Property as a Stable Investment Choice During War

JAKARTA, Kompas.com - Conflicts between Iran and the United States (US) and Israel have triggered volatility in global markets, including investment instruments. In the face of this uncertainty, property is often cited as one of the relatively stable assets compared with stocks. But is it true that property can be a “safe haven domestic”?

In the domestic context, property is indeed often regarded as a real asset that is more stable, especially when financial market volatility rises. However, property cannot be equated with liquid safe-haven assets such as gold or the dollar.

“But it’s also important to distinguish. Property is not a liquid safe haven like gold or the dollar. So it is not always easy to sell,” said Head of Research Colliers Indonesia Ferry Salanto in response to Kompas.com, on Monday (2/3/2026).

This implies that when inflationary pressures persist for a fairly long period, property assets tend to be preserved without having to be sold hastily.

“Property can be a hedge against inflation in the medium to long term. So, if inflation lasts medium to long, our property can hold. There is no need to rush to sell,” he said.

However, Ferry reminded that not all property segments automatically rise in value when a crisis occurs.

Assets deemed more resilient are usually land in strategic locations or detached houses in mature areas.

“Usually the more resilient or stronger assets are those like land in strategic locations or owner-occupied houses in mature areas,” Ferry said.

Conversely, properties that rely heavily on leverage and speculation remain vulnerable to economic pressures.

He concluded that the conflicts occurring at present could indeed affect Indonesia’s property industry, especially if it triggers inflation due to higher energy prices, a weakening rupiah against the US dollar, higher interest rates, and deteriorating investor sentiment.