The real estate sector in Indonesia is expected to grow substantially during the coming years. The latest statistics showed that prices of the housing industry in Indonesia rose by 0.42% when compared to those of the preceding quarter.

The real estate industry in Indonesia has benefited from an increase in property prices in 18 major cities. The Indonesian government has done much to support the growing population but has not always been able to keep pace with the demand for the 40,000 homes that are required yearly. Furthermore, many of Indonesia’s millennials cannot afford to buy houses in urban areas. These are just some of the issues the real estate agency business in Indonesia today.

Reasons to Start a Real Estate Agency in Indonesia

The increasing strength of the Indonesian economy and the increase in the number of middle-income people have made homeowners and commercial owners desire to find the perfect spot to reside or start their company. There are also several other reasons why one should start a real estate agency in Indonesia.

1. Increased demand for residential properties

The country has witnessed much growth in the real estate market over the last year, thus leading to many properties to be built in Indonesia. One can either analyse the portfolio of real estate agents themselves or use the services of an experienced agent who knows much about the Indonesian property market before entering the real estate industry in Indonesia.

2. Large consumer base

Another reason to start a real estate agency in Indonesia is due to the fact that the country has an enormous customer market. The country is home to one of the world’s largest populations. Furthermore, the growth of the industry has also made people interested in opening real estate agencies.

Indonesia is becoming one of the economic powerhouses of the Asia-Pacific region. Therefore, careful investments in this market will be likely to turn a profit. Astute buying and selling of real estate properties will provide immense benefits to brokers and investors alike.

3. On-route to being a housing & commercial hub

Indonesia is expected to become a housing and commercial hub which will rival other Asian countries such as China and India. For this reason, many international real estate agencies companies are interested in commencing business operations in Indonesia. These entries will not only prove helpful for investors but also the country’s real estate agencies as a whole.

What to Do When Starting a Real Estate Agency in Indonesia

Indonesia has a fast-growing economy that makes it fit for development of major real estate projects. The country has also benefited from increased foreign investment from countries such as:

  1. South Korea
  2. China
  3. Japan

Those who intend to start a real estate agency ought to consider the marketing factors which will either increase or decrease the profitability of the company. The real estate business is an ever-growing business in Indonesia with much potential for profit; thus, one must make sure that no action goes to waste in this regard.

1. Finding the right location

Most real estate agencies in Indonesia start in small towns before moving on to larger cities. They often brand their real estate business through local advertisements. Real estate agents also ought to be able to select the proper location for investment, build a team which will carry out research appropriately, and understand the consumers’ wants.

2. Marketing outreach

Real estate agencies must also focus on the building of infrastructure and visual impact of houses. Well-planned selling and marketing campaigns will help the agency reach a more diverse audience. Thus, it is essential to find a marketing agency which will be able to create suitable selling and marketing campaigns.

3. Managing cash flow

Owners of real estate agencies must also manage their business cash flow in order to help them achieve their desired level of business profits. They must also pay all costs incurred during the starting of the business. A cash flow analysis will help the owner understand how to best increase profit levels.

Should you require any assistance with your business’s cash flow or any other financial matters which relate to your business, we at Paul Hype Page & Co are able to be of assistance to you. We are able to provide our services related to financial planning. We will work with you to create a financial plan which will allow your business to be in the best possible financial condition.

Licenses Required by Indonesian Real Estate Agencies

There are certain licenses required by Indonesian real estate agencies. Here are some of the licenses that you must apply before commencing operations:

  1. Spatial Utilisation License – acquired by realtors to use space for spatial utilisation
  2. Location License – issued for foreign investment companies to utilise land for investment or business purposes
  3. Utilisation & Function Plan License – obtained from the mayor or governor for condominium development
  4. Environmental License – obtained by real estate agencies carrying out businesses which have an environmental impact

Incidentally, many businesses in Indonesia besides real estate agencies require business licenses. It may occasionally be difficult and time-consuming for one to undergo all the require procedures and processes which surround a license application. This is where we at Paul Hype Page & Co play our role. We will assist you with settling the details of your license application so that you will be able to place more emphasis on the running of your business, thus leading to increased profits.

The licenses which are provided to the real estate agencies of Indonesia are issued to maintain the safety of the general public, homeowners, and businesspeople. These licenses also provide evidence that a particular real estate agency follows the rules and regulations set by the government.


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