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Residential Real Estate Market in Indonesia Market Size (2024 - 2029)

The Indonesia Residential Real Estate Market is projected to experience significant growth over the forecast period, driven by favorable demographic trends, increasing urbanization, and rising per capita income. The market's expansion is further supported by a substantial young population emerging as first-time homebuyers and a growing focus among developers on affordable housing in the mid-low segment. This competitive landscape is expected to attract more domestic and foreign investment, positioning Indonesia as a burgeoning economic force in Southeast Asia.

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Market Size of Residential Real Estate Industry in Indonesia

Indonesia Residential Real Estate Market Forecast
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 72.11 Billion
Market Size (2029) USD 105.73 Billion
CAGR (2024 - 2029) 7.95 %
Market Concentration High

Major Players

Indonesia Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Residential Real Estate Market Analysis

The Residential Real Estate Market in Indonesia Market size is estimated at USD 72.11 billion in 2024, and is expected to reach USD 105.73 billion by 2029, growing at a CAGR of 7.95% during the forecast period (2024-2029).

The COVID-19 pandemic crisis has severely shocked the residential real estate sector, which could have important implications for macro-financial stability going forward because of the large size of the sector and its strong interconnectedness with the real economy. Using a novel methodology, this paper quantifies vulnerabilities in the residential sector and analyzes policy tools available to mitigate related risks.

The demand for the housing market is expected to be driven by Indonesia's favorable demographic composition, increasing urbanization, rising per capita income of people, and a significant young population, in the country, emerging as first-time homebuyers in the next few years. Meanwhile, more developers are focusing on building affordable apartments in the mid-low segment targeting genuine homebuyers. This has also intensified the competition amongst such products and is expected to continue in the near future.

Indonesia is set to become a new economic powerhouse in Southeast Asia, attracting more individual investors and corporations from overseas. Increasingly more foreign buyers, especially from China, have spotted investment opportunities in Indonesia's real estate market. The latest Residential Property Price Survey conducted by Bank Indonesia revealed moderate residential property price growth in the third quarter of 2021, as confirmed by a 1.41% (yoy) increment in the Residential Property Price Index (RPPI), decelerating from 1.49% (yoy) in the previous period.

Indonesia Residential Real Estate Industry Segmentation

This report aims to provide a detailed analysis of the Indonesian residential real estate market. It focuses on the market dynamics, technological trends, insights, government initiatives taken in the residential real estate sector, and the impact of COVID-19 on the market. Also, it analyses the key players present in the market and the competitive landscape in the Indonesian residential real estate market. The Residential Real Estate Market in Indonesia is Segmented by Type (Condominiums and Apartments, Villas and landed houses), Key Cities (Jakarta, Greater Surabaya, Semarang and Rest of Indonesia). The report offers market size and forecasts for Indonesia Residential Real Estate Market in value (USD Billion) for all the above segments. 

By Type
Condominiums and Apartments
Villas and landed houses
By Key Cities
Jakarta
Greater Surabaya
Semarang
Rest of Indonesia
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Residential Real Estate Market in Indonesia Size Summary

The Indonesian residential real estate market is poised for significant growth, driven by favorable demographic trends, increasing urbanization, and rising per capita incomes. The sector is experiencing a surge in demand, particularly from first-time homebuyers among the country's substantial young population. Developers are increasingly focusing on affordable housing solutions in the mid-low segment, intensifying competition in this area. The market's attractiveness is further enhanced by Indonesia's emerging status as an economic powerhouse in Southeast Asia, drawing interest from foreign investors, particularly from China. Despite the challenges posed by the COVID-19 pandemic, which impacted the sector's stability, the market remains resilient, with government initiatives aimed at stimulating growth through tax incentives and easing foreign ownership restrictions.

The competitive landscape of Indonesia's residential real estate market is characterized by a high degree of fragmentation, with major players like Agung Podomoro Land, Sinar Mas Land, and Ciputra Group actively participating. These companies are adapting to technological advancements and expanding their presence through strategic developments, such as integrated townships and luxury residential complexes. The government's supportive measures, including lowering interest rates and increasing loan-to-value ratios, are expected to bolster property sales. Despite a temporary decline in residential construction starts, the market is anticipated to recover, with Jakarta emerging as a key rental market due to its attractive property prices and economic opportunities.

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Residential Real Estate Market in Indonesia Market Size - Table of Contents

  1. 1. Market Insights

    1. 1.1 Current Economic Scenario and Consumer Sentiment

    2. 1.2 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 1.3 Government Initiatives, Regulatory Aspects for Residential Real Estate Sector

    4. 1.4 Insights on Size of Real Estate Lending and Loan-to-value Trends

    5. 1.5 Insights on Interest Rate Regime for General Economy and Real Estate Lending

    6. 1.6 Insights on Rental Yield in Residential Real Estate Segment

    7. 1.7 Insights on Capital Market Penetration and REIT Presence in Residential Real Estate

    8. 1.8 Insights on Affordable Housing Support Provided by Government and Public-private Partnerships

    9. 1.9 Insights on Real Estate Technology and Startups Active in Real Estate Segment (Broking, Social Media, Facility Management, Property Management)

    10. 1.10 Impact of COVID-19 on the Market

    11. 1.11 Market Dynamics

      1. 1.11.1 Drivers

      2. 1.11.2 Restraints

      3. 1.11.3 Opportunities

  2. 2. Market Segmentation

    1. 2.1 By Type

      1. 2.1.1 Condominiums and Apartments

      2. 2.1.2 Villas and landed houses

    2. 2.2 By Key Cities

      1. 2.2.1 Jakarta

      2. 2.2.2 Greater Surabaya

      3. 2.2.3 Semarang

      4. 2.2.4 Rest of Indonesia

Residential Real Estate Market in Indonesia Market Size FAQs

The Indonesia Residential Real Estate Market size is expected to reach USD 72.11 billion in 2024 and grow at a CAGR of 7.95% to reach USD 105.73 billion by 2029.

In 2024, the Indonesia Residential Real Estate Market size is expected to reach USD 72.11 billion.

Indonesia Residential Real Estate Market Report Snapshots

Indonesia Residential Real Estate Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)