Market Size of Residential Real Estate Industry in Indonesia
| 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 |
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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.
