Why Indonesia’s real estate future depends on smarter cities and sustainable thinking

From low-carbon offices to award-winning townships, developers are reshaping Indonesia’s urban landscape with innovation and long-term vision

Indonesia’s real estate sector is stepping into 2025 with steady momentum, backed by strong economic fundamentals, a forward-looking approach to urban planning, and rising interest in sustainable development. According to Global Finance Magazine, the country’s economy is projected to grow at 5.1 percent this year, signalling a resilient environment for investment across industries—including property. 

The market’s stability was echoed in a recent report by JLL, as cited by RE Talk Asia, which highlighted Jakarta’s real estate sector as consistently resilient through 2024. This consistency is due in part to renewed consumer confidence, strategic infrastructure developments, and ongoing reforms to streamline investment processes. 

Rising interest in green and smart development 

Sustainability is increasingly influencing Indonesia’s property landscape. As reported by Reccessary, low-carbon and energy-efficient buildings are gaining traction, especially in the commercial office space. Developers are paying closer attention to emissions, material use, and energy performance—not just as a compliance requirement, but as a key selling point to younger, eco-conscious tenants and corporate clients. 

That shift is evident in the evolution of smart buildings across Indonesia. One standout is the Biomedical Campus by Sinar Mas Land, which was recognised at the 19th PropertyGuru Asia Property Awards Grand Final 2024 as the Best Smart Building Development (Asia). This award reflects the increasing demand for future-ready facilities that align with both ESG goals and tech-forward urban infrastructure. 

Similarly, the Navapark development by PT. Bumi Parama Wisesa, in collaboration with Hongkong Land and Sinar Mas Land, was named Best Green Development (Asia)—highlighting Indonesia’s commitment to low-impact construction and green urban ecosystems. 

Masterplanning, townships, and transit-oriented growth 

According to BM Magazine UK, a key trend for 2025 will be increased investor interest in well-planned suburban and satellite communities. As the population grows and Jakarta grapples with congestion and affordability issues, demand is shifting towards integrated townships that offer both connectivity and community. 

Indonesia has already emerged as a regional leader in this space. At the PropertyGuru Asia Property Awards Grand Final, the nation dominated in township categories: 

• BSD City by Sinar Mas Land was named Best Mega Township Development (Asia).
• Paramount Land took home Best Township Developer (Asia), recognised for its strategic vision and execution.
• LRT City Cibubur by PT Adhi Commuter Properti Tbk. was awarded Best TOD Condo Development (Asia), reflecting the growing synergy between residential hubs and public transit investments.

These recognitions mirror larger national planning priorities, where mixed-use developments with strong transport links are fast becoming the gold standard. 

Liveability and design excellence 

At a more individual scale, Indonesia’s property scene is also being shaped by changing consumer preferences—particularly among younger, upwardly mobile buyers who value aesthetics, convenience, and innovation. In response, developers are raising the bar in both exterior design and interior detail. 

One such example is Flora at Summarecon Bandung, winner of Best Completed Housing / Landed Development (Asia), which embodies a new wave of thoughtfully designed, family-friendly residential clusters. 

For luxury buyers, Indonesia’s reputation for refined architectural design is evident in the success of Salty Jim Villa by DM Projects Group, which won Best Housing / Landed Interior Design (Asia). The project exemplifies how Indonesian developers are marrying cultural charm with modern living. 

Industrial strength and economic backbone 

The industrial property segment is also making waves. RE Talk Asia reported that the demand for logistics hubs and industrial estates continues to surge, driven by e-commerce expansion and supply chain optimisation. 

Indonesia’s win in this category is significant: the Greenland International Industrial Center (GIIC) at Kota Deltamas, a joint venture between Sinar Mas Land and Sojitz Corporation, was named Best Mega Scale Industrial Development (Asia). This is a nod to the country’s growing importance as a regional manufacturing and logistics hub—supported by infrastructure, tax incentives, and land availability. 

With economic growth forecasts remaining steady and consumer sentiment on the rise, Indonesia appears poised to maintain its position as one of Southeast Asia’s most dynamic property markets in 2025 and beyond. 

Know any award-worthy residential, commercial, or industrial projects in the country? Nominate them for the 11th annual PropertyGuru Indonesia Property Awards on or before 29 August 2025. To know more, visit AsiaPropertyAwards.com/Award/Indonesia/.

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].