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ID 
2024 is shaping up to be a dynamic year for the Indonesian property industry. While the residential property market is showing relative stability, with the composite-16 property price index rising only 1.74% throughout 2023, the expat property sector is experiencing a gradual uptick in early 2024.
For savvy investors, this presents a unique opportunity to capitalise on market trends and maximise returns. This article delves deeper into the prospects of property investment in Indonesia in 2024, providing statistical data and in-depth analysis.
Analysing the Indonesian Property Market: 2024 Sector Outlook
The Indonesian residential property market remains relatively stable, with the composite-16 property price index rising only 1.74% throughout 2023, following year-on-year growth of 2% in 2022, 1.47% in 2021, 1.43% in 2020, and 1.77% in 2019, according to Bank Indonesia. Property prices fell by 0.92% last year when adjusted for inflation.
During the last quarter, residential property prices rose marginally by 0.13% quarter-on-quarter (a slight decrease of 0.55% when adjusted for inflation) in Q4 2023.
This year, Bank Indonesia projects that Indonesia's economic growth in 2024 will reach 4.7 – 5.5% and continue to increase to 5.6% in 2025.
The property sector in 2024 is predicted to remain on a relatively positive track. This optimism is marked by the Residential Property Price Index (IHPR) in the third quarter of 2023, which grew by 1.96% (year-on-year), higher than the growth in the previous quarter of 1.92% (year-on-year).
5 Property Business Trends in High Demand in 2024
Stable economic growth and increasing demand for housing are the main drivers of bright property opportunities.
For those considering entering the world of property investment, we have curated five property business trends predicted to dominate the market in 2024.
Land Trading remains the most popular property investment sector
Land is a classic choice that is always in demand because its value tends to increase over time.
The most beneficial strategy to sell your land:
- Conduct thorough research to find land with affordable prices across the potential area which has the best development prospect in the future.
- Retain the purchased land for some time to maximise its value increase.
- Build or renovate buildings on the land to increase its value and sell at a higher price.
Co-Living Space
Co-living spaces offer a shared living concept that provides comfort, security and community for its residents. Shared facilities such as kitchens, dining rooms, living rooms, workspaces and entertainment areas are the main attraction of co-living spaces.
Promising co-living space business opportunities:
- Co-living spaces are loved by the younger generation such as students, working professionals, or digital nomads who are looking for a practical and affordable place to live.
- One of the selling points of a co-living space is the aesthetics of the interior design, which is Instagrammable and suits the tastes of the younger generation.
- Provide per-room or per-bed rental options to cater to the inclusive needs of individuals or groups.
Homestay
Homestays offer a home-away-from-home experience for tourists, both local and foreign. Complete facilities such as bedrooms, bathrooms, kitchens, living rooms, dining rooms, gardens and swimming pools are the main attractions of homestays.
Effective homestay business strategies:
- Choose a homestay location in an attractive and easily accessible tourist area.
- Create a warm and cosy home-like atmosphere.
- Provide nightly, weekly or monthly rental options to attract travellers with different visit durations.
Online Apartment Rentals:
The development of technology and changes in consumer behaviour have driven the popularity of online property sales. Digital platforms such as websites, applications, social media and marketplaces offer convenience, speed and comfort for property buyers and sellers.
Keuntungan sewa apartemen online:
- Platform digital menyediakan informasi detail tentang properti, termasuk lokasi, spesifikasi, harga, fasilitas, gambar, video, dan virtual tour.
- Create a warm and cosy home-like atmosphere.
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New Housing Developments on the City Outskirts
Population growth and the increasing need for housing are driving the development of new projects in suburban areas. Improving infrastructure and more affordable land prices are the main drivers.
New project business opportunities in the suburbs:
- Conduct research to understand the needs and preferences of people in the suburbs.
- Offer attractive and affordable prices to attract consumers.
- Cooperate with the government and related parties to build infrastructure such as roads, schools, and hospitals in the area.
Want to find examples of the best new development projects in Jakarta and surrounding areas for your business or investment reference? Visit Lets Move Group's New Development page to see a list of the most ideal new projects in Jabodetabek.
3 Most Sought-After Property Trends and Amenities
In addition to location, there are other factors that increase the market potential of a property, one of which is the facilities provided to accommodate the needs of the property owner.
Based on research by Brighton, we have identified 3 property amenities that are the main targets of investors in determining which property to buy.
Smart Home
Integrated advanced technology that provides comfort, security and convenience for residents has become one of the main parameters in determining the value of a property.
Infrastructure, Accessibility and Ease of Transportation
A strategic location with easy access to public facilities, such as toll roads, train stations and airports, is a significant added value.
Maximum Use of Space
Functional and flexible room designs allow residents to adapt them to their needs and lifestyles.
Top 3 Ideal Property Investments for Foreigners in 2024
Contrary to global trends, the Indonesian property market among expats showed a gradual increase at the beginning of 2024. According to CNBC, Indonesia attracted significant interest from international property investors in Q3.
This interest is concentrated in the residential sector, especially houses in the following price ranges:
- Properties between Rp 1 billion and Rp 3 billion, which experienced a significant jump of 34.7%.
- Properties in the Rp 400 million price range. This type of property also experienced a healthy increase of 25.7%.
- Following these two, the luxury property market (houses above Rp 5 billion) also showed positive signs of growth.
Following this trend, several property developments have begun to market a variety of real estate options that offer a variety of facilities that provide comfort for prospective owners.
Challenges for Property Businesses in 2024
The year 2024 promises exciting prospects for the Indonesian property industry, but also presents several challenges that businesses need to consider. As a leading property consultancy in Indonesia, LetsMove Group is committed to providing up-to-date information and in-depth analysis of the property market climate.
Rising Interest Rates
Bank Indonesia (BI) has gradually increased the BI 7-Days Repo Rate (BI7DR) benchmark interest rate to control inflation. This could potentially increase mortgage payments and impact people's purchasing power, especially for first-time homebuyers.
Intense Competition
Competition in the property industry is becoming increasingly fierce, with many new developers emerging. This encourages businesses to innovate and offer more attractive and competitive property products.
Land Availability
The limited availability of land in big cities, especially in Jakarta, can be an obstacle to the development of new property projects. This can drive up land and property prices in these locations.
Government Regulations
The government continues to issue new regulations related to property, such as rules on property taxes and spatial planning. Businesses need to keep up with the latest regulations and adapt to these changes.
Explore Property Market Trends in Indonesia with Lets Move Group
As a leading property agent in Indonesia, Lets Move Group is ready to be your trusted partner in exploring the latest and most promising property investment prospects. With expertise and extensive experience in the property industry, Lets Move Group is committed to helping you find the right property that meets market needs.
Contact us today to start your successful property investment journey in Indonesia!
