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Where are the best places to invest in Surabaya right now? Is the city center still the top pick, or are areas like West Surabaya, East Surabaya, and the coastal regions gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with developers, real estate agents, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Surabaya and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Citraland is attracting investors with high rental yields from expatriates and professionals seeking steady income
Citraland is a hot spot in Surabaya for property investors, thanks to its impressive rental yields.
In 2023 and 2024, rental returns in Citraland ranged from 3.81% to 8.33%, making it a standout choice compared to other areas in Surabaya. With the city average hovering around 6.47%, Citraland offers a lucrative opportunity for those looking to invest.
The area is buzzing with demand, especially from expatriates and professionals. They flock to West Surabaya, where Citraland is located, drawn by its top-notch international schools and convenient amenities. This influx has turned Citraland into a prime location for rental properties, particularly high-rise condos and serviced apartments.
Investor interest is also fueled by government moves like the Omnibus Law, which makes it easier for foreigners to buy property. Plus, the VAT incentive program, extended until the end of 2024, adds to the appeal of residential properties in Citraland.
Sources: Global Property Guide, Expat.com, Fitch Ratings
2) Rungkut is gaining interest from young families and professionals for its modern homes and closeness to industrial areas, driving up property prices
Rungkut is quickly becoming a favorite spot for young families and professionals.
One big reason is the rising property prices, which show just how much people want to live here. This surge in demand is fueled by the development of the Middle East Ring Road (MERR) Surabaya Road, boosting the Central Business District (CBD) in Rungkut.
Rungkut is buzzing with new investments in modern housing projects. New hotels, apartments, and commercial buildings are popping up, turning the Surabaya Industrial Estate Rungkut (SIER) into a vibrant CBD area. This transformation includes multi-family housing, making it a prime spot for professionals who want to live close to their jobs.
What makes Rungkut even more appealing is its proximity to major industrial areas like SIER. Professionals working nearby find it convenient to settle here, cutting down on commute times and enjoying a better work-life balance.
Infrastructure improvements are also a big draw. New urban roads, drains, and water supply systems are being built, along with solid waste management facilities. These upgrades show a commitment to better living conditions, attracting young families and professionals who crave modern amenities.
Rungkut's transformation is supported by improved transportation links, making it easier for residents to get around. This accessibility, combined with the area's modern developments, makes it a top choice for those seeking a vibrant community with all the conveniences.
Sources: Trisakti University Journal, World Bank Document
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.
3) Sukolilo is popular for its closeness to major universities and research centers, boosting rental property demand
Sukolilo is gaining popularity because of its proximity to major universities and research centers.
In recent years, Sukolilo has become a hub for education, thanks to institutions like Universitas 17 Agustus 1945 Surabaya (UNTAG) and Sepuluh Nopember Institute of Technology (ITS). With UNTAG hosting over 14,000 students and ITS more than 20,000, there's a constant demand for nearby housing. This influx of students is a key driver for the local rental market.
Surabaya's population is on the rise, with a 1.2% increase largely fueled by students and young professionals. This growth naturally boosts the demand for rental properties in areas like Sukolilo, which are conveniently close to these educational hubs. It's a well-known trend that areas near universities often see a spike in rental demand, and Sukolilo is no exception.
ITS is not just resting on its laurels; it's actively expanding its facilities and research centers. This expansion attracts even more students and researchers, further fueling the demand for housing. The strategic location of Sukolilo, with its excellent transportation links, makes it even more appealing for those who need to commute easily.
For anyone considering investing in property, Sukolilo offers a promising opportunity. The area's growth is driven by its educational institutions, making it a hotspot for rental properties. With the ongoing development and expansion of these universities, the demand for housing is expected to continue rising.
Sources: Top Universities, World Population Review, Urban Land Institute, Wikipedia
4) Lakarsantri is gaining interest for its spacious plots and new amenities, appealing to long-term investors
Lakarsantri is catching eyes for its spacious residential plots and new amenities, making it a hot spot for long-term investment.
With a median sales price of approximately ₿1.605, the area shows a steady demand for homes. If you're eyeing a 2-bedroom property, expect to pay around ₿0.876, while a 6-bedroom home averages ₿5.831. This range in pricing highlights the area's appeal to a variety of buyers.
New housing developments are popping up, with Pakuwon Indah being a standout. Developed by PT. Pakuwon Jati, this elite area in Surabaya Barat signals significant investment in Lakarsantri. Government projects are also boosting connectivity, making the area even more appealing for future growth.
New amenities like shopping centers and schools are sprouting up, enhancing the area's livability. Real estate experts are marking Lakarsantri as a growth area, pointing to its potential for long-term investment. Urban planning documents hint at more amenities and infrastructure on the horizon, further boosting its attractiveness.
Sources: KF Map, BaanCoin, Lamudi
5) Benowo is gaining interest for its affordable land and infrastructure upgrades, promising future growth potential
Benowo is quickly emerging as a hot spot for property buyers due to its affordable land prices and ongoing infrastructure improvements.
In recent years, particularly in 2023 and 2024, real estate transactions in Benowo have surged, reflecting a growing demand for properties. This uptick is fueled by increasing interest from both investors and homebuyers, as surveys have shown.
The government has announced several infrastructure projects in Benowo, including new road developments and public transport enhancements. These improvements are set to boost the area's livability and attractiveness, making it a more appealing place to live and invest. Media coverage has also spotlighted these developments, drawing even more attention to Benowo.
What makes Benowo particularly attractive is its lower average land prices compared to other districts in Surabaya. For instance, you can snag an 88 SqM apartment in Benowo for a much more affordable price than in other areas. This affordability, coupled with ongoing development, creates a favorable investment climate.
As infrastructure projects continue, Benowo's potential for growth becomes even more apparent. The combination of affordable land and improved infrastructure is a winning formula for those looking to invest in property.
With these factors in play, Benowo is not just a place to watch; it's a place to consider seriously for your next property investment.
Sources: FazWaz, FazWaz Benowo
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6) Dharmahusada is gaining interest for its rapid property appreciation near top schools and universities
Dharmahusada is catching eyes for its skyrocketing property values.
Surabaya's property market is booming, thanks to major infrastructure and business developments. In 2024, the city had a record-breaking budget of Rp422.7 trillion, which has boosted property prices in areas like Dharmahusada. This financial injection is transforming the cityscape, making it a hot spot for real estate.
Surabaya's population is on the rise, with the metro area expected to hit 3,089,000 residents in 2024. This surge in people means more demand for housing, and Dharmahusada is right in the mix. Investors are eyeing this area for its potential, especially with rising rental yields making it a lucrative choice.
Dharmahusada's charm is also in its location near top-notch schools like Petra Christian University. This proximity is a magnet for students and faculty, who need places to live. The influx of these groups is pushing property prices even higher, as demand for housing grows.
For those considering a property purchase, Dharmahusada offers a blend of educational access and investment potential. The area's growth is not just about numbers; it's about being part of a vibrant community that's evolving rapidly. With its strategic location and educational pull, Dharmahusada is a prime spot for real estate.
Sources: Real Wealth, Wikipedia, Top Universities
7) Gunung Anyar is booming with new residential projects and better connectivity to the city center
Gunung Anyar is catching eyes in the real estate scene thanks to exciting new developments.
One standout is the buzz around new residential projects, like the Puri City shopping center, which is driving a wave of construction and investment. Right in front of this hub, there's a bus stop, signaling better public transport options for the area.
Another big draw is the improved infrastructure, especially the Middle East Ring Road (MERR). This road has made it a breeze to get to the city center, boosting Gunung Anyar's appeal as a convenient place to live.
Property values in Gunung Anyar are on the rise, reflecting its growing charm. Its strategic location near shopping malls, schools, and major toll roads like the Waru-Juanda Toll Road is a big plus. These perks, along with government-backed urban development initiatives, are making it a hot spot for real estate investors.
Gunung Anyar's transformation into a real estate gem is also due to its proximity to key amenities and improved connectivity, which are drawing more interest from potential buyers. The area's development is a testament to its potential as a thriving community.
With these developments, Gunung Anyar is shaping up to be a promising investment opportunity, offering a blend of modern living and easy access to the city. It's a place where growth and convenience meet, making it a top choice for those looking to invest in Surabaya's real estate market.
Sources: InCorp Indonesia, Commons Wikimedia
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8) Mulyorejo is gaining attention for its vibrant community and new shopping centers boosting property values
Mulyorejo is quickly becoming a hot spot for property buyers.
One big reason is the opening of new shopping centers like Galaxy Mall 3. This isn't just a shopping destination; it's a lively place for socializing and dining, which really boosts the vibrant community feel in the area. People love having a place where they can meet friends, enjoy a meal, and shop all in one spot.
Property prices in Mulyorejo are on the rise, thanks in part to the Indonesian government's significant investment in infrastructure. These projects are making the area more accessible and attractive, which naturally increases property values. Plus, the local government is working hard to create a business-friendly environment, drawing in more businesses and boosting foot traffic.
The influx of young professionals and families into Surabaya is another key factor. This demographic shift is driving up demand for housing in Mulyorejo, adding to its dynamic community. It's becoming a place where people want to live and invest, and real estate market reports highlight Mulyorejo as a growth area with great potential for property value appreciation.
With all these elements in play, Mulyorejo is not just a place to live; it's a thriving community with a lot to offer. The presence of new shopping centers and a growing population of young professionals are making it a prime location for property investment.
Sources: Galaxy Mall, Instride
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.
9) Wiyung is gaining interest for its affordable homes and new infrastructure projects promising future growth
Wiyung is becoming a hot spot for homebuyers thanks to its affordable housing and promising infrastructure projects.
In recent years, the Indonesian government has been pouring resources into infrastructure, building roads and enhancing urban areas. This focus has set the stage for places like Wiyung to thrive. The Surabaya City Government's efforts to revitalize the Old Town have also played a role. By improving connectivity and accessibility, these projects have made Wiyung more appealing to potential buyers.
Wiyung's charm lies in its affordability, which aligns with the growing trend of multigenerational households. In 2023 and 2024, more families are choosing to live together to save costs and combine incomes. This makes Wiyung an attractive option for those seeking budget-friendly living solutions.
The Indonesian government is not just focusing on roads; they're prioritizing basic services and connectivity. This means areas like Wiyung are poised for growth. The real estate market in Indonesia is also seeing a shift towards affordable housing investments, with a noticeable demand in Surabaya.
Wiyung's potential is further boosted by the government's infrastructure plans, which promise to enhance basic services and connectivity. This focus on development supports the area's growth, making it a smart choice for future homeowners.
With these developments, Wiyung is not just a place to live; it's a community on the rise, offering both affordability and the promise of future growth.
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.