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 |
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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 improved its macroeconomic and structural policies over the last 15 years. Its economy, with a strong and stable growth rate, is catching up with other countries in the region, allowing Indonesia to focus on its development agenda.
- As property prices and demand rise due to rapid population growth and high urbanization, the real estate market in Indonesia is one of the strongest sectors in the region. The real estate sector in Indonesia is one of the few sectors that were not greatly affected by the COVID-19 crisis.
- The official figures from Statistics Indonesia reflected that the gross domestic product (GDP) from real estate activities in Indonesia amounted to IDR 468.22 trillion (USD 29.85 Trillion) in 2021. Indonesian GDP derived from real estate activities has gradually increased since 2014.
- The affordable housing projects in Indonesia supported by the government, foreign investors, and associations such as World Bank are anticipated to enhance the real estate market growth during the forecast period.
- The Indonesian government introduced the 'One Million Houses' (OMH) program to construct at least 1 million units per year. According to the Ministry of Public Works and Public Housing (PUPR), under the One Million Houses program, about 312,290 housing units were recorded until the end of May 2021.
- Due to a better, growth-stimulating economy, the first wave of Proptech in Indonesia began with an increase in demand for homes from the middle-class populace. With a large concentration of selling, purchasing, and leasing on search portal firms, the segment of Proptech is gaining popularity.
- The country's biggest immediate challenge in 2022 was to overcome the COVID-19 post-pandemic economic, social, and public health effects. The unemployment rate rose substantially from 5.2% in 2019 to 7.1% in 2020 but since then decreased 6.6 % in 2021, 5.86 in 2022 and 5.32 in 2023.
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 full 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%. In terms of rental rates, all serviced apartments in the CBD area maintained their rates steady, while 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. As such, the average rental rate registered at 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.
Further, experts expect there will be some increment in the average rental rate given the forthcoming entry of new upscale serviced apartment projects which offer higher rental rates compared to the market.
Rising residential property sales in Indonesia
Indonesia’s residential property market remains sluggish, with the composite-16 property price index rising only by 1.53% during the year to Q3 2022, according to Bank Indonesia. In fact, when adjusted for inflation, property prices declined by 3.48%.
Looking at the longer term, the property market is hardly moved, with priCES is up by a meager 1.47% in 2021, 1.43% in 2020, 1.77% in 2019, 2.95% in 2018, 3.5% in 2017, and 2.38% in 2016. In real terms, prices fell by a cumulative 1.68% from 2016 to 2021.
During the fourth quarter of 2022, residential property prices rose by a minuscule 0.16% q-o-q (fell by 1.26% inflation-adjusted).
When inflation is taken into consideration, only one of the eighteen major Indonesian cities recorded house price increases in Q3 2022 as compared to the same period in 2021.
In Jakarta, prices of apartments rose by a minuscule 0.67% y-o-y to IDR 35.24 million (USD 2,255) per sq. m. in Q3 2022.
While demand showed some improvements lately, it remains far below its pre-crisis levels. Residential property sales rose by 15.2% in Q2 2022 from a year earlier, in sharp contrast to a 10.1% y-o-y decline in the first quarter, according to Bank Indonesia.
Indonesia Real Estate Industry Overview
The Indonesian real estate market, including both residential and commercial, is highly competitive and fragmented, and the market presents opportunities for growth during the forecast period. Higher competition among market players is impacting selling prices 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
PT Intiland Development Tbk
Tokyu Land Indonesia
Agung Podomoro Land
Ciptura Group
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 project, namely CitraLand City Sampali Kota Deli Megapolitan, in Medan. CitraLand City Sampali City Deli Megapolitan was developed Ciputra Group together with KPN Group and also 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 the 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
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Population
4.2.2 Increase in Demand for Residential Real Estate
4.3 Market Restraints
4.3.1 Increase in Costs
4.4 Insights into Supply Chain/Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights into Interest Rate Regime for General Economy, and Real Estate Lending
4.7 Insights into Real Estate Tech and Startups Active in the Real Estate Segment
4.8 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
4.9 Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.10 Impact of COVID-19 on the Real Estate Market in Indonesia
5. MARKET SEGMENTATION
5.1 By Property Type
5.1.1 Residential
5.1.2 Office
5.1.3 Retail
5.1.4 Hospitality
5.1.5 Industrial
5.2 By Location
5.2.1 Jakarta
5.2.2 Bali
5.2.3 Rest of Indonesia
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 PT Intiland Development Tbk
6.2.2 Tokyu Land Indonesia
6.2.3 Agung Podomoro Land
6.2.4 Ciptura Group
6.2.5 Sinar Mas Land
6.2.6 PP Properti
6.2.7 Lippo Group
6.2.8 Trans Property
6.2.9 Agung Sedayu Group
6.2.10 PT. Pakuwon Jati Tbk*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. 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.
The Indonesia real estate market report is segmented by property type (residential, office, retail, hospitality, and industrial) and location (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 Location | |
| 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 Mordor Intelligence™ 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.
