Alongside Singapore, Jakarta is one of only two cities in Southeast Asia to be included in the top 20. Jakarta ranked 51^st in 2018 and 103^rd in 2008.

“The survey is done through Savills International so the survey allows us to see how people outside Indonesia see the market condition in Jakarta,” said Savills research and consultancy head Anton Sitorus during a press conference on Wednesday.

Classified under the “emerging resilient cities” category, Jakarta has yet to become well-established on the global stage the study said, but the institution expects the country’s capital to continue its rise in economic and wealth terms.

Anton explained that it was common for cities to fall and rise in the index due to technological, demographic or leadership changes in a country. For instance, recent global economic disruptions have caused many countries to stumble, Anton said.

As a result, the global real estate market has experienced compressed market yield — a ratio of rent to investments — due to the sluggish economy. Nonetheless, Jakarta ranks sixth in the world for central business district (CBD) office market yield for Grade A buildings.

He added that Jakarta still had room to grow but that skyrocketing property prices on the domestic market and stagnant growth remained the sector’s most troubling problems. (bbn)

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