Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Everything you need to know before buying real estate is included in our Indonesia Property Pack
Why is Surabaya emerging as a prime destination for property investment in 2025? Is it the robust rental yields, the city's rapid urban development, or the competitive pricing compared to other Southeast Asian markets? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Surabaya's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) New shopping malls and entertainment centers make Surabaya more appealing, increasing interest in real estate
Surabaya's lifestyle is getting a major boost with the development of new shopping malls and entertainment centers.
Take Pakuwon Mall, for example, which has become a hotspot in the city, drawing in more people and increasing consumer spending. This mall is not just a shopping destination; it's a major revenue generator for Surabaya. With plans to expand retail space by 34% by 2029, it's clear that these lifestyle hubs are becoming increasingly popular.
Then there's Pakuwon City, a development that includes not just retail malls but also condominium towers and educational facilities. This area is expected to boost property values in the surrounding neighborhoods. Why? Because these developments make the area more attractive, pulling in more residents and investors.
Real estate agents are noticing a trend: there's a growing interest in properties near these new commercial areas. The high pre-sales figures for residential developments in Surabaya, like the Rp 1,021bn pre-sales in 3Q 2023, show that demand is on the rise.
These new developments are not just about shopping and entertainment; they're transforming Surabaya into a more vibrant and appealing place to live. The city's lifestyle appeal is getting a significant upgrade, and that's catching the eye of potential property buyers.
As these areas continue to grow, they are expected to draw in even more residents and investors, making them prime spots for real estate investment. The buzz around these developments is palpable, and it's reshaping the city's real estate landscape.
Sources: Pakuwon Jati, Yale University, Real Estate Outlook 2025
2) Surabaya’s prime port location makes it a hotspot for international business, driving up property demand
Surabaya is a bustling port city that’s becoming a hotspot for international business and trade.
With its strategic location, Surabaya has seen a significant increase in cargo throughput at Tanjung Perak Port, a key indicator of its growing role in global trade. This port is not just a local hub; it’s a gateway that connects businesses to the world, making it a magnet for international companies.
In 2023, the city experienced a notable surge in foreign direct investment (FDI), a trend that’s expected to continue into 2024. The local government is rolling out the red carpet for foreign investors with business-friendly policies and incentives, making it easier for them to invest in property and other ventures.
Big names are taking notice, like the South Korean logistics center that opened at Surabaya port in 2023. This move highlights Surabaya’s strategic importance in regional trade networks, as it supports exports to Southeast Asia and attracts global businesses eager to set up shop here.
The demand for commercial real estate is on the rise, driven by ongoing infrastructure and business development. The Indonesian government is pouring money into projects like the Surabaya Urban Corridor Development Program, boosting the city’s connectivity and making it even more attractive for international business ventures.
As these developments unfold, property prices are climbing, reflecting the city’s growing appeal. Surabaya is not just a place to do business; it’s becoming a prime location for investment, with its enhanced logistics capabilities and strategic position in the global market.
Sources: MNC Tower Surabaya, KED Global, Lloyd's List
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.
3) Surabaya’s focus on sustainable development promises long-term growth and stability in real estate
Surabaya is making waves in sustainable urban development, ensuring its real estate market remains robust and appealing.
In 2023, the city teamed up with ITDP Indonesia to boost connectivity through eco-friendly transport options. This move not only cuts down on pollution but also enhances safety, making Surabaya more attractive to both residents and investors. Such infrastructure investments are a magnet for new residents, drawn by the promise of a cleaner, safer city.
Surabaya is also leading the way in green planning, aiming for at least 20% public green open space by the end of 2022. This commitment to green spaces elevates the quality of life, offering residents a breath of fresh air and a break from urban hustle. The city's focus on eco-friendly development is a clear sign of the growing trend towards sustainable construction.
On the waste management front, Surabaya is making strides with initiatives that cut down on open dumping and boost recycling rates. These efforts are slashing carbon emissions, a crucial step for sustainable urban growth. By fostering a healthier environment, the city is creating a stable and appealing real estate market.
Surabaya's dedication to reducing waste and enhancing recycling is not just about cleanliness; it's about creating a sustainable future. These initiatives are pivotal in ensuring long-term urban stability, making the city a prime spot for real estate investment.
With these sustainable practices, Surabaya is not just building a city; it's crafting a community that values long-term growth and environmental responsibility. The city's approach is a blueprint for future urban development, ensuring that its real estate market remains vibrant and resilient.
Sources: ITDP, E-Jurnal ITATS, CCET
4) Surabaya’s active real estate market makes buying and selling properties easy
Surabaya's real estate market is buzzing, with residential property sales up by 3.27% in Q4 2023 compared to last year.
With 76 properties currently on the market, including both apartments and houses, there's a lot to choose from. This variety means buyers can easily find something that fits their needs, which keeps the market lively and transactions smooth.
The median sales price is holding steady at around Rp2,210,000,000, and the price per square meter is about Rp20,800,000. This stability is a good sign for anyone looking to buy or sell, as it suggests a balanced market where prices aren't swinging wildly.
Surabaya's market is known for its liquidity, making it easier to jump in and out of property investments. This is partly due to the consistent demand and supply, which keeps things moving.
For those considering a purchase, the city's active market means you won't be stuck with a property you can't sell. The steady flow of transactions ensures that there's always interest from buyers and sellers alike.
Whether you're looking for a cozy apartment or a spacious house, Surabaya's real estate scene offers plenty of options, backed by a healthy and stable pricing environment.
Sources: Indonesia Expat, FazWaz, Global Property Guide
5) In Surabaya, you can find lower property prices with better potential for capital appreciation than in Jakarta
Surabaya's property prices are notably lower than Jakarta's, making it a hotspot for investors eyeing capital growth.
In 2023, buying an apartment in Surabaya was a bargain, with prices around 472 million Indonesian rupiah ($31,600), while in Jakarta, you'd be looking at a whopping 31.97 billion Indonesian rupiah ($2.17 million) per square meter in the city center. This stark difference highlights Surabaya's affordability and potential for future appreciation.
Surabaya's economy is on the rise, with its GDP per capita hitting about 70% of Jakarta's. This economic momentum indicates strong potential for property value increases. The Colliers Quarterly Property Market Report for H2 2024 also points to industrial estate growth in Surabaya, which could further boost property values over time.
Getting around Surabaya is a breeze, thanks to its well-developed transportation network, including trains, taxis, airports, and seaports. This infrastructure makes the city an attractive hub for commercial activities and property investment.
Surabaya's diverse economy, coupled with government initiatives aimed at boosting economic development, lays a solid foundation for rising prosperity. This environment enhances the potential for capital appreciation in the property market.
Sources: Indonesia 2025: Property prices and buying process, Indonesia's second-tier cities on the move, Colliers Quarterly Property Market Report H2 2024 Surabaya
Don't buy the wrong property, in the wrong area of Surabaya
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
6) With more industrial zones, Surabaya is seeing a rise in housing demand due to job growth
The development of industrial zones around Surabaya has significantly boosted employment opportunities.
With the rapid expansion of industrial parks, 27 new parks are expected to be developed between 2021 and 2024, drawing substantial investments, especially in manufacturing. This boom has led to a surge in job creation, attracting workers from various regions.
As more people find jobs in these industrial zones, Surabaya's population is growing quickly. This growth is fueled by government policies and the influx of workers seeking opportunities in the expanding industrial sector. Naturally, this has led to a rising demand for housing to accommodate the increasing number of residents.
Real estate trends in areas like Rungkut and Citraland show a spike in property investment interest. These areas are strategically located with amenities such as shopping malls and educational facilities, making them attractive to both investors and potential homeowners. The improved infrastructure, like the Middle East Ring Road, enhances the appeal of these locations for housing development.
For those considering property investment, these areas offer a promising opportunity. The combination of job growth and infrastructure development makes them ideal for both living and investing. Strategic location and amenities are key factors driving this interest.
As Surabaya continues to grow, the demand for housing will likely keep rising, making now a good time to consider investing in property. The development of industrial zones is not just about jobs; it's reshaping the city's landscape and creating new opportunities for residents and investors alike.
Sources: HSBC Research, InCorp Asia
7) Surabaya’s excellent public transport makes residential areas more appealing for commuters
Surabaya's public transportation system is a game-changer for commuters, making life easier and more convenient.
With the introduction of services like the Suroboyo Bus and the Bus Rapid Transit (BRT) system, public transport usage has surged. Imagine the BRT system bustling with over 3,000 passengers per hour during peak times—it's clear that many rely on these services for their daily commutes.
The city's expansion of public transportation routes is a big win. Thanks to the Trans Jatim expansion, 24 new shelters have popped up along the Surabaya-Bangkalan route, boosting connectivity and making it a breeze to hop on public transport. The BRT system now stretches over 200 kilometers, with numerous stations and routes, creating a network that covers much of the city.
Government investment in infrastructure is another piece of the puzzle. Projects focused on revitalizing historic areas and developing pedestrian-friendly facilities have made commuting not just accessible but also safer and more comfortable. These improvements have made Surabaya's residential areas more appealing, as people are drawn to the convenience and efficiency of the city's public transportation system.
Surabaya's robust public transportation system makes commuting easy, increasing the attractiveness of residential areas.
Sources: Suroboyo Bus Case Study, Trans Jatim Expansion, Surabaya BRT Statistics
8) Surabaya’s many universities mean a constant demand for student rentals
Surabaya is a thriving educational hub, thanks to its many universities, including the new Western Sydney University campus opening in 2024.
With this influx of educational institutions, students are flocking to Surabaya for quality education, boosting the city's population. This steady stream of students means there's a constant need for places to live.
As a result, the rental market is buzzing. High occupancy rates in student housing show just how much demand there is. For example, by September, preleasing for Fall 2024 had already hit 94.5%.
These numbers highlight a strong need for rental properties, especially in areas popular with students. Landlords and investors are taking note, seeing the potential for steady rental income.
Surabaya's appeal isn't just about education; it's about opportunity. Students bring vibrancy and economic activity, making the city a dynamic place to invest in property.
With universities like Western Sydney University setting up shop, the city's educational reputation is only growing, ensuring a continuous demand for student accommodation.
Sources: Western Sydney University, World Population Review, Yardi Matrix
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Surabaya’s tech boom is drawing young professionals, increasing demand for modern homes
Surabaya's tech industry is booming, drawing in young professionals eager for modern living.
With its strategic location and friendly regulations, Surabaya has become a hotspot for tech startups and companies setting up shop. This has led to a rise in coworking spaces and innovation hubs, essential for the tech scene. The city's reputation as a smart city with a high quality of life is attracting a younger crowd, reshaping the demographic landscape.
Young professionals are driving up demand for modern housing, seeking urban spaces with all the bells and whistles. They want smart city features, efficient public transport, and reliable high-speed internet. The government is on board too, pushing initiatives like the Digital Indonesia Roadmap to boost digital infrastructure and skills.
Surabaya's tech sector is on the rise, with more people joining the digital workforce. The numbers jumped from 126,741 in 2023 to 126,999 in 2024, and projections show this growth continuing into 2025. This influx of tech-savvy individuals is reshaping the city's housing market.
Real estate reports highlight a growing demand for modern homes, fueled by these young professionals. They are looking for places that offer a blend of urban living and modern amenities, making Surabaya a prime spot for property investment.
Surabaya's transformation into a tech hub is not just about numbers; it's about creating a vibrant community. The city's efforts to enhance digital infrastructure and skills are paying off, making it an attractive place for young professionals to live and work.
Sources: SCRD, Atlantis Press, MDPI
10) Surabaya’s investment in digital infrastructure boosts smart home and tech-friendly property growth
The local government's investment in digital infrastructure is fueling the rise of smart homes and tech-friendly properties in Indonesia.
Indonesia has been focusing on its digital economy, with initiatives like the “Making Indonesia 4.0” roadmap and the “100 Smart Cities” program. These efforts are all about boosting digital infrastructure and innovation, paving the way for smart homes to become more common.
By 2024, internet penetration in Indonesia hit 79.5%, and the government is pushing to expand high-speed internet access by 2025. This is crucial because smart homes need fast and reliable internet to work smoothly.
The government is also encouraging partnerships between local authorities and tech companies. These collaborations are leading to the creation of hyperscale and AI-supported data centers, which are vital for handling the data from smart home devices.
These data centers are not just about storage; they are the backbone for processing the vast amounts of information that smart homes generate. This means that as a potential property buyer, you can expect more tech-friendly homes that are ready for the future.
With these developments, Indonesia is setting the stage for a tech-savvy lifestyle, making it an exciting time to consider investing in property here.
Sources: Trade.gov, Exploding Topics
11) Pro-business policies in Surabaya boost the economy, benefiting the real estate market
Surabaya's real estate market is booming thanks to the local government's pro-business policies.
These policies have attracted a surge of Foreign Direct Investment (FDI), especially in sectors like base metals, transportation, and telecommunications. This influx of investment is a clear sign of the region's growing appeal to international investors. The local economy is thriving, with businesses eager to tap into the opportunities presented by this economic upswing.
Indonesia's economy is on a steady rise, with GDP growth rates climbing consistently. This growth is fueled by increased private consumption and favorable trade conditions, creating a fertile ground for real estate development. As the economy strengthens, more people are looking to invest in property, seeing it as a stable and profitable venture.
Infrastructure development is another key factor driving this growth. The local government has prioritized projects like improved public transportation systems, making the city more accessible and attractive to both businesses and residents. This has led to a higher demand for real estate, as people want to be part of a city that's on the move.
Businesses are particularly drawn to Surabaya because of its strategic location and the government's commitment to creating a business-friendly environment. The city's infrastructure improvements are not just about convenience; they are about creating a thriving economic hub that attracts talent and investment.
With these developments, Surabaya is becoming a hotspot for real estate investment. The combination of economic growth, infrastructure improvements, and strategic location makes it an ideal place for those looking to invest in property. The city's transformation is a testament to the power of effective government policies in shaping a prosperous future.
Sources: World Bank, Trading Economics
Make a profitable investment in Surabaya
Better information leads to better decisions. Save time and money. Download our guide.
12) Surabaya’s focus on cleanliness and waste management boosts property values by improving living conditions
Surabaya has been making impressive progress in waste management, thanks to increased government investment.
Back in 2018, a $1 billion national program was launched to overhaul waste management in 70 cities, including Surabaya. This hefty investment has paved the way for more efficient systems, making the city cleaner and more organized.
Surabaya's recycling efforts have paid off, with rates jumping from 24% to 30%. This boost not only cuts down on emissions but also makes the city more attractive and livable.
Locals are happy with the city's cleanliness, thanks to community-led initiatives like waste sorting and composting. These efforts have given residents a sense of pride and ownership, leading to better waste management and a nicer place to live.
Neighborhoods involved in the Surabaya Green and Clean Program have seen a rise in property values. By getting locals involved, these areas have become more appealing to buyers and investors.
Surabaya's efficient waste management and cleanliness initiatives are enhancing property values, making it a great place to consider for your next property investment.
Sources: E3S Conferences, Global Covenant of Mayors, World Bank
13) With Surabaya’s cultural attractions, you can easily rent out your property short-term to tourists
Surabaya is drawing more tourists with its vibrant cultural attractions and events.
In October 2024, Juanda Airport saw over 28,000 arrivals, a clear sign of the city's growing allure as a tourism hotspot in East Java. This isn't just a one-off; in 2023, domestic tourist visits in East Java surged, giving a big boost to the local economy.
Surabaya's lively cultural scene is a big hit with visitors. The city hosts exciting festivals like the Jember Fashion Carnival and the Surabaya Rujak Uleg Festival, which draw crowds from near and far. These events highlight the area's rich cultural heritage and offer unique experiences that tourists love.
With more tourists coming in, short-term rental demand is on the rise. While specific numbers for Surabaya aren't available, the trend in Indonesia shows a boost in Airbnb occupancy rates in major cities, including Surabaya. This indicates that the city's cultural attractions are indeed enhancing short-term rental opportunities.
The local government is actively promoting Surabaya as a cultural tourism destination. Efforts to improve tourism infrastructure and media coverage of the city's unique cultural offerings have further increased its popularity. This mix of cultural richness and strategic promotion has made Surabaya a must-visit spot, driving up the need for short-term accommodations.
Sources: Metrotvnews, Airbtics, Travel and Tour World
14) Surabaya’s multicultural vibe attracts a diverse range of residents
Surabaya is a city where diverse cultures blend seamlessly, making it an attractive place for potential residents.
At the heart of this multicultural vibe is the Surabaya Intercultural School, which hosts students from over 25 different nationalities. This melting pot of cultures is further enriched by the presence of multinational companies that bring in a varied workforce, adding layers to the city's cultural fabric.
Surabaya's streets come alive with cultural festivals and events that celebrate its rich heritage. These celebrations are not just about tradition; they are a testament to the city's commitment to embracing diversity. The culinary scene is equally vibrant, offering everything from local Indonesian delights to international fine dining, reflecting the city's multicultural appeal.
In the real estate market, Surabaya attracts a diverse range of buyers, from expatriates to local residents. This demand highlights the city's allure to people from various backgrounds, making it a dynamic place to live. The media often shines a spotlight on Surabaya's multicultural attractions, further boosting its reputation as a welcoming city.
For those considering a move, Surabaya offers a unique blend of cultures and opportunities. The city's ability to cater to a wide range of tastes and preferences is evident in its bustling food scene and vibrant community life.
Whether you're drawn by the promise of a multicultural environment or the chance to experience a rich tapestry of traditions, Surabaya has something for everyone.
Sources: Surabaya Intercultural School, Agoda
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.
15) Surabaya is a great base for travelers due to its closeness to Bali and other tourist spots
Surabaya is becoming a hot spot for travelers thanks to its close proximity to Bali and other tourist destinations.
In recent years, Indonesia's tourism sector has boomed, with Bali as a major entry point for international visitors. This surge in tourists has indirectly benefited nearby cities like Surabaya, making it a more attractive base for exploring the region.
Travel between Surabaya and Bali is now easier than ever, with more flights and transportation options available. Airlines are competing to offer more routes, enhancing connectivity and making Surabaya a convenient starting point for adventures across the Indonesian archipelago.
Surabaya has also invested in its tourism infrastructure, working to enhance local attractions and integrate them with the city's rich culture. Collaborations between Surabaya and Bali tourism boards have further enriched the tourist experience, drawing more visitors to use Surabaya as their base.
Travel blogs and reviews often highlight Surabaya's strategic location, emphasizing its easy access to Bali and other popular spots. This, combined with the city's cultural and historical offerings, makes Surabaya an appealing choice for travelers eager to explore the region.
With its growing appeal, Surabaya is not just a stopover but a destination in its own right, offering a unique blend of convenience and cultural richness that enhances any travel itinerary.
Sources: PWC, Sryahwa Publications, Riset Unisma, Travel and Tour World, The Bali Sun
16) With many multinational companies, Surabaya attracts residents and boosts housing demand
Surabaya is buzzing with new opportunities thanks to the influx of multinational companies.
Imagine over 300 Taiwanese firms setting up shop in Surabaya, a clear sign of the city's growing appeal. This boom is further fueled by the Ngoro Industrial Park, where nearly 500 hectares have been snapped up by international businesses. It's like a magnet for global enterprises, transforming the local landscape.
With these companies settling in, job opportunities are on the rise. While the World Economic Forum's Future of Jobs Report 2025 doesn't specifically mention Surabaya, it does highlight a global trend of job creation driven by tech and economic shifts. Surabaya is riding this wave, with its economy diversifying and growing, thanks in large part to these multinational players.
As jobs multiply, people are flocking to Surabaya. The city's metro area is expected to swell to over 3 million by 2025. This growth is fueled by folks moving from nearby suburbs and villages, all in search of better job prospects. It's a vibrant, bustling scene as more people make Surabaya their home.
For anyone considering buying property here, it's worth noting that the demand for housing is climbing alongside the population. The presence of these multinational companies is a key driver, attracting more residents and boosting the housing market.
Surabaya's transformation is a testament to its strategic location and business-friendly environment. With the influx of international firms, the city is becoming a hub of economic activity, offering a promising future for both businesses and residents alike.
Sources: Taiwan Panorama, Macrotrends, World Economic Forum
17) Surabaya’s infrastructure projects, like the Surabaya-Madura bridge, boost connectivity and property values
The Suramadu Bridge has been a game-changer for Surabaya and Madura.
Thanks to this bridge, moving between these areas is now a breeze, boosting both accessibility and economic ties. This ease of movement has made Surabaya a hotspot for property buyers, with the bridge playing a key role in this transformation.
Property prices in Surabaya have been on the rise, largely due to the city's infrastructure upgrades, including the Suramadu Bridge. The influx of foreign investors in 2023 and 2024 has been a major factor, as they are drawn to areas with improved connectivity.
The Indonesian government has also made it easier for foreigners to buy property, simplifying purchase qualifications and expanding the types of titles they can hold. This has made Surabaya even more appealing, attracting both local and international investors and fueling the city's economic growth.
For those considering buying property in Surabaya, the ongoing infrastructure projects, like the Suramadu Bridge, are a big plus. They not only improve connectivity but also increase property values, making it a smart investment choice.
With these developments, Surabaya is becoming a vibrant hub for real estate, offering great opportunities for those looking to invest in a city with a promising future.
Sources: Wikipedia, Tripadvisor, GIS Resau Asie
Get fresh and reliable information about the market in Surabaya
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
18) Surabaya’s lively arts and music scene makes it a great spot for creative professionals
Surabaya is a hotspot for creative professionals, thanks to its vibrant arts and music scene.
One of the standout events is ArtSubs, which brought together 152 artists from across Indonesia. This event is more than just an art show; it's a cultural hub that draws both locals and international visitors, showcasing the city's diverse artistic talents.
Music festivals and concerts are also on the rise, adding to Surabaya's cultural appeal. The Surabaya Art Festival, which kicked off in 1993, has become a city icon, attracting artists from all over the country. This festival underscores Surabaya's dedication to nurturing a lively arts scene.
Creative coworking spaces like Koridor Coworking Space and IdeaHub are popping up, offering essential infrastructure for artists and musicians. These spaces are designed to boost productivity and foster collaboration, making them ideal for creative minds.
The government is also stepping up, with initiatives that support the arts and creative industries. Their backing is expected to boost the nation's GDP by 2029, thanks to investments in public art and cultural infrastructure that enrich Surabaya's cultural landscape.
Sources: Kompas, Neliti, What's New Indonesia, Antara News
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.