Real Estate Market In Indonesia Market Size (2024 - 2029)

The market size of the real estate sector in Indonesia is projected to grow significantly in the future due to various factors. The country's robust and stable economic growth, coupled with high urbanization and population growth, has led to a surge in property prices and demand, making the real estate market one of the strongest sectors in the region. Even amidst the COVID-19 crisis, the sector remained resilient. The government's initiatives like the 'One Million Houses' program and the support from foreign investors and associations like the World Bank are expected to further boost market growth. The advent of Proptech in the country, driven by an increase in demand for homes from the middle-class populace, is also contributing to the expansion of the market. Despite the challenges posed by the pandemic, the country is focused on recovery and growth, which bodes well for the real estate market.

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Market Size of Real Estate Industry In Indonesia

Indonesia Real Estate Market Summary
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

Indonesia Real Estate Market Major Players

*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 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 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

Real Estate Market In Indonesia Size Summary

The Indonesian real estate market is witnessing robust growth, thanks in part to the country's strong economy and high rates of urbanization. The sector has demonstrated resilience in the face of the COVID-19 pandemic, with property prices and demand rising due to rapid population growth. The government, foreign investors, and organizations like the World Bank are supporting affordable housing projects, which are expected to further enhance the market's growth in the coming years. The market has also seen a surge in PropTech, with a growing demand for homes from the middle-class populace driving this trend. The market is highly competitive and fragmented, presenting opportunities for growth during the forecast period. Major players in the market include Agung Podomoro Land, Sinar Mas Land, Ciptura Group, and Tokyu Land Indonesia. These players are adapting to technological trends, such as rising internet penetration and the expansion of e-commerce. The real estate market in Jakarta, in particular, is emerging as a prime rental market, with serviced apartments seeing an improvement in average occupancy rates. Meanwhile, residential property sales in Indonesia remain sluggish, but are expected to pick up in the long term.

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Real Estate Market In Indonesia Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Policies and Regulations

    3. 1.3 Insights into Interest Rate Regime for General Economy, and Real Estate Lending

    4. 1.4 Insights into Real Estate Tech and Startups Active in the Real Estate Segment

    5. 1.5 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate

    6. 1.6 Real Estate Buying Trends - Socioeconomic and Demographic Insights

    7. 1.7 Impact of COVID-19 on the Market

    8. 1.8 Value Chain/Supply Chain Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Property Type

      1. 2.1.1 Residential

      2. 2.1.2 Office

      3. 2.1.3 Retail

      4. 2.1.4 Hospitality

      5. 2.1.5 Industrial

    2. 2.2 By City

      1. 2.2.1 Jakarta

      2. 2.2.2 Bali

      3. 2.2.3 Rest of Indonesia

Real Estate Market In Indonesia Market Size FAQs

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.

In 2024, the Real Estate Market In Indonesia Market size is expected to reach USD 64.78 billion.

Indonesia Real Estate Market Report Snapshots

Indonesia Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)