The latest market insight about all property market sectors, including office building, retail, and industrial space
The running year has been quite challenging to office sectors. Some concerns such as global tension, inflation, weakened Rupiah exchange rate, which would impact on fit-out cost, may have brought impact on the occupiers’ decision in business space expansion. However, the targeted economic growth of 4.9% - 5.7% for 2026 seems to bring confidence in doing business amongst corporations. Some business lines such as general merchandising, banking, logistic, plantation, garment, construction, technology-related are expected to drive the office enquiries that might lead to transactions
Download PDF PDF | 2.81MB
Amidst the global economic tension taken into account in business expansion plan, especially amongst foreign companies, the office market would still be featured with cautious approach on business space strategy. We would foresee that given the huge vacant space of approximately 3 million sqm in Jakarta office market, the “tenant market” will prevail. Rental would go competitive.
The continued adoption of hybrid working model, particularly among multinational companies aligning with regional office policies, combined with the ongoing flight-to-quality trend, have led to a shift in demand toward smaller office spaces in higher-quality buildings located in more strategic areas. This reflects a growing preference for efficiency, accessibility, and premium-grade amenities.
Rental rates in Jakarta CBD are projected to gradually experience an uptick, amidst the absence of upcoming new supply and strengthening demand for high-quality buildings. In the meantime, rental rates in the OCBD area are expected to remain stable, as landlords are likely to maintain competitive pricing in response to future new supply and the need to attract and retain tenants.
Ongoing economic challenges and global geopolitical tensions continue to create uncertainty in the market. As a result, some companies are taking more cautious and strategic steps as in downsizing their office space or seizing the opportunity to expand or relocate to higher-quality offices to more favorable locations and favorable rental rates.
Indonesia's resilient economic outlook, despite global geopolitical tensions and market uncertainties, is expected to underpin positive sentiment in the Jakarta office market for the coming years. As the nation's financial and commercial hub, Jakarta's strategic importance continues to fuel its growth trajectory.
Description