Do you want to buy property in Medan? Medan is the capital city of North Sumatra, located in Indonesia. Besides that, it’s also the largest city in Sumatra and very famous for being the financial center of the island of Sumatra. Medan has a rich history, cultural diversity, and a booming economy, which makes the city interesting for foreign real estate investors.
Foreigners can buy property in Medan, but there are several laws and regulations to be aware of before purchasing a property in Medan. This article will explain how to buy property in Medan, where to find Medan property for sale, and what the current property prices are.
Can foreigners buy property in Medan?
Foreigners can buy and own property in Medan. However, it’s important to note that obtaining full property ownership in Indonesia is impossible. The Indonesian government wants to protect its housing market for foreigners who seek to invest in ‘cheap’ real estate. Still, foreigners can buy real estate in Medan in several ways, such as through a leasehold agreement or with a PT PMA.
Buying property in Sumatra
Medan is the capital city of Sumatra, and the laws and regulations that apply to Medan also apply to other cities in Sumatra. However, each city, town, or district may have local rules that only apply to their area. Because of that, it’s wise to work with a local legal agent or real estate agent who understands the rules and regulations.
5 ways to buy land or property in Medan
Hak Milik (HM) is the highest form of property ownership and can only be obtained by Indonesian nationals. This means foreigners can’t buy freehold property in Medan. However, there are several other ways foreigners can buy property in Medan:
- Leasehold: Indonesian leasehold agreements, valid for 25 years, enable foreigners and PT PMAs to invest in property for residential and commercial use.
- Hak Pakai (HP): Foreigners with KITAS or KITAP can buy specific Indonesian properties under the Hak Pakai title. Buying under Hak Pakai may qualify foreigners for the Second Home ITAS, which is valid for five or ten years.
- Hak Guna Bangunan (HGB): Hak Guna Bangunan allows foreigners to build and own property on land owned by someone else, such as an Indonesian individual and entity, or the state.
- PT PMA: Foreigners can invest in Indonesian property to generate rental income through a PT PMA and qualify for a two-year Investor KITAS.
- Passport: In 2023, the Indonesian government allowed foreigners to buy property using only their passport, subject to specific investment and land size criteria.
Which way is best depends on your purpose and circumstances. Do you want to buy property and live in Medan? Buying through leasehold, Hak Pakai, or a passport might be the best option, although you need to meet specific requirements to buy under Hak Pakai or with a passport. Hak Guna Bangunan makes it possible to lease land in Medan to build and own a property on top of it.
Buying through a PT PMA is ideal for investments or obtaining the Investor KITAS, a two-year valid Indonesian visa. To do so, you must start a PT PMA in Indonesia, which can take around ten weeks.
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Reasons to invest in Medan real estate
Medan is the largest city in Sumatra and serves as the island’s commercial, economic, and cultural center. There are several reasons to invest in Medan real estate or to buy property to live there yourself:
- Medan has a strategic location: Medan is the largest city in Sumatra and acts as the island’s commercial, economic, and cultural hub, presenting numerous opportunities for businesses and investors.
- Growing middle class: The rising middle class in Medan is fueling the demand for modern and high-quality residential and commercial spaces, making investing in Medan lucrative.
- Medan has a growing population: The city’s steadily increasing population offers real estate developers ample opportunities to build and sell properties.
- More and more tourists visit Medan: Medan boasts several tourist attractions like the Maimun Palace, the Masjid Raya mosque, and the nearby Lake Toba, creating a demand for hospitality real estate such as hotels and resorts.
- Government initiatives: The local government actively promotes investment in Medan by offering tax incentives to investors in specific sectors. This indicates their commitment to business growth that can benefit real estate investors.
How to find Medan property for sale?
Finding property for sale in Medan can be done in several ways. The most common way is searching on property websites that offer different kinds of property for sale in Medan. You can filter and find the best property in Medan that meets all your requirements.
Another highly recommended way to find Medan property for sale is by working with a local real estate agent. They understand the local real estate market, have a broad network, and have many listings in their portfolio, which makes it easier to find your dream property in Medan.
You don’t have to navigate the real estate market in Medan alone. Our expert team can assist you and help you find your dream property. For further information on how we can assist you, kindly email us at [email protected].
Real estate prices in Medan
There are different kinds of property for sale in Medan, such as condos, townhouses, houses, villas, commercial properties, and land. The table below provides an overview of the real estate prices in Medan, Indonesia.
| Average buy price | Average price/sqm. | Average rent price | Annual growth | Rental yield | |
|---|---|---|---|---|---|
| House | IDR 1.3 billion ($81,900) | IDR 9.8 million ($617) | IDR 37.8 million ($2,381) | + 67.8% | + 34.3% |
| Townhouse | IDR 693 million ($43,659) | IDR 7.8 million ($491) | – | – | – |
| Apartment | IDR 2.2 billion ($138,600) | IDR 27.1 million ($1,707) | IDR 108.3 million ($6,823) | + 47.7% | + 59.3% |
| Commercial | IDR 2 billion ($126,000) | IDR 9.2 million ($580) | IDR 54.8 million ($3,452) | + 13.8% | + 32.5% |
| Land | IDR 4.2 billion ($264,600) | IDR 10.2 million ($643) | IDR 3.2 million ($202) | + 7.5% | + 0.9% |
Sell your property in Medan in 9 steps
Do you want to sell your property in Medan? Follow these nine steps to ensure a smooth property sale transaction in Medan:
- Preparation: The first step is to clean, declutter, and possibly stage your property to make it more appealing to potential buyers.
- Documentation: Ensure all property documents, including ownership certificates and tax records, are up-to-date and readily available.
- Set the right price: Research the current real estate market conditions in Medan and set a competitive price for your property.
- List your property online: Use online platforms to reach a wider audience. List your property on our platform for maximum visibility and potential buyers.
- Work with a Medan real estate agent: Collaborate with a knowledgeable local real estate agent in Medan to navigate the selling process. If you’re looking for a trusted agent, send us an email, and we’ll assist you.
- Promote your property: Use social media, local newspapers, and word of mouth to further advertise your property.
- Negotiate offers: Once you receive offers, negotiate terms and prices for the best deal.
- Legal formalities: Engage a lawyer to help with the sale’s legal aspects, ensuring all paperwork is correctly handled.
- Finalize the sale: Once an agreement is reached, finalize the sale, transfer ownership, and hand over the keys to the new owner. Ensure to inform local authorities and utility companies about the change in ownership to ensure a smooth property transition.
Selling your house, land, or apartment in Medan can be a complex process, but it can be a smooth and profitable experience with the right resources and guidance.
Buy property in Medan with Own Property Abroad
Do you want to buy property in Medan? Or are you seeking to sell your Medan property? Own Property Abroad can assist you and ensure a seamless and hassle-free real estate transaction. Thanks to our extensive knowledge and local experience in Medan, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.
With our expert team, you won’t have to navigate the complexities of the Indonesian market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!
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Frequently Asked Questions (FAQs)
Can I buy a house in Medan?
It’s possible to buy a house in Medan. Indonesian nationals can buy a home under the Hak Milik title. In contrast, foreigners can buy a house in Medan under Hak Pakai, Hak Guna Bangunan, through leasehold, their passport, or with a PT PMA.
How to buy property in Medan?
The best method to buy property in Medan depends on your goals: for residency, consider leasehold, Hak Pakai, or passport, though the latter two have specific requirements. Hak Guna Bangunan allows leasing land to build a property upon. For investment or obtaining the two-year Investor KITAS, purchase through a PT PMA.
Can foreigners buy real estate in Medan?
Yes, foreigners can buy real estate in Medan, Indonesia, but with certain restrictions and limitations. The best way foreigners can buy real estate in Medan is through leasehold, Hak Pakai, Hak Guna Bangunan, their passport, or PT PMA.
Where to find land for sale in Medan?
You can find land for sale in Medan by working with local real estate agents, using online property marketplaces like our platform, or looking for classified ads in local newspapers.
