The Indonesia residential real estate market size is estimated to expand at a significant CAGR during the forecast period, 2021-2028. The growth of market is attributed to increasing young population, rapid urbanization, complimentary demographic configuration, and increasing per capital income of population.
The legal authorities of Indonesia has taken an initiatives towards the development of the country by introducing One Million Houses (OMH) programs, the program focuses on construction of at least 1 million units per year around 1.11 millions are constructed in the year 2018.
This programs main objective is to cater the lack of investment in the property market and reduce the 7.4 million shortage of housing investment to around 5.2 million. By this year they majorly aim at catering the pile-up demand of the country first.
There is a significant demand in the rise of residential property among the population in both the segments land and vertical housing, and after the government interference with the initiatives and favorable policies it is expected more to increase.
The real estate industry looks at renting and leasing of properties it is valued by the total revenue generated by landlord through renting council and private properties and is calculated using average rent multiplied by the number of rented properties.
The covid-19 pandemic impacted the residential real estate market. Decreasing supply of raw materials, lockdown across the globe, and supply chain disorders forced companies to close down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing millennial population, urbanization, and favorable demographic condition is expected to drive the market during the forecast period.
- Rising per capita income of the population is estimated to boost the market in the coming years.
- Growing demand for the residential property by the population is anticipated to spur the market during the projectile period.
- Increasing government initiatives towards housing segment to encourage investment is expected to propel the market in the coming years.
- Growing demand for the affordable and mid-segment houses offers lucrative opportunities for the key players in the market.
- Rising price of residential property in many cities can hamper the growth of market in the coming years.
- Lack of skilled labors to complete the initiatives taken by the government in a given span of time is one of the major factors that can hinder the market growth in the coming years.
Scope of the market
The report on residential real estate market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Indonesia residential real estate market –Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Types (Villas, Condominiums, and Others)
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Country
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Jakarta, Surabaya, Greater, Semarang
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Lippo Homes; Agung Podomoro Land; Sinar Mas land; Ciputra Groups; Duta Anggada Realty.
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Market Segment Insights
The condominiums segment is anticipated to exhibit a high CAGR
On the basis of types, the market is segregated into villas, condominiums, and others. The condominiums segment accounts for a key share of the market. Growth of the market is attributed to rising industrialization and increasing research & development activities in construction sector. However, the villas segment is anticipated to expand at a rapid pace during the forecast period due to increasing per capita income, growing demand for households, rising awareness among customers, and increasing number of small & medium industries.
Jakarta is anticipated to dominate the market
In the terms of countries, the market is fragmented into Jakarta, Surabaya, Greater, and Semarang. Jakarta is anticipated to dominate the market in the coming years owing to its cheap rent in the region, migration in search of better employment, and increasing disposable income which makes it an attractive rental market for both buyer and seller.
Segments
The residential real estate market has been differentiated on the basis of
Types
- Villas
- Condominiums
- Others
Countries
- Jakarta
- Surabaya
- Greater
- Semarang
Key Players
- Lippo Homes
- Agung Podomoro Land
- Sinar Mas land
- Ciputra Groups
- Duta Anggada Realty
Competitive Landscape
Key players competing in the Indonesia residential real estate market include Lippo Homes; Agung Podomoro Land; Sinar Mas land; Ciputra Groups; Duta Anggada Realty.
Some of these players are targeting on business strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares. For instance
In July 2021, Agung Podomoro Land achieved the marketing sale of IDR 1.0 trillion for IH2021.
In July 2020, Lippo homes project lippo Karawaci sold out 324 landed homes in 6 hours.
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