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Indonesia real estate market – A quick overview

Investing the real estate market of Indonesia is highly recommended.  The investment returns would be very high considering the following factors:

  1. Demography: 50% of population is around 30 years of age.  There is so much human potential.  As per laws, nominating a local becomes essential to own the property.   Hence getting people for managing an investor’s property is very easy.
  2. Tech space: Indonesia is the top choice for internet companies.  When so many companies would invest and start their projects in Indonesia, there would be constant flow of immigrants.  Soon the search for good rental homes would increase.  This will automatically increase the rental value of homes.  All over the world, the real estate markets have saturated.  Hence expecting good returns is not reasonable elsewhere.  On the contrary, the property values are in diminishing trend in few markets.  But Indonesia real estate has so much growth potential.
  3. Start ups: Indonesia has plenty of home grown start ups.  These have impact of huge growth potential.  Growth prospects of a country is always coupled with hike in real estate prices.
  4. Diverse languages/culture: Indonesia is home country of diverse languages and culture.   The hospitality of locals is making it a very popular vacation spot.  Hence resale of properties is easier.  When the locals are unfriendly, there are high chances of investors ending up in loss.  But when the local population is helpful, frauds  and legal issues may not arise.
  5. Huge scope for infra structure projects: Being a developing nation, Indonesia has huge scope for infra structure projects.  The cost effective building materials and techniques result in development of real estate projects too.
  6. Foreign capital inflow: The flow of foreign capital in Indonesia is huge.  Only when there is good scope of return so many investors would be attracted towards a country.  Hence investing in real estate would be wise choice.
  7. Plenty of natural resource: Buying a property for own use is a good option.  The nature has good water and power resources.  Many natural resources still have great potential to be tapped.  When one buys a property in areas where there is no water or power, resale becomes difficult.  Also residing in a place which is highly polluted is not advisable.  Buying a property for own use in a pollution free location filled with natural beauty is worth for life-time.  Such an investment would be problem-free.
  8. Freely convertible foreign exchange policy: Presently the nation has a good foreign exchange policy.   There is no restriction on funds repatriation.  Hence one can repatriate the entire investment by reselling the property for a good value.
Property in Bali
Property in Bali

When comparing the investments across globe, investing in over-grown markets involves huge investment.  But such markets enter into saturation point at any moment.  Hence the investment returns are most likely to be impacted.  But investing in a developing market like Indonesia can bring huge appreciation of investments in short span of time.  More over, due to tourism, there is constant income from letting out the properties.   Considering all the above reasons, one should definitely opt for Indonesian real estate investment.