It is not news that Indonesia is currently enjoying favored attention from the global tech giants like Facebook, Twitter, and YouTube. Indonesian startups, as well as foreign companies alike, want to take advantage of the country’s increasing Internet user base. This interest, combined with the interest in residential properties, has ensured that the Indonesian real estate market soars. The real estate market has boomed rapidly in the recent years in Indonesia, especially in big cities like Jakarta. This country was also ranked third in Asia Pacific for real estate investments, as per a survey by the Urban Land Institute.
Indonesia is deemed to be the next powerhouse by 2030 and everyone wants their share in it. The booming IT sector has given way for technological innovations and advancements in many sectors there, providing unique solutions to a local problem, and even reinventing the wheel in the proptech or the sector of real estate tech in Indonesia. While the technology landscape of this country is still at its developing stage, fast thinkers are helping change the real estate tech in Indonesia.
Real Estate Scenario of Indonesia
Within the BSD City of Indonesia, construction is on in full swing for a so called digital park where the tenants of the office park will have access to high tech facilities like 3D printing, studio for VR content, as well as onsite data centers. This is also the area where Apple is building its first research and development center. As compared to the metropolitan cities of the world where high rise towers have slowed down, Indonesia is building with full gusto. Real estate developer Lippo Group announced its own massive urban development project Thursday: a 278 trillion rupiah ($20.9 billion) industrial township near Jakarta, known as Meikarta. A core element of the project has been dubbed Indonesia’s Silicon Valley.
These developments are enough to show the growth of this sector and its way ahead. The exponential growth of real estate here makes way for real estate tech in Indonesia or as the startup world calls it #Proptech. Another interesting factor that adds to real estate tech in Indonesia is the demand for rental and vacation housing in locations like Bali and Jakarta.
Real Estate Tech in Indonesia
Conventional business models are soon to become ineffective with the growth of the real estate market. Proptech is here to revolutionize how Indonesians list, search and buy property in the country and some are even working to provide efficient software for it. And not just from the consumer end, real estate tech in Indonesia is also changing how developers are making their properties and incorporating cutting-edge technology into urban infrastructure, monitoring their cityscapes via the so-called internet of things.
Some of the early internet models that grew big in were property portals and real estate tech in Indonesia. The routine property portals like Rumah.com (acquired by PropertyGuru), Rumah123 (acquired by iProperty) and Lamudi (backed by Rocket Internet) provide generic services like listings of properties for rent/sale and are based on a freemium or brokerage model. But in the recent years, exposure to the global market, as well as the rise in entrepreneurship, has led to the advent of portals that solve unique Indonesian problems, with a twist. Some of them are:
Villa Bali Luxury
An interesting venture in the proptech sector of Indonesia, with a direct competitor like AirBNB, Villa Bali Luxury is one of the many portals here that help you search for villas in the high tourist location of Bali.
Carigudang was founded in 2011 and specializes in properties like warehouses, commercial lots, and factories. It has managed to create a niche for itself in the sector of real estate tech in Indonesia.
Infokost plays on the unique Indonesian concept of Kost which are informal guest houses with anywhere from 5-30 rooms with shared kitchens. Its main users are young employees who have recently changed cities or study abroad students. This category is the main one for Infokost though it also offers listings for apartments and houses.
With integrations with Google Streetview and a location based search, Rukamen is a portal that serves only the apartment sector. Those looking to rent, sell or buy apartments in Indonesia can use Rukamen to connect to others.
An interesting model for real estate tech in Indonesia, Spacehype helps retail brands and people search and book spaces for short periods of time like for events, exhibitions, and pop ups.
Smkos is a software that is built to help a property owner manage his property with features for billing, notification, and reporting. It even helps optimize processes relating to managing a host.
One of the largest property websites in Indonesia, UrbanIndo helps merge property listings with the local market and information data. It aims to be the most innovative real estate search portal in Indonesia.
Way ahead for PropTech in Indonesia
PropTech or real estate tech in Indonesia is currently at its nascent stage but is set to boom along with the rise in its real estate sector. Bets have been place for Indonesia to be a powerhouse country and this is set to soar the demand of innovative technologies.
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