Why Are Houses by the Roadside More Expensive?

Choosing a location is one of the primary considerations when buying property, whether for a home or investment. One phenomenon often encountered by the public is the significant price difference between houses on the roadside and those in alleys or hidden areas. Vice Chairman of the Central Board of the Indonesian Real Estate Association (Waketum DPP REI) Bambang Ekajaya explained the reasons to Kompas.com on Saturday (28/3/2026). “Yes, houses (on the roadside) are generally more expensive because their location on public roads allows for business activities, such as offices and other business ventures like restaurants, shops, cafes, and so on, in addition to residential use,” Bambang stated. Houses on main roads are easier to access by vehicles, both two-wheeled and four-wheeled. This easy access adds value, especially for residents with high mobility. Locations on the roadside open up opportunities to be used as business premises, such as shops, offices, or home-based businesses. This commercial value makes property prices higher. Houses on the edge of the road are more easily seen by passersby. This factor is important, especially if the property is used for business activities or rental. Usually, houses on main roads are closer to various facilities such as public transportation, schools, and shopping centres. This proximity increases comfort and property value. Properties in strategic locations tend to be easier to resell. High demand makes houses on the roadside have more promising investment value. Houses on main routes are usually more positively impacted by such developments.