Indonesia is located in Southeast Asia on the Malay Archipelago. Its closest neighbors are Vietnam, Thailand, Australia and other smaller countries. The country is popular among tourists due to its long coastline washed by the Indian and Pacific Oceans. Popularity among tourists also attracts investors who are looking to buy real estate in Indonesia from a developer for rent or subsequent sale.
Advantages of buying real estate in Indonesia from a developer
The main feature of the local market is the high demand for tourist real estate due to the year-round season and the influx of tourists (Bali is visited by millions of people every year). For example, in 2024, the real estate market in Bali showed growth of 4-5% due to interest from foreign investors.
The second important feature that you need to consider before buying a home from a developer in Indonesia is the restrictions on ownership for foreigners:
- Hak Milik (full ownership). Available only to Indonesian citizens.
- Leasehold (long-term lease). The most common option for foreigners. The lease term is usually 25-30 years, with the possibility of extending it to 50-80 years. This is popular for villas and apartments in Bali.
- Hak Pakai (right of use). Allows foreigners to own one property (such as a house) for up to 80 years, but with a limit on the plot size (up to 2,000-5,000 sq.m. depending on the region).
- Hak Guna Bangunan (right to build). Suitable for companies, including foreign ones (PT PMA), and allows you to build and own real estate for up to 80 years.
The cost of housing in new residential projects in Indonesia
The cost of new buildings in Indonesia is consistently high, but with slight fluctuations for properties away from the coast. The most popular are studio apartments from 25-30 sq.m. and apartments of 50-70 sq.m. Wealthy buyers are more interested in villas with private pools.
| City | Average price per sq.m. (USD) | Notes |
| Jakarta | 1000–3000 | Capital, prices depend on the area: center (2000–3000), suburbs (1000–1500). |
| Bali (Canggu, Seminyak) | 1500–4000 | Tourist areas, villas are more expensive than apartments, high investment value. |
| Surabaya | 800–2000 | Second largest city. Affordable new buildings, rising prices in business districts. |
| Bandung | 600–1500 | Popular among locals, lower prices than in Jakarta. |
| Batam | 600–1800 | Proximity to Singapore, demand for apartments and townhouses. |
| Medan | 500–1200 | Industrial center, budget new buildings for the middle class. |
| Yogyakarta | 500–1300 | Cultural hub, affordable housing, growing demand for student apartments. |
Where is the best place to buy a home in a new building in Indonesia
Bali is ahead of the country's capital, Jakarta, in popularity and is the main island for both tourists and real estate investors. The areas of Canggu, Ubud, Seminyak are actively being built up, but due to the imbalance of supply and demand, prices remain the highest in Indonesia.
Other popular cities:
- Jakarta. The capital and largest city of the country, where business activity is concentrated and the most modern residential complexes are being built.
- Surabaya. The second largest city with a large number of new projects.
- Lombok. An alternative to Bali with growing popularity. Lower prices with a high prospect of property value growth.
- Batam. An island near Singapore, in demand among investors due to its favorable location.
Guides on Buying New Builds in Indonesia
Frequently asked questions about new apartment complexes in Indonesia
What documents do you need to have to purchase an apartment in a new building in Indonesia?
Are there any restrictions for foreigners planning to buy an apartment from a developer in Indonesia?
Foreigners should also note that when purchasing real estate in a new building in Indonesia, ownership rights are not issued. The property may only be purchased for a long-term lease with the possibility of extending the specified period. This applies to private houses and apartments in residential complexes in Indonesia. You can bypass the restriction after obtaining Indonesian citizenship.
