Smart Ways for Millennials and Gen Z to Own Their First Home in 2026

Entering the second quarter of 2026, the issue of home ownership for Indonesia’s younger generation continues to garner attention. Based on projections from the Central Statistics Agency (BPS), approximately 81 million young people are estimated to lack their own homes during the 2025–2026 period. This situation contributes to the high housing backlog in Indonesia.

In light of these conditions, CENTURY 21 Indonesia, a leading property brokerage firm and one of the largest real estate franchise networks in Indonesia under the Ciputra Group umbrella, shares several practical guides for Millennials and Gen Z looking to plan their first home purchase.

Although the residential property price index in the primary market continues to show an upward trend (reaching 110.36 points by the end of 2025 according to Bank Indonesia data), opportunities for first-time homebuyers remain open.

Currently, the mindset of the younger generation in choosing homes is also shifting. Previously, many focused on central city locations, but now the primary considerations lean towards accessibility, space comfort, and price efficiency.

CENTURY 21 Indonesia observes an increasing interest in compact housing concepts in Jakarta’s supporting areas, such as Tangerang and parts of South Jakarta, which have increasingly integrated public transportation access.

Here are several factors that Millennials and Gen Z can consider when buying their first home:

Utilising Fixed-Rate Stepped Mortgage Schemes

Several national banks are now introducing more flexible mortgage products for the younger generation. Banks like Bank Mandiri and BCA offer fixed stepped interest rate schemes for up to 10 years, with initial competitive rates ranging from 1.69% to around 3.96% in the early years.

This scheme helps provide certainty in instalment amounts during the early stages of home ownership, when buyers’ financial conditions are typically still developing.

Taking Advantage of Government Tax Incentives

The government, through the Ministry of Finance, previously provided stimulus in the form of Government-Borne VAT (PPN DTP) up to 100% for home purchases of certain values, including houses priced below Rp2 billion. This programme can help buyers save significant costs, which can then be allocated to other needs such as notary fees, minor renovations, or furnishing.

Eyeing Developing Supporting Areas

Jakarta’s supporting areas remain a top choice for first-time homebuyers. Tangerang, for instance, records a fairly high property search rate of around 15.6%.

Homes in township or planned areas typically have better environmental management. In addition to providing comfort for residents, such areas also offer relatively stable property value appreciation over time.

Maintaining a Healthy Instalment Ratio

In financial planning, home instalments ideally should not exceed 30–35% of net monthly income. This ratio is important to keep financial conditions stable and not disrupt other needs, such as emergency funds or daily living expenses.

Consulting with professional property agents, including those from CENTURY 21 Indonesia, can also help prospective buyers match property choices with their credit profiles.

Ensuring Legality and Developer Credibility

For first-time homebuyers, the aspect of legality must not be overlooked. Ensure the property project has complete documents, such as SHM or HGB certificates and valid building permits. Additionally, choosing developers with a clear track record can minimise future risks.

In the property buying process, the presence of experienced professional agents is a key factor in helping prospective buyers make the right decisions. CENTURY 21 Indonesia is part of the global CENTURY 21 network, one of the world’s largest real estate brands present in over 80 countries. In Indonesia, CENTURY 21 operates under the Ciputra Group, one of the country’s leading property developers.