MUI Towers Jakarta
Indonesia

MUI Towers Jakarta
Indonesia

The Indonesian real estate market is expected to register a CAGR of 17.63% during the forecast period. The demand for the housing market is expected to be driven by Indonesia’s favorable demographic composition, increasing urbanization, rising per capita income of people, and a significant young population, in the country, emerging as first-time homebuyers in the next few years. Meanwhile, more developers are focusing on building affordable apartments in the mid-low segment targeting genuine homebuyers. This has also intensified the competition amongst such products and is expected to continue in the near future.

The Indonesian government also introduced the ‘One Million Houses’ (OMH) program, to construct at least 1 million units per year, and nearly 1.13 million houses were built in 2019, as part of the efforts to reduce the country’s current housing backlog. The one million housing program intends to address the lack of investment in the property market and to reduce the 7.6 million shortfall, in housing, to 5.4 million by this year.

The demand for residential property, both in landed houses and vertical housing, is expected to increase further after the government’s infrastructure projects, i.e., mass rapid transit (MRT), light rail transit (LRT), TOD (transit-oriented development) in commuter line stations, and new toll roads that were likely to be completed in 2019.