The latest market insight about all property market sectors, including office building, retail, and industrial space
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.
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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.
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.
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