Bandung is the capital city of the Indonesian province of West Java. It is 2.5 hours away from Jakarta and is a great place to take a break from the city. With more tourists, especially from Singapore and Malaysia, visiting the city, there has been an increase in demand for commercial and residential spaces making it an opportune time to buy real estate in Bandung.
Can foreigners buy property in Bandung?
Buying property in Indonesia as a foreigner is complicated due to strict ownership laws. While full property ownership under a Hak Milik title is only for Indonesian nationals, foreigners can still buy property through a PT PMA.
Get help with buying property in Bandung
Buy real estate in Bandung with a PT PMA
A foreign-owned company (PT PMA) can buy and own property in Indonesia. Although there may be legal complexities, this is one of the safest ways for foreigners to own real estate in Indonesia. The main advantage of the PT PMA is that it’s a legal entity that can obtain property ownership through freehold and leasehold. It’s important to note that the PT PMA owns the property and not the owner of the PT PMA (which can be a foreigner). Besides that, you can also use a PT PMA to obtain a residency permit (KITAS).
Once the PT PMA is established, it can request Hak Pakai and Hak Guna Bangunan to buy, build and use the property. These two licenses are required to use the real estate.
6 Steps to buy a house in Bandung
Foreigners can buy real estate in Bandung and other popular Indonesian cities and regions in six steps.
- Set up 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.
Real estate prices in Bandung
| Average buy price | Average price/sqm. | Average rent price | Annual growth | Rental yield | |
|---|---|---|---|---|---|
| House | IDR 724 million ($48.475) | IDR 11.7 million ($785) | IDR 28.3 million ($1.895) | – 8,4% | + 46,8% |
| Townhouse | IDR 1.1 billion ($73.650) | IDR 12.2 million ($815) | – | + 21,3% | – |
| Apartment | IDR 562.2 million ($37.650) | IDR 15 million ($1.005) | IDR 27.6 million ($1.850) | + 2,8% | + 58,8% |
| Commercial | IDR 3.8 billion ($254.420) | IDR 13.7 million ($920) | IDR 136.2 million ($9.120) | + 17,7% | + 43,2% |
| Condo | IDR 842 million ($56.375) | IDR 9.9 million ($660) | – | + 35,3% | – |
| Land | IDR 305.3 million ($20.440) | IDR 2.4 million ($160) | – | – 17,1% | – |
Why invest in Bandung’s real estate market?
Bandung, in particular, has become a hub for startups, some even referring to it as Indonesia’s Silicon Valley. As the startup market in Bandung grows, the demand for office spaces has increased. Startups require office spaces to run businesses, hold meetings, and collaborate with colleagues. The availability of suitable office spaces in Bandung is, therefore, essential for the development and success of these startups. There is also an increase in demand for residential properties, making Bandung a perfect city to buy real estate.
Best real estate agencies in Bandung
For foreigners who want to buy property in Bandung, 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 Bandung. 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 Bandung
Frequently Asked Questions (FAQs)
Can foreigners buy property in Bandung?
Yes, foreigners can buy property in Bandung by establishing a PT PMA, which is known as a foreign-owned company.
How to buy a house in Bandung?
You can find a house in Bandung by going through online listings. We recommend finding a reliable real estate agent to help you pick the best one and guide you through the process and legal requirements.
Is Bandung cheap to live in?
Yes! Bandung’s cost of living is generally lower than major cities in Indonesia. Prices remain affordable because it has yet to be a tourist hotspot, making it ideal to buy a property there.
