While Indonesian housing prices, especially in Bali and Jakarta, remain flat amidst global economic uncertainty, the real estate market’s long term prospects are solid.
As of 2024, residential property prices in Indonesia rose by a slight 0.1% quarter-on-quarter according to central bank data, indicating the market’s resilience despite rising interest rates.
Over the past decade, Indonesia real estate price growth has been modest – up just 16%. Yet property values in Indonesia are actually down 5.9% when adjusted for inflation and the rupiah currency’s weak performance.
Indonesia’s economic fundamentals still remain strong, with GDP growth estimated at around 5% annually over the next few years according to the IMF and World Bank.
Key drivers of Indonesia’s property market like tourism are recovering, with international visitor arrivals doubling compared to the previous year. The government also introduced housing stimulus and VAT incentives to boost demand.
While Indonesia’s property taxes remain high for foreign owners, recent policy changes allow foreigners to own apartments with stronger property rights, which could attract more investment.
Foreign real estate buyers in Indonesia benefit from high rental yields of 5-6% on average, reasonable property valuations, a growing mortgage market, and political stability.
Is buying property in Indonesia right for you? Our guide covers the average price of real estate in Indonesia as a whole, along with those of specific cities such as Jakarta and Bali’s housing market.
Average Home Prices in Indonesia
Across Indonesia, average house prices range widely based on location and property type. Some key points on pricing:Mid-range family homes in the outer parts of Jakarta or Bali run 300 to 800 million IDR ($21,000 to $56,000 USD).
Beachfront villas in Bali can cost 10 billion IDR ($700,000 USD) or more.
Newly built homes in Indonesia have a 10-20% premium over resale homes.
Cost of Real Estate in Indonesia
The price you’ll pay for housing will largely depend on where you’re buying. Location is the most important factor that’ll determine property values.
By and large, Jakarta ranks as the most expensive city in Indonesia to buy a house. Bali is also home to many large, costly beach villas.
Jakarta
As Indonesia’s capital and largest city, Jakarta has the nation’s most expensive real estate.
The average cost of real estate is higher here than anywhere else in the country, including Bali.
Bali
The paradise island of Bali is sought after for its beaches, temples, and vibrant culture. Property prices reflect high demand from local and foreign buyers alike.
Larger villas cost an average 10 billion IDR ($700,000 USD).
In West Java, Bandung is a popular hub for tech startups and creative industries. You’ll find that real estate prices are significantly lower here than in Jakarta.Condos in Bandung average 1 billion IDR ($70,000 USD).
Houses average 2.5 billion IDR ($175,000 USD).
Townhouses average 1.5 billion IDR ($105,000 USD).
Surabaya
As Indonesia’s second largest city, Surabaya offers more affordable property than either Jakarta and Bali.Condos in Surabaya average 500 million IDR ($35,000 USD).
Houses average 1 billion IDR ($70,000 USD).
Townhouses average 800 million IDR ($56,000 USD).
Indonesia House Prices Will Differ
There’s no “one-size-fits-all” answer when it comes to housing prices, and you don’t really know how much real estate will cost until you actually buy it.
Several important factors that determine Indonesia property values include:
Location – Condos and houses in central areas of Jakarta and coastal hotspots like Bali command the highest property prices in Indonesia.
Being situated in the heart of major cities or exclusive beachfronts gives homeowners easy access to amenities, entertainment, and scenery. This prime positioning creates high demand that drives up real estate costs.
You’ll find that Indonesia house prices can start from well-below $100,000, but reach far into the multi-million range.
Land size – More spacious land and larger lot sizes directly translate to higher property values in Indonesia.
Whether building a single luxury house in Indonesia or a cluster development, having room for expansive gardens, pools, and other features boosts the land appeal and pricing.
Building age – Brand new construction in Indonesia costs significantly more than older or dated homes.
Property developers in Indonesia can charge premiums for never-lived in properties with modern designs and layouts. New buildings also do not require expensive renovations and upgrades.
Amenities – Indonesian houses and condos featuring amenities like swimming pools, home gyms, parking facilities, and 24/7 security demand higher sales prices and rental income.
These luxurious features attract wealthy tenants and buyers who will pay top dollar for convenience and comfort.
Furnishings – Fully furnished and move-in ready homes in Indonesia sell for 10-20% more than empty units.
The appeal of turnkey properties with beds, appliances, electronics, and décor included allows sellers to increase their asking price.
Desirability – Certain neighborhoods, buildings, and developments have an exclusive cache that raises values. Prestigious addresses, social status, and proximity to other elite homes impact pricing.
Additional Housing Costs in Indonesia
Beyond the sale price, other home buying expenses include:Transfer and notary fees of 5% of sale price.
Real estate agent commissions of around 2-3%.
Legal fees for contracts.
Renovations, upgrades, furniture, and appliances.
Property tax and ongoing condo maintenance fees.
Limits on Foreign Buyers in Indonesia
Indonesia has complex rules regarding foreign property ownership. The main options are:
- Leasehold titles for up to 70 years, renewable.
- Purchase via an Indonesian spouse or entity.
- Freehold title if resident over 10 consecutive years. (Editors Note: Number three on this list should be looked at. with caution, because, to my knowledge, as one who was dealt with real estate here for 25 years and is married to another such such rule. But rules are changing all the time.)
If you’re buying property in Indonesia as a foreigner, it’s highly advisable to consult a real estate professional.
Loopholes do exist but regulations in emerging markets aren’t always as they appear, and can quickly change.
Risks and Costs of Indonesia Property
Indonesia’s housing market holds significant long-term potential for foreign real estate investors who take the time to understand its nuances.
The country boasts gorgeous natural scenery – and affordable condo costs compared to much of Asia.
Recent policy changes also allow foreigners stronger home ownership rights in Indonesia to purchase apartments in designated economic zones.
However, the market has complex regulations that require expert guidance to navigate. Foreigners can’t directly buy landed property like houses or villas in Indonesia – leasehold titles limited to 70 years are the main option.
While loopholes exist, real estate laws in Indonesia change with risks abound without due diligence. It’s ideal for foreigners buying real estate in Indonesia to engage a professional from the very outset.
Reputable developers and agents familiar with foreign buyers are also instrumental in ensuring a smooth purchase process. Thorough due diligence is essential to avoid pitfalls.
The long-term economic outlook remains positive, with Indonesia projected to be among Asia’s fastest growing economies this decade.
Meanwhile, key drivers like tourism and infrastructure investment continue recovering, which bodes well for future housing demand and prices over the long run.
Indonesia house prices appear like a fair value compared to other countries in Southeast Asia, presenting savvy foreign home buyers with upside potential.
Yet buying property in Indonesia, or in any other emerging market for that matter, always requires an abundance of caution.
Bali's Current Hottest Real Estate Markets
"Bali is Hawaii 30 years ago"
Three months ago Lawrence predicted 2024 would be the most explosive year yet for the Bali's real estate market, especially on its popular East Coast in or near the first Resort Area in Bali, Sanur .
"2024 the most explosive year yet"
"Sanur not Snore Anymore"
According to Wikipedia. Sanur pronounced sah-noor) is a coastal stretch of beach east of Denpasar in southeast Bali (about a 30-minute drive from Ngurah Rai International Airport)For the 26 years he lived in Sanur it was called "Snore" because it attracted Seniors and Baby Boomers to quiet lifestyle, famous beach and inexpensive cost of living.
Recently Bali has been showered with accolades in 2023 ,& 2024 snagging titles like "Second Best Destination in the World,"
This translates to one thing, a tourism boom, and with it, a surge in rental income.
Remember his saying, "Bali real estate demand is directly proportional to tourist demand".
"Bali real estate demand is directly proportional to tourist demand"
The fuel for Sanur's coming Real Estate firestorm: 2,000 to 3,000 New Employees:
The massive Bali International Hospital is set to open its doors, bringing with it a wave of medical professionals and support staff seeking comfortable digs.Where will Doctors, Medical Technicians, and Support Staff Live?
5 - Star Hotel 1,000 Staff ?
The swanky new Meru hotel will need a place for its team to call home, injecting further demand into the market.New Icon Mall - 300 to 500 Employees:
Talk about a lucrative demographic!
So, where will all these new residents live? Sanur and its suburbs, of course.
Here are Lawrence's predictions on the three most sought-after areas of the East Coast, perhaps all of Bali in the next 12 -24 months.
#1 Area With Most Demand
This is due to the growing popularity of the area as a tourist destination and the increasing number of businesses and medical facilities moving in.
No Room at the Inn:
Just as Mary and Joesph found in Bethlehem just before Jesus was born recently there is no rooms in any of our inns.Unfortunately, there is not much available housing in these areas, as they are mostly commercial and hotels.
However, there are a few options for those who are looking to buy or lease a home in this sought-after location.
Bali Emerald Apartments:
They are perfect for those who are looking for a modern and stylish home in a great location.
PT. Bali Luxury Villas Start at $228,888.
For those who need more space, we also have a few award-winning Bali Luxury Villas available for sale.
They are perfect for those who are looking for a luxurious and spacious home in a quiet and peaceful location.
Bali Luxury Villas and Apartments are located within a short eight minute walking distance to Sanur's famous white sand beach.
They are also close to a variety of restaurants, shops, and bars.
If you are interested in buying a home in one of the most sought-after areas in Bali, we encourage you to contact them today.
They will be happy to help you find the perfect home for your needs.
#2 Area - Demand
While many eyes are on Sanur for the upcoming Bali International Hospital, savvy investors might find hidden gems close by.
This area, conveniently located within 1-10 kilometers of the hospital, offers several advantages:
Affordability: Escape the higher property prices of Sanur and capitalize on this area's lower costs.
High-Caliber Community:
Bali Paradise Beach Estates already boasts residents such as major Developers and Hotel owners plus, an A-listed couple, two doctors, and other successful individuals. This creates a desirable and dynamic community for future residents.
Beyond Borders, Beyond Expectations:
Remember: This area provides a unique opportunity to live well, invest wisely, and be part of a thriving community just steps away from the Bally International Hospital. Don't miss out on discovering this hidden gem beyond the borders of Sanur!
Brand New Luxury Retirement Villas:
# 3 Area Most Demand
Beyond the Bypass: Uncovering Renon & East Denpasar's Potential
While past development left some concerns – smaller plots, lower construction standards, and bumpy roads – change is afoot.
Infrastructure upgrades are on the horizon, promising a brighter future for the area.
But here's the real draw: prices here are significantly lower than the popular East Side, making it a prime location for savvy investors.
Envision it – owning a sprawling property, hundreds of square meters of opportunity! Build two or three stunning villas, keep one for yourself, and sell the others to recoup your investment, essentially securing your dream home for free.
Intrigued? We'd love to be your guides! Let us unveil hidden gems waiting to be unearthed in Renon & E Denpasar.
This area isn't just about a bargain; it's about embracing potential, about shaping your own Bali paradise.
Ready to ride the Bali East Coast wave?
So, pack your bags, your sense of adventure, and your investment savvy, because Sanur and its suburbs are about to become the real estate El Dorado of Bali.
Remember, this is just the beginning. We will keep you updated on all the sizzling developments in the East Coast real estate scene, so stay tuned for more insider tips and insights.
In the meantime, start browsing Best Bali Real Estate Listings – the future of Bali's real estate is bright, and Sanur is its shining star.
P.S. Don't forget to share this post with your fellow real estate enthusiasts! Let's spread the word about Sanur's golden future.
Schedule Your Personalized Viewing Today.
Contact us today to schedule a personalized viewing.
For information or inspection in English contact the Baby Boomer, President, Lawrence by Telephone or WhatsApp at +628123814014.
For information or inspection in Bahasa Indonesia contact the President's Spouse, a Licensed Indonesian Notaris, Azizah at +62 811-3864-993
ABOUT US:
Together with her partner and spouse Lawrence who has 50 years of Real Estate Experience, 20 Years of which is in Bali they own and operate award-winning 20-year-old Pt. Bali Affordable Lifestyles International ( PT. B.A.L.I. ).
Indulge in the pinnacle of luxury and efficiency with this esteemed team of over 70 professional staff, proudly offering an array of services for Buying, Selling, Leasing, and Renting Asian Real Estate.
For an unprecedented ten years running, they have been awarded the Certificate of Excellence and the Hall of Fame Award from the esteemed TripAdvisor, cementing their place among the top 2% of hotels and villas listed worldwide.
With clients all over the globe singing their praises, they are indisputably one of Asia's most renowned travel and real estate investment experts.
TESTIMONIAL:
"Honesty and professionalism are everything when you're dealing with real estate but when you can also find the most knowledgeable people to advise you and help you with what you need, why go anywhere else...Hands down the best in Bali!"Bo B, UNITED STATES- 2022
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