Indonesia is called the country of a thousand islands, and although this is not entirely true, it holds the palm as a popular tourist destination. Therefore, those who have visited it seriously think about buying a home in Indonesia for both permanent residence and investment.
Advantages of buying real estate in Indonesia
Indonesia has an actively developing housing market, but this is not only new buildings. High demand from tourists encourages investors to buy secondary market properties and carry out their restoration and modernization, and then resell or rent them out. However, there are also options for buying it for permanent residence. Here are the advantages that help with this:
- Affordable cost. Compared to other tropical countries, real estate prices in Indonesia remain relatively low - within $ 1000-4000 per square meter.
- High profitability. If you buy real estate in Indonesia specifically for renting out, it can bring up to 8-15% of its value per year (although more realistic figures are 6-10%).
- Developed infrastructure. Popular regions offer everything you need, from modern shopping malls to international schools.
- Investment potential. Construction of new facilities and growth in tourism increase the value of assets.
Popular areas in Indonesia for foreigners to buy Indonesian real estate
Choosing a region is an important step for those who want to buy real estate in Indonesia. Let's look at the most popular locations:
- Bali (Canggu, Seminyak, Ubud). A dream island with developed infrastructure. Canggu attracts surfers and digital nomads, Seminyak - lovers of luxury, and Ubud - connoisseurs of nature and yoga. The average cost of housing in Indonesia here: villas - $ 150,000 - $ 400,000, apartments - $ 80,000 - $ 200,000.
- Jakarta. The capital with business activity, which is ideal for investing in apartments and commercial properties. Average price: $ 1,500 - $ 3,000 per m².
- Lombok. A quiet neighbor of Bali, where tourism is developing. Suitable for those seeking privacy. Villas start at $100,000, land plots start at $20,000.
- Batam. An island near Singapore, popular with expats. Average house prices: $80,000–$150,000.
Prices of real estate in Indonesia
The market offers a variety of options: from compact apartments to luxury villas. The secondary market is not far behind the primary market, and you can find apartments, studios, villas, townhouses and land plots.
Average property prices in Indonesia:
| Property type |
Average price (USD) |
Notes |
| Studio |
$50,000–$100,000 |
In tourist areas |
| Apartments |
$80,000–$250,000 |
1–3 bedrooms, new buildings |
| Villa |
$150,000–$500,000 |
With pool, 2–4 bedrooms |
| Townhouse |
$100,000–$200,000 |
In residential complexes |
| Plot |
$20,000–$100,000 |
Depends on location |
Nuances of buying property for sale in Indonesia
Buying property in Indonesia for foreigners has its own peculiarities. The main limitation is the inability to own land on the right of full ownership (Hak Milik). Instead, foreigners issue a long-term lease (Hak Sewa) or the right of use (Hak Pakai) for up to 80 years with the possibility of extension.
Features and requirements:
- Taxes. When purchasing, a transfer tax (5% of the cost) and VAT (11% in 2024, 12% from 2025) are charged. Annual property tax is about 0.5%.
- Documents. Passport, lease agreement or Hak Pakai certificate, proof of payment of taxes.
- Restrictions. Mortgages are almost unavailable to foreigners, so the purchase is usually at your own expense.
Purchase stages:
- Selecting an object. Study the real estate catalog through agencies or developers. Clarify the status of the object (new building or secondary).
- Checking the legal purity. The notary confirms the absence of debts and third-party rights.
- Conclusion of the contract. An agreement on long-term lease or right of use is signed.
After this, you need to complete the payment for the transaction or make a deposit if it is an installment plan. Having confirmed the transfer of funds, the notary issues a certificate confirming the right of ownership, and you receive the keys and documents.
