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Investors remain bullish on Jakarta property despite future capital
The real estate market within Jakarta and its periphery area had remained robust as it is mainly driven by commercial considerations rather than external influences, such as Nusantara.
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High-rise buildings are seen in Sudirman Central Business District in South Jakarta on March 14, 2021. (AFP/Adek Berry)
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nvestors continue to show strong interest in properties in Jakarta and the surrounding Greater Jakarta metropolitan area despite the construction of the country’s new capital located in East Kalimantan, according to property consultancy Jones Lang LaSalle (JLL) Indonesia.
Surabaya in East Java and Bali also emerged as alternative markets attractive for both foreign and local investors, JLL said.
“We see strong inquiries for property investment in Indonesia during the second quarter after the election concluded [in February]. Investors remain viewing Greater Jakarta as the strongest location as it’s already an established market,” said JLL Indonesia capital markets senior director Herully Suherman during a quarterly media briefing on Wednesday.
While the future capital city of Nusantara (IKN) held promise, Rully noted it is expected to have minimal immediate impact on Jakarta. “Even the state government realizes that [the city] is a long-term development,” he added.
Read also: Investors demand 12-plus percent return for Nusantara projects
The real estate market within Jakarta and its periphery area has remained robust as it is mainly driven by commercial considerations rather than external influences, such as Nusantara, he explained.
In the second quarter, Rully pointed out that investors focused on six key sectors, namely landed residences, office buildings, hotels, serviced apartments, retail and alternative properties like schools, hospitals, retail, senior living centers and gas stations.
