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Surabaya, Indonesia's second-largest city and the commercial heart of East Java, offers foreign property buyers a compelling mix of lower entry prices than Jakarta, solid rental yields averaging around 7%, and growing infrastructure investment that is expected to reshape urban mobility over the coming years.
This guide breaks down Surabaya's property market neighborhood by neighborhood, so you know exactly where prices are highest, where yields are strongest, which areas are heating up, and which ones to avoid in early 2026.
We constantly update this blog post to reflect the latest market data and regulatory changes affecting foreign buyers 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.
What's the Current Real Estate Market Situation by Area in Surabaya?
Which areas in Surabaya have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for property in Surabaya are Dukuh Pakis (especially the Pakuwon Indah corridor), Wiyung (around Babatan and key access roads), and Gubeng (particularly the Manyar corridor near the CBD), where prime residential stock commands the city's highest asking prices.
In these premium Surabaya neighborhoods, typical prices range from IDR 18 million to IDR 35 million per square meter for apartments and condos, while landed houses in gated clusters can reach IDR 22 million to IDR 30 million per square meter depending on lot size and developer quality.
Each of these high-priced Surabaya areas commands premiums for distinct reasons:
- Dukuh Pakis (Pakuwon Indah): anchored by West Surabaya's largest retail and business superblock ecosystem, attracting expats and senior professionals.
- Wiyung: benefits from west-side accessibility and strong demand from upper-middle-class families seeking modern gated communities.
- Gubeng (Manyar corridor): central location with proximity to the CBD, universities, and hospitals creates persistent buyer competition.
- Sambikerep (Citraland): the Citraland township's planned infrastructure and Universitas Ciputra draw owner-occupiers willing to pay for lifestyle.
Which areas in Surabaya have the most affordable property prices in 2026?
As of early 2026, the most affordable property prices per square meter in Surabaya are found in Semampir, Pabean Cantian, Simokerto (older north and central-north fabric), Krembangan and Asemrowo (industrial-port zones), and parts of Bulak and Kenjeran along the coastal edge.
In these budget-friendly Surabaya neighborhoods, typical prices range from IDR 5 million to IDR 13 million per square meter for landed houses, with older walk-up apartments (where available) often even cheaper depending on building condition and exact location.
However, buyers should expect trade-offs in these lower-priced Surabaya areas: Semampir, Pabean Cantian, and Simokerto have highly variable street-by-street quality and weaker resale liquidity for foreign owners; Krembangan and Asemrowo face industrial traffic, noise, and externalities that cap long-term desirability; while Bulak and Kenjeran carry tidal flooding (rob) and sea-level risks that can increase holding costs and vacancy rates over time.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Surabaya Offer the Best Rental Yields?
Which neighborhoods in Surabaya have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Surabaya delivering the highest gross rental yields are Sukolilo (around ITS and the campus belt) at 7 to 10%, Rungkut (industrial and Merr corridor edges) at 6.5 to 9%, Tambaksari (dense central-east area) at 6.5 to 9%, and Wonocolo or Gayungan (southern access corridors) at 6 to 8.5%.
Across Surabaya as a whole, typical gross rental yields for residential investment properties range from about 4.5% in prime west-side locations up to 10% in high-demand student and worker housing pockets, with the city average sitting around 7.2%, which is notably higher than Jakarta's 4 to 5%.
Each of these top-yielding Surabaya neighborhoods outperforms for specific reasons:
- Sukolilo (Keputih, Menur Pumpungan): deep, repeatable student demand from ITS and nearby universities keeps occupancy high even when prices stay flat.
- Rungkut (Rungkut Industri, Kali Rungkut): strong worker and professional rental base tied to industrial parks and office nodes, with purchase prices more reasonable than west-side prime.
- Tambaksari: dense, always-needed housing in a central-east location that is less dependent on luxury demand.
- Wonocolo and Gayungan: commuter-friendly positioning along southern corridors attracts steady middle-income tenants.
Finally, please note that we cover the rental yields in Surabaya here.
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Which Areas in Surabaya Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Surabaya perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Surabaya that perform best for short-term rentals like Airbnb are Genteng (Tunjungan and CBD-adjacent pockets), Gubeng (around major hotels and station access), and Dukuh Pakis (Pakuwon superblock with its mall, dining, and modern high-rise inventory), where business travelers and domestic visitors drive occupancy.
In these top-performing Surabaya Airbnb locations, well-managed units can generate monthly revenues ranging from IDR 8 million to IDR 18 million depending on unit size, amenities, and seasonal demand, though operators should note that Surabaya is a business-travel market rather than a leisure destination like Bali.
Each of these Surabaya neighborhoods excels for short-term rentals for distinct reasons:
- Genteng (Tunjungan): closest to walkable CBD gravity with malls and business centers, making it easy to market to visitors.
- Gubeng: strong business-visitor appeal due to hotel proximity, station access, and central-east convenience.
- Dukuh Pakis (Pakuwon): modern high-rise inventory with pools, gyms, and security fits the Airbnb expectation for quality stays.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Surabaya.
Which tourist areas in Surabaya are becoming oversaturated with short-term rentals?
In early 2026, the areas in Surabaya showing signs of short-term rental oversaturation are specific condo towers in Dukuh Pakis and Wiyung where multiple investors bought nearly identical units targeting Airbnb, plus some CBD-fringe small studio clusters that compete aggressively on price.
In these oversaturated Surabaya pockets, you can find dozens of near-identical listings within a single building or complex, often with heavy discounts signaling price-war conditions rather than healthy demand.
The clearest indicator of oversaturation in these Surabaya areas is ADR (average daily rate) compression, where hosts keep cutting prices to secure bookings, and occupancy remains decent but revenue per available night drops significantly below what the numbers looked like two or three years ago.
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 Areas in Surabaya Are Best for Long-Term Rentals?
Which neighborhoods in Surabaya have the strongest demand for long-term tenants?
The neighborhoods in Surabaya with the strongest demand for long-term tenants are Sukolilo (campus belt around ITS), Rungkut (workforce and industrial corridor), Gubeng and Tambaksari (central-east convenience), and Sambikerep (Citraland and Ciputra ecosystem), where tenant pools are deep and consistently replenished.
In these high-demand Surabaya rental neighborhoods, well-priced units typically rent within two to four weeks of listing, with vacancy rates staying below 10% for properly maintained properties that match local tenant budgets.
The tenant profile driving demand varies by Surabaya neighborhood:
- Sukolilo (Keputih, Menur): students, junior university staff, and visiting academics seeking affordable proximity to ITS and other campuses.
- Rungkut: professionals and families who value practical access to industrial parks and east-side offices.
- Gubeng and Tambaksari: professionals, students, and hospital or university-linked tenants who need central-east convenience.
- Sambikerep (Citraland): families, campus-linked tenants, and west-side professionals attracted to the planned-community lifestyle.
The key amenity that makes these Surabaya neighborhoods attractive to long-term tenants is easy commuting access combined with nearby daily necessities: Sukolilo and Rungkut benefit from campus and industrial anchors, Gubeng offers walkable urban convenience, and Sambikerep provides the full township ecosystem with schools, retail, and green space within the development.
Finally, please note that we provide a very granular rental analysis in our property pack about Surabaya.
What are the average long-term monthly rents by neighborhood in Surabaya in 2026?
As of early 2026, average long-term monthly rents in Surabaya range from about IDR 1.8 million for small student-oriented units in Sukolilo up to IDR 12 million or more for larger apartments in premium areas like Dukuh Pakis (Pakuwon), with mid-range neighborhoods like Gubeng and Rungkut falling between IDR 2.5 million and IDR 6 million for typical apartments.
In the most affordable Surabaya neighborhoods for rentals, such as Sukolilo (student pockets) and Rungkut, entry-level apartments typically rent for IDR 1.8 million to IDR 4 million per month, making them accessible for students and early-career workers.
In average-priced Surabaya neighborhoods like Gubeng, Tambaksari, and Wiyung, mid-range apartments typically rent for IDR 3 million to IDR 6.5 million per month, while small family houses command IDR 6 million to IDR 12 million depending on size and condition.
In the most expensive Surabaya neighborhoods like Dukuh Pakis (Pakuwon Indah) and Sambikerep (Citraland), high-end apartments rent for IDR 5 million to IDR 12 million per month, with larger family houses reaching IDR 10 million to IDR 15 million or higher.
You may want to check our latest analysis about the rents in Surabaya here.
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Which Are the Up-and-Coming Areas to Invest in Surabaya?
Which neighborhoods in Surabaya are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Surabaya showing gentrification and attracting new investor attention are parts of Sukolilo (around newer student and residential nodes), selected pockets of Rungkut and Gunung Anyar-adjacent corridors (east and south-east expansion direction), and Tandes (selected pockets with improving access and relative affordability).
These gentrifying Surabaya neighborhoods have experienced annual price appreciation of roughly 4 to 7% in recent years, outpacing the city-wide average during a period when Bank Indonesia data shows Surabaya's primary market as flat or slightly negative, suggesting localized demand growth even in a soft macro environment.
Which areas in Surabaya have major infrastructure projects planned that will boost prices?
The areas in Surabaya most likely to see price boosts from infrastructure are those along the Gubeng to Sidoarjo corridor (benefiting from the Surabaya Regional Railway Line Phase 1) and West Surabaya's commercial gravity zones in Dukuh Pakis, Wiyung, and Sambikerep (anchored by the Pakuwon superblock ecosystem's continuous expansion).
The specific infrastructure projects driving these Surabaya property hotspots include the Surabaya Regional Railway Line (SRRL) Phase 1, a EUR 296.8 million project backed by Germany's KfW that will double-track and electrify the 20km Gubeng to Sidoarjo corridor with construction targeted for 2029, plus the longer-term Jakarta-Surabaya High-Speed Rail initiative announced by President Prabowo in 2025.
Historically in Surabaya, areas that have benefited from completed infrastructure upgrades (such as toll access improvements or superblock developments) have seen price appreciation of 10 to 20% over the three to five years following project completion, though these gains tend to be front-loaded once projects move from "announced" to "under construction."
You'll find our latest property market analysis about Surabaya here.
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.
Which Areas in Surabaya Should I Avoid as a Property Investor?
Which neighborhoods in Surabaya with lots of problems I should avoid and why?
The neighborhoods in Surabaya that present significant challenges for property investors are coastal and rob-exposed pockets (parts of Kenjeran and Bulak), heavy industrial-port corridors (Asemrowo and Krembangan), and ultra-cheap pockets in very dense older fabric (Semampir, Pabean Cantian, Simokerto).
Each of these problematic Surabaya areas has distinct issues that can hurt your investment:
- Kenjeran and Bulak (coastal edge): tidal flooding (rob) and sea-level risks increase maintenance costs, insurance complexity, and vacancy rates.
- Asemrowo and Krembangan: industrial traffic, noise, and port-related externalities suppress long-term desirability and narrow your future buyer pool.
- Semampir, Pabean Cantian, Simokerto: highly variable street-by-street quality requires deep micro-level due diligence that most foreign retail buyers lack.
For these Surabaya neighborhoods to become viable investment options, Kenjeran and Bulak would need major flood-mitigation infrastructure and sustainable coastal management; Asemrowo and Krembangan would require rezoning or significant industrial relocation; and Semampir, Pabean Cantian, and Simokerto would need sustained urban renewal programs that upgrade housing stock and improve resale liquidity.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Surabaya.
Which areas in Surabaya have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Surabaya experiencing stagnant or declining property prices include some older north and industrial-adjacent pockets, as well as commodity condo developments without strong location stories, particularly as Bank Indonesia's SHPR data shows the city's primary market slightly negative year-on-year in late 2025.
These underperforming Surabaya areas have seen price stagnation of roughly 0 to negative 2% annually over the past two to three years, compared to the city average of 3 to 5% growth, meaning real-value erosion once inflation is factored in.
The underlying causes of price stagnation vary by Surabaya area:
- North Surabaya (older fabric near port): weak buyer perception, limited new demand drivers, and industrial adjacency keep prices flat.
- Commodity condo towers (various locations): easy-to-replicate supply without unique location advantages leads to oversupply pressure.
- Far periphery without infrastructure anchor: lack of commercial gravity or transit improvements limits buyer interest beyond immediate-need locals.
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Which Areas in Surabaya Have the Best Long-Term Appreciation Potential?
Which areas in Surabaya have historically appreciated the most recently?
The areas in Surabaya that have historically appreciated the most over the past five to ten years are Dukuh Pakis (Pakuwon Indah), Wiyung (key west corridors), Sambikerep (Citraland ecosystem), and Gubeng (Manyar corridor), which held value best even during the city's recent soft patch.
Approximate appreciation for these top-performing Surabaya areas:
- Dukuh Pakis (Pakuwon): roughly 50 to 60% total appreciation over ten years (around 5 to 6% annually), driven by superblock expansion.
- Wiyung: approximately 40 to 55% total appreciation over ten years, benefiting from west-side accessibility improvements.
- Sambikerep (Citraland): around 45 to 55% total appreciation, supported by planned-town infrastructure and Universitas Ciputra.
- Gubeng (Manyar): roughly 35 to 50% total appreciation, anchored by central-east permanence and professional tenant demand.
The main driver of above-average appreciation in these Surabaya areas has been durable commercial gravity: Pakuwon Indah's continuous expansion of retail, office, and hospitality; Citraland's township effect with schools and amenities; and Gubeng's resilient CBD-adjacent positioning that ensures buyer competition regardless of market cycles.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Surabaya.
Which neighborhoods in Surabaya are expected to see price growth in coming years?
The neighborhoods in Surabaya expected to see the strongest price growth in the coming years are Gubeng (Manyar and central-east core), Sukolilo (campus belt with structural renter demand), Rungkut (steady workforce demand and improving infrastructure), and Sambikerep (Citraland's continuing township expansion).
Projected annual price growth for these high-potential Surabaya neighborhoods:
- Gubeng (Manyar): expected 4 to 6% annually, supported by resale liquidity and professional demand in a recovering macro environment.
- Sukolilo: projected 5 to 7% annually, driven by persistent student pipeline and gradual housing stock upgrades.
- Rungkut: anticipated 4 to 6% annually, benefiting from workforce housing demand and east-side infrastructure improvements.
- Sambikerep (Citraland): expected 4 to 6% annually, underpinned by family demand and planned-town amenity expansion.
The single most important catalyst for future price growth in these Surabaya neighborhoods is the combination of steady tenant demand (ensuring rental income during holding periods) and infrastructure investment (particularly the Surabaya Regional Railway Line), which tends to translate into buyer confidence when the city-wide macro cycle eventually turns positive again.
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 Do Locals and Expats Really Think About Different Areas in Surabaya?
Which areas in Surabaya do local residents consider the most desirable to live?
The areas in Surabaya that local residents consistently consider most desirable to live are Dukuh Pakis (Pakuwon Indah), Wiyung (selected family-friendly pockets), Sambikerep (Citraland ecosystem), and Gubeng (Manyar corridor), where asking prices cluster highest and modern housing stock concentrates.
Each of these desirable Surabaya areas appeals to locals for specific reasons:
- Dukuh Pakis (Pakuwon Indah): full lifestyle ecosystem with premium malls, restaurants, and secure gated clusters.
- Wiyung: family-oriented west-side location with good schools and quieter residential streets.
- Sambikerep (Citraland): planned-community feel with township amenities, green space, and Universitas Ciputra nearby.
- Gubeng (Manyar): central convenience with walkable access to business, healthcare, and dining options.
The typical resident demographic in these locally-preferred Surabaya areas includes upper-middle-class families, business owners, senior professionals, and established couples who prioritize lifestyle quality, security, and convenience over maximizing investment yield.
Local preferences in Surabaya largely align with what foreign investors target, since both groups value modern, secure, amenity-rich locations, but locals often place more weight on school quality and extended family proximity while foreign investors may prioritize rental yield and ease of resale.
Which neighborhoods in Surabaya have the best reputation among expat communities?
The neighborhoods in Surabaya with the best reputation among expat communities are Dukuh Pakis (modern high-rise plus Pakuwon Mall ecosystem), Sambikerep (Citraland's planned community feel), and Gubeng (central-east convenience with services), which offer the secure, amenity-rich environments expats typically seek.
Each of these expat-favored Surabaya neighborhoods appeals for specific reasons:
- Dukuh Pakis (Pakuwon): international-standard condos with pools, gyms, and 24/7 security, plus walkable retail and dining.
- Sambikerep (Citraland): township environment with international schools, family-friendly amenities, and gated security.
- Gubeng: central location with hospitals, business centers, and easy access to the rest of the city.
The typical expat profile in these popular Surabaya neighborhoods includes corporate transferees working in manufacturing or trading companies, business owners with regional operations, and professionals on two to five-year assignments who want comfort and convenience without needing to navigate older, less predictable housing stock.
Which areas in Surabaya do locals say are overhyped by foreign buyers?
The areas in Surabaya that locals commonly say are overhyped by foreign buyers are commodity condo towers in West Surabaya (particularly generic studios in Dukuh Pakis and Wiyung), where many investors chase the same Airbnb thesis and bid up prices beyond what underlying rental demand supports.
Each of these overhyped Surabaya areas has specific reasons for local skepticism:
- Generic studios in Dukuh Pakis: supply is easy to replicate, leading to ADR compression and weaker long-term rent growth relative to purchase price.
- Commodity condos in Wiyung: many units marketed to investors sit vacant or discount-compete, while locals prefer landed houses.
- CBD-fringe small units: foreign buyers overestimate Surabaya's short-term rental potential compared to actual business-travel demand.
Foreign buyers typically see modern amenities, developer marketing, and the Pakuwon brand name in these Surabaya areas and assume strong rental returns, while locals recognize that supply elasticity in these product types means hype fades first, especially in a city that Bank Indonesia shows is not in a rapid price upswing.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Surabaya.
Which areas in Surabaya are considered boring or undesirable by residents?
The areas in Surabaya that residents commonly consider boring or undesirable are industrial and port-adjacent pockets like Asemrowo and Krembangan, plus some far-periphery residential zones that lack retail, dining, or lifestyle amenities.
Each of these less desirable Surabaya areas has specific reasons residents avoid them:
- Asemrowo: industrial truck traffic, noise, and limited retail or dining options make daily life feel utilitarian.
- Krembangan: port-adjacent character with warehousing activity and older housing stock lacks lifestyle appeal.
- Far southern or western periphery without anchors: sleepy residential character with long commutes and few amenities beyond basic necessities.
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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 |
|---|---|---|
| Bank Indonesia SHPR (Q3 2025) | Indonesia's central bank publishes standardized housing price surveys. | We used it to anchor Surabaya's city-level primary-market price trend and direction. We treated it as the macro benchmark and only added neighborhood detail when other sources aligned. |
| BPS Residential Property Price Index 2025 | BPS is Indonesia's national statistics office with transparent methodology. | We used it to triangulate Bank Indonesia's findings and confirm the slow-growth environment. We used it as a second official cross-check on the housing price cycle. |
| Colliers Surabaya Apartment Reports | Major global real-estate consultancy with consistent Surabaya tracking. | We used it for professionally-curated insight on apartment supply, demand, and market tone. We used it mainly to sanity-check what listing portals show. |
| Rumah123 | Indonesia's largest property portal with deep listing inventory. | We used it to estimate neighborhood rent bands and triangulate yields by matching rents to purchase prices. We filtered for consistent patterns, not outliers. |
| Lamudi | Established Indonesian property portal for cross-checking listings. | We used it as a second lens to avoid relying on one portal's inventory bias. We validated that rent and price bands were consistent across platforms. |
| BPS Surabaya Hotel Occupancy (TPK) | Official local statistics measuring accommodation demand. | We used it to size short-stay demand signals relevant for Airbnb-style rentals. We used it as a reality-check on STR revenue expectations. |
| Global Property Guide Indonesia | Respected international property research platform with biannual yield data. | We used it to benchmark Surabaya rental yields against city-level Indonesia averages. We validated our calculated yields aligned with their methodology. |
| Government Regulation PP 18/2021 | Official legal document repository for Indonesian regulations. | We used it to explain what foreigners can legally hold (Hak Pakai, strata pathways) and compliance requirements. We avoided "folklore" explanations about ownership. |
| German Embassy Jakarta (SRRL Announcement) | Official government source for major infrastructure financing. | We used it to detail the Surabaya Regional Railway Line project scope, funding, and timeline. We relied on it for verified infrastructure investment figures. |
| AirDNA | Widely-used STR analytics provider based on booking data. | We used it for the framework and metrics (occupancy, ADR, RevPAR) that define Airbnb performance. We used it cautiously for Surabaya and leaned on BPS as a reality-check. |
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