Mahkatop
Mahkatop — The property sector in Batam City, Riau Islands, is experiencing significant growth. According to data from the Investment and One-Stop Integrated Services Office (DPMPTSP), the realization of domestic investment (PMDN) reached IDR 1.71 trillion in the first quarter of 2024, with a major contribution from the property sector.
Robinson Tan, Chairman of the Regional Management Board (DPD) of the Indonesian Real Estate (REI) Special Batam, stated that since 2023, the property sector in Batam has been continuously growing. This growth encompasses all market segments, both lower-middle and upper-middle. During the pandemic crisis, the upper-middle segment properties were relied upon, but as the economy improves, the lower-middle market is also becoming more active.
The increased demand has led to property prices rising between 5 to 10 percent compared to the previous year, with variations depending on brand and location. Robinson explained several factors driving the increase in house prices, including rising demand, a supportive economic situation, and the rising cost of materials.
Property growth is also influenced by infrastructure development, industrial growth, and political and economic stability. Robinson observed that the industrial sector is rebounding, which in turn drives property growth. As job opportunities increase, the demand for housing also rises, making industrial growth have a positive impact on the region’s economy.
Robinson emphasized that the current property trend is very promising, and now is the right time for millennials and Gen Z to buy a house. (*)
