A survey by Knight Frank Indonesia at the beginning of 2025 shows high optimism in the Indonesian property sector.
The survey, titled Property Outlook 2025, indicates that despite global economic and geopolitical tensions, property players predict these factors won’t significantly affect the national economy.
They expect the economy to remain stable. Although there are some challenges, there’s still a lot of potential in the property industry in 2025. Let’s take a closer look at those prospects.
Optimism in Indonesian Property Sector
A recent survey by Knight Frank Indonesia has sparked optimism among property players, who remain confident despite global challenges. Many industry insiders believe that property prices will continue to climb in the coming years.
While the sector may face hurdles such as weakened middle-class purchasing power, high land prices, and rising interest rates, the outlook remains promising. Willson Kalip, Country Head of Knight Frank Indonesia, emphasizes the importance of maintaining this optimism in 2025.
“Although filled with challenges, various opportunities remain open amidst the dynamics of the property market that is still seeking a new balance point. Among them are digitalization and AI development for optimizing property growth,” stated Willson on Thursday, January 9, 2025.
The survey also forecasts positive growth for the industrial, data center, and warehousing sub-sectors in 2025. Meanwhile, the residential, hotel, retail, and villa sub-sectors are expected to grow at a moderate pace. The education and healthcare sectors are predicted to thrive, serving as key drivers for property sector expansion.
Synergy of Tourism and Property Sectors
The trend of increasing foreign investment is also set to continue. Take Qatar’s Qilaa International Group, for instance. They’ve just signed an MoU to invest in building 1 million affordable homes in Indonesia.
With such significant foreign investments on the rise, the property sector is set for a dynamic year ahead. Now, let’s explore the specific opportunities awaiting the industry in 2025:
1. The living sector or residential property is set to be the main driver of property growth in Indonesia in 2025. From middle-class homes to dormitories near universities and the rise of co-living spaces in cities, the housing sector remains an attractive investment with continued positive growth expected.
2. Green property will shape future property development. Green property will become the focal point in future real estate development in the Asia region, as awareness of the importance of ESG principles keeps growing.
3. The tourism, entertainment, and property sectors will continue to complement each other’s growth. The latest trends show a unique blend of housing with tourism, entertainment, and sports activities, such as villas near tourist attractions and entertainment centers.
Property Investments in Bali Continue to Grow
The Greater Jakarta area (Jakarta, Bogor, Depok, Tangerang, Bekasi) and several major cities like Makassar, Semarang, and Surabaya are expected to be on the radar for property investment in 2025.
Meanwhile Bali is considered one of the regions offering significant property capital gains and high occupancy rates. The booming tourism sector is driving property development, making it increasingly attractive to both local and international investors.
A survey released by Rumah123 shows that the property market in Denpasar, Bali, has experienced significant price increases, with an average annual rise of 13.2 %.
“This increase is the highest compared to 13 other major cities in Indonesia,” said Marisa Jaya, Head of Research at Rumah123.
The data shows that housing demand in Denpasar surged by 25.8 % in October 2024, compared to the same period in 2023. The price growth exceeding inflation makes property investment a safe choice due to its stability and long-term profit potential.
Property Investment Services for Smart Investors
With the property market looking so promising and growth opportunities popping up all over the place, now’s the perfect time to dive into Indonesia’s booming property scene. The thriving tourism and entertainment sectors, along with the rising trend of Green Property, make it a smart time to invest.
Looking to make the most of this exciting market? Team up with Seven Stones Indonesia. Our expert team has over 20 years of experience and offers all-around property investment services, from exclusive listings in prime locations, to helping with legal stuff, building permits, and property taxes. Let’s chat about your property investment plans.
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