Tangerang Property Demand Surges as National Market Slows
Indonesia’s property market for residential and commercial sectors in Greater Tangerang is projected to continue growing this year. Land availability remains extensive. Prices are relatively more competitive compared to Jakarta. The development of integrated areas and infrastructure continues to expand.
Commercial property demand in Tangerang in the fourth quarter of 2025 remained robust. This differs from the national trend, which faced pressure. The data is reflected in a Bank Indonesia survey.
The national index for commercial property demand in the sales category grew only 0.69 per cent year-on-year in the fourth quarter, stable compared to the previous quarter. The rental category index contracted 1.55 per cent year-on-year in the fourth quarter, following a decline of 1.53 per cent in the third quarter.
The Banten region showed a different trend. The commercial property rental demand index surged 127.48 per cent year-on-year in the fourth quarter. This rose from the previous quarter which grew 125.43 per cent and from the fourth quarter of 2024 which increased 119.68 per cent.
Retail demand became the main driver. The retail rental demand index in Banten grew 129.84 per cent year-on-year in the fourth quarter. The previous quarter recorded growth of 128.72 per cent. The retail sales demand index remained stable at 100.12 per cent year-on-year.
The supply of rental commercial property in this region grew only 3.64 per cent year-on-year in the fourth quarter. This slowed from the previous quarter which grew 4.34 per cent. Commercial sales supply increased 1.49 per cent year-on-year after recording no growth in the previous quarter.
The residential segment recorded strong performance. House sales in Tangerang exceeded other areas in Greater Jakarta. The market share of landed houses reached more than 56 per cent of total sales last year.
Research by Leads Property Services Indonesia recorded landed house supply in Greater Jakarta in 2025 reaching 194,400 units. The average price reached Rp2.7 billion per unit. The sales level reached 93 per cent.
The house supply in Tangerang reached 92,000 units or 47.4 per cent of total Greater Jakarta supply.
“The sales level of houses in this region reached 94 per cent with an average price of approximately Rp3 billion per unit,” said Martin Samuel Hutapea, Associate Director Research & Consultancy Department Leads Property Services Indonesia, on Wednesday (25/2/2026).
Leads Property assessed that the current market is driven more by end users. Investor interest has weakened because returns are compressed. Property price increases are not proportional to growth in rental rates which remain relatively stagnant.
Martin estimated that house purchases this year would be driven by government-subsidised value added tax incentives, low interest rates, and longer home ownership loan terms. House purchase payments are still dominated by home ownership loan facilities.