Jakarta has overtaken Tokyo to become the most populous city in the world. This is stated in a report by the Population Division of the United Nations Department of Economic and Social Affairs.
The change is due to a new UN methodology that allows for more consistent international comparisons of city boundaries based on similar demographic and geospatial criteria. Previous estimates based on data from different countries gave priority to Tokyo.
Jakarta is currently in first place with a population of 42 million people. It is followed by Dhaka (Bangladesh) with 37 million inhabitants. Tokyo is in third place with a population of 33 million. In the previous report, which was from 2018, the Japanese capital was in first place with a population of 37 million.
The study highlights that urbanization is the determining force today:
- Growth of urban population. The number of urban dwellers has more than doubled since 1950. They now account for almost half of the world's 8.2 billion people (compared to 20% of 2.5 billion in 1950).
- Projections. By 2050, two-thirds of the world's population growth is expected to occur in cities, with most of the remaining third in urban settlements.
- Megacities. The number of megacities (cities with a population of at least 10 million) has quadrupled, from eight in 1975 to 33 in 2025.
- Geography. Nine of the ten most populous cities in the world, including Jakarta, Dhaka, Tokyo, New Delhi, Shanghai, Guangzhou, Manila, Kolkata, and Seoul, are located in Asia. The only non-Asian city in the top ten is Cairo.
The migration of population from other cities to Jakarta is undoubtedly having an impact on the real estate market. In the past year, there has been no real estate bubble or dramatic collapse in house and apartment prices, but there has been a surge in new construction as a result of demographics and more expensive financing. Prices are creeping up slightly, demand is distributed between apartments and houses, and supply is increasing mainly in the mass segment and on the outskirts of the metropolis.
According to data for the beginning of 2026, the average price of a home in Jakarta is around 194,000 USD. The average price is much higher, around 60 million EUR, as luxury properties in the most sought-after neighborhoods are driving prices up. About 80% of the homes in the city fall in the range of 1.2-12 billion rupiah (73,000-727,000 USD), which indicates a highly stratified, but still relatively stable market.
At the national level, the Bank Indonesia housing price index reports very moderate growth – about 1.1% annually in the first quarter of 2025, and by the third quarter the rate is around 0.8-0.9% annually. In reality, after adjusting for inflation, it is more about stagnation than a strong price rise.
In Jakarta itself, the picture is similar: consulting companies such as Savills and JLL describe the housing market in 2025 as “stable“, with moderate price growth and no sharp movements in employment. In the third quarter of 2025, the market remains balanced – prices are almost unchanged, and economic activity and consumer confidence are improving, which gives grounds for more optimistic expectations for 2026.
The dynamics are more interesting for apartments. According to Colliers data for Jakarta, the apartment market is maintaining a steady, albeit slow, growth. Buyers are increasingly looking at ready-to-move-in units rather than greenfield properties, and almost all parts of the city are contributing to the future construction flow.
New supply is also accelerating. Two new apartment projects with a total of 452 residential units are entering the market in the third quarter of 2025 alone, and at least five more projects are expected to be completed by the end of the year, adding at least 1,500 new apartments. This means a tangible fresh injection of supply, especially in the mid-range segment, aimed at young families and the urban middle class.
While purchase prices remain relatively stable or slightly rising, the rental market is experiencing more tangible pressure. An index from the Pinhome platform shows that rents in Jakarta are weakening in the third quarter of 2025, especially for smaller and medium-sized units. For apartments under 54 sq m, rents are down about 3% year-on-year, squeezed by competition from new developments targeting young renters and small households.
On the demand side, interest in owning a home remains resilient, but structurally shifting. Some buyers are looking to peripheral industrial areas and new areas, connected to the metro and transport infrastructure, where prices are more affordable and growth prospects are greater. In parallel, population growth - Jakarta has officially overtaken Tokyo as the world's largest city under the new UN methodology, with around 42 million residents in the extended agglomeration - supports long-term demand for housing, despite periodic economic shocks.
For investors, this combination means a market without quick speculative profits, but with a relatively predictable profile: slight price growth, increased supply of new apartments, pressure on rents in the more affordable segment and structurally strong demand, driven by demographics and urbanization. Since the beginning of the year, Jakarta has been behaving more like a mature megacity market – without drama, but also without rest.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg