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Surabaya's property market in 2025 presents strong opportunities for both investors and those looking to relocate to Indonesia's second-largest city.
With moderate price growth expected, high rental yields reaching up to 30%, and infrastructure improvements boosting property values, the city offers compelling alternatives to more expensive Jakarta and Bali markets. As of June 2025, property prices average around IDR 20 million per square meter, with forecasts showing continued steady growth driven by population expansion and economic development.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Surabaya's property market offers diverse options from $100,000 apartments to $2 million luxury villas, with strong rental yields and moderate price growth expected through 2025.
Foreign buyers can purchase property through Hak Pakai rights or PT PMA structures, with popular areas including Citraland for luxury and Kertajaya for affordability.
| Property Type | Average Price (USD) | Rental Yield |
|---|---|---|
| 1-bedroom apartment | $100,000 | 7-10% |
| 2-bedroom apartment | $130,000 | 8-12% |
| 3-bedroom house | $170,000 | 10-15% |
| 4-bedroom villa | $270,000 | 12-18% |
| Luxury homes | $1.5M+ | 15-25% |
| Commercial property | Varies | 30-40% |
| Land plots | Varies | 25-37% |
What types of properties are available for sale in Surabaya right now?
Surabaya's real estate market offers a comprehensive range of property types to suit different budgets and preferences.
The apartment market features 1-4 bedroom units in high-rise complexes throughout the city, with modern developments particularly concentrated in areas like Pakuwon City and Citraland. These range from compact studio units under $50,000 to luxury penthouses exceeding $500,000.
Houses dominate the residential market, including detached homes, semi-detached properties, and townhouses spanning colonial-era architecture to contemporary designs. Villa options are particularly abundant in upscale districts like Darmo and Darmo Permai, offering larger properties with private gardens and premium amenities.
Commercial properties include retail spaces, office buildings, and traditional shophouses, especially in the city center and emerging business districts. Land plots for development remain available across various zones, from residential subdivisions to commercial parcels.
Both new off-plan developments and established resale properties are readily available, with developers actively constructing projects to meet growing demand from local buyers and foreign investors.
Is it better to buy or rent a place in Surabaya in 2025 based on current trends and costs?
Buying property in Surabaya presents a more attractive proposition than renting for long-term residents and investors as of mid-2025.
Property prices are forecast to continue rising moderately, driven by steady economic growth, infrastructure improvements, and increasing population density. The average rental yields exceed 7% for apartments and reach up to 30% for residential properties, making purchasing financially advantageous for those planning to stay beyond three years.
The rental market experienced a 28% increase in demand during 2024, with rental rates projected to rise approximately 2% in 2025. However, the strong rental yields available to property owners significantly outweigh the benefits of remaining a tenant in most scenarios.
Renting remains suitable for short-term residents, expatriates on temporary assignments, or those seeking maximum flexibility. Young professionals and students often prefer renting due to lower upfront costs and mobility preferences.
For investment purposes, buying clearly outperforms renting, given the combination of capital appreciation potential and substantial rental income opportunities in Surabaya's growing market.
How much did property prices in Surabaya cost in the past, what's the average price now, and what's the forecast for the next few years?
Surabaya property prices have experienced consistent growth over the past decade, with current values significantly higher than historical levels.
| Year | Average Price per sqm (IDR) | Market Conditions |
|---|---|---|
| 2017 | 12.59 million | Median baseline price |
| 2020 | 15.2 million | Pandemic-affected growth |
| 2022 | 17.8 million | Recovery and expansion |
| 2025 (current) | 20 million | Strong market conditions |
| 2026 (forecast) | 21.5 million | Continued moderate growth |
| 2027 (forecast) | 23 million | Infrastructure-driven appreciation |
| 2028 (forecast) | 24.5 million | Sustained demand growth |
As of June 2025, average property prices by type include: 1-bedroom apartments at $100,000, 2-bedroom apartments at $130,000, 3-bedroom residences at $170,000, 4-bedroom villas at $270,000, and luxury homes ranging from $1.5-2 million.
Future price forecasts indicate moderate but steady growth, supported by population expansion, infrastructure development, and increasing foreign investment. However, some areas may experience temporary corrections due to oversupply, particularly in the apartment segment.
What are the key real estate market trends in Surabaya that investors and buyers should be aware of in 2025?
Five major trends are shaping Surabaya's real estate landscape as we reach mid-2025.
Foreign investment is accelerating due to favorable exchange rates and streamlined regulations, with international buyers increasingly viewing Surabaya as an alternative to saturated Jakarta and Bali markets. This influx is driving demand for mid-to-high-end properties and supporting price stability.
Oversupply in certain apartment segments is creating price corrections, particularly affecting older developments and properties in less desirable locations. Buyers can find opportunities in these market adjustments, while developers are becoming more selective about new project launches.
Infrastructure improvements, including road expansions, public transportation upgrades, and commercial development, are significantly boosting property values in affected areas. Properties near new transportation hubs and business districts are experiencing above-average appreciation.
Demographic shifts show younger buyers increasingly preferring rental arrangements over ownership, creating robust rental demand and supporting high yields for property investors. This trend particularly benefits owners of smaller units and properties near universities and business centers.
Rental yields remain exceptionally strong across all property types, with residential properties achieving up to 30% yields and commercial properties reaching 40%, making Surabaya one of Indonesia's most attractive rental investment markets.
What's the step-by-step process to buy a property in Surabaya, including any rules for foreigners?
The property purchase process in Surabaya varies significantly between local and foreign buyers, with foreigners facing additional regulatory requirements.
For Indonesian citizens, the process involves finding and negotiating the property price, conducting due diligence through a licensed notary (PPAT), signing the sale and purchase agreement, making payment (full or down payment), and registering the property to receive the ownership certificate.
Foreign buyers must first choose an appropriate ownership structure: Hak Pakai (Right to Use) for residential properties lasting 30 years with renewal options, or establishing a PT PMA (Foreign-Owned Company) for investment and commercial properties.
The foreign purchase process requires obtaining a Second Home Visa and Stay Permit for individual buyers, hiring a licensed notary (PPAT) and legal advisor experienced in foreign transactions, requesting the property certificate from the National Land Office (BPN), settling payment with proof of international fund transfer, meeting conditions for Hak Pakai or Hak Guna Bangunan rights, applying for building approval (PBG) if required, and registering the property under the buyer's name or PT PMA.
Foreigners cannot own freehold land but can secure long-term usage rights or purchase through corporate structures. Minimum investment amounts and proof of funds may be required depending on the property value and intended use.
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Which are the best websites, real estate agents, or agencies to find good property deals in Surabaya?
Several reliable platforms and agencies dominate Surabaya's property search landscape.
Rumah123 stands as Indonesia's largest and most trusted property portal, offering comprehensive listings for both sales and rentals across Surabaya with detailed property information, photos, and verified agent contacts. The platform provides English-language support and caters specifically to foreign buyers.
Indonesia Real Estate specializes in listings for apartments, houses, and investment properties, with dedicated sections for international investors and detailed market analysis for different areas of Surabaya.
OwnPropertyAbroad offers specialized guides and listings specifically designed for foreign buyers, including step-by-step purchase guidance and legal requirement explanations tailored to international investors.
Local real estate agents with strong reputations, membership in professional bodies like the Indonesian Real Estate Association, and specific experience with expatriate clients provide invaluable on-ground support. These agents typically offer market insights, negotiation assistance, and connections to legal and financial services.
Property developers' direct sales offices, particularly for new developments, often provide the best deals and payment terms, especially for off-plan purchases in emerging areas like Pakuwon City and newer Citraland phases.
What kind of property can you expect to get for different budgets, say under $50K, $100K, or $200K?
Surabaya's property market offers distinct options across different budget ranges, with clear quality and location differences.
| Budget Range (USD) | Property Type | Typical Features |
|---|---|---|
| Under $50K | Studio/1BR apartment | Outer suburbs, older buildings, basic amenities |
| $50K - $100K | 1-2BR apartment/small house | Mid-range areas, decent condition, some facilities |
| $100K - $150K | 2BR apartment/townhouse | Central areas, modern amenities, good access |
| $150K - $200K | 3BR apartment/house | Prime locations, quality finishes, full facilities |
| $200K - $300K | Villa/large house | Gated communities, private gardens, luxury amenities |
| $300K+ | Luxury villa/mansion | Premium locations, extensive grounds, high-end finishes |
| $1.5M+ | Ultra-luxury estate | Exclusive districts, 2500+ sqm, custom features |
Under $50,000 typically secures studio or one-bedroom apartments in outer suburbs or older buildings with basic amenities but limited access to premium facilities.
The $100,000 range opens access to 1-2 bedroom apartments in central areas or modern townhouses with decent amenities, swimming pools, and security services.
$200,000 budgets can secure 3-bedroom apartments in prime locations, small villas in gated communities, or larger houses with private gardens and quality finishes throughout established neighborhoods.
What are the most common mistakes to avoid when buying property in Surabaya as a local or expat?
Property buyers in Surabaya frequently encounter five critical mistakes that can result in significant financial losses or legal complications.
1. **Failing to use reputable agents or legal advisors** creates exposure to property scams, unclear title issues, and fraudulent transactions that are unfortunately common in Indonesia's property market.2. **Skipping comprehensive due diligence** on property ownership, building permits, and legal status can result in purchasing properties with outstanding debts, illegal construction, or disputed ownership claims.3. **Underestimating additional costs** beyond the purchase price, including notary fees, taxes, property repairs, insurance, and ongoing maintenance expenses that can add 10-15% to the total investment.4. **Assuming foreign ownership rules match local regulations** leads to legal violations, as foreigners face specific restrictions and must use appropriate ownership structures like Hak Pakai or PT PMA arrangements.5. **Ignoring local market trends and oversupply conditions** in certain areas can result in poor resale values, with some apartment developments experiencing significant value corrections due to excess inventory.Additional risks include purchasing without viewing properties in person, failing to verify neighborhood infrastructure and future development plans, and not securing proper insurance coverage from the purchase date.
What's the cost of living like in Surabaya compared to Jakarta, Bali, or other Indonesian cities?
Surabaya offers significantly lower living costs compared to Indonesia's other major cities, making it attractive for both locals and expatriates.
Housing costs in Surabaya average 28% lower than comparable cities, with one-bedroom city center apartments renting for IDR 2.5-10 million monthly compared to IDR 5-12 million in Jakarta and IDR 3.5-6.5 million in Bali.
Overall cost of living indices show Surabaya ranking as one of Indonesia's most affordable major cities, with daily expenses including food, transportation, and utilities typically 20-30% below Jakarta levels and 15-20% below Bali costs.
Dining and entertainment costs remain particularly attractive, with local restaurant meals under IDR 50,000 and international cuisine options significantly cheaper than Jakarta or Bali tourist areas. Transportation costs are minimal due to efficient local systems and lower fuel prices.
Professional services, healthcare, and education costs also trend lower than Jakarta, though international schools and premium medical facilities command similar prices across major Indonesian cities.
For expatriates, Surabaya's cost advantages become particularly pronounced for families, students, and retirees seeking quality urban amenities without Jakarta's premium pricing or Bali's tourist-inflated costs.
Which areas in Surabaya are the most attractive right now—affordable neighborhoods, up-and-coming spots, and luxury districts—and what are the pros and cons of each?
Surabaya's diverse neighborhoods cater to different budgets and lifestyle preferences, each offering distinct advantages and challenges.
**Luxury Districts:** Citraland stands as Surabaya's premier upscale area, featuring green spaces, family-friendly environments, international schools, and strong property appreciation. Darmo and Darmo Permai offer luxury homes in gated communities with excellent security and proximity to malls and schools. These areas command premium prices but provide the best amenities and strongest investment returns.
**Mid-Range Areas:** Pakuwon City represents modern mixed-use development popular with professionals and families, offering contemporary amenities and good connectivity. These areas balance cost and quality, providing modern infrastructure without luxury premiums.
**Affordable Neighborhoods:** Kertajaya and Manyar offer vibrant, affordable options close to universities, making them popular with students and young professionals. These areas provide excellent rental demand and potential for growth but may lack some premium infrastructure.
**Up-and-Coming Areas:** Kenjeran features seaside locations with cultural attractions and affordable pricing, representing emerging investment opportunities. Gubeng, Wonokromo, and Simokerto blend traditional and modern elements with diverse housing options and local markets, offering authentic Indonesian living experiences at reasonable prices.
The trade-offs typically involve higher prices for better amenities in luxury districts versus lower entry costs but potentially limited infrastructure in emerging areas.
It's something we develop in our Indonesia property pack.
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.
What's life like for expats living in Surabaya, in terms of comfort, community, safety, and services?
Surabaya provides a comfortable living environment for expatriates, though it offers fewer expat-specific amenities than Jakarta or Bali.
**Comfort and Infrastructure:** The city features good infrastructure including reliable electricity, water, and internet services. Modern healthcare facilities and international-standard hospitals serve expatriate needs, while international schools in areas like Citraland cater to expat families. Air conditioning and modern amenities are standard in most expatriate-oriented housing.
**Expat Community:** A growing expatriate population, particularly concentrated in Citraland and Darmo areas, creates networking opportunities and social connections. Professional expatriates working in manufacturing, education, and business services form the core community, though it's smaller than Jakarta's international presence.
**Safety and Security:** Surabaya ranks as generally safe for expatriates, especially in gated communities and established neighborhoods. Crime rates remain low compared to regional standards, with most security concerns involving petty theft rather than serious crime. Gated communities provide additional security layers preferred by many expatriate families.
**Services and Amenities:** Access to international restaurants, shopping malls, and leisure activities meets most expatriate needs. Banking services accommodate foreign clients, while domestic help and drivers are readily available. However, English-language services outside tourist areas remain limited compared to Jakarta or Bali.
The city's improving expatriate infrastructure makes it increasingly attractive for those seeking authentic Indonesian experiences without sacrificing basic comforts.
If you want to rent out the property, what are the best neighborhoods for long-term or short-term rental, who are your likely tenants, what are they looking for, what kind of rental income can you expect, what's the average yield, and are there any regulations you need to know?
Surabaya's rental market offers exceptional yields across different property types and neighborhoods, making it highly attractive for investment purposes.
**Best Rental Neighborhoods:** Citraland, Darmo, and Pakuwon City excel for long-term rentals targeting expatriate families and professionals seeking quality amenities, security, and international schools. Kertajaya, Manyar, and Gubeng perform strongly for student and young professional markets due to university proximity and transportation access.
**Target Tenants:** Primary rental markets include expatriate professionals and families, local professionals and executives, university students and young workers, and temporary business assignments. Each segment has distinct preferences for location, amenities, and lease terms.
**Tenant Preferences:** Expatriate tenants prioritize security, modern amenities, proximity to international schools, and access to shopping centers. Local professionals seek convenient locations, reliable utilities, and reasonable pricing. Students focus on affordability, transportation links, and proximity to universities.
**Rental Yields:** Current market conditions deliver exceptional returns, with residential properties achieving approximately 30% yields, commercial properties reaching 40% yields, and land investments generating around 37% yields. These figures significantly exceed regional averages and many international markets.
**Rental Income Expectations:** Monthly rental income varies by property type and location, with higher-end properties in premium areas commanding top rates while affordable units in student areas maintain consistent occupancy despite lower individual rents.
**Regulatory Considerations:** Foreign property owners can rent out properties held through PT PMA structures or proper permit arrangements. Local regulations and tax obligations apply to rental income, requiring consultation with legal advisors for compliance. Property management regulations and tenant protection laws must be understood before entering the rental market.
It's something we develop in our Indonesia property pack.
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.
Surabaya's property market in 2025 presents compelling opportunities for both investors and residents seeking value in Indonesia's growing economy.
With moderate price growth, exceptional rental yields, and improving infrastructure, the city offers attractive alternatives to more expensive Jakarta and Bali markets while maintaining strong fundamentals for long-term investment success.
Sources
- Rumah123 Surabaya House Listings
- Indonesia Real Estate Surabaya Properties
- BambooRoutes Surabaya Real Estate Trends
- Global Property Guide Indonesia Price History
- Own Property Abroad Indonesia ROI and Rental Yields
- Real Estate Asia Surabaya Retail Occupancy
- BambooRoutes Surabaya Real Estate Market
- Indonesia Real Estate Buying Process
- DSG Pay Foreign Property Purchase Guide
- Own Property Abroad Surabaya Buying Guide