreign ownership rule relaxations have transformed market dynamics, allowing foreigners to purchase property with simplified qualification requirements and upgraded title types from Hak Pakai (Right to Use) to Hak Guna Bangunan (Right to Build). These changes have attracted significant international investment capital to Surabaya's market.
The loan-to-value (LTV) ratio relaxation policy extension encourages increased housing market activity by improving financing accessibility. Combined with the record IDR 422.7 trillion infrastructure budget supporting transportation and connectivity improvements, government policies create a supportive environment for continued price appreciation.
Bank Indonesia's monetary policy maintaining the key rate at 5.5% provides stable mortgage rate conditions, while the One Million Houses program continues addressing supply challenges nationwide.
What risks could negatively impact Surabaya property prices?
Apartment oversupply represents the most immediate risk to Surabaya property prices, with high inventory levels leading to localized price drops in 2025.
The apartment segment experienced approximately 50% sales decline in the second half of 2023, creating surplus inventory that continues pressuring prices. This oversupply particularly affects non-premium apartment developments and could persist as new projects complete.
Economic slowdown risks include potential global recession impacts, rising interest rates, or declining consumer confidence that could dampen property demand. Indonesia's exposure to commodity price fluctuations and global economic conditions creates vulnerability to external shocks.
Rising construction costs driven by stricter building codes and material price inflation could squeeze developer margins and slow new project launches. The 2025 Building Code requirements for fire-rated materials and enhanced safety standards will increase compliance costs significantly.
Policy change risks include potential modifications to VAT incentives after 2025, foreign ownership rule adjustments, or monetary policy tightening that could affect mortgage accessibility. Market volatility around political cycles or global events can impact investor sentiment and transaction volumes.
Currency depreciation risks could affect foreign investment attractiveness if the Indonesian Rupiah weakens substantially against major currencies.
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.
Property prices in Surabaya are going up moderately in 2025, supported by infrastructure investment, foreign capital inflows, and sustained urbanization trends.
While apartment oversupply creates localized risks, landed housing and premium segments continue showing strong price appreciation, making selective investment opportunities attractive for both domestic and international buyers.
Sources
- 14 statistics for the Surabaya real estate market in 2025
- 18 strong trends for 2025 in the Surabaya property market
- Indonesia House Prices - Investment Asian
- Government rolls the dice: Indonesia's bid to revitalise real estate
- Indonesia Real Estate Market Research
- Property Investment in Surabaya
- Why 2025 is the Perfect Time to Invest in Indonesian Real Estate
- Indonesian Residential Real Estate Market
- Indonesia House Price Index
- Indonesia Property Price History