Jakarta offices still face high vacancy but premium rents rise. Logistics thrives, data centers boom and landed housing dominates the residential market.
Insight
Back to Jakarta: key shifts in Indonesia real estate
After four years away, this week I returned as Head of Research, Indonesia. I have been spending some time refamiliarizing myself with the market and here, I summarize a few first impressions of what has changed and what has stayed the same in the years that I’ve been away.
1. After an unprecedented wave of supply, the vacancy rate for grade A offices in Jakarta is still the highest in Asia Pacific at 35%. Counterintuitively, though, rents are creeping up after almost a decade of declines. This is being driven solely by landlords of premium buildings who are able to take advantage of the flight to quality trend that is gripping real estate markets across the globe.
2. Logistics and Industrial has retained its place as a standout sector with single-digit vacancy rates and healthy demand. However, the demand profile has evolved as electric vehicles have proliferated, and more Mainland Chinese manufacturers have entered the market and expanded.
3. The Data Center market continues to mature in hotspots such as Greater Jakarta and Batam. Colocation inventory expanded almost threefold between 2021 and the first half of this year and it’s no surprise that investor interest in this growing sector is strong.
4. What has not changed, is the local market preference for Landed Housing over high rise condominiums. As my colleague, Bobby Muchtadi discusses here, the former enjoys consistent buyer confidence and a solid cumulative sales rate of nearly 90%.
To better understand these, and other trends impacting the Indonesia property market, look out for our 3Q 2025 market reports and forecasts as they get released in mid-October.