As of August 2024, the Indonesian government built nearly *** thousand houses as part of the One Million Houses program. The One Million Houses program (Program Sejuta Rumah) aims to build *********** houses each year to lower the number of housing backlog in Indonesia. Due to rising urbanization and population growth, the housing demand in Indonesia was expected to keep growing in the coming years.

Indonesia Residential Real Estate Market Outlook 2031:

The Indonesia residential real estate market size was valued at USD 61.88 Billion in 2022 and is projected to reach USD 123.18 Billion by 2031, expanding at a CAGR of 7.95% during the forecast period 2023 - 2031. The growth of market is attributed to increasing young population, rapid urbanization, complimentary demographic configuration, and increasing per capital income of population.

The legal authorities of Indonesia has taken an initiatives towards the development of the country by introducing One Million Houses (OMH) programs, the program focuses on construction of at least 1 million units per year around 1.11 millions are constructed in the year 2018.

This programs main objective is to cater the lack of investment in the property market and reduce the 7.4 million shortage of housing investment to around 5.2 million. By this year they majorly aim at catering the pile-up demand of the country first.



There is a significant demand in the rise of residential property among the population in both the segments land and vertical housing, and after the government interference with the initiatives and favorable policies it is expected more to increase.



The real estate industry looks at renting and leasing of properties it is valued by the total revenue generated by landlord through renting council and private properties and is calculated using average rent multiplied by the number of rented properties.



The covid-19 pandemic impacted the residential real estate market. Decreasing supply of raw materials, lockdown across the globe, and supply chain disorders forced companies to close down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

In 2020, the average price for a house between *** and *** square meters in Pondok Indah, Jakarta in Indonesia amounted to **** billion Indonesian rupiah or around *** thousand U.S. dollars. In comparison, the price for the same-size house in East Jakarta, Cibubur amounted to *** billion Indonesian rupiah. Pondok Indah is one of the most prestigious residential areas in Indonesia which is also located close to the central business district of Jakarta, the capital city.