Indonesia’s Real Estate Future Hinges on Smart Cities and Sustainable Development

By: Velorine

From low-carbon offices to award-winning townships, developers are reshaping Indonesia’s urban landscape with innovation and long-term vision.

Indonesia’s real estate sector is stepping into 2025 with steady momentum, backed by strong economic fundamentals, a forward-looking approach to urban planning, and rising interest in sustainable development. According to Global Finance Magazine, the country’s economy is projected to grow at 5.1 percent this year, signalling a resilient environment for investment across industries including property. 

The market’s stability was echoed in a recent report by JLL, as cited by RE Talk Asia, which highlighted Jakarta’s real estate sector as consistently resilient through 2024. This consistency is due in part to renewed consumer confidence, strategic infrastructure developments, and ongoing reforms to streamline investment processes. 

Rising interest in green and smart development 

Sustainability is increasingly influencing Indonesia’s property landscape. As reported by Reccessary, low-carbon and energy-efficient buildings are gaining traction, especially in the commercial office space. Developers are paying closer attention to emissions, material use, and energy performance not just as a compliance requirement, but as a key selling point to younger, eco-conscious tenants and corporate clients. 

This shift is evident in the evolution of smart buildings across Indonesia. One standout is the Biomedical Campus by Sinar Mas Land, which was recognised at the 19th PropertyGuru Asia Property Awards Grand Final 2024 as the Best Smart Building Development (Asia). This award reflects the increasing demand for future-ready facilities that align with both ESG goals and tech-forward urban infrastructure. 

Similarly, the Navapark development by PT. Bumi Parama Wisesa, in collaboration with Hongkong Land and Sinar Mas Land, was named Best Green Development (Asia) highlighting Indonesia’s commitment to low-impact construction and green urban ecosystems. 

Masterplanning, townships, and transit-oriented growth 

According to BM Magazine UK, a key trend for 2025 will be increased investor interest in well-planned suburban and satellite communities. As the population grows and Jakarta grapples with congestion and affordability issues, demand is shifting towards integrated townships that offer both connectivity and community. 

Indonesia has already emerged as a regional leader in this space. At the PropertyGuru Asia Property Awards Grand Final, the nation dominated in township categories: 

• BSD City by Sinar Mas Land was named Best Mega Township Development (Asia).
• Paramount Land took home Best Township Developer (Asia), recognised for its strategic vision and execution.
• LRT City Cibubur by PT Adhi Commuter Properti Tbk. was awarded Best TOD Condo Development (Asia), reflecting the growing synergy between residential hubs and public transit investments.

These recognitions mirror larger national planning priorities, where mixed-use developments with strong transport links are fast becoming the gold standard.