As of 2023, PT Bumi Serpong Damai was the largest real estate developer in Indonesia, with total assets reaching nearly ** trillion Indonesian rupiah. The ranking was followed by PT Lippo Karawaci and PT Ciputra Development, respectively.

In the fourth quarter of 2024, around ***** percent of residential property developers in Indonesia financed their development through their own funds. In comparison, around ** percent of developers financed their development through bank loans.

As of the fourth quarter of 2024, Solterra Place (Tower Suites) had the highest number of apartment units under construction and was scheduled to be completed by 2025. Located in South Jakarta, this project is being built by the Indonesian property developer Waskita Realty.

In 2024, Mountains Papua had the highest construction cost index among provinces in Indonesia, scoring at 249.12. It was followed by the other provinces on Papua Island. Challenging geographical conditions and high material prices resulting from limited distribution channels are among the contributing factors to high construction costs in Papua.

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Residential Real Estate Market Size 2025-2029

The residential real estate market size is forecast to increase by USD 485.2 billion at a CAGR of 4.5% between 2024 and 2029.

The market is experiencing significant growth, fueled by increasing marketing initiatives that attract potential buyers and tenants. This trend is driven by the rising demand for housing solutions that cater to the evolving needs of consumers, particularly in urban areas. However, the market's growth trajectory is not without challenges. Regulatory uncertainty looms large, with changing policies and regulations posing a significant threat to market stability. Notably, innovative smart home technologies, such as voice-activated assistants and energy-efficient appliances, are gaining traction, offering enhanced convenience and sustainability for homeowners.
As such, companies seeking to capitalize on the opportunities presented by the growing the market must navigate these challenges with agility and foresight. The residential construction industry's expansion is driven by urbanization and the rising standard of living in emerging economies, including India, China, Thailand, Malaysia, and Indonesia. By staying abreast of regulatory changes and implementing innovative marketing strategies, they can effectively meet the evolving needs of consumers and maintain a competitive edge. These regulatory shifts can impact everything from property prices to financing options, making it crucial for market players to stay informed and adapt quickly.

What will be the Size of the Residential Real Estate Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic housing market analysis, small flats continue to be a popular choice for both investors and first-time homebuyers, driven by affordability and urban growth. International investment in housing projects, including apartments and condominiums, remains strong, offering attractive investment returns. Real estate syndication and property management software facilitate efficient property ownership and management. Real estate loans, property insurance, and urban planning are essential components of the housing market, ensuring the development of affordable housing and addressing the needs of the middle class and upper middle class. Property disputes, property tax assessments, and real estate litigation are ongoing challenges, requiring careful attention from stakeholders.
Property search engines streamline the process of finding the perfect property, from studio apartments to luxury homes. Real estate auctions, land banking, and nano apartments are innovative solutions in the market, while property flipping and short sales provide opportunities for savvy investors. Urban growth and community development are key trends, with a focus on sustainable, planned cities and the integration of technology, such as real estate blockchain, into the industry. Developers secure building permits, review inspection reports, and manage escrow accounts during real estate transactions. Key services include contract negotiation, dispute resolution, and tailored investment strategies for portfolio management. Financial aspects cover tax implications, estate planning, retirement planning, taxdeferred exchanges, capital gains, tax deductions, and maintaining positive cash flow for sustained returns.

How is this Residential Real Estate Industry segmented?

The residential real estate industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Mode Of Booking

  Sales
  Rental or lease


Type

  Apartments and condominiums
  Landed houses and villas


Location

  Urban
  Suburban
  Rural


End-user

  Mid-range housing
  Affordable housing
  Luxury housing


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    UK


  APAC

    Australia
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Mode Of Booking Insights

The sales segment is estimated to witness significant growth during the forecast period. The sales segment dominates the global residential real estate market and will continue to dominate during the forecast period. The sales segment includes the sale of any property that is majorly used for residential purposes, such as single-family homes, condos, cooperatives, duplexes, townhouses, and multifamily residences. With the growing population and urbanization, the demand for homes is also increasing, which is the major factor driving the growth of the sales segment. Moreover, real estate firms work with developers to sell the buildi

The Indonesian prefabricated buildings market, valued at $8.47 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 6.10% from 2025 to 2033. This growth is driven by several key factors. Firstly, the increasing demand for affordable and rapidly deployable housing solutions, particularly in urban areas grappling with population growth and infrastructure challenges, fuels the market's expansion. Secondly, the government's initiatives to promote sustainable construction practices and efficient infrastructure development are creating a favorable environment for prefabricated building adoption. The rising adoption of green building technologies and eco-friendly materials, such as timber, further contributes to market growth. The market is segmented by material type (concrete, glass, metal, timber, and others) and application (residential, commercial, and others), with the residential segment currently dominating due to the pressing need for affordable housing. Key players like Bali Prefab, Karmod Prefabricated Technologies, and others are driving innovation and competition, offering a diverse range of prefabricated building solutions to meet varied customer needs. However, challenges such as regulatory hurdles, skilled labor shortages, and public perception concerning the durability and aesthetic appeal of prefabricated structures pose some restraints to market growth. Overcoming these challenges through effective policy changes, skill development programs, and marketing campaigns highlighting the benefits of prefabrication will be crucial for sustainable market expansion. The forecast period (2025-2033) anticipates sustained growth driven by continuous urbanization, government infrastructure projects, and increasing awareness of the cost-effectiveness and sustainability advantages of prefabricated buildings. The market's segmentation provides opportunities for specialized companies to cater to specific needs within the residential, commercial, and other application segments. Ongoing technological advancements in prefabrication techniques, materials, and design are likely to further boost market expansion. The competitive landscape is characterized by both local and international players, indicating potential for further market consolidation and strategic partnerships in the coming years. To maintain growth momentum, companies need to focus on product innovation, supply chain optimization, and effective marketing strategies to address consumer concerns and increase market penetration. Recent developments include: April 2022: PT. Modern Panel Indonesia, a subsidiary of Modernland, one of Indonesia's leading developers, announced a new housing project using tested, earthquake-safe precast elements. The prefabricated elements are produced at the company's own automated precast plant equipped by the PROGRESS GROUP. The reinforcement for the precast elements is processed more effectively and automated with the new mesh welding plant M-System BlueMesh from the leading automation machinery provider., April 2022: NTT launched a new data center outside Jakarta, Indonesia. Located in Bekasi, the new Jakarta 3 Data Center is a purpose-built four-story building with 18,000 sq. m of IT space and 15.2 MW capacity. When fully built out, the facility will reach 45 MW. First announced in 2019 and originally due for completion at the end of 2020, the facility has a Tier IV-ready compact and modular design. Jakarta 3 Data Center can accommodate the needs of clients, particularly cloud service providers and the financial industry, which require flexible facility designs to help them achieve their business objectives.. Notable trends are: Rising Property Prices to Increase the Adoption of Prefab Construction.

In 2023, PT Ciputra Development Tbk generated a revenue of **** trillion Indonesian rupiah, showing a slight increase of approximately *** billion Indonesian rupiah in comparison to the previous year. PT Ciputra Development is one of Indonesia's largest property developers and its segments include residential property and commercial property.