Real Estate - Indonesia | Statista Market Forecast

The Real Estate market market in Indonesia is expected to reach a projected value of US$9.05tn by 2024.
Among the various segments in the market, Residential Real Estate holds the largest share, with a projected market volume of US$7.85tn in the same year.
Looking ahead, the market is anticipated to exhibit an annual growth rate of 1.21% (CAGR 2024-2029), resulting in a market volume of US$9.61tn by 2029.
In the global context, United States is expected to generate the highest value in the Real Estate market market, reaching US$132.0tn in 2024.
The real estate market in Indonesia is experiencing a surge in demand for luxury villas in popular tourist destinations.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Indonesia has been experiencing significant growth and development in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Indonesian Real Estate market have been shifting towards modern and luxurious properties. This can be attributed to the rising middle class and increasing disposable income, which have led to a higher demand for high-end residential and commercial properties. Customers are also seeking properties that offer amenities such as swimming pools, fitness centers, and 24-hour security. One of the key trends in the Indonesian Real Estate market is the rapid urbanization and population growth in major cities. This has created a high demand for residential properties, especially in urban areas. Developers are focusing on building more high-rise condominiums and apartments to cater to this demand. Additionally, there is a growing trend of mixed-use developments, where residential, commercial, and retail spaces are combined in a single project. Another trend in the market is the increasing interest from foreign investors. Indonesia's growing economy and favorable investment climate have attracted foreign investors looking to capitalize on the potential of the Real Estate market. The government has also implemented policies to encourage foreign direct investment in the sector, further boosting the interest of international investors. Local special circumstances, such as the government's infrastructure development initiatives, have also contributed to the growth of the Real Estate market. The government has been investing heavily in infrastructure projects, including the construction of new airports, roads, and public transportation systems. These developments have not only improved connectivity but also increased the value of properties located in proximity to these infrastructure projects. Underlying macroeconomic factors, such as stable economic growth and low-interest rates, have played a crucial role in the development of the Real Estate market in Indonesia. The country's strong economic performance has created a favorable environment for investment, while low-interest rates have made it easier for individuals and businesses to access financing for property purchases. In conclusion, the Real Estate market in Indonesia is experiencing significant growth and development due to customer preferences for modern and luxurious properties, urbanization and population growth, increasing interest from foreign investors, local special circumstances such as infrastructure development initiatives, and underlying macroeconomic factors such as stable economic growth and low-interest rates. These factors combined have created a positive outlook for the Real Estate market in Indonesia, making it an attractive investment opportunity for both domestic and foreign investors.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Indonesia

Value

Value Split

Volume

Analyst Opinion

Transaction Value

Methodology

Financial

Access more Market Insights on Financial topics with our featured report

Key Market Indicators

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Real estate in Japan - statistics & facts

Explore more high-quality data on related topic

Real estate in the Asia-Pacific region - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts

Contact

Get in touch with us. We are happy to help.

Real Estate - Indonesia

In-Scope

Out-Of-Scope

Related markets:

Commercial Real Estate: market data & analysis

Financial

Access more Market Insights on Financial topics with our featured report

Explore more high-quality data on related topic

Global housing market - statistics & facts

Explore more high-quality data on related topic

Real estate in Japan - statistics & facts

Explore more high-quality data on related topic

Real estate in the Asia-Pacific region - statistics & facts

Explore more high-quality data on related topic

Residential real estate in Europe - statistics & facts