Now that you know what to expect and how the market works, what’s next?
The question is whether you should hire a local property consultant to assist you or if you have the time to do your own research and explore Indonesia’s real estate market platforms. First and foremost, keep in mind that most real estate platforms here are in Indonesian. So, unless you’re fluent in the language and know exactly what you’re looking for, I’d recommend getting professional help.
The good news? It’s a cost-free service. Unlike in many other parts of the world where tenants must pay agents for their services, in Indonesia, the cost of using a housing agent is covered by the landlord. Real estate agents are compensated through a success fee, typically 5% of the total rental value for the lease period. This fee covers not only their efforts in finding and securing the rental but also ongoing support throughout the lease, including acting as a communication bridge between tenant and landlord and helping resolve issues.
The real estate market in Jakarta can be tricky—many listings on popular websites aren’t updated, and properties that appear available may no longer be on the market. Worse yet, the photos might be decades old, making it hard to get an accurate idea of what the property looks like today. Unless you have hours to spare navigating through this uncertainty, I’d strongly advise working with a trusted, professional agent to guide you through your home search.
One aspect many expats might not fully understand is that, particularly in the apartment sector, many property owners in Indonesia view their real estate investments as a hobby or a side business. Their main income comes from bigger ventures—Indonesians are wealthy, and renting out their properties isn’t a primary source of income for them. As a result, when you come across a listing with an asking price that seems a bit high and you try to negotiate a more reasonable deal, don’t be surprised if they turn you down.
Many owners would rather leave their property empty than lower the price by even USD 100–200. They’re not desperate to rent it out. It’s often more about maintaining their perceived value or status than making a quick deal. Even if you believe you’re offering a fair price, these negotiations may not go as expected.
This is where working with a local housing agent can make a significant difference. They understand the local customs and know how to approach property owners in a way that fosters trust and cooperation. In Indonesian culture, relationships and trust often carry more weight than simply offering more money.
However, like in many parts of the world, real estate can be a cutthroat business. Not all agents prioritize your best interests—some may be more focused on their commission than on finding the perfect home for you. That’s why it’s crucial to find a housing agent or real estate consultant who truly listens to your needs and provides genuine assistance.
So, how do you find the right agent? – Keep reading.
Papa Berlin
Jerome Prijatman or knows as "Papa Berlin" a German-born author with a rich cultural background, having an Indonesian father and a German mother. With over 15 years of living experience in Indonesia, Papa Berlin brings a unique perspective to his writing. His background in hospitality and Design management further enhances his insights, making him a valuable contributor to Noble Asia's content.