Yogyakarta City attractive for property investment per Rumah123 report

The March 2025 edition of Rumah123 Flash Report noted that the secondary house price index generally experienced an increase of 0.9 percent year-on-year (yoy) in February 2025. Nine out of 13 cities studied Rumah123 experienced annual price increases, with the largest annual price increase occurring in Yogyakarta City, Yogyakarta Special Region (DIY) by 8.9 percent yoy.

"Yogyakarta City continues to show its attractiveness as a potential area for property investment in 2025, showing a significant annual price growth trend since July 2024. In general, the growth of second-hand house prices in Yogyakarta ranges from 3.8 percent [in July 2024] to 10.8 percent [at the highest in November 2024]," stated Rumah123 Head of Research Marisa Jaya on Mar. 26, 2025.

Based on Rumah123 search data throughout thr January 2024-February 2025 period, property search preferences in Yogyakarta were dominated by landed houses at 70.4 percent, followed by land at 15.5 percent, and shophouses at 5.5 percent. Meanwhile, apartments still have a small contribution to total demand at 3 percent due to limited supply. Other properties searched were warehouses at 2.6 percent, business space at 1.7 percent, offices at 1.2 percent, and factories at 0.1 percent.

In terms of location, search trends show that popular areas are generally concentrated in the East and West regions of Yogyakarta City. The five areas with the highest demand in the city of Yogyakarta are Kemantren Umbulharjo with 25.8 percent of total demand, followed by Kenabtren Gondokusuman with 11.7 percent, Kemantren Wirobrajan with 9.9 percent, Kemantren Jetis with 9.3 percent, and Kemantren Mantrijeron with 8.8 percent.

For the price preference segment, Kemantren Umbulharjo and Kemantren Mantrijeron attract more middle to upper middle market segments, while Wirobrajan tends to be of interest to the lower middle market. Gondokusuman has an appeal to the upper middle to upper market, indicating higher economic potential in the area. Jetis, on the other hand, displays unique characteristics with high demand both in the lower middle segment or below Rp400 million by 40.23 percent and in the above Rp5 billion segment by 15.58 percent, reflecting a very diverse market.

In addition to location factors and consumer preferences, said Marisa, property growth in Yogyakarta City also has the potential to be further driven by the development of strategic infrastructure. The existence of the Solo-Yogyakarta-Kulonprogo toll road which will later be integrated with the Yogyakarta-Bawen toll road is expected to increase Yogyakarta City's connectivity with the Semarang and Surakarta regions.

"This infrastructure is expected to facilitate mobility and encourage more integrated tourism activities throughout Central Java, thereby strengthening the attractiveness of investment in Yogyakarta [City]'s property sector." she said.

"The combination of high demand in the landed house segment, the development of strategic areas, and improving ease of accessibility make this city a worthy choice for property seekers who want to find a place to live or property for investment," Marisa concluded.