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Thinking about buying property in Surabaya in 2026? You're looking at Indonesia's second-largest city, where the real estate market moves differently than the flashier markets of Jakarta or Bali.
In this regularly updated guide, we break down the current housing prices in Surabaya, what properties are actually available, how long homes take to sell, and what foreigners need to know before buying.
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.
How's the real estate market going in Surabaya in 2026?
What's the average days-on-market in Surabaya in 2026?
As of early 2026, residential properties in Surabaya typically take around 65 days to sell, which reflects a market that is active but not overheated.
That said, the realistic range for most listings in Surabaya falls between 50 and 85 days, with well-priced landed houses in popular areas like West or East Surabaya often selling faster (45 to 70 days), while older apartments can sit on the market for 70 to 100 days.
Compared to one or two years ago, days-on-market in Surabaya has remained fairly stable, which is consistent with the city's steady price growth pattern rather than the boom-and-bust cycles seen in more speculative markets.
Are properties selling above or below asking in Surabaya in 2026?
As of early 2026, residential properties in Surabaya typically sell below asking price, with most transactions closing at around 92% to 96% of the original list price.
Based on available market data, we estimate that fewer than 10% of properties in Surabaya sell at or above asking, though our confidence in this figure is moderate since Indonesia does not publish official sale-to-asking statistics for individual cities.
The properties most likely to see competitive offers in Surabaya are well-located landed houses in master-planned townships like Pakuwon City or CitraLand, where limited inventory and strong buyer demand occasionally create situations where sellers have more negotiating power.
By the way, you will find much more detailed data in our property pack covering the real estate market in Surabaya.
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.
What kinds of residential properties can I realistically buy in Surabaya?
What property types dominate in Surabaya right now?
In Surabaya in 2026, the residential market breaks down roughly into 70% landed houses (rumah tapak), 25% apartments and condominiums, and about 5% shophouses used primarily as residences.
Landed houses represent by far the largest share of available residential properties in Surabaya, particularly those located within master-planned townships in West and East Surabaya.
This dominance of landed housing in Surabaya comes from strong cultural preferences for owning land, the availability of space for township development on the city's outskirts, and the fact that Indonesian families traditionally prioritize having their own plot over high-rise living.
If you want to know more, you should read our dedicated analyses:
- How much should you pay for a house in Surabaya?
- How much should you pay for an apartment in Surabaya?
Are new builds widely available in Surabaya right now?
New-build properties make up an estimated 30% to 40% of residential listings in Surabaya, with landed houses in townships being widely available while new apartment launches have been more limited and selective.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Surabaya include West Surabaya areas like Sambikerep, Lakarsantri, and Dukuh Pakis (home to major townships like CitraLand and Pakuwon), as well as East Surabaya corridors around Sukolilo and Mulyorejo where residential clusters continue expanding.
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Which neighborhoods are improving fastest in Surabaya in 2026?
Which areas in Surabaya are gentrifying in 2026?
As of early 2026, the Surabaya neighborhoods showing the clearest signs of gentrification include Genteng and the Tunjungan corridor near the CBD, Tegalsari with its proximity to lifestyle hubs, Gubeng around Ngagel, and parts of Wonokromo benefiting from improved connectivity.
In these gentrifying Surabaya areas, you can see older single-story homes being rebuilt into modern two or three-story residences, a growing number of specialty coffee shops and creative businesses replacing traditional shops, and younger professionals moving in alongside long-time residents.
Price appreciation in these gentrifying Surabaya neighborhoods has ranged from roughly 15% to 25% over the past two to three years, outpacing the citywide average of around 9% during the same period.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Surabaya.
Where are infrastructure projects boosting demand in Surabaya in 2026?
As of early 2026, the Surabaya areas seeing the strongest infrastructure-driven demand include West Surabaya around Wiyung, Dukuh Pakis, and Sambikerep, as well as East Surabaya along the Sukolilo, Mulyorejo, and Rungkut corridor.
The specific projects driving demand in Surabaya include the continued expansion of the Surabaya-Mojokerto toll road improving western access, the development of the Middle East Ring Road (MERR) extension boosting East Surabaya connectivity, and ongoing improvements to arterial roads linking townships to employment centers.
Most of these major Surabaya infrastructure projects are either completed or expected to reach full operation within the next one to three years, with some road widening and connector projects extending to 2028.
In Surabaya, properties near newly announced infrastructure typically see a 5% to 10% price bump, while completed projects can add another 8% to 15% once residents experience the actual convenience improvement.
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.
What do locals and insiders say the market feels like in Surabaya?
Do people think homes are overpriced in Surabaya in 2026?
As of early 2026, the general sentiment among locals and market insiders is that prime township areas in Surabaya feel expensive, but the overall city is not considered to be in a price bubble.
When locals in Surabaya argue that certain areas are overpriced, they typically point to rental yields of only 3% to 5% in premium locations, the gap between township prices and nearby non-township land values, and the fact that price growth has outpaced local wage increases for several years.
On the other hand, those who believe Surabaya prices are fair often cite the city's strong economic fundamentals, limited quality housing supply in desirable areas, and the fact that prices remain well below Jakarta levels for comparable properties.
The price-to-income ratio in Surabaya currently sits at around 8 to 10 times average annual household income, which is lower than Jakarta's ratio of 12 to 15 times but higher than smaller East Java cities like Malang.
What are common buyer mistakes people regret in Surabaya right now?
The most frequently cited buyer mistake in Surabaya is failing to properly verify land titles and ownership rights, especially when dealing with older inner-city properties or when foreigners unknowingly enter informal nominee arrangements that have no legal protection.
The second most common regret among Surabaya buyers is skipping thorough flood and drainage checks on a street-by-street basis, since flooding patterns in Surabaya can vary dramatically even within the same neighborhood, and a property that looks fine in dry season can become a nightmare during rainy months.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Surabaya.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Surabaya.
Get the full checklist for your due diligence in Surabaya
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How easy is it for foreigners to buy in Surabaya in 2026?
Do foreigners face extra challenges in Surabaya right now?
Foreigners face a moderately high difficulty level when buying property in Surabaya compared to local buyers, mainly due to strict minimum price thresholds, limited financing options, and documentation requirements that add several weeks to the transaction process.
The key legal restrictions for foreign buyers in Surabaya include a minimum purchase price of IDR 5 billion (around USD 310,000) for landed houses and IDR 2 billion (around USD 125,000) for apartments, plus the requirement to hold a Right of Use (Hak Pakai) title rather than freehold (Hak Milik), with ownership limited to 80 years total.
Beyond the legal rules, practical challenges foreigners encounter in Surabaya include finding a notary (PPAT) experienced with foreign transactions, navigating documents that are almost entirely in Indonesian with limited English-language support, and understanding that most Surabaya real estate agents are less accustomed to foreign buyers compared to those in Bali or Jakarta.
We will tell you more in our blog article about foreigner property ownership in Surabaya.
Do banks lend to foreigners in Surabaya in 2026?
As of early 2026, mortgage financing for foreign buyers in Surabaya is technically available but practically difficult to obtain, with only an estimated 20% to 30% of foreign applicants successfully securing a local home loan.
Foreign buyers who do qualify for mortgages in Surabaya can typically expect loan-to-value ratios of 50% to 70% (meaning higher down payments than locals), interest rates of around 8% to 11% per year, and loan terms usually capped at 15 years rather than the 20 to 25 years available to Indonesian citizens.
Banks in Surabaya typically require foreign mortgage applicants to show stable Indonesian-sourced income or long-term employment contracts, valid KITAS or KITAP residency permits, at least 6 to 12 months of local bank statements, and sometimes additional collateral or a local guarantor.
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 risky is buying in Surabaya compared to other nearby markets?
Is Surabaya more volatile than nearby places in 2026?
As of early 2026, Surabaya's residential property prices show lower volatility than Bali (Denpasar) and similar stability to Bandung, with year-over-year price movements typically staying in a narrow 2% to 4% band rather than the sharper swings seen in tourism-dependent markets.
Over the past decade, Surabaya has experienced relatively modest price fluctuations compared to Denpasar, which saw bigger ups and downs tied to international tourism cycles, while Bandung has shown slightly higher growth peaks but also occasional flat periods when Jakarta demand spillover slowed.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Surabaya.
Is Surabaya resilient during downturns historically?
Surabaya's property market has historically shown above-average resilience during economic downturns compared to tourism-driven markets, largely because the city's housing demand is anchored by a diverse local economy based on trade, manufacturing, and services rather than foreign visitor flows.
During the COVID-19 pandemic downturn, Surabaya property prices dipped by an estimated 3% to 7% depending on segment, with recovery to pre-pandemic levels taking roughly 18 to 24 months, which was faster than Bali but similar to other major Javanese cities.
Within Surabaya, the property types that have historically held value best during downturns are landed houses in established master-planned townships like Pakuwon City and CitraLand, as well as homes in central neighborhoods like Gubeng and Tegalsari where land scarcity and convenience create a price floor.
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How strong is rental demand behind the scenes in Surabaya in 2026?
Is long-term rental demand growing in Surabaya in 2026?
As of early 2026, long-term rental demand in Surabaya is growing modestly at an estimated 2% to 4% annually, supported by the city's positive economic trajectory and steady in-migration from surrounding East Java areas.
The main tenant demographics driving long-term rental demand in Surabaya include young professionals working in the city's trade and services sectors, university students attending institutions like ITS and Airlangga, corporate transferees from other Indonesian cities, and a small but steady stream of expats working in manufacturing and logistics.
The neighborhoods with the strongest long-term rental demand in Surabaya right now are Gubeng and Tegalsari (convenient for professionals), areas near university campuses in Sukolilo and Mulyorejo, and parts of West Surabaya near major office parks within the township developments.
You might want to check our latest analysis about rental yields in Surabaya.
Is short-term rental demand growing in Surabaya in 2026?
Short-term rental regulations in Surabaya remain relatively relaxed compared to stricter cities, though operators should ensure proper business licensing (SIUP) and be aware that some apartment buildings have internal rules restricting daily rentals.
As of early 2026, short-term rental demand in Surabaya is steady to slightly improving, though growth rates remain modest compared to leisure destinations like Bali or Yogyakarta.
The current average occupancy rate for short-term rentals in Surabaya sits at around 37% according to AirDNA data, which is typical for a business and trade-focused city rather than a tourist hotspot.
The guest demographics driving short-term rental demand in Surabaya are primarily domestic business travelers on short trips, corporate visitors attending meetings or trade events, and some domestic tourists visiting family or exploring East Java, with average stays running only about 1.5 days.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Surabaya.
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 are the realistic short-term and long-term projections for Surabaya in 2026?
What's the 12-month outlook for demand in Surabaya in 2026?
As of early 2026, the 12-month demand outlook for residential property in Surabaya is moderately positive, with buyer activity expected to increase by roughly 3% to 6% assuming no major shocks to interest rates or employment.
The key factors most likely to influence Surabaya housing demand over the next 12 months include Bank Indonesia's interest rate decisions affecting mortgage affordability, the health of East Java's manufacturing and trade sectors, and whether national economic growth stays on its current trajectory.
Based on current trends, Surabaya residential prices are forecasted to rise by approximately 3% to 5% over the next 12 months, with landed houses in strong locations likely at the higher end and apartments facing more competition keeping their growth closer to flat.
By the way, we also have an update regarding price forecasts in Indonesia.
What's the 3 to 5 year outlook for housing in Surabaya in 2026?
As of early 2026, the 3 to 5 year outlook for Surabaya housing points to cumulative price growth of roughly 15% to 25% for well-located landed homes, while apartments may see more modest gains of 8% to 18% depending on building quality and competing supply.
The major development projects expected to shape Surabaya over the next 3 to 5 years include continued expansion of township developments in West and East Surabaya, potential new MRT or LRT transit planning, port and logistics infrastructure upgrades, and commercial mixed-use projects that create new employment nodes.
The single biggest uncertainty that could alter Surabaya's 3 to 5 year outlook is a significant change in Indonesia's interest rate environment or credit availability, since most local buyers rely heavily on mortgages and even modest rate increases can meaningfully dampen purchasing power.
Are demographics or other trends pushing prices up in Surabaya in 2026?
As of early 2026, demographic trends are having a moderately positive impact on Surabaya housing prices, driven primarily by continued urbanization, a growing middle class, and household formation among millennials entering their peak home-buying years.
The specific demographic shifts most affecting Surabaya prices include steady migration from smaller East Java cities into Surabaya for employment, the expansion of dual-income households with greater purchasing power, and young families seeking homes in master-planned townships with schools and amenities.
Beyond demographics, the non-demographic trends pushing Surabaya prices include buyers' increasing preference for completed and ready-to-occupy properties (which concentrates demand in established neighborhoods), the connectivity premium people pay for shorter commutes, and some investment inflow from Jakarta buyers seeking better value.
These demographic and trend-driven price pressures in Surabaya are expected to continue for at least the next 5 to 10 years, as the city's economic base remains strong and the middle-class expansion shows no signs of reversing.
What scenario would cause a downturn in Surabaya in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Surabaya would be a combination of sharply higher interest rates making mortgages unaffordable, a significant slowdown in East Java's manufacturing and trade sectors reducing local employment, and continued apartment oversupply forcing aggressive price cuts.
Early warning signs that such a downturn might be beginning in Surabaya would include days-on-market stretching beyond 100 days citywide, developers offering increasingly aggressive discounts and payment schemes, a noticeable uptick in foreclosure listings, and declining building permit applications for new residential projects.
Based on historical patterns, a realistic downturn in Surabaya would likely mean price declines of 5% to 15% from peak to trough, with recovery taking 2 to 4 years, though Surabaya's diverse economic base makes catastrophic crashes (30% or more) unlikely outside of a severe national crisis.
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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 We Trust It | How We Used It |
|---|---|---|
| Bank Indonesia Residential Property Price Survey | This is Indonesia's central bank publishing official, survey-based house price indices across major cities including Surabaya. | We used it to anchor Surabaya's price growth figures and compare volatility against other Indonesian cities. We also used it to determine market momentum since price trends and sales activity typically move together. |
| BPS Surabaya Economic Growth Data | BPS is Indonesia's official statistics agency, and this is their local Surabaya economic release with verified government data. | We used it to connect housing demand to the local economy since jobs and incomes drive real estate more than speculation. We also compared Surabaya's growth to East Java and national figures for context. |
| BPS Surabaya Hotel Occupancy Reports | These are official monthly tourism and hospitality indicators from Indonesia's statistics agency. | We used hotel occupancy as a real-world proxy for short-stay and business travel demand. We also used average length-of-stay figures to understand whether demand comes from business trips or leisure visitors. |
| Colliers Indonesia Surabaya Market Reports | Colliers is a major global real estate research firm with professional methodology and local market expertise. | We used it to understand structural trends in Surabaya's apartment market including new launches, completions, and buyer preferences. We also used their insight about the shift toward completed units to interpret negotiation dynamics. |
| BPK Legal Database (PP 18/2021) | BPK's JDIH portal is a widely used official legal documentation source for Indonesian government regulations. | We used it to ground what foreigners can legally own in Indonesia including rights types, registration requirements, and housing provisions. We relied on primary legal texts rather than forum discussions to ensure accuracy. |
| ATR/BPN Decree 1241/2022 | This is the specific ministerial decree that sets minimum purchase prices for foreigners by province. | We used it to provide exact minimum price thresholds that apply to East Java and Surabaya. We converted regulatory requirements into clear, actionable rules for foreign buyers. |
| OJK Mortgage Data via Jakarta Daily | OJK is Indonesia's financial services regulator, and this article contains attributed OJK statements about mortgage lending. | We used it to anchor our discussion of bank financing in regulator-reported context. We treated it as macro context for Indonesia while noting practical constraints specific to foreign buyers. |
| AirDNA Surabaya Data | AirDNA is a widely used short-term rental analytics provider with transparent methodology focused on Airbnb and Vrbo data. | We used it to estimate short-term rental occupancy rates, average daily rates, and revenue levels specific to Surabaya. We cross-checked AirDNA findings with BPS hotel data to avoid relying on a single private dataset. |
| Rumah123 | Rumah123 is one of Indonesia's largest property listing portals with transparent, publicly viewable market listings. | We used it to understand real property types and price points that buyers actually encounter in Surabaya. We treated it as ground-truth for what's being marketed rather than an official index. |
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