Property in Indonesia Rise After Pandemic, These Are the Biggest Investor

May 1, 2024

3 minutes read

In recent years, property sales and rental prices in Bali have increased dramatically. Even in the last year, the price surge has been fantastic.

Despite the challenges posed by the pandemic, the property market in Bali has shown remarkable resilience.

However, as the year 2022 rolled in and COVID-19 restrictions began to ease, property rental prices in Bali swiftly rebounded. This resurgence was particularly evident when the level of tourist visits to Bali surged.

“From there, it means that housing needs are increasing again. Start a lot of guests, money coming in. Automatically, they open their business again. From the business side alone, we see that shophouses and warehouses have started to increase in demand by approximately 30 percent,” Garry Sugiarto Dharma from Brighton Real Estate said in a talk show held by BTN in collaboration with Media Tale entitled “Harga Properti di Bali Selangit, Emang Boleh Semahal Itu?”, in Sanur, South Denpasar, April 26, 2024.

While the prices of renting and selling property in Bali are indeed on the rise, the market remains highly competitive. The interest is not limited to Indonesians alone, as Garry Sugiarto Dharma notes, that foreign investors, including Indonesian from outside Bali, are also actively seeking property in Bali.

This is because investment opportunities are increasingly wide open with the stabilization of tourist visits.

Although property prices in Bali have skyrocketed, many residents still buy them. Interestingly, buyers of property at these high prices are even dominated by millennials.

PMA Prospect in Indonesia

As Kompas reported, based on data from the National Single Window for Investment (NSWI) of the Ministry of Investment / Investment Coordinating Board (BKPM), foreign investment (PMA) and domestic investment (PMDN) dominate investment in the housing, industrial estate, and office sectors.

Specifically, the sector recorded PMA realization of USD 2,574,534,600, or around IDR 38,103,112,080,000 (at an exchange rate of IDR 14,800) through 6,336 projects. This achievement ranks the housing, industrial estate, and office sectors seventh in terms of the highest PMA realization in 2023.

Five countries are the main players in investment in the housing, industrial estate, and office sectors in Indonesia, with a total PMA realization of IDR 38.10 trillion.

In 2023, the property sector in Indonesia, especially in Jakarta and Bali, reached a total investment of IDR 115.2 trillion through 15,366 projects. Housing, industrial estates, and offices were included in the sector. This achievement ranked the property sector fourth in terms of the highest investment realization that year.

5 Country with the Biggest Property Investment in Indonesia

The following are the five countries with the most property investment in Indonesia, especially in property types such as housing, industrial estate, and office sectors in Indonesia in 2023

1. Singapore 1,041,107,600 US dollars or around Rp 15,408,392,480,000 (Rp 15.4 trillion) and 575 projects

2. China 422,533,300 US Dollars or around Rp 6,253,492,840,000 (Rp 6.25 trillion) and 165 projects

3. Hong Kong 373,010,800 US Dollars or around Rp 5,520,559,840,000 (Rp 5.52 trillion) and 169 projects

4. Japan 259,257,900 US Dollars or around Rp 3,837,016,920,000 (Rp 3.83 trillion) and 220 projects

5. France 92,224,900 US Dollars or around Rp 1,364,928,520,000 (Rp 1.36 trillion) and 896 projects.

Benefits to Invest in Indonesian Property

Some countries make property investments in Indonesia for specific reasons involving economic, strategic, and growth potential factors. Here are some common reasons why certain countries are interested in property investment in Indonesia:

1. High Economic Growth

Indonesia has a fairly high economic growth, and the property sector is often considered a promising place to get good returns.

2. Rapidly Growing Demographics

High population growth and rapid urbanization create a huge demand for residential, industrial estates, and offices.

3. Growth Potential of Strategic Areas

Investment can focus on strategic areas with high growth potential, such as business centers, industrial areas, or tourism areas.

4. Growing Infrastructure

The development of infrastructure in Indonesia, such as transportation networks and other public facilities, can increase property values and attract investors who see long-term growth potential.

5. Natural Resources and Labor Force

The availability of natural resources and relatively cheap labor in Indonesia can encourage investors to invest in property projects.

Make Property Investment in Indonesia Easy

There is enough evidence to support the promising prospects for property investment in Indonesia. As expats looking to buy personal or business property, you can simplify the process by choosing LetsMoveIndonesia.

LetsMoveIndonesia is the first national mortgage brokerage service in Indonesia! Our financial experts can help both Indonesians and foreigners buy property in Indonesia.