Indonesian Residential Property Market Recovery by 2026

In 2026, the Indonesian residential property market is expected to enter a recovery phase following the economic challenges of 2025. The market is showing signs of picking up due to changes in supply and demand patterns and shifting financing preferences. According to the Pinhome Indonesia report for the second half of 2025 and the 2026 outlook, the supply of new homes in the primary market has decreased. However, there is growth in the secondary housing segment, especially in the suburbs of Jakarta. Economic conditions and shifting financial priorities of households lead many property owners to maintain liquidity, resulting in an increase of quick sale offers. Additionally, demand for secondary housing is increasing in industrial areas like Cikarang, where demand grew by 16% in the second half of 2025. Consumer preferences are shifting towards the proximity of housing to workplaces. Financing strategies have also changed: interest in mortgages for secondary homes increased. Issues of affordability and inequitable distribution remain a challenge. Overall, with the dynamics in supply, changes in financing strategies, and the emergence of new demand centers, the market is moving towards a more stable recovery in 2026.