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Surabaya's residential property market has entered 2026 with surprisingly muted price growth, despite being Indonesia's second-largest city.
In this article, we break down current housing prices in Surabaya, recent trends, and what to expect over the coming years.
We constantly update this blog post to reflect the latest data and market shifts.
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 Surabaya.
Insights
- Surabaya's primary market showed nearly flat to slightly negative price growth in late 2025, making it one of Indonesia's softer major city markets entering 2026.
- The average landed home in Surabaya sits around Rp 2.4 billion (roughly $150,000), but West Surabaya premium clusters can easily exceed double that figure.
- Price per square meter for Surabaya houses averages around Rp 12 million, ranging from Rp 7 million to Rp 20 million depending on location and age.
- Bank Indonesia's policy rate stood at 4.75% as of December 2025, creating supportive conditions for mortgage affordability.
- Surabaya's secondary (resale) market showed noticeable softness in several districts, with some kecamatan recording measurable price declines.
- West Surabaya's premium cluster belt, including Citraland and Pakuwon areas, remains the most resilient segment even when the broader market is flat.
- Apartments in Surabaya are expected to grow between 0% and 3% in 2026, lagging behind landed homes due to supply challenges.
- Over 5 years, Surabaya residential prices are projected to grow 18% to 30% cumulatively, or roughly 3% to 5.5% annually.
- Infrastructure projects like the Outer East Ring Road (OERR) are expected to re-rate East Surabaya corridors, benefiting Rungkut and Gunung Anyar.
What are the current property price trends in Surabaya as of 2026?
What is the average house price in Surabaya as of 2026?
As of early 2026, the average house price in Surabaya is approximately Rp 2.4 billion ($150,000 or €138,000), though prices vary significantly between older inner-city stock and premium gated communities.
Price per square meter for Surabaya landed homes averages around Rp 12 million ($750 or €690), with listings ranging from Rp 7 million to Rp 20 million based on age, access, and neighborhood quality.
A realistic budget covering roughly 80% of Surabaya property purchases falls between Rp 800 million and Rp 4 billion ($50,000 to $250,000), reflecting the city's diverse mix of entry-level homes and premium estates.
How much have property prices increased in Surabaya over the past 12 months?
Property prices in Surabaya have grown by an estimated 0% to 1% over the past 12 months, with our best estimate at around +0.5%, making Surabaya one of Indonesia's flatter major city markets.
Across property types, primary market (new builds) was roughly flat to slightly negative, premium West Surabaya clusters held steady, while several lower-priced secondary market districts recorded declines.
The main factor behind this muted movement was an oversupply of entry-level resale homes in certain districts, pulling median prices down even as higher-end products maintained value.
Which neighborhoods have the fastest rising property prices in Surabaya as of 2026?
As of early 2026, the neighborhoods with fastest rising property prices in Surabaya are the West Surabaya premium cluster belt (Citraland in Lakarsantri, Pakuwon Indah in Wiyung-Dukuh Pakis) and the East Surabaya growth corridor (Pakuwon City, Mulyorejo).
These top-performing neighborhoods have shown annual price resilience of roughly 2% to 5% in a market where the citywide average was essentially flat.
The main demand driver is a combination of limited comparable supply, strong family-oriented infrastructure like schools and malls, and improved connectivity via ring road developments.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Surabaya.
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 property types are increasing faster in value in Surabaya as of 2026?
As of early 2026, cluster and townhouse-style landed homes lead value appreciation in Surabaya, followed by well-located standalone houses, with apartments and condos generally trailing behind.
Mid-market cluster homes in established estates have shown annual appreciation of approximately 3% to 5%, outpacing the citywide average.
Cluster homes outperform because of consistent family demand driven by security, parking, community amenities, and easier resale compared to older houses or apartments facing heavy competition.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Surabaya?
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- How much should you pay for an apartment in Surabaya?
- How much should you pay for a studio in Surabaya?
What is driving property prices up or down in Surabaya as of 2026?
As of early 2026, the top three factors driving Surabaya property prices are mortgage affordability tied to Bank Indonesia's policy rate, supply mix in the entry-level resale segment, and infrastructure developments improving east-west connectivity.
The factor with the strongest upward pressure is improved borrowing conditions, as the BI 7-day reverse repo rate at 4.75% makes mortgages more accessible, supporting buyer confidence for first-time purchasers.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Surabaya here.
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What is the property price forecast for Surabaya in 2026?
How much are property prices expected to increase in Surabaya in 2026?
As of early 2026, property prices in Surabaya are expected to increase by approximately 2% to 5%, with our best estimate at around +3.5% for residential properties overall.
Forecasts range from a conservative 1% to 2% (assuming continued softness) up to an optimistic 5% to 6% if mortgage conditions improve and infrastructure projects accelerate.
The main assumption underlying most forecasts is that interest rates will remain stable or decline modestly, supporting mortgage affordability and market recovery from muted 2025 performance.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Surabaya.
Which neighborhoods will see the highest price growth in Surabaya in 2026?
As of early 2026, neighborhoods expected to see highest price growth are Pakuwon City and Mulyorejo in East Surabaya, the Rungkut-Gunung Anyar corridor, and the West Surabaya premium belt (Wiyung, Dukuh Pakis, Sambikerep).
Projected price growth for these top neighborhoods ranges from 4% to 7%, outperforming the citywide average due to stronger demand fundamentals and limited competing supply.
The primary catalyst is improved connectivity from ring road developments and concentration of family-oriented amenities like schools, shopping centers, and employment nodes.
One emerging neighborhood that could surprise is Kenjeran in the northeast, where flood mitigation and coastal development projects may unlock suppressed value.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Surabaya.
What property types will appreciate the most in Surabaya in 2026?
As of early 2026, mid-market cluster homes and townhouses are expected to appreciate most in Surabaya, followed by renovated landed houses, with apartments expected to trail.
Projected appreciation for top-performing cluster homes ranges from 3% to 6%, compared to 0% to 3% for apartments facing ongoing supply competition.
The main demand trend is family upgrading, as households move from older inner-city stock into gated communities offering security, modern layouts, and convenient access to schools.
Apartments and condos are expected to underperform, particularly older towers competing against newer buildings where heavy supply and service charges compress resale values.
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 will interest rates affect property prices in Surabaya in 2026?
As of early 2026, the current interest rate environment is supportive for Surabaya property prices, as accommodative policy makes mortgages more affordable and encourages first-time buyers.
Bank Indonesia's 7-day reverse repo rate stood at 4.75% as of December 2025, and most analysts expect mortgage rates to remain stable or decline modestly through 2026.
A 1% change in interest rates typically shifts monthly mortgage payments by roughly 10% to 12%, expanding or contracting the pool of qualified buyers and influencing price momentum.
You can also read our latest update about mortgage and interest rates in Indonesia.
What are the biggest risks for property prices in Surabaya in 2026?
As of early 2026, the three biggest risks for Surabaya property prices are oversupply of entry-level resale homes pulling down medians, heavy apartment competition capping condo values, and macroeconomic shocks dampening household confidence.
The risk with highest probability is continued resale oversupply in lower-priced districts, as this dynamic was already visible in late-2025 data and could persist if buyer demand stays subdued.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Surabaya.
Is it a good time to buy a rental property in Surabaya in 2026?
As of early 2026, buying a rental property in Surabaya can be solid, but the market rewards careful selection over broad buying, meaning you need the right micro-market rather than assuming any property will perform.
The strongest argument for buying now is that the market is not overheated, entry prices are reasonable versus Jakarta, and supportive mortgage rates improve financing while rental demand stays steady in family and campus zones.
The strongest argument for waiting is that the citywide trend entering 2026 is muted, so buying at the wrong price or in a soft district means flat or declining values before appreciation kicks in.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Surabaya.
You'll also find a dedicated document about this specific question in our pack about real estate in Surabaya.
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Where will property prices be in 5 years in Surabaya?
What is the 5-year property price forecast for Surabaya as of 2026?
As of early 2026, cumulative property price growth in Surabaya over the next 5 years is expected to reach 18% to 30%, with our best estimate at around +24% by 2030.
The range spans from a conservative 18% (assuming continued soft conditions) to an optimistic 30% (if infrastructure projects accelerate and mortgage conditions stay favorable).
This translates to roughly 3% to 5.5% annual appreciation over five years, moderate but consistent with Indonesia's economic growth trajectory.
The key assumption is that Indonesia's macroeconomic fundamentals remain stable, with GDP growth around 5%, contained inflation, and no major external shocks disrupting confidence.
Which areas in Surabaya will have the best price growth over the next 5 years?
The top three areas expected to have best price growth over 5 years are the East Surabaya corridor (Sukolilo, Mulyorejo, Rungkut, Gunung Anyar), West Surabaya premium belt (Wiyung, Dukuh Pakis, Sambikerep, Lakarsantri), and selective inner-city zones like Gubeng and Tegalsari.
Projected 5-year cumulative growth for these top areas ranges from 25% to 40%, outperforming the citywide average due to infrastructure improvements and strong end-user demand.
This outlook is consistent with our shorter-term 2026 forecast, but the longer horizon allows infrastructure like the Outer East Ring Road to reach completion, amplifying benefits for East Surabaya.
The undervalued area with best outperformance potential is Kenjeran and the northeast corridor, where flood mitigation projects could unlock value once livability concerns are addressed.
What property type will give the best return in Surabaya over 5 years as of 2026?
As of early 2026, mid-market cluster and townhouse-style landed homes in the East and West Surabaya growth belts are expected to give the best total return, combining solid appreciation with steady rental demand.
Projected 5-year total return (appreciation plus rental income) for top-performing cluster homes ranges from 35% to 55%, factoring in 25% to 40% price growth plus 4% to 6% annual gross rental yields.
The structural trend favoring cluster homes is consistent family upgrading, as households prioritize security, modern amenities, and school proximity over older houses or high-rise apartments.
For the best balance of return and lower risk, renovated landed houses in established, accessible districts offer scarcity value with strong resale liquidity.
How will new infrastructure projects affect property prices in Surabaya over 5 years?
The top three infrastructure projects expected to impact Surabaya prices over 5 years are the Outer East Ring Road (OERR), flood mitigation and drainage systems, and MERR connectivity improvements linking eastern districts to employment hubs.
Properties near completed infrastructure in Surabaya typically command a 10% to 20% price premium, though this builds gradually as projects progress from planning to completion.
Neighborhoods benefiting most are Rungkut, Gunung Anyar, and Sukolilo along the eastern corridor, plus parts of Kenjeran and Bulak where flood resilience makes previously avoided areas more livable.
How will population growth and other factors impact property values in Surabaya in 5 years?
Surabaya's projected population growth of around 0.5% to 1% annually will support moderate housing demand, though household formation and income growth matter more than raw population numbers.
The demographic shift with strongest influence on Surabaya demand is family upgrading, as middle-class households with growing incomes move from older stock into modern cluster estates.
Domestic migration, particularly students and professionals drawn to Surabaya's universities and East Java economic opportunities, will support rental demand in campus-adjacent areas and near employment nodes.
Property types and areas benefiting most are mid-market cluster homes in East and West Surabaya for families, and apartments near campuses like ITS and Universitas Airlangga for rental investors.
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 is the 10 year property price outlook in Surabaya?
What is the 10-year property price prediction for Surabaya as of 2026?
As of early 2026, cumulative property price growth in Surabaya over 10 years is expected to reach 45% to 80%, with our best estimate at around +60% by 2035.
The range spans from a conservative 45% (persistent soft conditions) to an optimistic 80% (accelerated economic growth and sustained infrastructure investment).
This translates to roughly 3.7% to 6% annual appreciation over the decade, moderate but consistent with Indonesia's long-term growth trajectory.
The biggest uncertainty is infrastructure execution, as delays or cost overruns could dampen growth premiums for areas currently priced for improved access.
What long-term economic factors will shape property prices in Surabaya?
The top three long-term factors shaping Surabaya property prices are sustained income growth and job creation (given Surabaya's role as Eastern Indonesia's gateway), credit accessibility and mortgage depth, and urban infrastructure execution.
The factor with most positive impact will be continued income growth, as rising household purchasing power expands the buyer pool for mid-market and premium homes.
The factor posing greatest structural risk is potential oversupply, particularly in apartments, where construction can outpace absorption and compress prices for existing owners.
You'll also find a much more detailed analysis in our pack about real estate in Surabaya.
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 Surabaya, 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 Q3 2025 | Indonesia's central bank official residential price survey. | We used it to anchor primary-market price momentum nationally and for Surabaya's city-level direction. |
| Bank Indonesia SHPR Q1 2025 | Same official survey, useful for trend context. | We used it to show how price growth evolved through 2024-2025 and cross-checked against later prints. |
| BPS Residential Property Price Index 2025 | Indonesia's official statistics agency housing publication. | We used it as a statistical cross-check on housing price movement versus Bank Indonesia's survey. |
| BPS Surabaya SHPP 2025 | Confirms official housing price survey at Surabaya city level. | We used it as methodological support when triangulating portal prices versus survey-based indexes. |
| Bank Indonesia BI-Rate Explainer | Central bank's own policy rate framework page. | We used it to define the policy rate driving mortgage pricing expectations. |
| Kontan BI Rate Data | Dated series explicitly attributing numbers to Bank Indonesia. | We used it to pin the latest rate level so our January 2026 narrative has a concrete anchor. |
| OJK via Antara News | Indonesia's financial regulator via state news agency. | We used it to quantify mortgage importance in the banking system as factual backdrop. |
| World Bank Indonesia Economic Prospects | Top-tier international institution with transparent methodology. | We used it to anchor macro drivers like growth, inflation, and fiscal context influencing demand. |
| Reuters BI GDP 2026 | Reputable wire citing official projections. | We used it as a dated statement of how policymakers viewed 2026 growth. |
| Reuters 2026 Budget Passage | Reuters plus formal national budget event. | We used it to frame 2026 fiscal stance affecting jobs, confidence, and housing sentiment. |
| Bank Mandiri Economist Note | Major bank's research referencing official survey results. | We used it as market practitioner interpretation while treating BI's PDF as primary. |
| Colliers Surabaya Apartment H2 2024 | Top global real estate consultancy. | We used it to describe apartment supply and demand dynamics unique to Surabaya. |
| Colliers Webinar H1 2025 | Primary Colliers research distribution channel. | We used it as supporting context on nationwide residential sentiment. |
| Colliers Webinar H2 2025 | Reputable firm, directly hosted, about 2026 outlook. | We used it to sanity-check our 2026 scenario ranges. |
| Lamudi Surabaya Listings | Large property marketplace with standardized metrics. | We used it to estimate current asking price per square meter for landed homes. |
| Rumah123 Surabaya Listings | Leading Indonesian portal with massive listing depth. | We used it to validate which submarkets are liquid and avoid over-focusing on niche areas. |
| Marketeers Rumah123 Report | Mainstream outlet citing named Rumah123 dataset. | We used it for within-Surabaya differences to identify overheated versus soft pockets. |
| Liputan6 Secondary Market Note | Large national media citing Rumah123 findings. | We used it to confirm Surabaya's secondary segment behaved differently than national average. |
| Surabaya City Government | Official city government site on projects and budgets. | We used it to ground infrastructure-driven neighborhood calls for access improvement analysis. |
| Suara Surabaya OERR Coverage | Major local outlet aligning with official city statements. | We used it as local confirmation of project scale and timing for 5-year area calls. |
| Detik Jatim Infrastructure List | Top-tier Indonesian news covering city infrastructure. | We used it to broaden beyond single projects for items affecting residential accessibility. |
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If you want to go deeper, you can read the following: