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If you're looking to invest in Surabaya's rental market, understanding rental yields is essential to making a smart decision.
This guide covers everything from average gross and net yields to the best neighborhoods and property types for maximizing your returns in Indonesia's second-largest city.
We constantly update this blog post to reflect the latest data and market conditions in Surabaya.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Surabaya.
Insights
- Surabaya apartments yield around 7.2% gross on average, but when you blend in landed houses, the citywide average drops to roughly 6.3% because land-heavy properties generate less rent per rupiah invested.
- The single biggest recurring cost for Surabaya landlords is the 10% final income tax on gross rent, which alone shaves more than half a percentage point off your net yield.
- Studios and one-bedroom apartments in Surabaya deliver the highest yields (7% to 9% gross) because they attract the widest pool of renters and command the best rent per square meter.
- Surabaya's yield spread across neighborhoods is wide, ranging from about 4.5% in premium areas like Darmo to 8.5% in renter-heavy zones like Sukolilo near ITS campus.
- Vacancy rates in Surabaya run higher for apartments (8% to 12%) than for landed houses (4% to 7%), mainly because investor-owned apartment stock faces more direct competition.
- A "good" rental deal in Surabaya in 2026 means at least 7% gross or 5% net, which provides a clear premium over Indonesia's benchmark policy rate of around 4.75%.
- Upcoming public transport projects like the planned SSRL and potential LRT corridors could boost rents by 5% to 15% in connected neighborhoods such as Wonokromo and Gubeng.
- Property tax (PBB-P2) in Surabaya is relatively modest, ranging from 0.05% to 0.30% of NJOP depending on the bracket, making it a smaller drag on net yields than income tax.
What are the rental yields in Surabaya as of 2026?
What's the average gross rental yield in Surabaya as of 2026?
As of early 2026, the average gross rental yield in Surabaya for a typical residential property mixing landed houses and apartments sits at around 6.3% per year.
Most standard rental properties in Surabaya fall within a realistic gross yield range of about 4.5% to 8.5%, depending on the property type and neighborhood.
This puts Surabaya slightly above the Indonesian average for secondary cities, where gross yields often hover between 5% and 6%, making it relatively attractive for domestic buy-to-let investors.
The single most important factor influencing gross rental yields in Surabaya right now is the gap between apartment yields (which run higher at around 7.2%) and landed house yields (which are lower due to higher land values relative to achievable rents).
What's the average net rental yield in Surabaya as of 2026?
As of early 2026, the average net rental yield in Surabaya for a typical residential property is approximately 4.6% per year after accounting for the most common recurring costs.
The typical difference between gross and net yields in Surabaya is about 1.5 to 2 percentage points, which reflects taxes, vacancy, and basic maintenance expenses.
The biggest expense that reduces your gross yield in Surabaya is the 10% final income tax on rental income (PPh Final Pasal 4 ayat 2), which the Indonesian tax authority applies to all land and building rentals.
Most standard investment properties in Surabaya deliver net yields in the range of 3.5% to 5.5%, with the variation depending on how well you manage vacancy, maintenance costs, and whether you use property management services.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market 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 yield is considered "good" in Surabaya in 2026?
A "good" gross rental yield in Surabaya in 2026 is generally considered to be at least 7%, or at least 5% net after costs, because this provides a meaningful premium over Indonesia's benchmark policy rate of around 4.75%.
The threshold that separates average-performing properties from high-performing ones in Surabaya is roughly 7% gross, since anything below that often lands you in the mid-4% net range after taxes and expenses, which is fine but not exceptional for the risk and effort involved.
How much do yields vary by neighborhood in Surabaya as of 2026?
As of early 2026, the spread in gross rental yields between Surabaya's highest-yield and lowest-yield neighborhoods is roughly 4 percentage points, ranging from about 4.5% to 8.5%.
The neighborhoods that typically deliver the highest rental yields in Surabaya are areas with strong renter demand and moderate purchase prices, such as Sukolilo (near ITS campus), Rungkut (industrial and office workers), and Tenggilis Mejoyo.
The neighborhoods with the lowest rental yields in Surabaya are premium lifestyle zones where property prices have run ahead of achievable rents, including Darmo, Tegalsari, and prime sections of Pakuwon Indah and Citraland in Lakarsantri.
The main reason yields vary so much across Surabaya neighborhoods is the difference in land values relative to local rental demand, since expensive land compresses yields even when rents are decent.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Surabaya.
How much do yields vary by property type in Surabaya as of 2026?
As of early 2026, gross rental yields in Surabaya range from about 4% for large luxury apartments and big landed homes up to around 9% for well-located studios and one-bedroom apartments.
The property type that currently delivers the highest average gross rental yield in Surabaya is the studio or one-bedroom apartment, which typically achieves 7% to 9% gross because of strong rent-per-square-meter efficiency and a broad tenant pool.
The property type with the lowest average gross rental yield in Surabaya is the large landed house or luxury three-bedroom apartment, which usually yields only 4% to 6% gross because rents do not scale proportionally with the higher purchase prices.
The key reason yields differ between property types in Surabaya is that smaller units attract more renters and command higher rent per square meter, while larger properties have limited tenant pools and higher capital costs that compress returns.
By the way, you might want to read the following:
What's the typical vacancy rate in Surabaya as of 2026?
As of early 2026, the average residential vacancy rate in Surabaya is estimated at around 7%, though this varies significantly by property type.
Vacancy rates across Surabaya neighborhoods range from about 4% in high-demand landed-house areas to around 12% in competitive apartment zones with lots of investor-owned stock.
The main factor driving vacancy rates in Surabaya is the level of competition among similar rental units, with apartments facing more direct substitutes than landed homes, which tend to have stickier tenants.
Surabaya's vacancy rate is roughly in line with other major Indonesian cities, though it runs slightly higher in the apartment segment due to ongoing supply additions in superblock developments.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Surabaya.
What's the rent-to-price ratio in Surabaya as of 2026?
As of early 2026, the average annual rent-to-price ratio in Surabaya is approximately 6.3%, which translates to a price-to-rent ratio of about 16 years.
A rent-to-price ratio above 6% annually is generally considered favorable for buy-to-let investors in Surabaya, and this metric is essentially the same as gross rental yield expressed differently.
Surabaya's rent-to-price ratio is competitive compared to Jakarta (where ratios often fall below 5%) and similar to other major Indonesian secondary cities, making it relatively attractive for yield-focused investors.
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods and micro-areas in Surabaya give the best yields as of 2026?
Where are the highest-yield areas in Surabaya as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Surabaya are Sukolilo (including Keputih near ITS campus), Rungkut, and Tenggilis Mejoyo, all of which benefit from strong and consistent renter demand.
These top-performing areas in Surabaya typically deliver gross rental yields in the range of 7% to 8.5%, with some well-positioned studios and one-bedroom units reaching even higher.
The main characteristic these high-yield areas share is that they serve specific renter populations (students, industrial workers, young professionals) who need affordable housing close to campuses or workplaces, keeping demand steady and purchase prices relatively moderate.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Surabaya.
Where are the lowest-yield areas in Surabaya as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Surabaya are Darmo, Tegalsari, and premium sections of Pakuwon Indah, where property prices have outpaced achievable rental income.
These low-yield areas in Surabaya typically deliver gross rental yields in the range of only 4% to 5.5%, significantly below the citywide average.
The main reason yields are compressed in these Surabaya neighborhoods is that high land values and premium positioning push purchase prices up, while local rents, though decent, do not rise proportionally.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Surabaya.
Which areas have the lowest vacancy in Surabaya as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Surabaya are Rungkut (work-linked demand), Sukolilo (campus-linked demand), and Wonokromo (strong connectivity and mixed tenant base).
These low-vacancy areas in Surabaya typically experience vacancy rates in the range of 3% to 5%, well below the citywide average of around 7%.
The main demand driver that keeps vacancy low in these Surabaya neighborhoods is the presence of stable anchor institutions like universities, industrial parks, and major transport connections that provide a continuous flow of renters.
The trade-off investors typically face when targeting these low-vacancy areas is that the strong demand often means slightly lower yields than emerging neighborhoods, as property prices have already adjusted to reflect the reliable rental income.
Which areas have the most renter demand in Surabaya right now?
The top three neighborhoods currently experiencing the strongest renter demand in Surabaya are Sukolilo (driven by university students and young graduates), Rungkut (industrial and office workers), and Pakuwon City (lifestyle-oriented professionals and families).
The renter profiles driving most of the demand in these Surabaya areas include university students and recent graduates in Sukolilo, working professionals near industrial zones in Rungkut, and young families and expatriates seeking amenity-rich living in Pakuwon City.
Rental listings in these high-demand Surabaya neighborhoods typically get filled within two to four weeks, compared to the citywide average of four to six weeks, especially for well-priced studios and two-bedroom apartments.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Surabaya.
Which upcoming projects could boost rents and rental yields in Surabaya as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Surabaya are the SSRL public transport expansion, the potential LRT development being studied with UK partnership, and the continued Pakuwon City superblock expansion in East Surabaya.
The neighborhoods most likely to benefit from these projects include Wonokromo and Gubeng (from improved transit connectivity), areas along the MERR corridor in East Surabaya (from Pakuwon City expansion), and central connectors that would be served by future rail lines.
Investors might realistically expect rent increases of 5% to 15% in well-positioned properties once these projects are completed, though the timing remains uncertain and the impact will be strongest within walking distance of new stations or amenities.
You'll find our latest property market analysis about Surabaya here.
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What property type should I buy for renting in Surabaya as of 2026?
Between studios and larger units in Surabaya, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments are the better-performing unit type in Surabaya in terms of both rental yield and occupancy, thanks to their broader tenant pool and more efficient rent-to-price ratios.
Studios in Surabaya typically achieve gross rental yields of 7% to 9% (around IDR 50 to 70 million annually, or USD 3,100 to 4,400 / EUR 2,900 to 4,100 on a modest unit), while larger two-bedroom and three-bedroom units usually yield only 5% to 7%.
The main factor that explains this difference is that smaller units in Surabaya command higher rent per square meter and attract more renters (students, singles, young couples), while larger units have a more limited tenant pool.
However, larger units can be the better investment choice in Surabaya if you are targeting expatriate families or long-term corporate tenants who prefer spacious living and are willing to sign multi-year leases, reducing turnover costs.
What property types are in most demand in Surabaya as of 2026?
As of early 2026, the most in-demand property type in Surabaya for renters is the affordable-to-mid-range apartment, particularly studios and compact two-bedroom units near campuses, offices, and superblock developments.
The top three property types ranked by current tenant demand in Surabaya are studio/one-bedroom apartments (highest demand), compact two-bedroom apartments, and mid-sized cluster homes in accessible locations.
The primary demographic trend driving this demand pattern in Surabaya is the growing population of young professionals, university students, and small families who prioritize affordability and proximity to work or school over space.
One property type that is currently underperforming in demand in Surabaya is the large luxury landed house, which has a limited renter pool and often sits vacant longer due to high asking rents and fewer potential tenants.
What unit size has the best yield per m² in Surabaya as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Surabaya is between 20 and 50 square meters, covering studios and compact one-bedroom apartments.
The typical gross rental yield per square meter for these optimal unit sizes in Surabaya is around IDR 1.5 to 2.5 million per m² annually (approximately USD 95 to 160 / EUR 90 to 150 per m² per year), which is significantly higher than larger formats.
The main reason smaller units in Surabaya have better yield per m² is that they rent at a premium per square meter because tenants pay for functionality (a complete living unit) rather than just space, while larger units have more unproductive square meters that do not generate proportionally higher rent.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Surabaya.
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 costs cut my net yield in Surabaya as of 2026?
What are typical property taxes and recurring local fees in Surabaya as of 2026?
As of early 2026, the annual property tax (PBB-P2) for a typical rental apartment in Surabaya ranges from about IDR 500,000 to IDR 3 million (USD 30 to 190 / EUR 28 to 175), depending on the NJOP value and which bracket applies under Perda Surabaya 7/2023.
Beyond property tax, landlords in Surabaya must also budget for the 10% final income tax on gross rental income (PPh Final Pasal 4 ayat 2), which is typically the largest recurring tax burden for rental properties.
Together, these taxes and fees in Surabaya typically represent about 10% to 12% of gross rental income, with the 10% income tax being the dominant component and property tax adding a smaller but consistent cost.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Surabaya.
What insurance, maintenance, and annual repair costs should landlords budget in Surabaya right now?
Annual landlord insurance for a typical rental property in Surabaya costs approximately IDR 1 to 3 million (USD 60 to 190 / EUR 55 to 175), though many landlords skip formal insurance and self-insure against minor risks.
The recommended annual maintenance and repair budget in Surabaya is about 0.5% to 1.0% of property value for landed homes, or roughly one to two months of rent set aside for apartments that have separate building service charges.
The type of repair expense that most commonly catches Surabaya landlords off guard is water damage and plumbing issues, especially in older buildings where tropical humidity and heavy rains take a toll on infrastructure.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Surabaya is around IDR 5 to 15 million (USD 310 to 940 / EUR 290 to 875), depending on property type and age.
Which utilities do landlords typically pay, and what do they cost in Surabaya right now?
In most Surabaya rental arrangements, tenants pay for electricity and water directly, while landlords typically cover the monthly building service charge (for apartments) and sometimes include internet for furnished "ready-to-live" units.
When landlords do cover utilities in Surabaya, the monthly cost typically ranges from IDR 500,000 to IDR 1.5 million (USD 30 to 95 / EUR 28 to 88) for service charges, with internet adding another IDR 200,000 to 400,000 (USD 12 to 25 / EUR 11 to 23) if included.
What does full-service property management cost, including leasing, in Surabaya as of 2026?
As of early 2026, full-service property management in Surabaya typically costs between 6% and 10% of collected rent (roughly IDR 300,000 to 1 million monthly, or USD 19 to 63 / EUR 17 to 58 for a mid-range unit), depending on the level of service.
On top of ongoing management fees, the typical leasing or tenant-placement fee in Surabaya is equivalent to one month's rent or sometimes a flat fee of around IDR 2 to 5 million (USD 125 to 315 / EUR 115 to 290), charged when a new tenant is secured.
What's a realistic vacancy buffer in Surabaya as of 2026?
As of early 2026, landlords in Surabaya should set aside approximately 7% to 8% of annual rental income as a vacancy buffer to keep their financial projections realistic.
This translates to roughly three to four vacant weeks per year for a typical Surabaya rental property, though apartments in competitive areas may experience slightly more downtime while landed houses in sticky-demand neighborhoods may see less.
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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 it's authoritative | How we used it |
|---|---|---|
| Global Property Guide | It publishes a repeatable yield methodology and shows the underlying city breakdown including Surabaya. | We used its Surabaya yield table as our apartment and condo anchor and sanity-check for what gross yields look like in practice. We then blended it with landed-house assumptions to get an all-property-type estimate. |
| Direktorat Jenderal Pajak (DJP) | This is the Indonesian tax authority explaining the rental income tax rule and rate in plain terms. | We used it to size the biggest recurring tax drag on rental income, which is the 10% final tax on gross rent. We treat it as a baseline for net-yield calculations. |
| DJP Withholding Guidance | It's official step-by-step operational guidance from the tax authority. | We used it to confirm the same 10% rate and how it's typically applied in real transactions. We reference it when explaining net yield and what gets deducted. |
| DDTCNews | It's a specialist tax publisher that directly cites the local regulation and lists the exact PBB-P2 brackets. | We used it to estimate annual property tax as a percentage of NJOP using Surabaya's bracket schedule from Perda 7/2023. We use this to keep net-yield estimates realistic. |
| Bank Indonesia SHPR | Bank Indonesia is the central bank and the SHPR is an official housing-price survey program. | We used it as the authoritative reference when discussing price and rent dynamics and why yields move. We also use it to keep our assumptions aligned with the broader primary-market trend. |
| BPS Surabaya (Yearbook 2025) | BPS is Indonesia's official statistics agency, and this is its flagship local yearbook for Surabaya. | We used it for city context including population, economy, and housing stock signals that help explain renter demand and vacancy risk. We cite it as the official backdrop for Surabaya's residential market. |
| BPS Surabaya Housing Statistics | It's BPS's official portal for the housing and settlement data domain. | We used it as the official directory for housing indicators when framing vacancy and demand. We rely on it to keep the narrative grounded in official measurement. |
| BPS Surabaya SHPP 2025 | It confirms BPS actively runs a housing price survey covering houses and apartments. | We used it to justify why price trends and segments can be triangulated from official survey efforts. We use it to support our mix-all-property-types approach. |
| Reuters | Reuters is a globally recognized wire service with rigorous sourcing for macro and central bank decisions. | We used it to anchor the risk-free benchmark in Indonesia when defining what yield is "good" in early 2026. We compare yields to this to explain the required risk premium. |
| Bank Indonesia BI-Rate | It's the central bank's own explanation of its policy rate framework. | We used it to clarify what "the benchmark rate" means when we talk about financing costs and investor hurdle rates. We keep the article consistent with BI's terminology. |
| Lamudi | It's a major Indonesian property portal with large listing volume that reflects current asking rents. | We used it as a market cross-check for rent levels by unit type and location. We don't treat any single listing as "the truth" but use it directionally alongside other sources. |
| Rumah123 | Rumah123 is a large national platform and its market notes are traceable to its own dataset. | We used it as a qualitative check on where supply and demand is concentrated, which affects achievable rent and vacancy. We use it only as a secondary source. |
| Surabaya City Government | It's the official city-government channel describing planned transport priorities. | We used it to identify rent catalysts tied to mobility upgrades and which neighborhoods benefit first. We translate that into practical watch areas for future rent growth. |
| Detik Jatim | It's a major national news outlet summarizing the city's infrastructure plan. | We used it to cross-check that multiple city projects are actually in the public pipeline, not just rumors. We connect these projects to likely renter demand pockets. |
| Pakuwon Jati | It's the primary source from the developer about what is being delivered and when. | We used it to pinpoint a very specific, credible micro-area catalyst in East Surabaya. We treat this as a demand driver rather than a yield dataset. |
| Southeast Asia Infra | It's a niche infrastructure outlet that cites concrete feasibility-study actions and timelines. | We used it to support the idea that regional rail and LRT planning is active, not hypothetical. We then translate that into corridors to watch rather than claiming certainty on completion dates. |
| Colliers | Colliers is a major property consultancy that monitors apartment market supply and demand in Surabaya. | We used it to understand apartment supply dynamics and vacancy trends in Surabaya. We reference it when sizing realistic vacancy buffers for investors. |
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