The Real Estate Market In Indonesia Market size is estimated at USD 64.78 billion in 2024, and is expected to reach USD 85.97 billion by 2029, growing at a CAGR of 5.82% during the forecast period (2024-2029).
In Jakarta, serviced apartments showed a continued improvement in average occupancy rate during 3Q 2023, reflecting the normalcy of business activities after the complete lifting of restrictions and increased demand from expatriates, especially from Asian countries, including Japan, South Korea, and India.
As of Q3 2023, the occupancy rate increased by about 3.5% QOQ to 60.5%. All serviced apartments in the CBD area maintained steady rental rates. In contrast, new supply in the form of new serviced apartment projects (Citadines Gatot Subroto and Grand Mansion Menteng by The Crest Collection) pushed rents up in the non-CBD area. The average rental rates registered were IDR 445,986/sq m/month (USD 28.85) and IDR410,707/sq m/month (USD 26.57) in the CBD and South Jakarta (including non-prime areas), respectively.
Experts expect some increment in the average rental rate given the forthcoming entry of new upscale serviced apartment projects that offer higher rental rates compared to the market.
The Indonesian real estate market, including both residential and commercial, is highly competitive and fragmented. The market presents opportunities for growth during the forecast period. Higher competition among market players is impacting selling and land prices, further leading to oversupply in the market. Some of the major players present in the market include Agung Podomoro Land, Sinar Mas Land, Ciptura Group, and Tokyu Land Indonesia. The players are also adapting to technological trends, owing to the rising internet penetration and expansion of e-commerce.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook