Indonesian Real Estate: Recovery in 2026?

As the Indonesian residential property market adapts to changes, 2026 is expected to bring significant recovery. The sector has faced economic pressures in recent years, but now a positive shift is emerging. According to the Pinhome Indonesia report for the second semester of 2025, significant shifts occur in the secondary housing sector. Primary housing inventory drops by 14% monthly, while secondary housing inventory rises by 5%. This trend is notably observed in areas surrounding Jakarta. Economic conditions push many property owners to sell assets to maintain liquidity. Consumer behavior is changing as buyers now show more interest in credit for secondary housing, preferring longer terms and lower amounts. Permata Bank’s chief economist, Josua Pardede, notes that recovery is also evident outside Java, where demand for housing continues to grow. Despite the optimistic outlook, challenges remain, such as affordability and uneven housing distribution. The key to overcoming these is collaboration in financing and infrastructure.