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Indonesia Real Estate Boom: A Guide for Travelers Seeking Investment Opportunities

Indonesia is an island country with more than 17,000 islands located between Southeast Asia and Australia. The country is a popular tourist destination due to its beautiful beaches, volcanoes, rainforests, and amazing cultural attractions. However, Indonesia also offers a variety of properties for those looking for accommodation abroad. To buy flats for investment in Indonesia can be a profitable decision.

Real estate in Indonesia for life, business, investment

Purchasing an Indonesian property is not only regarded as a successful investment of capital, but it can also bring a stable income. Sometimes, foreigners invest in real estate intending to sell it after a certain time when the cost of square meters increases. Many rent out housing to tenants. That is they are running a profitable business because rent is constantly growing.

In Indonesia, foreigners are allowed to purchase not only secondary market properties and commercial real estate, but they can also become participants in shared construction.

Housing from a developer’s representative can be purchased ready-made or at one of the stages of construction (starting from the stage of digging a foundation pit). Thus, the potential buyer invests in modern, high-quality facilities. They always compare favorably with old buildings and are cheaper than a house that has already been put into operation.

Elite, expensive, cheap real estate in Indonesia: prices, payback periods

The average cost of housing in Jakarta is $1,200 per 1 m².

In Bali, prices are much lower – $1000 per sq. m. m.:

a luxury villa in Nusa Dua (Bali) will cost from $2,400 per sq. m;

a modest house by the sea costs from $1400 per sq. m;

prices for inexpensive apartments start from $55,000;

for houses from $300,000;

for luxury housing from $2,200,000;

for a villa in a prestigious five-star area or on the ocean coast, you need to pay at least $4,500,000.

Daily rental price per person from $100 in villas and from $120 in hotels.

If we consider the most favorite island – Bali- the most affordable housing is apartments. In second place are bungalows, they are suitable for a secluded lifestyle. Wealthy citizens can afford a luxurious home with interesting architecture and high-level comfort. Rental housing is in great demand. Investing in real estate in Indonesia means you can expect a return on investment in an average of 4–7 years, provided that the house or apartment is rented all year round.

Prospects for the development of the real estate market in Indonesia

Indonesia was later than other countries in recovering from the effects of the Asian crisis that arose in 1997. A series of economic reforms allowed it to enter a period of economic recovery. A construction boom has marked recent years. Both in the central districts of the capital and in the most remote corners of the country, condominiums, office buildings, shopping complexes, and even entire districts are being built.

Judging by the declared value, real estate prices are constantly rising. Some sources report price increases of 10–15% annually, and others indicate only 5–7%. In any case, there is a growth trend, and experts say it will continue.

Cities in Indonesia that are worth visiting

There are only 98 cities in Indonesia. Still, each of them deserves special attention because they are home to hundreds of people who speak a wide variety of languages. Large cities are distinguished by developed infrastructure, but at the same time, picturesque views of pristine nature. Right in the big cities, you can see ancient temples of ancient civilizations, palaces, museums, art galleries, impressive volcanoes, high mountains, clean lakes, and sandy beaches.

Bali. It is a fashionable Indonesian resort that attracts tourists with its untouched landscapes and forests, gigantic volcanoes, ancient temples and sanctuaries, and heavenly beaches.

Bintan. It is a unique place where nature coexists harmoniously with first-class hotels, excellent spa centers, sports grounds, and golf courses. There are also gorgeous sandy beaches where you can practice various water sports.

Denpasar. It is the largest city in Bali, which has ancient temples, palaces, and museums. But its main feature is the markets where you can buy fresh, exotic fruits and numerous handicrafts from local artisans.

Jakarta. A former outpost of the Dutch East Indies and now the multimillion-dollar capital of Indonesia. There are many cafes, museums, churches of all faiths, and the famous paradise coast of the Thousand Islands National Park.

Kuta. It is a city with a built-up coastline, with many budget hotels, bars, and inexpensive restaurants. The beaches are incredibly beautiful and offer excellent surfing conditions.

Nusa Dua. It is an elite holiday destination with luxury hotels, restaurants and boutiques, art galleries and theatres, and sandy and clean beaches.

Seminyak. It is a respectable resort with a first-class beach, excellent hotels, good restaurants, and many art galleries.

Senjiji. One of the largest and most developed resorts on the island of Lombok, with excellent hotels and spa centers, tourist offices, and interesting excursions to nearby attractions. Convenient access to the sea and perfectly clean beaches allow families with children to relax here.

Sulawesi. It is a beautiful green island, a sanctuary of cultures and traditions. You can find burial sites, exotic nature, the Buton Island Nature Reserve, and mountain lakes here. Diving among coral reefs is common in these places.

Tanah-Lot. This southwestern Bali resort is home to one of the island’s nine sacred temples, protected by UNESCO. There are also picturesque views of the ocean and chic restaurants serving Indonesian, Mediterranean, and Chinese cuisines. But for a beach holiday, you will have to go elsewhere.

Ubud. An ancient city, which is a center of artistic crafts and arts. Here, you can visit a famous jewelry gallery, a wood carving center, and a batik gallery. The diversity of cities in Indonesia allows you to make your holiday as varied as possible. In the heat of the day, it is best to sit on sandy beaches. In the evening, go for a walk in shopping centers, galleries, or restaurants. In inclement weather, you can organize a pilgrimage trip to Indonesian temples, of which there are a huge number in this country.

Property in Indonesia

On https://indonesia-real.estate/ website, you will find information about different types of real estate in Indonesia, including apartments, houses, villas, commercial premises, and land. We work with trusted real estate agents who can help you find the most suitable property to suit your budget and needs.