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Everything you need to know before buying real estate is included in our Indonesia Property Pack
Surabaya's property market in 2025 offers exceptional value with rental yields ranging from 7% to 30%, making it one of Indonesia's most attractive real estate destinations.
The city combines affordable property prices—averaging IDR 20 million ($1,330) per square meter—with robust infrastructure development and a growing expat community, creating strong investment opportunities for both end-users and investors.
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 offers excellent property investment opportunities in 2025 with affordable prices, exceptional rental yields, and steady price growth driven by infrastructure development. Foreign buyers can purchase through leasehold arrangements or PT PMA structures, with properties ranging from $50,000 studios to luxury villas over $1.5 million.
The market shows sustainable growth potential with 3-5% annual price appreciation forecast, supported by rising foreign investment and urban development projects across key districts.
| Property Type | Price Range (USD) | Rental Yield |
|---|---|---|
| Studio Apartment | Under $50,000 | 7-15% |
| 1-2 Bedroom Apartment | $100,000-$130,000 | 7-15% |
| 3-Bedroom House | Around $170,000 | 10-30% |
| 4-Bedroom Villa | $270,000+ | 10-30% |
| Luxury Properties | $500,000-$2M+ | Variable |
| Commercial Property | Varies by location | Up to 40% |
| Land Plots | Location dependent | Development potential |
What kinds of properties can you actually buy in Surabaya in 2025?
Foreign and domestic buyers can choose from a diverse range of property types in Surabaya's active real estate market.
Apartments dominate the affordable segment, with studios available under $50,000 and 1-4 bedroom units ranging from $100,000 for basic 1-bedroom properties to over $500,000 for luxury penthouses. Popular apartment locations include Pakuwon City, Citraland, and the city center, offering modern amenities and security features.
Houses provide more space and privacy options, including detached homes, semi-detached properties, and townhouses featuring both colonial-era architecture and contemporary designs. A typical 3-bedroom house costs around $170,000, while 4-bedroom villas start from $270,000, with luxury homes exceeding $1.5 million in premium districts.
Villas represent the upscale market segment, concentrated in affluent areas like Darmo and Darmo Permai, featuring premium amenities, private gardens, and enhanced security. Commercial properties include retail spaces, shophouses, and office buildings, particularly attractive in central and emerging business districts. Land plots for development remain available in both residential and commercial zones, with prices varying significantly by location and zoning regulations.
Is it smarter to buy or just rent a place there?
Buying property in Surabaya proves more financially advantageous for long-term residents and investors, while renting suits short-term stays and those prioritizing flexibility.
Property ownership becomes attractive for anyone planning to stay 3+ years, driven by Surabaya's exceptional rental yields of 7-30% and steady price appreciation. The city offers significantly better value compared to Jakarta or Bali, with moderate purchase prices and strong rental demand supporting investment returns. Long-term ownership also provides protection against rental increases and builds equity over time.
Renting works better for expats on temporary assignments, students, or professionals requiring flexibility to relocate. The robust rental market ensures good availability across different price points and neighborhoods. However, rental costs can accumulate significantly over extended periods, and tenants miss out on property appreciation and rental income opportunities.
The strong rental market favors property owners, with rising demand from young professionals, students, and expats creating consistent income streams for investors.
How have property prices changed over the past few years, what are they like now, and what's the forecast?
Surabaya's property market has experienced steady growth, with prices rising approximately 33-43% since 2020 despite pandemic challenges.
Current prices average IDR 20 million ($1,330) per square meter as of September 2025, representing significant appreciation from the 2017 median baseline of IDR 12.59 million per square meter. The market recovered strongly from pandemic lows in 2020 when prices averaged IDR 15.2 million per square meter, reaching IDR 17.8 million by 2022 during the recovery phase.
Price forecasts indicate continued moderate growth, with 2026 projections at IDR 21.5 million per square meter, rising to IDR 23 million in 2027 and IDR 24.5 million by 2028. This represents sustained annual growth of 3-5%, driven by infrastructure upgrades, population expansion, and increased foreign direct investment.
Rental yields remain exceptionally strong, averaging 7-10% for apartments and often reaching 10-30% for houses and villas, positioning Surabaya among Indonesia's best performing property markets for investment returns.
What are the main trends shaping Surabaya's real estate market right now?
Foreign investment is increasing significantly due to relaxed regulations and superior value propositions compared to Jakarta and Bali markets.
Infrastructure development drives major market momentum, with road improvements, transit system expansions, and new business district construction boosting property values along improved corridors. The government's commitment to urban development projects creates predictable appreciation patterns in targeted areas.
An apartment oversupply situation in certain segments creates market corrections and opportunities for strategic buyers. This oversupply particularly affects mid-range developments, allowing buyers to negotiate better prices and terms. However, premium and budget segments maintain stronger demand-supply balance.
Younger renters fuel robust rental demand, especially near universities and commercial hubs, supporting consistent occupancy rates for investment properties. This demographic shift toward urban living and rental preferences creates sustainable income streams for property investors.
Exceptional rental yields distinguish Surabaya's market, with residential properties generating 7-30% returns and commercial properties achieving up to 40% yields, attracting both domestic and international investors seeking high-performance real estate investments.
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How exactly does the property buying process work step by step in Indonesia?
The Indonesian property buying process follows a structured legal framework requiring careful documentation and notary oversight.
First, organize your finances and required documents, including proof of funds, identification, and visa documentation for foreign buyers. Research properties through multiple channels including licensed agents, online platforms, and developer websites to understand market pricing and availability.
Negotiate terms and submit your offer with a refundable deposit of approximately $1,000-$2,000, which secures the property until binding agreements are signed. The notary then conducts comprehensive due diligence, including land title verification, zoning compliance checks, and legal clearance confirmation.
Sign the Sale & Purchase Agreement, or leasehold agreement for foreign buyers who cannot hold freehold titles. Payment follows either full settlement or staged payments for off-plan purchases, typically executed through bank transfers or SWIFT international transfers for foreign buyers.
Foreign buyers obtain Hak Pakai (Right of Use) title or establish ownership through PT PMA company structure, depending on the chosen ownership method. Complete the transaction with property registration, title transfer, and payment of applicable taxes and fees to finalize legal ownership.
Where's the best place to start looking—are there reliable real estate agencies or platforms in Surabaya?
Multiple established platforms and agencies provide reliable property search and transaction services in Surabaya's market.
Online property platforms offer comprehensive listings and market information, with rumah123.com, Lamudi, and Indonesia-Real.Estate providing extensive Surabaya property databases. These platforms allow filtering by price, location, property type, and specific features, making initial research efficient and thorough.
Reputable local agencies include established firms like Intiland, Mirah, and Seven Stones, along with other licensed local groups. Always verify agency credentials, read client reviews, and confirm legal licensing before engaging services. Experienced agents provide valuable local market knowledge, negotiation support, and transaction guidance.
Developer websites offer direct access to new projects and off-plan opportunities, with major developers like Pakuwon Group and Intiland maintaining comprehensive project information and sales teams. Direct developer engagement often provides better pricing and terms for new developments.
It's something we develop in our Indonesia property pack.
For different budgets, what kind of properties are realistically available?
Surabaya's property market accommodates various budget levels, from affordable starter properties to luxury investments.
Budget buyers under $50,000 can access studio apartments and compact units, primarily in developing areas or older buildings with basic amenities. These properties often target young professionals and students, offering entry-level ownership opportunities with potential for rental income.
Mid-range budgets of $100,000-$130,000 access 1-2 bedroom apartments in established developments with modern facilities, security, and convenient locations. These properties balance affordability with quality, suitable for small families or investment purposes.
Properties around $170,000 typically include 3-bedroom houses in residential neighborhoods, providing family-sized accommodation with private outdoor space. The $270,000+ range opens access to 4-bedroom villas with enhanced amenities, larger lots, and premium finishes in desirable locations.
Luxury budgets of $500,000-$2 million accommodate large penthouses, waterfront properties, and exclusive villas in top-tier districts like Darmo and Citraland, featuring premium amenities, security, and prestigious addresses.
What are the common mistakes to avoid when buying property in Surabaya?
Legal title verification represents the most critical step that buyers frequently overlook or rush through inadequately.
Skipping proper notary oversight and due diligence can result in purchasing properties with unclear ownership, outstanding liens, or legal complications. Always engage licensed notaries and verify all documentation thoroughly before proceeding with purchases.
Ignoring zoning regulations and building codes can limit future renovation options or rental potential. Research local development restrictions, building height limits, and permitted uses before finalizing purchases, especially for investment properties.
Inadequate developer research for off-plan purchases can result in delayed completions, quality issues, or project cancellations. Verify developer track records, financial stability, and previous project completion rates before committing to pre-construction purchases.
Underestimating tax and legal requirements for foreign buyers can create unexpected costs and compliance issues. Understand ownership structure options, ongoing tax obligations, and reporting requirements before purchasing, consulting qualified legal professionals for guidance.
What's the general cost of living like compared to the property prices?
Surabaya offers exceptional affordability with living costs 68-70% lower than many Western cities, making property ownership highly accessible relative to income requirements.
Single persons require approximately $480-$800 monthly (IDR 7-12 million) for living expenses excluding rent, covering food, transportation, utilities, and entertainment. Families of four typically spend $1,300-$1,700 monthly (IDR 20-27 million) excluding housing costs, maintaining comfortable lifestyles with local and international amenities.
Rental costs remain moderate, with 2-bedroom apartments averaging $300-$400 monthly, allowing significant savings compared to property ownership costs over time. The median house price around $150,000 represents excellent value when compared to annual living costs and rental savings potential.
Property ownership becomes increasingly attractive when considering the combination of low living costs, strong rental yields, and moderate purchase prices. Foreign residents and investors benefit from purchasing power advantages, accessing quality properties at prices significantly below comparable Western markets.
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.
Which areas of Surabaya are the most affordable, which ones are upcoming, and which are upscale—and what are the pros and cons of each?
| Area | Category | Pros | Cons |
|---|---|---|---|
| Wiyung, Benowo | Affordable | New infrastructure, family-friendly, good value | Less central location, basic amenities |
| Rungkut | Budget/Industrial | Low rents, practical access, industrial employment | Limited expat amenities, distance from uptown |
| Kertajaya, Manyar | Upcoming | University proximity, young demographics, growth potential | Dense development, peak hour traffic |
| Pakuwon City | Modern Planned | Family environment, integrated amenities, schools | Higher entry costs, limited character |
| Darmo, Darmo Permai | Upscale | Luxury homes, security, expat community, prestige | Expensive properties, limited budget options |
| Citraland | Premium Gated | International schools, malls, comprehensive facilities | Distance from local markets, premium pricing |
| City Center | Mixed Commercial | Entertainment, business access, walkability | Traffic congestion, variable pricing, noise |
What's daily life like as an expat living in Surabaya?
Expat life in Surabaya combines modern urban conveniences with authentic Indonesian cultural experiences, offering a less touristy alternative to Bali or Jakarta.
The city provides a balanced lifestyle with modern shopping malls, diverse dining options ranging from local warungs to international restaurants, and vibrant traditional markets for daily needs. International schools and healthcare facilities serve the growing expat community, though options remain more limited than in Jakarta or Bali.
Housing costs remain exceptionally affordable, allowing expats to access spacious homes, villas, or modern apartments at fraction of Western costs. Local services including housekeeping, drivers, and maintenance remain inexpensive, enhancing quality of life significantly.
Language barriers exist outside expat and business districts, making basic Bahasa Indonesia helpful for daily interactions. However, English is increasingly common in international areas, schools, and business environments. The community provides genuine Indonesian urban experiences without excessive tourist influences, appealing to expats seeking authentic cultural immersion.
Transportation options include traditional becak, modern ride-sharing services, and developing public transit, though traffic congestion affects major routes during peak hours.
If you rent out long term, which areas should you target, what kind of tenants are out there, what do they want, and how much income and yield could you expect?
Long-term rental strategies should target expat families and young professionals based on specific area characteristics and tenant demographics.
Premium areas like Citraland, Pakuwon City, and Darmo attract expat families and affluent locals seeking security, international schools, modern amenities, and comprehensive facilities. These tenants prioritize safety, proximity to international education, shopping centers, and reliable utilities, willing to pay premium rents for quality accommodations.
University areas including Kertajaya, Manyar, and Gubeng appeal to students and young professionals seeking affordable housing with good transportation links. These tenants value proximity to campuses, affordable dining options, entertainment venues, and public transportation access, accepting smaller spaces for convenient locations.
Rental yields for apartments typically range 7-15%, while houses and villas can achieve 10-30% yields in optimal locations with proper tenant targeting. Properties near universities or business districts maintain higher occupancy rates and rental stability.
Foreign property owners must comply with PT PMA structures or proper Hak Pakai arrangements, pay applicable taxes on rental income, and follow tenant protection regulations. Successful long-term rentals require understanding local preferences, maintaining properties well, and building relationships with reliable tenants.
It's something we develop in our Indonesia property pack.
If you rent out short term, how do the areas and tenant profiles differ, what's the income potential, and what regulations should you know about?
Short-term rental operations target business travelers and tourists, requiring different area strategies and regulatory compliance compared to long-term leasing.
City center locations near Tunjungan and Gubeng attract business travelers seeking proximity to commercial districts, conference facilities, and entertainment venues. Premium areas like Pakuwon City appeal to family tourists and business visitors requiring modern amenities, security, and international dining options.
Short-term rentals generate higher per-night rates, especially in central or premium locations during peak business periods and local events. However, occupancy rates fluctuate significantly, requiring active management, marketing, and pricing strategies to optimize income potential.
Regulatory requirements include proper permits and licensing for short-term rental operations, compliance with zoning laws, and adherence to building or HOA regulations regarding transient occupancy. Foreign operators must ensure proper business structure and reporting requirements are met.
Management intensity increases substantially compared to long-term rentals, requiring cleaning services, guest communication, booking platform management, and property maintenance between stays. Success depends on professional management, strong online presence, and competitive pricing strategies.
So at the end of the day, is buying in Surabaya in 2025 worth it—for living, for renting out, or for buying and reselling later at a higher price?
Buying property in Surabaya in 2025 represents an compelling opportunity across all three investment strategies, with particular strength in rental income generation.
For personal residence, Surabaya offers exceptional value through affordable property prices, low living costs, improving infrastructure, and genuine Indonesian urban experiences. The city provides quality of life advantages over more expensive Jakarta or tourist-heavy Bali, making it attractive for long-term expat residents and local families seeking modern amenities at reasonable costs.
Rental investment opportunities are exceptionally strong, with yields of 7-30% among Indonesia's best performing markets. High occupancy rates, diverse tenant demographics, and growing demand from students, young professionals, and expats create sustainable income streams. The robust rental market supports consistent cash flow for investment properties.
Capital appreciation potential remains positive but moderate, with 3-5% annual growth forecast supported by infrastructure development, rising foreign investment, and urban expansion. While not explosive growth, steady appreciation combined with exceptional rental yields creates attractive total returns for patient investors.
Success requires careful area selection to avoid oversupplied segments, proper legal compliance for foreign buyers, and understanding of local market dynamics. With appropriate due diligence and professional guidance, Surabaya property investment offers strong risk-adjusted returns in 2025.
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 a compelling investment case with exceptional rental yields, affordable entry prices, and steady growth potential driven by infrastructure development and rising foreign interest.
Whether for personal residence, rental income, or long-term appreciation, the city offers superior value compared to Indonesia's other major markets, making it an attractive destination for both end-users and investors seeking high-performance real estate opportunities.
Sources
- BambooRoutes - Surabaya Property Market Analysis
- Indonesia Real Estate - Surabaya Properties
- Intiland - Graha Famili Surabaya
- Rumah123 - Surabaya House Listings
- BambooRoutes - Surabaya Price Forecasts
- Global Property Guide - Indonesia Price History
- Indonesia Real Estate - Property Buying Process
- Numbeo - Cost of Living in Surabaya
- Expatistan - Surabaya Cost of Living
- BambooRoutes - Surabaya Area Guide