Indonesia's property market enters 2026 with strong tailwinds: a stable 5% GDP growth, a fast-expanding middle class, and clear government policy support for foreign property ownership in priority zones.
Residential continues to show robust take-up in Jakarta and Greater Jakarta, with high-rise occupancy averaging 87% in the SCBD area. Pricing remains 30-40% below comparable cities like Bangkok or Kuala Lumpur, leaving meaningful runway for appreciation.
Resort and hospitality remains the standout: Bali tourist arrivals hit 6.5M in 2025, exceeding pre-pandemic peaks, while Mandalika (Lombok) and Likupang (North Sulawesi) are emerging as the next institutional-grade destinations.
For investors, our outlook favours operating resort assets and stabilised office floors over speculative land plays. Yield compression has been modest, leaving entry yields attractive relative to regional benchmarks.
