Indonesia Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 64.78 Billion |
| Market Size (2029) | USD 85.97 Billion |
| CAGR (2024 - 2029) | 5.82 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Indonesia Real Estate Market Analysis
The Real Estate Market In Indonesia Market size is estimated at USD 64.78 billion in 2024, and is expected to reach USD 85.97 billion by 2029, growing at a CAGR of 5.82% during the forecast period (2024-2029).
- Indonesia has improved its macroeconomic and structural policies over the last 15 years. With a strong and stable growth rate, its economy is catching up with other countries in the region, allowing Indonesia to focus on its development agenda.
- As property demand and prices rise due to rapid population growth and high urbanization, the real estate market in Indonesia is one of the most vital sectors in the region. It was one of the few sectors not significantly affected by the COVID-19 crisis in the country.
- The official figures from Statistics Indonesia reflected that the GDP from real estate activities in Indonesia amounted to IDR 488.31 trillion (USD 31 billion) in 2022. Indonesian GDP derived from real estate activities has gradually increased over the decade.
- The affordable housing projects in Indonesia supported by the government, foreign investors, and associations such as the World Bank are anticipated to enhance the real estate market's growth during the forecast period.
- The Indonesian government introduced the 'One Million Houses' (OMH) program to construct at least 1 million units annually. According to the Ministry of Public Works and Public Housing (PUPR), about 634,132 housing units were recorded until August 2023 under the program.
- Due to a better, growth-stimulating economy, the first wave of Proptech in Indonesia began with increased demand for homes from the middle-class populace. With a large concentration of selling, purchasing, and leasing on search portal firms, the proptech segment is gaining popularity.
Indonesia Real Estate Market Trends
Jakarta Emerging as a Prime Rental Market
In Jakarta, serviced apartments showed a continued improvement in average occupancy rate during 3Q 2023, reflecting the normalcy of business activities after the complete lifting of restrictions and increased demand from expatriates, especially from Asian countries, including Japan, South Korea, and India.
As of Q3 2023, the occupancy rate increased by about 3.5% QOQ to 60.5%. All serviced apartments in the CBD area maintained steady rental rates. In contrast, new supply in the form of new serviced apartment projects (Citadines Gatot Subroto and Grand Mansion Menteng by The Crest Collection) pushed rents up in the non-CBD area. The average rental rates registered were IDR 445,986/sq m/month (USD 28.85) and IDR410,707/sq m/month (USD 26.57) in the CBD and South Jakarta (including non-prime areas), respectively.
Experts expect some increment in the average rental rate given the forthcoming entry of new upscale serviced apartment projects that offer higher rental rates compared to the market.
Rising Residential Property Sales In Indonesia
- According to industry experts, Indonesia's residential property market remains slow, with the composite-16 property price index growing only by 1.53% in Q3 2022. When adjusted for inflation, property prices declined by 3.48%. When inflation is considered, only one of the eighteen major Indonesian cities recorded house price increases in Q3 2022.
- While the market showed improvements recently, it remains far below its pre-crisis levels. From 2018 to 2023, Indonesia's house price index averaged 103.04 points, reaching an all-time high of 107.26 points in Q2 of 2023 and a record low of 99.32 points in the first quarter of 2018.
- National laws effectively ban non-citizens from complete freehold ownership of the property, limiting their rights to a leasehold of a maximum of 80 to 100 years with no access to mortgage finance. In addition, the government has set a minimum price for real estate that can be bought by foreign investors, ranging from around USD 65,000 for an apartment in northern Sumatra to USD 325,000 for a house in Bali, Jakarta, and parts of Java.
Indonesia Real Estate Industry Overview
The Indonesian real estate market, including both residential and commercial, is highly competitive and fragmented. The market presents opportunities for growth during the forecast period. Higher competition among market players is impacting selling and land prices, further leading to oversupply in the market. Some of the major players present in the market include Agung Podomoro Land, Sinar Mas Land, Ciptura Group, and Tokyu Land Indonesia. The players are also adapting to technological trends, owing to the rising internet penetration and expansion of e-commerce.
Indonesia Real Estate Market Leaders
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PT Intiland Development Tbk
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Tokyu Land Indonesia
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Agung Podomoro Land
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Ciptura Group
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Sinar Mas Land
*Disclaimer: Major Players sorted in no particular order
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Indonesia Real Estate Market News
November 2023: Ciputra Group successfully launched its newest CitraLand City Sampali Kota Deli Megapolitan project in Medan. CitraLand City Sampali City Deli Megapolitan was developed by Ciputra Group together with KPN Group, in collaboration with PT Perkebunan Nusantara 2.
September 2023: Tokyu Land Indonesia conducted the Topping Off ceremony for BRANZ Mega Kuningan. BRANZ Mega Kuningan Project is the third premium condominium development after BRANZ Simatupang and BRANZ BSD. The Topping Off ceremony, a significant milestone for TLID, was successfully held. During its introduction to the public, this project has already garnered attention from consumers interested in condominiums in Jakarta.
Indonesia Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Policies and Regulations
4.3 Insights into Interest Rate Regime for General Economy, and Real Estate Lending
4.4 Insights into Real Estate Tech and Startups Active in the Real Estate Segment
4.5 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
4.6 Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.7 Impact of COVID-19 on the Market
4.8 Value Chain/Supply Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Population
5.1.2 Increase in Demand for Residential Real Estate
5.2 Market Restraints
5.2.1 Increase in Costs
5.3 Market Opportunities
5.3.1 Tourism-related Real Estate
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Property Type
6.1.1 Residential
6.1.2 Office
6.1.3 Retail
6.1.4 Hospitality
6.1.5 Industrial
6.2 By City
6.2.1 Jakarta
6.2.2 Bali
6.2.3 Rest of Indonesia
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 PT Intiland Development Tbk
7.2.2 Tokyu Land Indonesia
7.2.3 Agung Podomoro Land
7.2.4 Ciptura Group
7.2.5 Sinar Mas Land
7.2.6 PP Properti
7.2.7 Lippo Group
7.2.8 Trans Property
7.2.9 Agung Sedayu Group
7.2.10 PT. Pakuwon Jati Tbk*
- *List Not Exhaustive
7.3 Other Companies
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
Indonesia Real Estate Industry Segmentation
The real estate sector includes various phases of property dealings, such as developing, selling, buying, leasing, and management processes in the industrial sector, residential sector, etc. A complete background analysis of the Indonesian real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The market is segmented by property type (residential, office, retail, hospitality, and industrial) and city (Jakarta, Bali, and the rest of Indonesia). The report offers market size and forecasts for the real estate market in Indonesia in value (USD) for all the above segments.
| By Property Type | |
| Residential | |
| Office | |
| Retail | |
| Hospitality | |
| Industrial |
| By City | |
| Jakarta | |
| Bali | |
| Rest of Indonesia |
Indonesia Real Estate Market Research FAQs
How big is the Real Estate Market In Indonesia Market?
The Real Estate Market In Indonesia Market size is expected to reach USD 64.78 billion in 2024 and grow at a CAGR of 5.82% to reach USD 85.97 billion by 2029.
What is the current Real Estate Market In Indonesia Market size?
In 2024, the Real Estate Market In Indonesia Market size is expected to reach USD 64.78 billion.
Who are the key players in Real Estate Market In Indonesia Market?
PT Intiland Development Tbk, Tokyu Land Indonesia, Agung Podomoro Land, Ciptura Group and Sinar Mas Land are the major companies operating in the Real Estate Market In Indonesia Market.
What years does this Real Estate Market In Indonesia Market cover, and what was the market size in 2023?
In 2023, the Real Estate Market In Indonesia Market size was estimated at USD 61.01 billion. The report covers the Real Estate Market In Indonesia Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Real Estate Market In Indonesia Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the recent developments in the Indonesian Real Estate Market?
The recent developments in the Indonesian Real Estate Market are a) Ciputra Group launched a new project in Medan d) Tokyu Land Indonesia held a topping-off ceremony for a new condominium project in Jakarta
What are the investment opportunities in the Indonesian Real Estate Market?
The investment opportunities in the Indonesian Real Estate Market are a) Affordable housing projects catering to the growing middle-class b) Serviced apartments in Jakarta, driven by returning expatriate demand c) Industrial properties due to Indonesia's growing manufacturing sector
Indonesia Real Estate Industry Report
The Indonesia real estate market is experiencing robust growth, driven by a combination of factors including rising urbanization, a burgeoning middle class with increasing disposable income, strategic geographical location, and government initiatives aimed at boosting infrastructure development. Segmented into residential, office, retail, hospitality, and industrial properties, the Indonesian real estate market caters to the diverse needs arising from demographic shifts, economic development, and a growing focus on sustainability. Urbanization and population growth in major cities are pushing demand for residential properties, while the strategic location and favorable investment climate are attracting foreign investors, further energizing the Indonesia property market. Additionally, the market is witnessing trends such as the rise of digital platforms for property transactions, increasing interest in sustainable and energy-efficient properties, and a growing tourism sector driving demand for commercial spaces. With a stable economic backdrop and low interest rates facilitating access to financing, the Indonesia real estate market presents a promising landscape for investment and development across its diverse segments. This market's share, size, and revenue growth rate are analyzed in 糖心vlog传媒鈩� Industry Reports, offering a market forecast outlook and historical overview. For a better understanding of this dynamic market, a free report PDF download is available.
