The first quarter of 2025 has presented a nuanced landscape for Jakarta’s real estate market, characterized by stability in supply across various sectors, subtle shifts in demand, and moderate price adjustments. This period reflects a market in equilibrium, with stakeholders adapting to evolving economic conditions and consumer preferences.
Office Sector: CBD Stability Amidst Relocation Trends
Supply: The Central Business District (CBD) of Jakarta maintained its total office stock at approximately 7.4 million square meters, with no new completions recorded during the quarter. Projections indicate that this figure will remain unchanged through the end of 2025, suggesting a period of supply stabilization.
Demand: Leasing activity persisted, albeit at a moderated pace, primarily driven by tenants seeking relocation opportunities.
Notably, two significant transactions totaling 8,500 square meters were executed, underscoring the market’s resilience. Net absorption reached 31,400 square meters, with Class A offices accounting for 88% of this uptake. Consequently, the overall occupancy rate in the CBD experienced a slight uptick of 0.4%, settling at 75.6% by the end of March.
Pricing: Rental rates denominated in Indonesian Rupiah exhibited modest growth, with base rents and service charges increasing by 0.8% and 0.9% respectively.
The average gross rent stood at IDR 266,500 per square meter per month. Conversely, when assessed in U.S. dollars, rents declined by 2.3%, primarily due to a 2.6% quarter-on-quarter depreciation of the Rupiah.(assets.cushmanwakefield.com)
Source: Jakarta Jive
