Batam is increasingly becoming a prime destination for foreign nationals seeking property investments in Indonesia. Its strategic location across from Singapore and significantly lower property prices compared to Jakarta and other major cities make it especially attractive to international buyers.
Chairman of the Batam Chapter of Real Estate Indonesia (REI), Robinson Tan, said that property prices for foreigners remain highly competitive.
“In Batam, with around USD 62,500 and above, you can already get an apartment. A landed house starts from about USD 125,000. In Jakarta, apartments can reach USD 312,500, while landed houses go up to USD 500,000–625,000,” he said, as quoted by Batam Pos.
Simplified Rules for Foreign Ownership
Batam offers easier legal requirements for foreign nationals buying property. They only need a passport or KITAS (limited stay permit).
“After buying a house worth at least USD 62,500–125,000, foreigners can also apply for a second home visa, which makes the process even easier,” Robinson explained.
Since the government clarified property ownership rules for foreigners, expatriate interest has grown rapidly. Positive testimonials from early buyers have encouraged others to follow, resulting in higher property sales compared to last year. Demand has risen across both the mid-upper and middle-lower market segments, reflecting broader growth.
“Even the middle-low segment shows good sales. We hope the growth of manufacturing and other industries continues to support the property sector,” Robinson said.
Steady Economic Growth Boosts the Market
Batam’s property industry is maintaining solid performance in early 2025. Data from REI Batam shows property sales growth between 5–10%, supported by stable economic expansion. According to Bank Indonesia, the Residential Property Price Index slowed by 1.84% in Q1 2025, a factor that actually encouraged more transactions.
Batam’s economic growth reached 6.69% in 2024, supported by strong industrial activity. Robinson noted that demand for warehouses is also increasing, driving the rental property business. He remains optimistic about the outlook, citing ease of licensing and economic stability as key enablers.
“We’re optimistic about the property sector’s direction, even though geopolitical factors are currently affecting some industries in Batam,” he said.
Government Support and Major Expo Strengthen Growth
Local government initiatives, including flood control efforts, have helped boost Batam’s image as a livable and investment-friendly city.
“If flooding is well-managed, Batam’s appeal will grow, including for property investment,” Robinson noted.
Earlier this year, REI Batam held the REI Expo Batam 2025 from May to June at Grand Mall Batam to stimulate property sales. The event brought together 17 developers, financial institutions, and supporting industries, featuring both commercial and subsidized housing and introducing FLPP-backed affordable homes to the public.
With affordable prices, simplified ownership rules, and promising economic prospects, Batam is positioning itself as a top property investment hub for foreigners looking for homes near Singapore at a fraction of the cost.
Source: Batam Pos, Riau Pagi
Photo Credit: Central Group
