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Despite the positive demand in the office sector in 2023, yet the movement for Jakarta office market remains cautious, and we expect that such condition would remain unchanged. Careful assessment of space expansion amongst corporations amidst uncertainty or so-called wait-and-see, is the most likely scenario in the election year 2024.Download PDF PDF | 2.85MB
The economic recovery in 2023 has been a silver lining for Indonesia. Despite a noticeable uptick in demand for property, which indicated a positive trend, the movement in demand is predicted to remain cautious.
Apart from mortar-and-bricks mall, stand-alone retail concept has been eyed by some retail players due to its relatively competitive rental. Some landlords might consider revenue sharing with flexibility of proportion to attract tenants, especially to new players in this market. Due to the election year in 2024, both landlords and retailers are expected to become cautious in expanding their portfolio
Many corporations might anticipate slow down in business, despite not overall. However, this might imply that they would hold-off expansion and might not set aside much on capital outlay for relocation. With high vacancy rate in the Jakarta office market, rental is expected to be pressurized or at least stable relatively by end of this year.
Concluding the year, Jakarta office market has shown an improvement compared to its previous year. The government has officially lifted all stay-at-home regulations indicating that business can resume as usual as in the pre-Covid condition. Companies begin to offer option for employees to return to the office, but the flexibility of working-from-home is also set to stay.