Indonesia Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Indonesia Real Estate Market Report is Segmented by Property Type (Residential, and Commercial), by Business Model (Sales and Rental), by End User (Individuals/Households, Corporates & SMEs, and More), and by Region (DKI Jakarta, East Java, West Java, and the Rest of Indonesia). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

Real Estate Market Size and Share

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Real Estate Market Analysis by Mordor Intelligence

The Indonesia Real Estate Market size is estimated at USD 66.74 billion in 2025, and is expected to reach USD 86.98 billion by 2030, at a CAGR of 5.44% during the forecast period (2025-2030). Continuous infrastructure spending, the presidential target of 8% annual GDP growth, and the ongoing 3 million houses program are the chief tailwinds behind this up-cycle. Progress on 153 National Strategic Projects worth USD 128.6 billion is strengthening logistics corridors and lifting demand for both residential and commercial assets. Cement offtake climbed to 28.542 million tons in 2024, confirming that construction momentum remains intact. At the same time, VAT exemptions on units priced up to IDR 5 billion and a recent 25 basis-point rate cut to 5.75% are assisting mid-income families in closing housing transactions[1]Ministry of Public Works and Housing, “Budget Allocation for the 3 Million Houses Program 2025,” Ministry of Public Works and Housing, pu.go.id.

Key Report Takeaways

  • By property type, Residential held 56.7% of the Indonesia real estate market share in 2024, while Commercial properties are projected to expand at a 5.98% CAGR to 2030.
  • By business model, the Sales segment accounted for 70.1% of the Indonesia real estate market size in 2024; the Rental segment is advancing at a 6.31% CAGR through 2030.
  • By end-user, Individuals & Households represented 61.2% of the Indonesia real estate market in 2024, whereas Corporates & SMEs are forecast to post the fastest 6.12% CAGR.
  • By geography, DKI Jakarta led with 31.8% revenue share in 2024; East Java is the fastest-growing region at 6.61% CAGR through 2030.

Segment Analysis

By Property Type: Commercial Segment Accelerates Despite Residential Dominance

Residential assets captured 56.7% of the Indonesia real estate market in 2024, anchored by demographic growth, the 3 million houses initiative and still-strong cultural preferences for ownership. This dominance is evident in the Indonesia real estate market size for housing, and pre-sales remain concentrated in landed houses outside the Jakarta inner ring. Apartments and vertical condominiums are gaining share in Surabaya and Bandung as land becomes scarce, while villas attract lifestyle buyers in suburban corridors. Government backing via VAT relief and subsidised mortgages continues to secure front-loaded demand, ensuring that the Indonesia real estate market retains a solid residential backbone[3]Journal of Urban Planning and Development, “Vertical Housing Trends in Jakarta and Surabaya,” ASCE Library, ascelibrary.org.

The Commercial category, though smaller, is set to expand at a 5.98% CAGR, the fastest among property types. Logistics warehouses lead this surge, propelled by e-commerce penetration and Indonesia’s hub role within ASEAN supply chains. Office formats are migrating toward flexible workspaces, and data-centre footprints are widening as Telkom Indonesia courts new investors. Integrated tourism complexes such as the USD 2.58 billion PIK 2 project are also amplifying hospitality pipelines. These dynamics suggest that commercial stock will command an increasing slice of the Indonesia real estate market size through 2030.

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Note: Segment shares of all individual segments available upon report purchase

By Business Model: Rental Segment Gains Momentum Amid Sales Dominance

The Sales model controlled 70.1% of Indonesia real estate market revenue in 2024, reflecting the population’s strong home-ownership ethos and policy support. Aggressive land-banking strategies by prominent developers secure future launch pipelines, while digital booking platforms shorten transaction times. Interest-rate cuts and VAT exemptions have created a near-term surge in deed transfers, reinforcing the sales culture within the Indonesia real estate market.

Rental assets are nevertheless on a 6.31% CAGR trajectory, benefiting from professional mobility and the new capital city’s transitional housing needs. Yields in Jakarta and Surabaya have ticked up as co-living formats capture Generation Z tenants. Institutional capital—often via REITs—seeks predictable cash flow and is gradually formalising property management standards. The Indonesian real estate industry, therefore, shows a bifurcation: ownership remains aspirational, yet rental products are gaining legitimacy and liquidity.

By End-User: Corporate Demand Accelerates Alongside Household Dominance

Individuals & Households retained 61.2% share of the Indonesia real estate market in 2024, driven by first-home buyers and family-upgrade cycles. Mortgages remain affordable relative to wage growth, sustaining this user group’s liquidity. Tax discounts reinforce purchase intentions, and households continue to dominate absorption, especially in Java’s commuter belts.

Corporates & SMEs are forecast to log the highest 6.12% CAGR as factory expansions and service-sector upgrades require new footprints. East Java’s industrial estates exemplify this shift, attracting electronics and automotive investment that needs adjoining worker housing and logistics hubs. Nusantara has sparked government agency and supplier relocations, catalysing temporary and long-term office demand. As foreign ownership rules relax, international investors also emerge within the Others category, collectively diversifying the Indonesia real estate market’s end-user mix.

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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

DKI Jakarta accounted for 31.8% of the Indonesia real estate market in 2024, fortified by its role as financial nucleus and consumer-spending powerhouse. MRT line extensions and the completion of the Jakarta-Bandung fast rail improve intra-metro accessibility, bolstering both residential and office values. Developers are repositioning portfolios toward mixed-use townships to accommodate expected shifts once government ministries relocate to Nusantara.

East Java is the fastest-growing province, poised for a 6.61% CAGR through 2030. Surabaya’s port modernisation and the Gresik Java Integrated Industrial Estate are magnets for FDI, which drives knock-on housing and commercial requirements. Toll upgrades enhance connectivity to Central and East Indonesia, firmly inserting East Java into regional supply chains and broadening the Indonesia real estate market beyond Jakarta.

West Java and the Rest-of-Indonesia cluster deliver incremental upside. West Java benefits from spill-over industrial demand as land prices in Jakarta escalate. Special economic zones in Sumatra and the entire Kalimantan corridor, particularly around Nusantara, open greenfield avenues for township builders. Continued rollout of National Strategic Projects—41 were completed by end-2024—ensures multi-region tailwinds and gradually reduces Jakarta’s dominance within the wider Indonesia real estate market.

Competitive Landscape

The Indonesia real estate market is moderately concentrated, with top Indonesian developers practising township models that integrate residential, commercial, and leisure assets on large tracts. PT Bumi Serpong Damai posted a 12.74% revenue rise to USD 744 million in 2023, demonstrating the cash-flow resilience of land-bank strategies. PT Ciputra Development, PT Pakuwon Jati, and PT Summarecon Agung hold similar positions, each leveraging long-dated land reserves to maintain launch optionality.

Strategic pivots include heavier use of digital marketing, green-building certifications, and the formation of JVs with foreign capital. Foreign investors—encouraged by the Omnibus Law—enter through minority stakes or design-build-operate partnerships, injecting global ESG standards into local projects. Developers are also exploring PropTech tools, from VR apartment tours to blockchain-based contracts, to improve buyer conversion rates and back-office efficiency.

Supply-chain linkages influence cost control. Indonesia’s cement industry is dominated by SIG, which has a 50.5% share and therefore considerable pricing power. Leading real estate firms hedge against cost spikes by pre-ordering materials and negotiating volume discounts. As infrastructure corridors expand outward from Java, the competitive field is expected to broaden, yet incumbent land ownership patterns continue to provide high barriers to entry within the Indonesia real estate market.

Real Estate Industry Leaders

  1. Sinar Mas Land

  2. PT Ciputra Development Tbk

  3. PT Pakuwon Jati Tbk

  4. AGUNG PODOMORO GROUP

  5. PT Summarecon Agung Tbk

  6. *Disclaimer: Major Players sorted in no particular order
Real Estate Market In Indonesia
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Recent Industry Developments

  • June 2025: Indonesia invited foreign investment in an USD 80 billion seawall to protect coastal areas and raise climate-resilient real estate values.
  • February 2025: Parliament approved a Temasek-like sovereign fund to deepen strategic investments, potentially influencing future property allocations.
  • February 2025: An Indonesian fund and Mitsui bid for a USD 300 million stake in toll operator RKE, underscoring infrastructure’s pull on real estate values.
  • January 2025: President Prabowo committed USD 3 billion to Nusantara through 2029, with private capital including a USD 419.4 million hospitality-office project.

Table of Contents for Real Estate Market In Indonesia Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Insights and Dynamics

  • 4.1 Market Overview
  • 4.2 Commercial Real Estate Buying Trends – Socio-economic & Demographic Insights
  • 4.3 Rental Yield Analysis
  • 4.4 Capital-Market Penetration & REIT Presence
  • 4.5 Regulatory Outlook
  • 4.6 Technological Outlook
  • 4.7 Insights into Real Estate Tech and Startups Active in the Real Estate Segment
  • 4.8 Insights into Existing and Upcoming Projects
  • 4.9 Market Drivers
    • 4.9.1 Growing middle-income population is increasing demand for housing across urban centers.
    • 4.9.2 Ongoing urbanization is fueling vertical development in major cities like Jakarta and Surabaya.
    • 4.9.3 Infrastructure improvements such as MRT, toll roads, and airports are enhancing real estate accessibility.
    • 4.9.4 Affordable housing initiatives are encouraging development in low- and mid-income segments.
    • 4.9.5 Foreign investment interest is rising in commercial, logistics, and tourism-related real estate.
    • 4.9.6 Expansion of e-commerce and retail networks is boosting demand for warehousing and retail spaces.
  • 4.10 Market Restraints
    • 4.10.1 Limited affordability among lower-income groups is constraining residential uptake.
    • 4.10.2 Oversupply of condominiums in major urban areas is slowing price growth and absorption.
    • 4.10.3 Lengthy permitting processes and regulatory complexity are delaying project execution.
    • 4.10.4 High construction and financing costs are impacting developer margins and end-user pricing.
  • 4.11 Value / Supply-Chain Analysis
    • 4.11.1 Overview
    • 4.11.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights
    • 4.11.3 Real Estate Brokers and Agents - Key Quantitative and Qualitative Insights
    • 4.11.4 Property Management Companies - Key Quantitative and Qualitative Insights
    • 4.11.5 Insights on Valuation Advisory and Other Real Estate Services
    • 4.11.6 State of the Building Materials Industry and Partnerships with Key Developers
    • 4.11.7 Insights on Key Strategic Real Estate Investors/Buyers in the Market
  • 4.12 Porter’s Five Forces
    • 4.12.1 Threat of New Entrants
    • 4.12.2 Bargaining Power of Buyers/Occupiers
    • 4.12.3 Bargaining Power of Suppliers (Developers/Builders)
    • 4.12.4 Threat of Substitutes
    • 4.12.5 Competitive Rivalry Intensity

5. Market Size & Growth Forecasts (Value in USD)

  • 5.1 By Property Type
    • 5.1.1 Residential
    • 5.1.1.1 Apartments & Condominiums
    • 5.1.1.2 Villas & Landed Houses
    • 5.1.2 Commercial
    • 5.1.2.1 Office
    • 5.1.2.2 Retail
    • 5.1.2.3 Logistics
    • 5.1.2.4 Others (industrial real estate, hospitality real estate, etc.)
  • 5.2 By Business Model
    • 5.2.1 Sales
    • 5.2.2 Rental
  • 5.3 By End-user
    • 5.3.1 Individuals / Households
    • 5.3.2 Corporates & SMEs
    • 5.3.3 Others
  • 5.4 By Region
    • 5.4.1 DKI Jakarta
    • 5.4.2 West Java (Jawa Barat)
    • 5.4.3 East Java (Jawa Timur)
    • 5.4.4 Rest of Indonesia

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products & Services, Recent Developments)}
    • 6.3.1 Sinar Mas Land
    • 6.3.2 PT Ciputra Development Tbk
    • 6.3.3 PT Pakuwon Jati Tbk
    • 6.3.4 AGUNG PODOMORO GROUP
    • 6.3.5 PT Summarecon Agung Tbk.
    • 6.3.6 PT Lippo Karawaci Tbk
    • 6.3.7 PT Intiland Development Tbk
    • 6.3.8 PT Agung Sedayu Group
    • 6.3.9 PT Kawasan Industri Jababeka Tbk
    • 6.3.10 PT PP Properti Tbk
    • 6.3.11 PT Alam Sutera Realty Tbk
    • 6.3.12 PT Waskita Karya Realty
    • 6.3.13 PT Puradelta Lestari Tbk (GIIC)
    • 6.3.14 PT Trans Property
    • 6.3.15 PT Modernland Realty Tbk
    • 6.3.16 PT HK Realtindo
    • 6.3.17 PT Adhi Commuter Properti Tbk
    • 6.3.18 PT Metropolitan Land Tbk
    • 6.3.19 PT Duta Anggada Realty Tbk
    • 6.3.20 PT Sentul City Tbk
    • 6.3.21 Paramount Enterprise International

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-need Assessment
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Real Estate Market In Indonesia Report Scope

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 Apartments & Condominiums
Villas & Landed Houses
Commercial Office
Retail
Logistics
Others (industrial real estate, hospitality real estate, etc.)
By Business Model Sales
Rental
By End-user Individuals / Households
Corporates & SMEs
Others
By Region DKI Jakarta
West Java (Jawa Barat)
East Java (Jawa Timur)
Rest of Indonesia
By Property Type
Residential Apartments & Condominiums
Villas & Landed Houses
Commercial Office
Retail
Logistics
Others (industrial real estate, hospitality real estate, etc.)
By Business Model
Sales
Rental
By End-user
Individuals / Households
Corporates & SMEs
Others
By Region
DKI Jakarta
West Java (Jawa Barat)
East Java (Jawa Timur)
Rest of Indonesia
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Key Questions Answered in the Report

What is the current size of the Indonesia real estate market?

The market stands at USD 66.74 billion in 2025 and is forecast to hit USD 86.98 billion by 2030, implying a 5.44% CAGR.

Which property type dominates the Indonesia real estate market?

Residential assets lead with 56.7% share in 2024, supported by demographic growth and government housing programmes.

Which region is growing fastest within Indonesia’s property sector?

East Java is projected to record a 6.61% CAGR through 2030, outpacing all other provinces.

Why is the rental segment expanding quickly?

Rising workforce mobility, co-living concepts and Nusantara’s transitional housing needs are driving a 6.31% CAGR in rental revenue.

How is infrastructure influencing property values?

USD 128.6 billion worth of National Strategic Projects and new toll roads are reducing logistics costs and unlocking fresh development corridors.

What are the key risks facing investors in the Indonesia real estate market?

Construction-cost inflation, regulatory complexity and condominium oversupply in premium urban sub-markets are the primary downside factors.