Real estate markets can experience periods of irrational exuberance followed by a decline in demand and prices

Economic stability in Indonesia helps maintain a foundation for a healthy real estate market. A stable GDP and a growing middle class contribute to the demand for housing and commercial properties.

The increase in property prices in Indonesia is considered moderate and predictable, with the market not susceptible to strong fluctuations and speculation.

The Indonesian government implements laws prohibiting the construction of commercial real estate on certain lands, which slows down land development and overpopulation on the islands.

The Indonesian economy has a relatively low level of mortgage lending, reducing the risk of debt burden and bankruptcies, making the market less vulnerable to economic fluctuations.