SMF: Real estate sector has not yet become the main driver of economic growth

JAKARTA - The head of the Economic Research Division of PT Sarana Multigriya Finansial (Persero) (SMF), Martin D. Siyaranamual, says that the real estate sector has not become the main driver of national economic growth, even though 2025 shows a stable trend. Based on the latest data, the real estate sector recorded consistently rising growth. ‘The real estate sector unfortunately has not yet become the primary driver of economic growth,’ Martin said at a press conference in Jakarta on Wednesday (4 March 2026). According to SMF data, in Q2-2025, the sector grew 3.71 percent year-on-year (YoY). According to Martin, this pattern reflects a gradual improvement in property demand. However, the growth rate remains at a moderate level and has not yet been able to become the engine of the economy. Compared with other sectors, real estate performance is mid-range. Its growth is higher than agriculture, electricity and gas procurement, water supply, and financial services. Nevertheless, the sector still lags behind several sectors with high growth such as transportation and warehousing, accommodation and food services, information and communications, as well as other services groups that recorded growth above 8 to 11 percent. ‘Now, this becomes important. Why? Because in more advanced countries, the real estate sector is a large sector that can support economic growth. Today, that has not happened. We must be bold in saying that this has not happened.’