Indonesia's Property Market: Outlook for 2026

Indonesia’s property sector is showing signs of recovery following a prolonged period of sluggishness that began in 2017 and was exacerbated by the pandemic. Indicators such as gradual increases in rental prices, land purchase activities by developers, and asset accumulation by investors indicate that property valuations have bottomed out and are poised for an early recovery phase by 2026. The country’s macroeconomic stability provides a strong foundation for this resurgence. Government support, including President Prabowo’s initiatives to boost housing development, further enhances the optimism among market players. The logistics and industrial sectors are expected to be the main drivers, while sustainable developments like green buildings and transit-oriented projects will be the dominant trends pushing the sector towards more inclusive and environmentally friendly growth.