If you’re a foreigner looking to buy property in Yogyakarta, there are several factors to consider. Yogyakarta, also known as Jogja, is a vibrant and culturally rich city in the heart of Java. As one of Indonesia’s most popular tourist destinations, Yogyakarta offers a unique blend of traditional Javanese culture and modernity, making it an excellent place to live for locals and foreigners alike.
The city has a thriving property market, with various options, from traditional Javanese houses to modern apartments and condominiums. This guide will discuss how foreigners can buy real estate in Yogyakarta.
Can foreigners buy land and property in Yogyakarta?
Yogyakarta allows foreigners to buy real estate, including houses, apartments, and commercial buildings. However, the process of purchasing property in Yogyakarta may pose particular challenges. Indonesian laws and regulations safeguard the housing market from foreign investment, but there are still viable options for foreign buyers looking to acquire property in this cultural hub of Java.
Buy real estate on Java
Yogyakarta is one of the most culturally-rich cities in Indonesia. While Yogyakarta has its own unique set of rules and regulations, it’s worth noting that similar guidelines apply to other cities in the region. It’s essential to be aware that certain local restrictions may apply in specific areas. It’s best to consult a local real estate company for advice on navigating regulations.
Property ownership on Java
Yogyakarta and other Indonesian cities and towns offer three types of property ownership: Hak Milik (Right to Own), Hak Pakai (Right to Use), and Hak Guna Bangunan (Right to Build). While Hak Milik is considered the superior form of property ownership, it is, unfortunately, unavailable for foreign buyers. Therefore, foreign buyers looking to purchase property in Yogyakarta and other Indonesian cities must explore other avenues to acquire property rights.
Get help with buying property in Yogyakarta
How can foreigners buy real estate in Yogyakarta?
Foreigners can use a PT PMA (Perseroan Terbatas Penanaman Modal Asing), a foreign-owned company, to buy property in Yogyakarta. Foreign buyers can purchase real estate using PT PMA, but it’s important to note that the company owns the property rather than the individual foreign buyer.
In addition, PT PMA can also be used to obtain a KITAS, which allows a foreigner to reside in Indonesia for up to 24 months. With the PT PMA, foreign buyers can acquire Hak Pakai and Hak Guna Bangunan licenses required to use and develop land and property.
6 Steps to buying real estate in Yogyakarta
Foreigners can buy real estate in Yogyakarta and other cities on the island of Java by following these six steps:
- Establish a PT PMA (a notary, accountant, or visa agency can do this for you).
- Request the certificate for the property you want to buy from the Indonesian National Land Office (BPN).
- Settle the payment and provide proof.
- Provide proof that the conditions for Hak Guna Bangunan or Hak Pakai are met.
- Request the building permit (PBG) to acquire the right to build.
- BPN will issue the property certificate under the name of your PT PMA.
What are the land and real estate prices in Yogyakarta?
You see an overview of the real estate prices in Yogyakarta in the table below.
|Average buy price||Average price/sqm.||Average rent price||Annual growth||Rental yield|
|House||IDR 709 million ($46,085)||IDR 10.2 million ($663)||IDR 36.8 million ($2,392)||+ 14.5%||+ 62.3%|
|Condo||IDR 4 billion ($260,000)||IDR 11.5 million ($748)||–||–||–|
|Townhouse||IDR 1.4 billion ($90.305)|
IDR 1.4 billion ($91,000)
|IDR 11.5 million ($748)||–||– 9.2%||–|
|Commercial||IDR 3.1 billion ($201,500)||IDR 10.3 million ($670)||IDR 121.3 million ($7,885)||+ 28%||–|
|Apartment||IDR 980.4 million ($63,726)||IDR 19.9 million ($1,294)||IDR 5 million ($325)||+ 60.8%||–|
|Land||IDR 483 million ($31,395)||IDR 2.9 million ($189)||IDR 52.5 million ($3,413)||– 30.9%||–|
Why invest in real estate in Yogyakarta?
For many reasons, investing in real estate in Yogyakarta can be a smart move. Yogyakarta is known for its rich cultural heritage and vibrant arts scene, which attracts tourists and visitors worldwide. As a result, the city has a thriving tourism industry, which can benefit those looking to invest in rental properties.
Yogyakarta is also home to several prestigious universities and educational institutions, making it an attractive location for students and young professionals. The city’s large student population can create demand for affordable housing options.
Another reason to consider investing in real estate in Yogyakarta is its strategic location. The city is in the heart of Java, which is the most populous island in Indonesia. It is also just a few hours away from the capital city of Jakarta and the country’s second-largest city, Surabaya. The city’s real estate market is relatively affordable compared to other major cities in Indonesia. As a result, it presents an excellent opportunity for investors looking to enter the market at a lower cost.
Are you interested in buying a house or land in Yogyakarta?
Are you considering investing in real estate in Yogyakarta? Several factors make buying real estate in Yogyakarta a compelling choice. The city’s cultural heritage, vibrant arts scene, and thriving tourism industry are just a few reasons to consider purchasing property in Yogyakarta.
Best real estate agencies in Yogyakarta
For foreigners who want to buy real estate in Yogyakarta, seeking assistance from a reputable local real estate agent can be a smart decision. Agents have the local expertise, market knowledge, and legal understanding necessary to navigate the intricacies of the real estate process in Yogyakarta. They can guide foreigners through the legal requirements, help identify suitable properties, negotiate favorable deals, and ensure a smooth transaction.
Get help with buying property in Yogyakarta
Frequently Asked Questions (FAQ)
Can a foreigner buy a house in Yogyakarta?
Foreigners can buy real estate in Yogyakarta through a PT PMA. Leasing property or buying real estate through an Indonesian nominee is also possible. However, these two ways are not recommended to foreigners.
How expensive is real estate in Yogyakarta?
Real estate prices in Yogyakarta are low compared to other major Indonesian cities, such as Jakarta. These low prices make Yogyakarta an exciting option for investment to foreigners.
Where can I find land or a house for sale in Yogyakarta?
You can find land and houses for sale in Yogyakarta on local marketplaces, local real estate agencies, advertisements in local newspapers, and on websites. You will also find good real estate deals by networking with people that live in Yogyakarta.