Indonesia Real Estate Market to Reach USD 93.75 Billion by 2031, Supported by Urban Expansion and Industrial Parks

Indonesia Real Estate Market to Reach USD 93.75 Billion by 2031, Supported by Urban Expansion and Industrial Parks
Indonesia Real Estate Market Size & Trends | Mordor Intelligence
Mordor Intelligence has published a new report on the Indonesia Real Estate Market, offering a comprehensive analysis of trends, growth drivers, and future projections

Indonesia Real Estate Market Overview

According to Mordor Intelligence, the Indonesia Real Estate Market size is valued at USD 70.37 billion in 2026 and is projected to reach USD 93.75 billion by 2031, registering a CAGR of 5.91% during the forecast period. This steady Indonesia Real Estate Market growth reflects the country’s expanding urban population, infrastructure investment, and increasing demand across residential, commercial, logistics, and mixed-use developments. The Indonesian real estate industry continues to benefit from rising household formation, corporate expansion, and strong interest from domestic and international investors.

Urbanization remains one of the main drivers of the Indonesia Real Estate Market forecast. As more people move into cities, demand for housing, offices, logistics facilities, and integrated developments is increasing. This shift is creating opportunities for developers to deliver townships that combine residential units with commercial and lifestyle amenities. These integrated projects help developers diversify income through both sales and leasing, supporting financial stability even when housing sales fluctuate.

Indonesia Real Estate Market Trends Driving Long-Term Expansion

Urbanization and Housing Demand Supporting Residential Market

Rapid urban migration continues to influence Indonesia Real Estate Market trends. With millions of new urban residents each year and shrinking household sizes, the need for individual housing units remains strong. Developers are responding by offering affordable apartments and townhouses that qualify for government incentives, helping maintain steady housing demand.

Infrastructure Expansion and New Capital Development

Infrastructure investment is expanding development corridors across Indonesia, strengthening the Indonesia Real Estate Market forecast. Transport projects such as high-speed rail connections and highway networks are improving connectivity between cities, making suburban and regional areas more attractive for residential and commercial development.

Industrial Expansion and Logistics Demand from Manufacturing Growth

Industrial development is playing an increasingly important role in Indonesia Real Estate Market growth. Manufacturing expansion and foreign investment are creating strong demand for warehouses, industrial parks, and worker housing. Logistics facilities are seeing increased leasing activity as companies expand production and supply chain operations.

Tourism Recovery and Hospitality-Linked Real Estate Development

Tourism recovery supports hospitality-related real estate projects, including resorts, serviced apartments, and mixed-use developments. Developers are combining hospitality with residential and commercial elements to diversify revenue sources. This integrated approach reduces reliance on tourism alone and strengthens overall project performance.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/real-estate-market-in-indonesia?utm_source=abnewswire

Indonesia Real Estate Market Segmentation

The Indonesia Real Estate Market is segmented across business models, property types, end-users, and geographic regions. Each segment contributes to overall Indonesia Real Estate Market growth and reflects different demand patterns.

By Business Model

The market includes both property sales and rental models.

  • Sales remain the dominant model, supported by strong homeownership demand

  • Rental properties are expanding due to increasing demand from corporates and urban professionals

  • Hybrid projects combine sales and leasing to balance short-term and recurring income

  • Long-term leasing is gaining importance in commercial and industrial segments

Rental-based developments are becoming more attractive due to income stability and flexibility for tenants.

By Property Type

The Indonesian real estate industry includes residential, commercial, logistics, and mixed-use developments.

  • Residential properties account for the largest Indonesia Real Estate Market share

  • Commercial properties include offices, retail spaces, and business facilities

  • Logistics and industrial properties are experiencing faster growth

  • Mixed-use developments combine residential, retail, and office functions

Logistics and industrial properties are gaining importance due to manufacturing expansion and supply chain requirements.

By End-User

Demand comes from individuals, corporates, and government organizations.

  • Individuals and households remain the primary buyers of residential properties

  • Corporates and SMEs are increasing demand for offices and industrial spaces

  • Government demand supports housing and administrative infrastructure

Corporate demand is rising as businesses expand operations across Indonesia.

By Geography

The Indonesia Real Estate Market forecast shows strong regional diversity.

  • Major cities continue to serve as key economic and real estate centers

  • Industrial corridors are emerging as high-growth real estate zones

  • Regional cities are attracting investment due to lower costs and infrastructure development

  • Tourism-focused regions support hospitality and mixed-use projects

This geographic diversification supports balanced Indonesia Real Estate Market growth.

Explore Our Full Library of Real Estate and Construction Research

https://www.mordorintelligence.com/market-analysis/real-estate-and-construction?utm_source=abnewswire

Indonesian Real Estate Industry Key Players

  • PT Intiland Development Tbk

  • Tokyu Land Indonesia

  • Agung Podomoro Land

  • Ciputra Group

  • Sinar Mas Land

Conclusion

The Indonesia Real Estate Market is positioned for steady expansion, supported by urban population growth, infrastructure investment, and industrial development. Rising housing demand, manufacturing expansion, and infrastructure projects are strengthening the foundation of the Indonesian real estate industry.

The Indonesia Real Estate Market forecast highlights continued demand for residential properties, supported by strong household formation and government incentives. At the same time, industrial and logistics developments are becoming increasingly important contributors to Indonesia Real Estate Market growth.

For more insights on Indonesia Real Estate Market, please visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/real-estate-market-in-indonesia?utm_source=abnewswire

Canada Residential Construction Market

The Canada residential construction market is projected to grow from USD 209.04 billion in 2025 to USD 217.59 billion in 2026 and reach USD 265.64 billion by 2031, expanding at a CAGR of 4.09%. This growth is driven by rising housing demand due to population growth, government housing initiatives, urban expansion, and increased investments in sustainable and energy-efficient residential projects.

Get more insights: https://www.mordorintelligence.com/industry-reports/canada-residential-construction-market?utm_source=abnewswire

North America Real Estate Brokerage Market Growth

The North America real estate brokerage market is estimated at USD 249.14 billion in 2026, growing from USD 238.57 billion in 2025 and projected to reach USD 309.37 billion by 2031, at a CAGR of 4.43%. Market growth is supported by rising property transactions, digital transformation in brokerage services, increased demand for residential and commercial properties, and strong economic and population growth across the region.

Get more insights: https://www.mordorintelligence.com/industry-reports/north-america-real-estate-brokerage-market?utm_source=abnewswire

Scandinavian Commercial Real Estate Market Trends

The Scandinavian commercial real estate market is expected to grow from USD 63.88 billion in 2025 to USD 66.78 billion in 2026 and reach USD 83.31 billion by 2031, registering a CAGR of 4.53%. Growth is driven by increased demand for office and logistics spaces, expansion of e-commerce, foreign investments, and strong economic stability across Scandinavian countries.

Get more insights: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-scandinavian?utm_source=abnewswire

About Mordor Intelligence:

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

For any inquiries or to access the full report, please contact:

media@mordorintelligence.com https://www.mordorintelligence.com/

Mordor Intelligence, 11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli, Hyderabad, Telangana – 500032, India.

 

Media Contact
Company Name: Mordor Intelligence Private Limited
Contact Person: Jignesh Thakkar
Email: Send Email
Phone: +1 617-765-2493
Address:11th Floor, Rajapushpa Summit, Nanakramguda Rd, Financial District, Gachibowli
City: Hyderabad
State: Telangana 500008
Country: India
Website: https://www.mordorintelligence.com/