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Buying Real Estate in Indonesia
Many investors are currently considering investing in Indonesia as it has a stable and growing economy, and real estate transactions are increasing every year. However, due to the countryā€™s terrain, there arenā€™t many available land plots suitable for construction. This, combined with the resort-oriented nature of the country, means that there is a high demand for apartments and houses.Ā Therefore, whether you are seeking to buy a house, engage in property investment to build a company, or rent an apartment and spacious villa, This guide has everything ready to help you.
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Property Types in Indonesia
Entering the Indonesian property market unveils a treasure trove of options, catering to a wide spectrum of needs and budgetary constraints. This diverse landscape of real estate in Indonesia definitely offers something for everyone.Ā
If you are searching for a spacious landed house for your growing family, a trendy apartment in the heart of the action, or even a unique office and commercial space to embrace Indonesiaā€™s dynamic economic development, property in Indonesia promises an exciting exploration to find your perfect fit. Social Expat provides a guide to the best scenarios you can pursue to own a property in Indonesia!
Hak Milik (Freehold)
Hak Milik, also known as Freehold, is a type of land ownership in Indonesia that grants the owner complete and unrestricted ownership of the land and any buildings on it. This type of ownership is considered the most secure and desirable option as it provides the owner with full control over their property. However, it’s worth noting that Hak Milik is often only available to Indonesian citizens or companies with Indonesian majority ownership.
Hak Guna Bangunan (Building Leasehold)
Hak Guna Bangunan, also known as Building Leasehold, is a type of land ownership in Indonesia that grants individuals or entities the right to develop and use a piece of land for a set period. This period is typically between 30 to 70 years, with the possibility of extension upon agreement between the leaseholder and the landowner.
Leasehold and Renting
Leasehold agreements and rental contracts are a common way for both foreigners and Indonesians to live and although similar, there is a slight difference. Leasehold agreements are typically 25 years and are essentially long rental agreements. Rental agreements tend to be 1 year contracts, however are becoming more and more flexible. It is important to note, that at the end of either contract the property goes back to the owner. Many people make businesses from getting property on Leasehold agreements then renting it out for short term agreements.
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