Jakarta is undoubtedly the most famous and significant city in Indonesia. As the country’s capital, businesses thrive in the city, especially in real estate. Commercial centers and residential spaces are sought after in Jakarta, which makes real estate a booming market. This article will help you with information on how foreigners can buy property in Jakarta.
Average property values in Jakarta
Are you wondering about property prices in Jakarta? There is prime real estate in Jakarta, so understandably, property prices are more costly than in other regions. Residential houses average IDR 18.3 million ($1.220) per square meter. On the other hand, a commercial space would cost IDR 25 million ($1.670) per square meter, while lands cost IDR 12.6 million ($840).
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How much does it cost to buy real estate in Jakarta?
The cost of living in Jakarta is relatively affordable for those who can adjust their lifestyle and expenses. Housing is in varying prices depending on location and type, from budget apartments to luxurious villas. Food and transportation costs are relatively low compared to other major cities. Entertainment expenses, however, can add up quickly depending on one’s lifestyle choices. It is possible to live comfortably in Jakarta with a reasonable budget.
The table below provides an overview of the real estate prices in Jakarta, Indonesia.
|Average buy price||Average price/sqm.||Average rent price||Annual growth||Rental yield|
|House||IDR 3.4 billion ($221,000)||IDR 18.2 million ($1,183)||IDR 88.7 million ($5,766)||– 6.1%||+ 30.9%|
|Condo||IDR 251 million ($16,315)||IDR 1.9 million ($124)||IDR 145 million ($9,425)||– 80.3%||+ 696%|
|Townhouse||IDR 1.4 billion ($91,000)||IDR 18.1 million ($1,177)||IDR 151 million ($9,815)||– 49.2%||–|
|Apartment||IDR 906 million ($58,890)||IDR 18 million ($1,170)||IDR 5 million ($325)||– 9%||+ 6.6%|
|Commercial||IDR 4.3 billion ($279,500)||IDR 25.2 million ($1,638)||IDR 38.7 million ($2,516)||0%||+ 10.8%|
|Land||IDR 4 billion ($260,000)||IDR 12.6 million ($819)||IDR 443 million ($28,795)||+ 20.9%||+ 133.3%|
How can foreigners buy property in Jakarta?
Foreigners can buy a property through Hak Milik, as there are restrictions and limitations. The best way is to establish a PT PMA (foreign-owned company).
A PT PMA, which stands for Perseroan Terbatas Penanaman Modal Asing, is a limited liability company with foreign capital in Indonesia. You can establish a new PT PMA or acquire an existing one. One of the benefits of a PT PMA is that it allows foreign investors to buy property in Jakarta under the company’s name. It means that the company owns the property rather than the individual investor. Additionally, PT PMA can provide various tax benefits and streamline the process of obtaining necessary licenses and permits for conducting business in Indonesia.
Can foreigners buy a condo in Jakarta?
Under Government Regulation 18/2021, foreigners and foreign legal entities can own apartment units in Jakarta. However, there are certain restrictions and limitations in place. The law clarifies that only individuals who have an official immigration permit, such as a temporary stay permit (KITAS) or a permanent stay permit (KITAP), are allowed to own a condo unit or residence in the country. It means that tourists or individuals on a short-term visit to Indonesia cannot own property there.
Best real estate agencies in Jakarta
Foreigners who want to buy real estate in Jakarta better seek assistance from a reputable local real estate agent. These agents have the local expertise, market knowledge, and legal understanding to navigate through the complex real estate process in Indonesia. This helps foreigners navigate legal requirements and ensures a smooth real estate transaction.
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Frequently Asked Questions (FAQs)
Are houses in Jakarta expensive?
Yes. As a megacity, Jakarta’s real estate market can be significantly costly since the demand for accommodation has increased. However, you can find affordable options in the city’s suburbs and outskirts.
Does Indonesia allow foreign ownership?
Indonesia allows foreign ownership under certain conditions. Foreigners can own property in Indonesia for residential or commercial purposes through a PT PMA, leasehold, right-to-use, or right-to-build arrangement.
Why are houses in Jakarta so expensive?
Houses in Jakarta can be expensive because of the need for a more available land area. In addition, as the country’s central economic hub, businesses are found in the city, which contributes to the high demand for office spaces and accommodation.