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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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.
The prolonged escalation of the war in Europe has brought series of problems that narrows down to growing inflation, increase of interest rate, and concerns about global recession in 2023. With all of the factors in play, the property market has faced a new challenge after shifting from the covid-19 problem.
The improving pandemic situation earlier this year, along with the sign of a resurgence of office leasing activity, the market is expected to be more positive in the long run. The continued use of remote working practices especially in service-based industries is leading to a tendency for larger corporation to consolidate their office. Logistics and technology-based companies that are concerned with flight-to-quality are expected to drive the growth in demand in the Jakarta office market.
The positive sentiment towards recovery in 2022 has been high as the projected economic growth of 2022 by the government ranges 4.7%-5.5%. Some factors including vaccination rollout, the resume of business activities, and government stimulus would boost market confidence. The third dose of vaccination has been planned by the government and will be starting in the first quarter of 2022. A positive economic outlook driven by ongoing global economic improvement is expected to drive next year’s property demand growth.
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