Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Yes, the analysis of Jakarta's property market is included in our pack
As we look towards 2025, Jakarta's real estate market is poised for intriguing developments that could shape the city's future landscape.
What trends are emerging? How are prices expected to shift? What factors are influencing these changes?
In this article, we'll delve into 12 key market data points that will provide a comprehensive overview of Jakarta's real estate scene.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Indonesia Property Pack
12 Key Market Data Points About the Real Estate Market in Jakarta
Here is a detailed analysis of the real estate market in Jakarta, covering average rents, yields, price per square meter (sqm) and square foot (sqft), and more.
- Average Rent:
The average rent for an apartment in Jakarta varies significantly based on location and size. In central areas like Sudirman and Kuningan, the average rent for a two-bedroom apartment can range from IDR 10 million to IDR 20 million per month. In suburban areas, rents are lower, ranging from IDR 5 million to IDR 10 million per month.
- Rental Yields:
Rental yields in Jakarta are generally attractive for investors. In prime locations, yields can range from 5% to 7% annually, while in emerging areas, yields might be slightly higher, ranging from 6% to 8%.
- Price Per Square Meter:
The price per square meter in Jakarta's central business district (CBD) can range from IDR 30 million to IDR 50 million. In suburban areas, prices are more affordable, ranging from IDR 10 million to IDR 20 million per sqm.
- Price Per Square Foot:
Converting the price per square meter to square foot, in the CBD, prices range from IDR 2.8 million to IDR 4.6 million per sqft. In suburban areas, prices range from IDR 930,000 to IDR 1.86 million per sqft.
- Market Trends:
Jakarta's real estate market has seen a steady increase in demand, particularly in the luxury segment. The growth of infrastructure projects, such as the MRT and LRT, has positively impacted property values in connected areas.
- Foreign Ownership:
Foreigners can own apartments in Indonesia under a "Right to Use" title, but there are restrictions on land ownership. This can affect the market dynamics and pricing strategies for developers targeting foreign buyers.
- Vacancy Rates:
Vacancy rates in Jakarta's prime areas are relatively low, often below 10%, due to high demand. However, in less central areas, vacancy rates can be higher, sometimes exceeding 15%.
- Development Pipeline:
There is a robust pipeline of new developments in Jakarta, with a focus on mixed-use projects that combine residential, commercial, and retail spaces. This trend is expected to continue as urbanization increases.
- Infrastructure Impact:
Major infrastructure projects, such as the Jakarta-Bandung high-speed rail, are expected to boost property values in connected areas, making them attractive for long-term investment.
- Government Policies:
The Indonesian government has introduced various policies to stimulate the real estate market, including tax incentives for first-time homebuyers and relaxed regulations for foreign investors.
- Financing Options:
Mortgage rates in Indonesia are relatively high compared to other countries, often ranging from 8% to 10%. However, banks offer various financing options to attract buyers, including fixed-rate mortgages and promotional interest rates.
- Environmental Considerations:
With Jakarta facing challenges such as flooding and traffic congestion, there is a growing emphasis on sustainable and eco-friendly developments. This trend is influencing both buyer preferences and developer strategies.
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What You Need to Know Before Investing in Jakarta's Real Estate Market in 2025
What is the average price per square meter for residential properties in Jakarta?
In 2025, the average price per square meter for residential properties in Jakarta is estimated to be around IDR 25 million.
This represents a moderate increase from previous years, reflecting the city's growing demand and limited supply of prime real estate.
Prices can vary significantly depending on the location, with central areas commanding higher rates.
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How has the rental yield in Jakarta changed over the past few years?
The rental yield in Jakarta has seen a slight increase, averaging around 5.5% in 2025.
This is attributed to the rising demand for rental properties, especially in business districts and expatriate-friendly neighborhoods.
Investors are attracted to these yields as they offer a stable return compared to other investment options.
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What are the most sought-after neighborhoods for property investment in Jakarta?
Neighborhoods like Menteng, Kebayoran Baru, and Pondok Indah remain highly sought after due to their strategic locations and amenities.
These areas are known for their upscale residential options and proximity to business centers, making them attractive to both local and foreign investors.
Emerging areas such as BSD City and Alam Sutera are also gaining popularity due to their development potential and infrastructure improvements.
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What is the expected growth rate of Jakarta's real estate market in 2025?
The real estate market in Jakarta is projected to grow at a rate of approximately 6% in 2025.
This growth is driven by increased urbanization, infrastructure projects, and foreign investment.
However, market fluctuations and economic conditions can impact this growth rate.
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How does the property tax in Jakarta compare to other major cities in Indonesia?
Jakarta's property tax rates are relatively higher compared to other major cities in Indonesia, reflecting its status as the capital city.
In 2025, property tax rates in Jakarta are expected to be around 0.5% to 1% of the property's assessed value.
This is an important consideration for investors, as it can impact the overall cost of property ownership.
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What are the key infrastructure developments impacting real estate in Jakarta?
Major infrastructure projects such as the Jakarta-Bandung high-speed rail and the expansion of the MRT network are significantly impacting real estate values.
These developments are expected to improve connectivity and accessibility, making certain areas more attractive for investment.
Investors are keenly watching these projects as they can lead to increased property values and rental demand.
What is the average time it takes to sell a property in Jakarta?
In 2025, the average time to sell a property in Jakarta is estimated to be around 3 to 6 months.
This timeframe can vary depending on the property's location, price, and market conditions.
Properties in high-demand areas tend to sell faster, while those in less desirable locations may take longer.
How does the foreign ownership regulation affect property investment in Jakarta?
Foreign ownership regulations in Jakarta allow non-Indonesians to own apartments but not landed houses, which can limit investment options.
In 2025, the government is expected to maintain these regulations, although there are discussions about potential reforms to attract more foreign investment.
Investors should stay informed about any regulatory changes that could impact their investment strategies.
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=> What are the legal requirements for buying property in Jakarta?
What are the financing options available for property buyers in Jakarta?
Buyers in Jakarta have access to various financing options, including bank loans, developer financing, and mortgage facilities.
In 2025, interest rates for property loans are expected to be around 7% to 9%, depending on the lender and the borrower's credit profile.
It's crucial for buyers to compare different financing options to find the most favorable terms.
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What is the impact of environmental regulations on property development in Jakarta?
Environmental regulations in Jakarta are becoming increasingly stringent, affecting property development and construction practices.
Developers are required to adhere to green building standards and sustainable practices, which can increase construction costs.
These regulations aim to address environmental concerns and improve the city's livability, benefiting long-term property values.
How does the supply of new properties in Jakarta affect the market?
The supply of new properties in Jakarta is expected to increase in 2025, with several large-scale projects nearing completion.
This influx of new properties can lead to increased competition and potentially stabilize or reduce prices in certain segments.
Investors should consider the supply dynamics when evaluating potential investment opportunities.
What are the risks associated with investing in Jakarta's real estate market?
Investing in Jakarta's real estate market carries risks such as market volatility, regulatory changes, and economic fluctuations.
Investors should conduct thorough due diligence and consider factors like location, property type, and market trends.
Engaging with local experts and staying informed about market developments can help mitigate these risks.