Indonesia’s property sector is slowly bouncing back, with signs of recovery becoming clearer in 2025. Investment in the industry during the first half of the year was reported at Rp75 trillion, giving new momentum to the real estate market.
Real Estate Indonesia (REI) Chairman Joko Suranto welcomed the development, stressing that the positive trend is a good sign for the rest of the year. “Property investment in the first semester of 2025 amounted to Rp75 trillion. This should make us optimistic for the second semester or even the fourth quarter,” he said during the Housing Program Credit socialization event in Jakarta on Wednesday, September 17, 2025.
The rebound in investment was accompanied by growth in key sectors. The real estate market recorded a 3.71% increase in the first half of 2025. The construction sector followed with a 4.98% rise, reflecting steady activity across the industry.
Property credit also expanded, reaching 7.62% growth by July 2025. However, Joko noted that growth has been losing pace in recent months. In June 2025, property credit growth stood at 8.12%, and the downward trend has continued.
“If we look at the data, property growth and property credit since March have started to slow down. By June, all credit growth was already in single digits,” he explained.
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The slowdown was also visible in housing segments. Smaller landed houses, sized between 22 and 70 square meters, were the first to feel the decline. Since March 2025, growth in this segment dropped to 8.97% year-on-year.
Larger landed houses, above 70 square meters, held out longer but eventually followed the same trend. By June 2025, growth for this segment had slipped into single digits as well, at 9.49% year-on-year.
Joko highlighted how the figures reflect the broader condition of the market. “As of June, the average was already in single digits. For commercial [mortgage realization], it was 9.46%, while for Low-Income Communities it was at 8%,” he concluded.
