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Jakarta offers some of the highest rental yields in Southeast Asia, with apartments delivering 6-11% gross yields and central studios reaching up to 13%.
The capital's rental market benefits from strong expat demand, expanding transit infrastructure, and relatively affordable property prices compared to regional neighbors. While commercial properties show more modest returns at 3-6%, residential investments continue to outperform, particularly for smaller units in prime locations.
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Jakarta's rental yields average 6-11% for apartments, with central studios achieving the highest returns at up to 13%.
The city significantly outperforms regional competitors like Bangkok (6%) and Kuala Lumpur (4.6%) in gross rental yields.
| Property Type | Location | Gross Yield (%) | Monthly Rent (USD) |
|---|---|---|---|
| Studio Apartment | Central Jakarta | 12.97% | $400 |
| 2-Bedroom Apartment | South Jakarta | 10.26% | $1,170 |
| 3-Bedroom Apartment | CBD | 9.05% | $2,090 |
| House | Suburban Areas | 4-8% | $500-$2,000 |
| Office Space | CBD | 3-6% | IDR 834,900/sqm/month |
| Retail Space | Prime Areas | 3-6% | Varies |
| Serviced Apartment | Central Areas | 8-11% | $600-$1,500 |
What are the average rental yields in Jakarta by property type?
Jakarta's apartment market delivers gross rental yields ranging from 6-11%, making it one of Southeast Asia's most attractive rental investment destinations.
Apartments consistently outperform other property types, with smaller units showing particularly strong returns. Studios and 1-bedroom apartments in central and south Jakarta achieve yields from 8% up to 13%, often outperforming larger units due to lower purchase costs and steady demand from singles, expats, and young professionals.
Houses around new transportation routes, particularly near LRT lines, are experiencing increased activity with yields from 4-8% for lower-middle and upper-middle segment properties. Larger houses tend to have lower yield percentages but generate higher overall rental income, making them attractive for investors seeking stable cash flow.
Commercial spaces present a more complex picture, with offices showing higher vacancy rates but Grade A properties maintaining 3-6% yields. Central CBD locations demonstrate stronger stability due to continued corporate demand, while retail spaces face rising base rents and service charges with returns varying widely based on location and grade.
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How do yields differ between central Jakarta and suburban areas?
Central Jakarta significantly outperforms suburban areas in rental yields, though both markets offer distinct advantages for different investment strategies.
In central Jakarta, including CBD and SCBD areas, apartments achieve some of the city's highest yields with studios reaching up to 13% and 2-bedroom units delivering 10%+ returns. However, these superior yields come with higher purchase prices, reaching up to IDR 53 million per square meter. Houses in central areas show lower net yields (2-4%) but offer stable appreciation due to proximity to schools, embassies, and business centers.
Suburban and developing areas like Bekasi, Tangerang, and East Jakarta generally produce lower yields ranging from 2-6%. However, these areas present potential for future appreciation and stronger performance of entry-level properties. Rental demand in suburban areas is increasingly driven by infrastructure expansion, with notable preference for larger surface areas in places like Cimanggis and Bekasi.
The infrastructure development along LRT and MRT lines is creating new investment opportunities in previously suburban areas, gradually closing the yield gap between central and outer areas.
What surface area ranges do investors typically target and how does size affect yield?
Property size significantly impacts rental yields in Jakarta, with smaller units consistently delivering higher percentage returns while larger properties generate greater absolute rental income.
Studios and 1-bedroom apartments ranging from 26-50 square meters achieve the highest yields, typically 8-13%, due to lower purchase costs and steady demand from singles, expats, and professionals. These compact units represent the sweet spot for yield-focused investors.
2-3 bedroom apartments spanning 55-120 square meters show slightly lower yields at 7-11%, but command higher monthly rents. These units appeal to families and longer-term tenants, offering more stable occupancy rates.
Large houses exceeding 120 square meters demonstrate lower yield percentages but provide high total rental revenue. These properties are particularly favored by families and long-term tenants in suburban areas and locations around new transit lines.
The size-yield relationship reflects Jakarta's diverse rental market, where different property sizes serve distinct tenant segments and investment objectives.
What are the average purchase prices including all fees and transaction costs?
| Property Type | Location | Average Price (USD/sqm) | Typical Transaction Costs |
|---|---|---|---|
| Apartment | CBD | $3,268 | 8-10% of purchase price |
| Apartment | South Jakarta | $2,510 | 8-10% of purchase price |
| Apartment | Non-prime areas | $1,681 | 8-10% of purchase price |
| House | All areas | $1,000-$2,500 | 8-10% of purchase price |
| Commercial Office | CBD | $2,500-$4,000 | 8-12% of purchase price |
| Retail Space | Prime locations | $2,000-$3,500 | 8-12% of purchase price |
| Serviced Apartment | Central areas | $2,800-$3,500 | 8-10% of purchase price |
How do ongoing costs impact net rental yields?
Ongoing costs substantially reduce gross rental yields, typically lowering net returns by 1.5-2% annually across all property types in Jakarta.
Maintenance costs represent the largest ongoing expense, typically consuming 1-2% of property value per year. These costs include regular upkeep, repairs, and periodic renovations necessary to maintain rental attractiveness and property value.
Service charges vary significantly by property type and location. For retail and office properties, service charges average IDR 800,000+ per square meter annually. Apartment service charges range from IDR 100,000-500,000 monthly, depending on building facilities and management quality.
Property management fees typically consume 5-10% of annual rent, depending on service scope and property type. Professional management becomes essential for investors who don't reside in Jakarta or own multiple properties.
Additional costs include insurance, periodic refurbishment, and utility expenses during vacancy periods, all contributing to the gap between gross and net yields.
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What taxes and legal costs should property owners expect when renting?
Jakarta property owners face several tax obligations and legal costs that significantly impact net rental returns, particularly for non-resident investors.
Non-resident property owners face a flat 20% withholding tax on gross rental income, applied at source without deductions for expenses. This represents one of the highest tax burdens in the region for foreign investors.
Indonesian residents pay progressive personal income tax ranging from 5-35% on net rental income after allowable deductions. This system can be more favorable for residents who can offset expenses against rental income.
Additional costs include VAT where applicable, stamp duty on rental agreements, and local real estate tax (PBB). While PBB rates remain relatively low, they are rising for premium zones and high-value properties.
Legal costs for contract preparation, notarial services, and periodic compliance requirements add approximately 1-2% annually to operating expenses.
How do financing options and mortgage costs affect investment returns?
Indonesian mortgage rates and financing terms significantly impact effective returns on investment, particularly with current lending rates ranging from 6.5-11% for property loans.
Floating mortgage rates typically range from 6.5-11%, while fixed rates for initial years range from 7-9.5%. These rates are competitive regionally but require careful calculation of effective returns when leveraging investments.
Down payment requirements of 20-30% are standard, with stricter terms often applied to non-residents. Foreign investors may face additional documentation requirements and higher interest rates.
Loan setup fees typically range from IDR 500,000-3 million depending on loan size, plus ongoing administrative costs throughout the loan term.
Financing at current rates generally reduces effective ROI by 2-5%, depending on leverage ratio and rental growth rates, making cash purchases more attractive for yield-focused investors.
What's the difference between short-term and long-term rental returns?
Short-term and long-term rental strategies in Jakarta offer distinctly different risk-return profiles, with long-term rentals generally providing more stable and higher net returns for most investors.
Short-term rentals through platforms like Airbnb show median occupancy rates of 35% with average daily rates of $43. Top-tier properties achieve 71% occupancy with $96 daily rates, generating annual revenue averaging IDR 110 million ($6,000). However, these returns face significant seasonality and increased management costs.
Long-term rentals provide more stable occupancy rates of 60-70% with lower management and advertising costs. The reduced wear and tear on properties also minimizes maintenance expenses, typically resulting in net yields 1-2% higher than short-term rentals for most investors.
Short-term rentals only outperform long-term strategies in premium properties and exceptional locations where high daily rates and consistent occupancy can overcome the increased operational complexity and costs.
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What are example rental prices for different property types and sizes?
Jakarta's rental market offers diverse pricing across property types and locations, reflecting the city's varied neighborhoods and tenant demographics.
Studio apartments in central areas command approximately $400 monthly, delivering impressive yields of 12.97% due to strong demand from young professionals and expats. These compact units represent excellent entry points for new investors.
2-bedroom apartments in South Jakarta average $1,170 monthly rent with yields of 10.26%, attracting small families and sharing professionals. 3-bedroom apartments in CBD areas reach $2,090 monthly with 9.05% yields, primarily serving expatriate families and senior professionals.
Houses in suburban areas range from $500-$2,000 monthly depending on size, location, and amenities. Yields typically range from 4-8%, with larger properties commanding higher absolute rents but lower percentage returns.
Office spaces in CBD areas rent for approximately IDR 834,900 per square meter monthly, generating yields of 3-6% depending on building grade and specific location within the business district.
Who are the typical renter profiles and how does demand vary?
Jakarta's rental market serves three primary tenant segments, each driving demand for specific property types and locations across the city.
Expatriates and international professionals form a key segment, preferring central locations, serviced apartments, and houses near international schools and business districts. This group typically seeks fully furnished properties with modern amenities and reliable building management.
Local families increasingly seek larger houses in suburban and upper-middle neighborhoods, with growing demand along LRT corridors as new transit options improve connectivity to central business areas. These tenants prioritize space, parking, and proximity to local schools.
Young professionals and students create high demand for small apartments and studios near transportation hubs and universities. This segment values affordability, convenience, and proximity to entertainment districts.
Each segment exhibits different rental behaviors, with expatriates typically signing longer leases at higher rates, while local professionals may show more price sensitivity but offer greater long-term stability.
What are current vacancy rates across different neighborhoods and property types?
As of September 2025, Jakarta's vacancy rates vary significantly across property types and locations, reflecting diverse market dynamics and tenant preferences.
Serviced apartments show average occupancy rates of 56.8%, indicating healthy demand but room for improvement in property management and marketing. Non-serviced residential units typically achieve higher occupancy rates up to 70%, reflecting the preference for traditional rental arrangements.
Office space presents a more challenging picture with Grade A buildings in CBD areas showing vacancy rates of 34%, though overall occupancy reaches 65-70% when including lower-grade properties. This reflects the ongoing adjustment to post-pandemic work patterns and space requirements.
Short-term rental properties through platforms like Airbnb show median occupancy of 35%, with best-in-class properties achieving up to 71% occupancy. These figures highlight the competitive nature of the short-term rental market.
Suburban areas generally show lower vacancy rates due to limited supply and growing demand from families seeking larger spaces along new transportation corridors.
What are the smartest investment choices in Jakarta today?
Smart Jakarta property investors should focus on four key categories that offer the best combination of yields, appreciation potential, and market stability as of September 2025.
Central studio and 2-bedroom apartments represent the smartest choice for yield-focused investors, delivering the highest returns with consistent demand from expatriates and young professionals. These properties benefit from location scarcity and strong rental demand.
Houses near new LRT and MRT lines offer excellent appreciation potential combined with strong rental demand. As Jakarta's transit infrastructure expands, these locations are experiencing rapid value increases while maintaining solid rental yields.
Suburban properties in rapidly developing zones provide lower entry costs with strong yield growth potential. Areas like Bekasi and Tangerang benefit from infrastructure development and growing demand from local families.
Prime CBD offices remain attractive for investors seeking stable corporate tenants, though careful monitoring of vacancy trends is essential given the evolving workplace requirements post-pandemic.
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How have rents and yields changed over the past five years?
Jakarta's rental market has experienced steady growth over the past five years, with both rents and yields showing positive trends despite global economic challenges.
Rental yields have risen modestly from 4-6% in 2020 to approximately 7-11% in 2025 for prime apartments, representing significant improvement for investors. Suburban yields have also increased due to improved infrastructure and connectivity, particularly along new transit lines.
Citywide rental prices have appreciated 1-3% year-over-year, demonstrating steady but sustainable growth. This moderate appreciation reflects balanced supply and demand conditions without speculative bubbles.
Purchase price appreciation has remained conservative at 0.3-1% annually, contributing to the improved yield environment as rental growth outpaces capital value increases. This dynamic favors income-focused investors over speculation-driven strategies.
The improvement in yields reflects Jakarta's maturing rental market, improved infrastructure, and growing expatriate community driving demand for quality rental properties.
What are the rental yield forecasts for Jakarta?
Jakarta's rental yield outlook remains positive across different time horizons, though some moderation is expected as the market matures and new supply enters key areas.
Over the next year, yields are expected to remain stable within the 7-12% range for prime properties, supported by continued infrastructure development and moderate purchase price growth. Central locations and transit-adjacent properties should maintain premium yields.
The 5-year outlook suggests slight yield compression as more supply comes online, particularly in serviced apartments and new LRT-adjacent developments. However, central locations with established tenant bases should continue delivering attractive returns.
The 10-year forecast anticipates continued yield leadership regionally, though some convergence toward regional averages is expected as Jakarta's property market matures. Premium locations and well-managed properties will likely outperform market averages.
Infrastructure completion and continued economic growth support positive long-term rental demand, though investors should expect yield moderation as the market develops and competition increases.
How do Jakarta's yields compare with other regional cities?
| City | Average Yield (%) | 1BR Downtown Rent (USD) | Price/sqm Downtown (USD) |
|---|---|---|---|
| Jakarta | 11.17% | 380-450 | 3,200-3,800 |
| Bangkok | 6.05% | 576 | 5,781 |
| Kuala Lumpur | 4.59% | 450 | 2,996 |
| Manila | 5-6% | 420-480 | 3,800-4,200 |
| Ho Chi Minh City | 7-8% | 400-500 | 3,500-4,000 |
| Singapore | 2.5-3.5% | 2,500-3,000 | 15,000-18,000 |
| Phnom Penh | 8-10% | 300-400 | 2,500-3,000 |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Jakarta stands out as Southeast Asia's rental yield leader, offering investors attractive returns across multiple property segments.
Success requires focusing on well-located smaller apartments, emerging transit corridors, and understanding the tax implications for both resident and non-resident investors.
Sources
- Own Property Abroad - Jakarta ROI and Rental Yields
- Investasian - Jakarta Property Investment Areas
- Global Property Guide - Indonesia Rental Yields
- Pinhome - Indonesia Residential Market Report 2024-2025
- Cushman & Wakefield - Jakarta MarketBeat
- Real Estate Asia - Jakarta Office Vacancy Rates
- JLL - Jakarta Property Market Analysis
- Global Property Guide - Indonesia Price History
- BambooRoutes - Jakarta Property Analysis
- BCA Bank - Mortgage Products