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.

Indonesia Real Estate Market size was valued at USD 64.78 Billion in 2024 and is projected to reach USD 85.97 Billion by 2032, growing at a CAGR of 5.82% during the forecast period 2026-2032.Urbanization and Growing Middle-Class Population: Rapid urbanization and a growing middle-class population are two major drivers of the Indonesian real estate industry. This powerful demographic shift, where the urban population is projected to exceed two-thirds of the total in the coming years, creates immense, sustained demand across all property segments. As more people move from rural areas to major urban hubs in quest of better work prospects and higher living standards, the demand for residential, commercial, and mixed-use real estate properties in key cities like Jakarta, Surabaya, and Bandung has significantly increased. The burgeoning middle class, with their expanding disposable income, is actively seeking higher-quality housing and premium commercial spaces, driving a strong market for both affordable and mid-range housing options, especially for first-time homebuyers. Savvy investors are targeting these high-growth metropolitan areas to capitalize on the sustained need for modern living and working spaces.

The Indonesia Residential Real Estate Market is Segmented by Property Type (Apartments & Condominiums and Villas & Landed Houses), Price Band (Affordable, Mid-Market and Luxury), Mode of Sale (Primary and Secondary), Business Model (Sales and Rental) and Region (Java, Sumatra, Kalimantan, Sulawesi and Rest of Indonesia). The Market Forecasts are Provided in Terms of Value (USD).

The real estate transaction value in the real estate market in Indonesia was modeled to stand at 60.37 billion U.S. dollars in 2024. Following a continuous upward trend, the real estate transaction value has risen by 19.15 billion U.S. dollars since 2017. Between 2024 and 2029, the real estate transaction value will rise by 2.34 billion U.S. dollars, continuing its consistent upward trajectory.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Real Estate.

In the fourth quarter of 2024, the sales growth of the small house market in Indonesia contracted by nearly 24 percent. During the same period, the overall sales growth of the residential property market in Indonesia fell by approximately 15 percent.

Gain insights into the Indonesia Real Estate Market, size at USD 9.0 trillion in 2023, showcasing major players and future outlook.

The Indonesian real estate market, valued at $64.78 billion in 2025, is projected to experience robust growth, driven by a burgeoning middle class, increasing urbanization, and government initiatives promoting infrastructure development. A compound annual growth rate (CAGR) of 5.82% from 2025 to 2033 indicates a significant expansion of the market, reaching an estimated value of approximately $105 billion by 2033. This growth is fueled by strong demand across various property types, including residential, office, retail, and hospitality sectors. Jakarta and Bali remain key market drivers, attracting significant investment and exhibiting high property values. However, challenges such as land scarcity in prime locations, regulatory complexities, and fluctuating economic conditions pose potential restraints to market growth. The increasing popularity of sustainable and technologically advanced buildings is a notable trend shaping the market's future. Major players like Agung Podomoro Land, Tokyu Land Indonesia, and Lippo Group are actively shaping the landscape, competing for market share through large-scale projects and strategic partnerships. The diverse segments within the market – encompassing residential, office, retail, hospitality, and industrial properties across different Indonesian cities – provide ample opportunities for various investors and developers. The Indonesian real estate market’s resilience is underpinned by a long-term positive outlook for economic growth and population expansion. The government's focus on infrastructure development, including transportation and utilities, further enhances the attractiveness of the market. Furthermore, the rise of e-commerce and the need for modern logistics infrastructure are stimulating growth in the industrial and warehousing segments. The increasing adoption of smart city initiatives also contributes to the growth of technologically advanced properties. However, careful consideration needs to be given to potential risks associated with inflation, interest rate fluctuations, and geopolitical factors, which could affect investor confidence and project timelines. Understanding these dynamics is crucial for investors and stakeholders to navigate the complexities of this dynamic and promising market. This comprehensive report provides an in-depth analysis of the Indonesian real estate market, covering the historical period (2019-2024), base year (2025), and forecast period (2025-2033). It offers invaluable insights for investors, developers, and industry stakeholders seeking to navigate this dynamic and rapidly expanding sector. With a focus on key segments – residential, office, retail, hospitality, and industrial – across major cities like Jakarta and Bali, this report reveals the market's current state and future trajectory. Keywords: Indonesian Real Estate Market, Jakarta Real Estate, Bali Property Market, Indonesian Property Investment, Real Estate Development Indonesia, Indonesian Real Estate Trends. Key drivers for this market are: Growing Population, Increase in Demand for Residential Real Estate. Potential restraints include: Increase in Costs. Notable trends are: Jakarta Emerging as a Prime Rental Market.

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.

The Indonesia Commercial Real Estate Market Report is Segmented by Property Type (Offices, Retail, Logistics and Others), by Business Model (Sales and Rental), by End-User (Individuals/Households, Corporates & SMEs and Others), and by Geography (Jakarta, Surabaya, Bandung, Semarang, Medan and the Rest of Indonesia). The Market Forecasts are Provided in Terms of Value (USD).

The Indonesian commercial real estate market presents a compelling investment opportunity, projected to reach $21.04 billion in 2025 and maintain a robust Compound Annual Growth Rate (CAGR) of 7.40% from 2025 to 2033. This growth is fueled by several key drivers. Rapid urbanization, particularly in major cities like Jakarta, Surabaya, and Semarang, is creating significant demand for office, retail, and industrial spaces. The burgeoning e-commerce sector and associated logistics needs are further boosting the demand for warehousing and distribution centers. Moreover, Indonesia's expanding tourism sector is driving investment in hospitality real estate. While challenges exist, such as potential economic volatility and infrastructure limitations, the overall market outlook remains positive. The dominance of established players like Agung Podomoro Land, Sinarmas Land, and Lippo Karawaci, alongside the emergence of co-working spaces and the increasing activity of real estate agencies, underscores a dynamic and competitive landscape. The segmentation by property type (offices, retail, industrial, logistics, multi-family, hospitality) and key cities highlights diverse investment opportunities tailored to specific market needs. Furthermore, ongoing government initiatives aimed at improving infrastructure and attracting foreign investment are expected to contribute significantly to future market expansion. The consistent growth projection suggests a sustained period of expansion for the Indonesian commercial real estate sector. However, investors should carefully analyze individual sub-sectors. For instance, while the office market benefits from the growth of businesses and corporate expansion, the retail segment’s performance may be more sensitive to consumer spending patterns and economic fluctuations. Similarly, the logistics sector is likely to see continued growth driven by e-commerce, necessitating close attention to supply chain dynamics. Understanding the competitive landscape, including both established developers and emerging co-working spaces, is critical for effective market entry and strategic planning. Overall, the Indonesian commercial real estate market exhibits strong long-term growth potential, presenting significant opportunities for both domestic and international investors who understand the nuances of this dynamic sector. Recent developments include: October 2022: Global digital infrastructure company Equinix., Inc. has announced its expansion into Indonesia with a planned approximately USD 74 million International Business Exchange (IBX®) data center in the heart of Jakarta. With this expansion, Equinix will enable Indonesian companies and multinationals based in Indonesia to leverage its proven platform to consolidate and connect the underlying infrastructure of their business., January 2022: Emerging Markets Property Group (EMPG), a property-focused market operator, has acquired OLX Indonesia property assets for an undisclosed sum through the local property arm Lamudi.. Notable trends are: The demand for office remains strong in the country.

In the fourth quarter of 2024, the sales growth of the medium house market in Indonesia contracted by around 16.6 percent. During the same period, sales in the large house segment had the highest growth, reaching over 20 percent.

In the fourth quarter of 2024, the overall sales growth of the residential property market in Indonesia contracted by approximately 15 percent. During the same period, the sales growth for small houses in Indonesia fell by over 23 percent.

The Indonesia Commercial Real Estate report features an extensive regional analysis, identifying market penetration levels across major geographic areas. It highlights regional growth trends and opportunities, allowing businesses to tailor their market entry strategies and maximize growth in specific regions.

As of January 2025, the resale price index of second-hand houses in Indonesia was at 113.2. The index tracks the overall price movement of the second-hand housing market in Indonesia, compared to the base value from January 2020, when the index was equal to 100.

Key information about House Prices Growth

• Indonesia house prices grew 1.4% YoY in Dec 2024, following an increase of 1.5% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2003 to Dec 2024, with an average growth rate of 3.1%.
• House price data reached an all-time high of 13.5% in Sep 2013 and a record low of 1.0% in Jun 2021.

The Indonesian hospitality real estate market exhibits robust growth potential, projected to reach a market size of $1.84 billion in 2025, expanding at a Compound Annual Growth Rate (CAGR) of 12.07% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, Indonesia's burgeoning tourism sector, driven by increasing domestic and international travel, significantly boosts demand for hotels, resorts, and other hospitality properties. Secondly, rising disposable incomes and a growing middle class are fueling increased spending on leisure and hospitality services, further stimulating market growth. Thirdly, government initiatives promoting tourism infrastructure development and investment in the hospitality sector contribute to a favorable investment climate. The market is segmented by property type, with hotels and accommodation currently dominating, followed by spas and resorts, and other property types showing promising growth potential. Leading players like Sinar Mas Land, Agung Podomoro Land, and Ciputra are actively shaping the market landscape through strategic acquisitions and new developments. However, potential restraints include economic volatility, regulatory hurdles, and competition from emerging hospitality players. Despite these challenges, the long-term outlook remains positive, indicating substantial opportunities for investment and growth in the Indonesian hospitality real estate sector. The forecast for the Indonesian hospitality real estate market from 2025 to 2033 suggests continued expansion, with the market size likely exceeding $5 billion by 2033. This projection considers the sustained growth of tourism, the expanding middle class, and ongoing infrastructure developments. Analyzing the historical period (2019-2024) along with the projected CAGR allows for a reasonable estimation of future market values. This continued growth will likely lead to increased competition among developers, further enhancing the sophistication of hospitality offerings across various segments. Successful players will be those that can successfully navigate regulatory frameworks while simultaneously offering innovative and high-quality hospitality experiences to meet the demands of an increasingly discerning consumer base. The focus on sustainable and responsible tourism practices will also play a significant role in the market's future development. Recent developments include: March 2024: Sinar Mas Land and IABHI led the charge in sustainable development by prioritizing eco-friendly materials and harnessing New Renewable Energy (EBT). Their efforts include installing solar panels in commercial buildings (hotels, resorts. and spas), implementing renewable energy certificates (RECs) from PT PLN (Persero), and even revamping energy management across their operational buildings. By championing these initiatives, Sinar Mas Land is not only aligning with government goals but also actively curbing CO2 emissions., November 2023: Indonesia's Vice President officially inaugurated Accor's debut property in Central Kalimantan, the Mercure Pangkalan Bun. Boasting 150 rooms and suites, the hotel encompasses a range of amenities, including a restaurant, lounge, bar, ballroom, multipurpose rooms, wellness area, and swimming pool. Situated just a short 15-minute drive from Iskandar Airport, the Mercure Pangkalan Bun enjoys a strategic location catering to business and leisure travelers.. Key drivers for this market are: Indonesia's Hospitality Market Shifting Preference for Local and Authentic Experiences. Potential restraints include: Indonesia's Hospitality Market Shifting Preference for Local and Authentic Experiences. Notable trends are: Increase in Tourism in Indonesia.

As of 2024, nearly 85 percent of Indonesian households resided in a housing unit they owned. In comparison, only about five percent of households in Indonesia lived in a rental unit. In general, the ownership rate of a housing unit in Indonesia has grown in the past few years.

Technological advancements in the Indonesia Residential Real Estate industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

Hospitality Real Estate Market Outlook

According to our latest research, the global hospitality real estate market size reached USD 1.32 trillion in 2024, reflecting robust demand for both leisure and business accommodations worldwide. The market is projected to grow at a CAGR of 7.8% from 2025 to 2033, reaching a forecasted value of USD 2.59 trillion by 2033. This growth is primarily driven by the resurgence of international travel, increasing disposable incomes, and the expansion of tourism infrastructure across emerging and developed economies. As per our latest research, the market is witnessing a notable shift towards asset-light models and innovative investment strategies, which are reshaping the competitive landscape and offering new opportunities for investors and operators alike.

One of the most significant growth factors propelling the hospitality real estate market is the accelerated recovery of global tourism following the pandemic. As travel restrictions have eased and consumer confidence has returned, both leisure and business travel have experienced a strong rebound. The proliferation of low-cost airlines, improved visa policies, and the rise of experiential travel are further stimulating demand for diverse accommodation types. Additionally, international events, conferences, and sports tournaments are fueling the need for flexible and high-quality hospitality assets in major cities and emerging destinations. The sector is also benefiting from the pent-up demand for travel and the increasing preference for longer stays, which is driving robust occupancy rates and higher average daily rates (ADR) across key markets.

Another major factor influencing market growth is the ongoing digital transformation within the hospitality sector. The integration of advanced technologies such as artificial intelligence, IoT-enabled smart rooms, and contactless services is enhancing operational efficiency and guest experience. These technological advancements are enabling property owners and operators to optimize revenue management, streamline operations, and personalize offerings for guests. Furthermore, the adoption of data analytics and cloud-based platforms is empowering stakeholders to make informed investment decisions, identify emerging trends, and mitigate risks. The emphasis on sustainability and eco-friendly practices is also shaping investment decisions, with an increasing number of properties seeking green certifications and implementing energy-efficient solutions to attract environmentally conscious travelers and investors.

The evolving investment landscape is another critical driver of growth in the hospitality real estate market. Investors are increasingly diversifying their portfolios by exploring alternative accommodation segments such as serviced apartments, hostels, and boutique hotels, which offer higher yields and lower operational risks compared to traditional hotel assets. The rise of Real Estate Investment Trusts (REITs), private equity funds, and institutional investors is providing significant capital inflows and liquidity to the market. These investment vehicles are enabling smaller investors to participate in the sector and are fostering greater transparency and professionalism in asset management. Strategic partnerships, mergers, and acquisitions are further consolidating the market, allowing operators to leverage economies of scale and expand their geographic footprint.

From a regional perspective, Asia Pacific continues to lead global growth, accounting for the largest share of new hotel openings and pipeline projects. North America remains a mature but dynamic market, driven by strong domestic travel and robust demand in gateway cities. Europe is witnessing a steady recovery, supported by cross-border tourism and the revitalization of urban centers. Meanwhile, the Middle East & Africa region is emerging as a hotspot for hospitality investments, particularly in luxury and resort segments, fueled by ambitious government tourism initiatives and mega-events. Latin America, while smaller in scale, is experiencing renewed interest from investors seeking untapped opportunities in secondary cities and leisure destinations.

Unlock data-backed intelligence on Indonesia Hospitality Real Estate Market, size at USD 1.7 billion in 2023, showcasing demand trends and future opportunities.