Foreign demand for property in Jakarta and Bali is experiencing a remarkable surge. The interest is particularly concentrated in areas vital for business and tourism.
Jakarta and Bali are the most sought-after regions in Indonesia for foreign nationals looking to invest in property. This trend has continued to escalate through the first quarter of 2024, encompassing interest in landed houses, land plots, and apartments.
Also read: Can Foreigners Buy Property in Jakarta?
Marisa Jaya, Head of Research at Rumah123, highlighted that over the past decade, Indonesia’s policies on property ownership by foreigners have become increasingly flexible. These policy adjustments have significantly widened opportunities for the property market to attract foreign investors.
During the initial months of 2024, the highest volume of property searches by foreigners was in the residential sector, particularly in the price range of IDR 1 billion to IDR 3 billion, accounting for 34.7% of searches. Properties priced between IDR 400 million to IDR 1 billion followed closely with 25.7%, while homes exceeding IDR 5 billion constituted 18% of searches.
Also read: Can Foreigners Buy Property in Bali?
In 2023, the most sought-after regions for foreign property buyers included South Jakarta, Badung (Bali), and Tangerang (Banten), alongside Bandung, West Jakarta, Batam, North Jakarta, Denpasar, Central Jakarta, and Surabaya.
The demand for property, especially in Badung, Bali, has seen a notable rise, with increases of 92.1% compared to 2022. Similarly, Denpasar witnessed an 81.3% surge, Surabaya 49.6%, and North Jakarta 46% annually.
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Marisa predicts that the growth trajectory of foreign property demand will accelerate further in 2024, bolstered by favorable government policies and increased market interest.
In summary, the dominant property types sought by foreigners in 2023 were landed houses, land plots, and apartments. Countries such as South Korea, Thailand, Canada, India, and China were among the top sources of foreign property seekers, with varying preferences for property types.
Also read: Recent Updates on Property Acquisition in Indonesia for Foreigners
The regulatory environment, particularly changes introduced in late 2022 and 2023, has played a pivotal role in facilitating easier access to property ownership for foreign nationals. These measures include revised price benchmarks and expanded ownership rights for high-rise apartments, aiming to sustain growth in the property sector.
The attractiveness of areas like South Jakarta, known for its robust business infrastructure, and Badung, Bali, a tourism hub, continues to draw significant interest from foreign investors. Similarly, Tangerang’s proximity to industrial zones has positioned it favorably among expatriates seeking convenient living arrangements.
Overall, the outlook for Indonesia’s property market remains optimistic, driven by sustained foreign interest and supportive regulatory reforms.
source: kompas.id
