Indonesia Residential Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 72.11 Billion |
| Market Size (2029) | USD 105.73 Billion |
| CAGR (2024 - 2029) | 7.95 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Residential Real Estate Market Analysis
The Residential Real Estate Market in Indonesia Market size is estimated at USD 72.11 billion in 2024, and is expected to reach USD 105.73 billion by 2029, growing at a CAGR of 7.95% during the forecast period (2024-2029).
The COVID-19 pandemic crisis has severely shocked the residential real estate sector, which could have important implications for macro-financial stability going forward because of the large size of the sector and its strong interconnectedness with the real economy. Using a novel methodology, this paper quantifies vulnerabilities in the residential sector and analyzes policy tools available to mitigate related risks.
The demand for the housing market is expected to be driven by Indonesia's favorable demographic composition, increasing urbanization, rising per capita income of people, and a significant young population, in the country, emerging as first-time homebuyers in the next few years. Meanwhile, more developers are focusing on building affordable apartments in the mid-low segment targeting genuine homebuyers. This has also intensified the competition amongst such products and is expected to continue in the near future.
Indonesia is set to become a new economic powerhouse in Southeast Asia, attracting more individual investors and corporations from overseas. Increasingly more foreign buyers, especially from China, have spotted investment opportunities in Indonesia's real estate market. The latest Residential Property Price Survey conducted by Bank Indonesia revealed moderate residential property price growth in the third quarter of 2021, as confirmed by a 1.41% (yoy) increment in the Residential Property Price Index (RPPI), decelerating from 1.49% (yoy) in the previous period.
Indonesia Residential Real Estate Market Trends
This section covers the major market trends shaping the Indonesia Residential Real Estate Market according to our research experts:
Jakarta Emerging as a Prime Rental Market
Despite the rapid growth of the Indonesian property market in recent years, houses and apartments are still among the cheapest in the region. As per market estimates, the average price for a 120 sq. m property in Jakarta is USD 2,692 per sq. m, which is significantly cheaper than the prime locations in Malaysia, Cambodia, the Philippines, and Thailand. Increasing disposable incomes and migration of Indonesians to Jakarta, in search of better employment, makes Jakarta an attractive rental market for both buyers and investors. As per reports, Indonesia is amongst the list of countries where buy-to-let property earns the highest returns.
Government Incentives is Expected to Boost the Housing Starts Trend in the Country
As per estimates, the residential construction starts in Indonesia decreased by nearly 10% Y-o-Y in 2021, compared to 2020. In 2020 housing starts declined 5.6% compared to 2019. Small properties led the demand surge, followed by medium houses and big houses. In order to meet the property demand, the Indonesian government adopted several measures, such as lowering the key interest rates, giving tax incentives to Indonesian REITs, easing restrictions on individual foreign ownership, and increasing loan-to-value ratios.
The government also increased the price threshold for luxury property taxes, to encourage home buying in Indonesia. The 20% tax will now be applied only to any purchase of landed property or apartment worth at least IDR 30 billion (USD 2.10 million). The government support to the residential construction sector is expected to increase property sales in the country during the forecast period.
Indonesia Residential Real Estate Industry Overview
The Indonesian residential real estate market is highly competitive. The market is highly fragmented. 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 increasing expansion of e-commerce.
Indonesia Residential Real Estate Market Leaders
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Agung Podomoro Land
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Lippo Homes
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Sinar Mas Land
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Ciputra Group
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Duta Anggada Realty
*Disclaimer: Major Players sorted in no particular order
Indonesia Residential Real Estate Market News
October 2021: Perum Perumnas and PT Perkebunan Nusantara II (PTPN II) are focusing on synergizing in developing a residential area with an integrated new township concept in Deli Serdang, North Sumatra. This collaboration is then managed by a subsidiary, namely PT Propernas Nusa Dua for the development of the Nusa Dua Bekala Mandiri City area.
September 2021: Agung Podomoro launched its newest residential complex Bukit Podomoro Jakarta, which brings peace amidst the hustle and bustle of the capital city. This luxurious and exclusive residence occupies an area of 9.6 hectares on the east side of Jakarta.
Indonesia Residential Real Estate Market Report - Table of Contents
1. Introduction
1.1 Study Assumptions
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Insights
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives, Regulatory Aspects for Residential Real Estate Sector
4.4 Insights on Size of Real Estate Lending and Loan-to-value Trends
4.5 Insights on Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights on Rental Yield in Residential Real Estate Segment
4.7 Insights on Capital Market Penetration and REIT Presence in Residential Real Estate
4.8 Insights on Affordable Housing Support Provided by Government and Public-private Partnerships
4.9 Insights on Real Estate Technology and Startups Active in Real Estate Segment (Broking, Social Media, Facility Management, Property Management)
4.10 Impact of COVID-19 on the Market
4.11 Market Dynamics
4.11.1 Drivers
4.11.2 Restraints
4.11.3 Opportunities
5. Market Segmentation
5.1 By Type
5.1.1 Condominiums and Apartments
5.1.2 Villas and landed houses
5.2 By Key Cities
5.2.1 Jakarta
5.2.2 Greater Surabaya
5.2.3 Semarang
5.2.4 Rest of Indonesia
6. Competitve Landscape
6.1 Overview
6.2 Company Profiles
6.2.1 Agung Podomoro Land
6.2.2 Lippo Homes
6.2.3 Sinar Mas Land
6.2.4 Ciputra Group
6.2.5 Duta Anggada Realty
6.2.6 PP Properti
6.2.7 Tokyu Land Indonesia
6.2.8 JABABEKA
6.2.9 PT Pakuwon Jati
6.2.10 Binakarya Propertindo Group*
- *List Not Exhaustive
7. Future of the Market and Analyst Recommendations
8. Disclaimer
9. 糖心vlog传媒 Us
Indonesia Residential Real Estate Industry Segmentation
This report aims to provide a detailed analysis of the Indonesian residential real estate market. It focuses on the market dynamics, technological trends, insights, government initiatives taken in the residential real estate sector, and the impact of COVID-19 on the market. Also, it analyses the key players present in the market and the competitive landscape in the Indonesian residential real estate market. The Residential Real Estate Market in Indonesia is Segmented by Type (Condominiums and Apartments, Villas and landed houses), Key Cities (Jakarta, Greater Surabaya, Semarang and Rest of Indonesia). The report offers market size and forecasts for Indonesia Residential Real Estate Market in value (USD Billion) for all the above segments.
| By Type | |
| Condominiums and Apartments | |
| Villas and landed houses |
| By Key Cities | |
| Jakarta | |
| Greater Surabaya | |
| Semarang | |
| Rest of Indonesia |
Indonesia Residential Real Estate Market Research FAQs
How big is the Indonesia Residential Real Estate Market?
The Indonesia Residential Real Estate Market size is expected to reach USD 72.11 billion in 2024 and grow at a CAGR of 7.95% to reach USD 105.73 billion by 2029.
What is the current Indonesia Residential Real Estate Market size?
In 2024, the Indonesia Residential Real Estate Market size is expected to reach USD 72.11 billion.
Who are the key players in Indonesia Residential Real Estate Market?
Agung Podomoro Land, Lippo Homes, Sinar Mas Land, Ciputra Group and Duta Anggada Realty are the major companies operating in the Indonesia Residential Real Estate Market.
What years does this Indonesia Residential Real Estate Market cover, and what was the market size in 2023?
In 2023, the Indonesia Residential Real Estate Market size was estimated at USD 66.80 billion. The report covers the Indonesia Residential Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Residential Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which type of property segment is expected to have the highest growth in the Indonesia Residential Real Estate Market?
Based on Type condominiums segment has the highest growth in the Indonesia Residential Real Estate Market.
Indonesia Residential Real Estate Industry Report
The Indonesian residential real estate market is forecasted for robust growth, supported by factors like increasing urbanization, rising disposable incomes, and proactive government initiatives aimed at boosting residential development. Key segments such as villas, condominiums, and other types of residential properties are thriving, with cities like Jakarta, Surabaya, and Semarang leading the demand in the housing market in Indonesia. The popularity of condominiums is surging due to their appeal for urban living and convenience, while villas are also gaining traction fueled by the increasing desire for spacious living environments. Government policies promoting home affordability and development are enhancing market dynamics, providing diverse opportunities for buyers and renters alike. The market is progressively adapting to consumer needs, focusing on sustainable and community-oriented residential projects to enhance the functionality and appeal of living spaces across Indonesia. For a more comprehensive understanding, access detailed market statistics, size, share, and growth insights through free report PDF downloads from 糖心vlog传媒鈩� Industry Reports, featuring forecasts and historical overviews of the housing market in Indonesia.
