Future looks bright for Jakarta market
Indonesia has catapulted itself into the minds of domestic and overseas real estate investors over the past two years on the back of a strong domestic economy and a growing number of companies looking to tap into the rapidly expanding middle class of the world’s fourth most populous nation.
Indonesia’s capital and commercial hub, Jakarta, has been the landing point for most foreign companies and the primary beneficiary of this increased interest.
The two sectors that have attracted the most attention from foreign investors have been premium grade office space and middle grade residential. These sub-markets have benefitted from the rapid increase in demand for quality office accommodation from both domestic and foreign companies expanding their presence in the city and the increased willingness of urban professionals to go for apartment style living.
Recent noteworthy transactions include the sale of 75,000sqm of premium office space located on Jalan Sudirman (the heart of Jakarta’s Golden Triangle) to Sinarmas Group, one of Indonesia’s largest business houses to accommodate their group companies. This project is due for completion in 2016.
We have also seen significant investment from China Sonangaol, a joint venture between Angola’s state-owned oil company, Sonangol E.P. and Hong Kong-based company, New Bright International Development. They have invested in two high-profile projects along Jalan Sudirman: the 230,000sqm Sampoerna Strategic Square premium office development and 187,000sqm of high quality commercial and residential space within Plaza EX.
With the growth forecast to continue and Jakarta being singled out as the top investment choice for 2013, the future looks bright for Jakarta’s property market.