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
Buying property in Surabaya as a foreigner can be rewarding, but the risks are real and often invisible until it is too late.
This guide covers the scams, grey areas, and insider lessons that other foreign buyers have learned the hard way in Indonesia's second-largest city.
We constantly update this blog post to reflect the latest regulations, market conditions, and scam tactics as of early 2026.
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 risky is buying property in Surabaya as a foreigner in 2026?
Can foreigners legally own properties in Surabaya in 2026?
As of early 2026, foreigners cannot own freehold land (called Hak Milik) in Surabaya, but they can legally hold property through registered use-right structures like Hak Pakai, which grants the right to use land for residential purposes.
The main restriction in Surabaya is that foreigners must hold a valid Indonesian residency permit (KITAS or KITAP), and there are minimum property value thresholds that typically start around 2 billion IDR (roughly 125,000 USD or 115,000 EUR) depending on the property type and location.
When direct ownership is restricted, foreigners in Surabaya commonly use two legal structures: Hak Pakai titles for personal residential use (lasting up to 80 years with extensions) or setting up a PT PMA (foreign investment company) that can hold Hak Guna Bangunan (Right to Build) titles for investment properties.
The critical point is that your property right must be officially registered at BPN (the National Land Agency) in Surabaya to have legal standing, because private contracts alone do not protect you if disputes arise.
What buyer rights do foreigners actually have in Surabaya in 2026?
As of early 2026, foreigners in Surabaya have legal buyer rights only to the extent that their property right is formally registered with BPN and documented through official notarized deeds prepared by a PPAT (licensed land deed official).
If a seller in Surabaya breaches a contract, foreigners can pursue legal action through Indonesian courts, but the process is slow and expensive, which is why prevention through proper documentation matters far more than relying on litigation after things go wrong.
The most common mistake is that foreigners assume they have the same ownership protections as in their home countries, when in reality nominee arrangements (where an Indonesian holds the title "for" the foreigner) give almost no enforceable rights because Indonesian courts typically do not recognize side agreements that contradict the registered title.
How strong is contract enforcement in Surabaya right now?
Contract enforcement for real estate in Surabaya is moderate compared to countries like Australia, Singapore, or the United States, where disputes resolve faster and more predictably through courts.
According to the World Justice Project Rule of Law Index 2025, Indonesia ranks mid-pack globally, meaning courts function but resolution takes time (often years) and outcomes can be uncertain, which makes Surabaya a place where preventing problems upfront is far smarter than planning to sue later.
The main weakness foreigners should understand is that informal agreements, verbal promises, and side letters have almost no legal weight in Surabaya, so if something is not in your registered deed or official contract, you likely cannot enforce it.
By the way, we detail all the documents you need and what they mean in our property pack covering Surabaya.
Buying real estate in Surabaya can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which scams target foreign buyers in Surabaya right now?
Are scams against foreigners common in Surabaya right now?
Real estate scams targeting foreigners in Surabaya are not rare, and they happen more often than official statistics suggest because many victims do not report or do not realize they have been scammed until years later when they try to sell or extend their rights.
The type of property transaction most frequently targeted by scammers in Surabaya is the off-plan purchase (buying before construction is complete) and the nominee-structured villa or landed house, because these involve larger upfront payments and more paperwork complexity that foreigners struggle to verify.
The profile of foreign buyer most commonly targeted in Surabaya is someone who speaks limited Indonesian, is buying their first property in Indonesia, and is emotionally attached to the idea of owning a home quickly without fully understanding the legal framework.
The single biggest warning sign that a deal may be a scam in Surabaya is pressure to pay a large deposit before you have independently verified the certificate status at BPN and confirmed the seller's identity through official channels.
What are the top three scams foreigners face in Surabaya right now?
The top three scams foreigners face in Surabaya are: first, fake or disputed land certificates where the document looks official but the land has encumbrances, boundary disputes, or the certificate is not the current authoritative record; second, nominee ownership schemes marketed as "standard practice" where your side agreement is essentially unenforceable; and third, off-plan payment traps where developers collect large deposits before permits or legal ownership structures are finalized.
The most common scam in Surabaya typically unfolds like this: a friendly agent shows you a property with a certificate photo, pressures you to pay a "booking fee" to secure the deal before someone else takes it, and then either the certificate turns out to be problematic or the seller disappears after collecting enough deposits from multiple buyers.
The single most effective protection against each scam is the same: never pay any significant amount before you (or your notary/PPAT) have independently verified the certificate at BPN Surabaya, confirmed the seller's legal identity, and established that your ownership structure is actually registrable under Indonesian law.
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 do I verify the seller and ownership in Surabaya without getting fooled?
How do I confirm the seller is the real owner in Surabaya?
The standard verification process in Surabaya requires matching the seller's identity documents to the name on the land certificate and then confirming that certificate's status through BPN (the National Land Agency) to ensure it is current, unencumbered, and matches the physical property.
The official document foreigners should check is the Sertifikat Hak (land certificate) at the Surabaya Land Office, and you can start this process through tools like Sentuh Tanahku or the local land office channel UTAMA Surabaya for certificate verification requests.
The most common trick fake sellers use in Surabaya is presenting a photocopy or screenshot of a certificate along with a compelling story about why verification "takes too long" or "is not necessary," and this trick is common enough that you should treat any resistance to independent verification as a red flag.
Where do I check liens or mortgages on a property in Surabaya?
The official registry where you check liens or mortgages on a property in Surabaya is BPN (Badan Pertanahan Nasional), where encumbrances like bank mortgages (Hak Tanggungan) should be recorded on the certificate's back pages or in the land registry file.
When checking for liens in Surabaya, you should request a full registry extract that shows all encumbrances, transfer history, and any pending disputes or legal proceedings attached to the parcel.
The type of encumbrance most commonly missed by foreign buyers in Surabaya is an informal family claim or inheritance dispute that may not be fully recorded, because Indonesian property often passes through families with incomplete paperwork, and these hidden claims can surface years after your purchase.
It's one of the aspects we cover in our our pack about the real estate market in Surabaya.
How do I spot forged documents in Surabaya right now?
The most common type of forged document used in property scams in Surabaya is a fake or altered land certificate (Sertifikat Hak Milik or Sertifikat Hak Guna Bangunan), and while professional forgeries are not extremely common, they happen often enough that independent verification is always necessary.
The specific red flags that indicate a document may be forged in Surabaya include inconsistent spelling of names or addresses across documents, stamp formats that do not match official BPN standards, certificate numbers that do not appear in BPN records, and sellers who refuse to allow you time for independent verification.
The official verification method you should use in Surabaya is submitting a verification request directly through BPN channels (such as Sentuh Tanahku or the UTAMA Surabaya office) rather than relying on photos, WhatsApp messages, or copies provided by the seller or agent.
Get the full checklist for your due diligence in Surabaya
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What "grey-area" practices should I watch for in Surabaya?
What hidden costs surprise foreigners when buying a property in Surabaya?
The three most common hidden costs foreigners overlook in Surabaya are: PPAT/notary fees (typically 1% of transaction value, around 15-30 million IDR or 950-1,900 USD or 870-1,750 EUR for mid-range properties), buyer's acquisition tax (BPHTB at 5% of the declared value), and "remedial" costs if the certificate needs corrections or the title needs conversion to Hak Pakai.
The hidden cost most often deliberately concealed by sellers or agents in Surabaya is outstanding property taxes (PBB) or unpaid utility bills that transfer to the new owner, and this sometimes happens because agents want to close the deal quickly without revealing that additional payments will be required before registration can proceed.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Surabaya.
Are "cash under the table" requests common in Surabaya right now?
Cash under the table requests in Surabaya property transactions still occur, often framed as "speed money" for faster processing at government offices or as a way to reduce the declared transaction value and lower taxes.
The typical reason sellers or intermediaries in Surabaya give for requesting undeclared cash payments is that it will "help move things along at BPN" or "reduce your tax burden," but what they do not explain is that these payments create no paper trail and can expose you to blackmail or legal problems later.
The legal risks foreigners face in Surabaya if they agree to an undeclared cash payment include potential prosecution for tax evasion, a weaker legal position if disputes arise (because your official documents understate what you paid), and the possibility of being asked for additional "payments" with no recourse.
Are side agreements used to bypass rules in Surabaya right now?
Side agreements to bypass official rules are common in Surabaya, especially in transactions where foreigners want to control property that they cannot legally own outright under Indonesian law.
The most common type of side agreement in Surabaya is the nominee arrangement, where an Indonesian citizen holds the title officially while the foreigner holds a private contract claiming beneficial ownership, but these contracts are generally unenforceable in Indonesian courts because they contradict the public land registry.
The legal consequences foreigners face in Surabaya if a side agreement is discovered or challenged include losing the property entirely (because the nominee is the legal owner), potential visa problems, and in some cases the property being confiscated by the state as the result of an illegal ownership structure.
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.
Can I trust real estate agents in Surabaya in 2026?
Are real estate agents regulated in Surabaya in 2026?
As of early 2026, real estate agents in Surabaya are regulated at the national level under Indonesia's property brokerage framework (P4), which requires licensed brokerage companies to provide written agreements, conduct document verification, and meet professional standards.
A legitimate real estate agent in Surabaya should work for a company that holds a SIUP4 (business license for property brokerage) and should be able to show you their NIB (business identification number) and provide a written brokerage agreement before any transaction begins.
Foreigners can verify whether an agent in Surabaya is properly licensed by asking for their company's registration documents and checking with the Ministry of Trade's business registry, or simply by insisting on a written agreement that specifies services, fees, and responsibilities before proceeding.
Please note that we have a list of contacts for you in our property pack about Surabaya.
What agent fee percentage is normal in Surabaya in 2026?
As of early 2026, the normal agent fee percentage for residential property transactions in Surabaya is between 2% and 5% of the transaction value, with the exact percentage depending on the scope of services and whether the fee is paid by the seller alone or shared between parties.
The typical range that covers most transactions in Surabaya is 2% to 3% for straightforward sales with an existing buyer, and up to 5% when the agent provides full marketing, negotiation, and document coordination services.
In Surabaya, the seller traditionally pays the agent fee for property sales, but this is negotiable and should always be clearly specified in your written brokerage agreement before you begin working with any agent.
Get the full checklist for your due diligence in Surabaya
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What due diligence actually prevents disasters in Surabaya?
What structural inspection is standard in Surabaya right now?
The standard structural inspection process for property purchases in Surabaya is less formalized than in Western countries, so buyers typically need to proactively hire their own building inspector rather than relying on a standardized process provided by the seller or agent.
A qualified inspector in Surabaya should check the roof and waterproofing (critical in the tropical climate), foundation and structural walls for cracks or settling, electrical and plumbing systems, and any signs of water damage or termite activity.
The type of professional qualified to perform structural inspections in Surabaya is a licensed civil engineer or architect with local experience, and you can find these through professional associations or recommendations from trusted notaries and lawyers.
The most common structural issues that inspections reveal in Surabaya properties are water infiltration and damp (from the tropical climate and monsoon seasons), unpermitted renovations that compromise structural integrity, and drainage problems that lead to flooding during heavy rains.
How do I confirm exact boundaries in Surabaya?
The standard process for confirming exact property boundaries in Surabaya involves comparing the physical markers on the ground with the boundary description in the land certificate, and ideally having this verified through the land office as part of your transaction process.
The official document that shows the legal boundaries of a property in Surabaya is the Surat Ukur (measurement letter) attached to the land certificate, which describes the parcel dimensions and should match the registered survey data at BPN.
The most common boundary dispute that affects foreign buyers in Surabaya is when the physical fence or wall does not match the certified boundaries, often because neighbors have informally "agreed" on different lines over the years, and this only becomes a problem when the foreign buyer tries to build or sell.
The professional you should hire to physically verify boundaries in Surabaya is a licensed surveyor (often working through the land office or as an independent professional), who can measure the actual property and compare it to the official records before you finalize payment.
What defects are commonly hidden in Surabaya right now?
The top three defects that sellers commonly conceal from buyers in Surabaya are: unpermitted renovations or extensions (common, as many owners modify homes without updating permits), drainage and flood vulnerability by micro-location (sometimes happens, since even neighboring streets can have very different flooding risk), and title or document mismatches after inheritance or family transfers (common, because property often passes informally through families).
The inspection technique that helps uncover hidden defects in Surabaya is visiting the property during or right after heavy rain to observe drainage and water infiltration, combined with requesting the full permit and renovation history from the seller and cross-checking it against the physical structure.
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 insider lessons do foreigners share after buying in Surabaya?
What do foreigners say they did wrong in Surabaya right now?
The most common mistake foreigners say they made when buying property in Surabaya is trusting a friendly agent or seller based on personality rather than insisting on verifiable documentation and proper legal process.
The top three regrets foreigners most frequently mention after buying in Surabaya are: paying a large deposit before completing independent verification, accepting a nominee arrangement because someone said "everyone does it," and not hiring their own notary or lawyer instead of using the seller's recommendation.
The single piece of advice experienced foreign buyers most often give to newcomers in Surabaya is to slow down, verify everything through official channels, and never let urgency or emotional attachment push you into paying before the paperwork is confirmed.
The mistake foreigners say cost them the most money or caused the most stress in Surabaya is entering a nominee arrangement that later fell apart, either because the nominee demanded more money, died, got divorced, or simply refused to cooperate when the foreigner tried to sell or transfer the property.
What do locals do differently when buying in Surabaya right now?
The key difference in how locals approach buying property in Surabaya compared to foreigners is that locals focus obsessively on the paperwork chain (who owned it before, how it was transferred, whether all taxes were paid) rather than being impressed by renovations or location alone.
A verification step locals routinely take in Surabaya that foreigners often skip is checking the property's history through informal neighborhood networks, asking long-time neighbors about disputes, previous owners, and whether the current seller actually has the right to sell, because locals know that official records sometimes lag behind real situations.
The local knowledge that helps Surabaya residents get better deals is understanding micro-location differences (for example, knowing which specific streets in areas like Citraland, Pakuwon, or East Surabaya growth corridors have better drainage, access, or future development plans) and having relationships with trusted notaries and agents who will flag problems rather than hide them to close a sale.
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.
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 |
|---|---|---|
| Bank Indonesia Residential Property Price Survey | Indonesia's central bank publishing standardized price index data. | We used it to anchor market trends with real index data for Surabaya. We also used its city-by-city tables to show how prices were moving. |
| Basic Agrarian Law (UU No. 5/1960) | The foundational law defining land rights in Indonesia. | We used it to explain why foreigners cannot own freehold. We also used it to clarify why nominee arrangements are legally risky. |
| PP No. 18/2021 (Land and Strata Rights) | Official regulation framework for land rights and registration. | We used it to describe what ownership means for foreigners. We also used it to explain where scams exploit weak paperwork. |
| PP No. 24/1997 (Land Registration) | Core rulebook for how land registration and certificates work. | We used it to structure the ownership verification checklist. We also used it to justify why registration matters more than stories. |
| BPN Sentuh Tanahku | Official government channel for certificate verification. | We used it to direct readers to the proper verification pathway. We also used it to emphasize that verification is a system, not a screenshot. |
| UTAMA Surabaya Land Office | Official local land office service portal for Surabaya. | We used it to give a Surabaya-specific starting point. We used it to show that local offices have their own online channels. |
| Permendag No. 51/2017 (Property Brokerage) | National regulation defining property brokerage business duties. | We used it to explain what regulated agents should do. We also used it to frame fee expectations and documentation requirements. |
| OJK Anti-Scam Center (IASC) | National financial regulator publishing scam statistics. | We used it to quantify the broader scam environment in Indonesia. We used it to recommend safer verification habits. |
| World Justice Project Rule of Law Index 2025 | Independent rule-of-law benchmark with consistent methodology. | We used it to describe contract enforcement strength comparatively. We used it to set expectations that prevention matters more than litigation. |
| Transparency International Indonesia | Best-known global corruption perception benchmark. | We used it to explain why grey-area requests exist. We used it to recommend stronger documentation practices. |
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.
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