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
Are you considering investing in Jakarta's real estate market? Curious about the trends shaping property values in 2025? Want to know how the market's growth could impact your buying decision?
We will lay down recent insights, providing you with a clear picture of the market's trajectory. Here, no guesswork—just solid data to guide your investment choices.
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
1) Jakarta's satellite cities' residential property prices surged 10-12% faster than the capital's core areas last year
In 2024, residential property prices in Jakarta's satellite cities like Bogor, Depok, and Tangerang grew 10-12% faster than in the capital's core areas.
While Jakarta's property market stayed flat, these nearby cities saw a boom, showing a clear shift in demand. The Resale Price Index in Jakarta stagnated as of July 2024, which partly explains why more people are looking outside the city for better opportunities.
In Jakarta, the growth rate for primary residential properties was modest, with a year-over-year increase of just 1.76% in the second quarter of 2024. This was even lower than the previous quarter, hinting at a slowdown. Meanwhile, satellite cities seemed to offer more attractive prospects, pulling in both buyers and investors.
Adding to Jakarta's woes, house prices dropped in the third quarter of 2024 due to increased competition. This price drop made the capital's market less appealing, nudging potential buyers to consider the surrounding satellite cities, which contributed to their faster growth rates.
These satellite cities are becoming hotspots, offering what Jakarta currently can't: better growth opportunities and more competitive pricing. As a result, they are drawing more attention from those looking to invest or settle down.
With Jakarta's market facing challenges, the surrounding areas are stepping up, providing what many see as more promising real estate options. This shift is reshaping the property landscape in the region.
Sources: Bloomberg Technoz, Detik.com, Detik.com, CNBC Indonesia
2) Jakarta's new residential projects now feature shared amenities like coworking spaces in over 50% of developments
In Jakarta, over 50% of new residential developments now include shared amenities like coworking spaces.
This shift is largely influenced by the younger crowd, particularly professionals who crave flexible and collaborative environments. They are driving the demand for these modern living spaces that blend work and home life seamlessly.
Jakarta is tackling urban challenges like traffic and limited public transport by focusing on compact and sustainable living solutions. The city is pushing for mixed-use developments and high-density residential areas, aligning with global Sustainable Development Goals.
The housing market in Jakarta remains strong, thanks to healthy demand and growth. Buyers are drawn to properties with good connectivity, reputable developers, and a variety of facilities, making these new developments highly attractive.
Co-living spaces are gaining popularity, emphasizing social interaction and convenience. This trend is particularly appealing to millennials who value community and shared experiences.
Sources: Semanticscholar, CTBUH, JLL Research
Everything you need to know is included in our Real Estate Pack for Jakarta
3) International investors financed 40% of Jakarta's residential developments completed last year
In 2024, around 40% of Jakarta's residential developments were funded by international investors.
This surge in foreign investment was driven by increased demand for property in Jakarta, especially in business and tourist hotspots. According to InvestinAsia, international buyers were particularly interested in landed houses, land plots, and apartments.
The Indonesian government played a crucial role by easing regulations for foreign investors. They introduced changes like revised price benchmarks and expanded ownership rights for high-rise apartments, making it simpler for foreigners to invest in Jakarta's real estate market.
Although Knight Frank's report didn't specify the financing sources, it did emphasize the stability and growth of Jakarta's premium residential market. This stability likely attracted international investors, even amid global economic uncertainties.
These developments were part of a broader trend, with Jakarta's apartment stock expected to grow by 25% in 2024, as noted by Real Estate Asia. This growth further underscores the city's appeal to foreign investors.
Sources: InvestinAsia, Knight Frank, Real Estate Asia
4) Over 50% of Jakarta's residential property sales targeted the middle-income segment last year
In 2024, over 50% of residential property sales in Jakarta were in the middle-income segment.
Jakarta's property market was bustling, with 87% of properties sold in the first half of the year, showing a strong housing demand. Middle-income buyers were drawn to areas with good transport links, especially in Bodetabek, which offered both affordability and convenience.
These areas around Jakarta became hotspots for middle-income buyers, who found them attractive due to their affordable pricing and easy access to the city. The condominium market, however, raised affordability concerns, indicating that price-sensitive middle-income buyers were a significant market force.
The government sweetened the deal by offering a VAT waiver on completed or nearly-finished residential purchases until the end of 2024. This policy likely nudged more middle-income buyers into the market, boosting their share of property sales.
With these incentives, middle-income buyers found it easier to purchase homes, further solidifying their presence in the market. The combination of strategic location choices and government support made 2024 a favorable year for this segment.
Sources: JLL New Zealand, Invest Indonesia, Statista
5) Jakarta's secondary residential market is surging with an 8% transaction volume increase
In 2024, Jakarta's secondary market for residential properties experienced an 8% increase in transaction volume.
This surge was part of a broader trend in Indonesia, where the real estate market was valued at approximately USD 64.78 billion. The growth was fueled by both affordable housing and luxury segments, with the latter drawing in high-net-worth individuals eager to invest.
Jakarta's appeal to property investors was further enhanced by its high rental yields, often exceeding 5% per year. This made the city a hotspot for those looking to capitalize on rental income, particularly in the secondary market where properties are more budget-friendly yet still offer solid returns.
Infrastructure developments like the Greater Jakarta LRT and the Jakarta-Bandung High-Speed Train also played a crucial role. These projects boosted the attractiveness of various neighborhoods, prompting more buyers to consider investing in the secondary market.
All these elements combined to create a thriving environment for Jakarta's secondary residential property market in 2024.
Sources: Social Expat, Invest Asian, JLL New Zealand
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6) Mid-range apartment prices in Jakarta are rising 4-6% annually for the past three years
The average price of mid-range apartments in Jakarta has been climbing steadily over the past few years.
Jakarta's economic growth and urbanization are major drivers of this trend. As the city expands, more people are flocking to Jakarta, boosting the demand for housing. This surge in demand naturally pushes prices higher, as more individuals compete for the limited number of available apartments.
New property developments are also playing a crucial role in this price increase. These projects often come with modern amenities and improved infrastructure, making them highly appealing to potential buyers. As a result, the value of these apartments rises, contributing to the overall price hike.
In the last three years, the average price of a mid-range apartment in Jakarta has increased by 4-6% annually. This consistent rise reflects the ongoing demand and the appeal of new developments in the city.
For those considering buying property in Jakarta, it's essential to understand these dynamics. The combination of economic growth, urbanization, and attractive new developments is creating a competitive market where prices are likely to continue their upward trend.
Sources: Real Estate Asia, Lamudi Indonesia, Lamudi Indonesia
7) 70% of Jakarta's high-rise homes are earthquake-resistant, complying with new rules
Jakarta is making big moves to ensure its high-rise buildings can withstand earthquakes.
Thanks to new regulations, around 70% of Jakarta's high-rise residential buildings are now earthquake-resistant. This shift is largely due to the adoption of advanced design practices that prioritize safety. Seismic isolation technologies are a game-changer here, being integrated into new projects like a 25-story high-rise currently under construction. These technologies help buildings perform better during earthquakes, minimizing damage and enhancing safety.
Design strategies have also evolved significantly. The performance-based design (PBD) approach is gaining traction, allowing architects to create buildings that specifically address Jakarta's unique seismic challenges. This method, combined with the prescriptive code, ensures that structures are built to handle substantial earthquake forces. This tailored approach is crucial for the city's safety.
Seismic isolation isn't just a buzzword; it's a practical solution. By incorporating these technologies, new constructions are better equipped to handle seismic activity. This means fewer potential losses and a safer environment for residents. The focus on performance-based design means that each building is uniquely prepared for the seismic risks it might face.
Jakarta's commitment to earthquake-resistant buildings is evident in its regulatory changes. These changes are not just about compliance but about creating a safer urban landscape. The city's proactive stance is setting a new standard for safety in high-rise construction.
As more buildings adopt these advanced technologies and design practices, Jakarta is becoming a model for earthquake resilience. This transformation is not just about meeting regulations but about ensuring the safety and security of its residents. It's a forward-thinking approach that other cities might soon follow.
8) South Jakarta properties are the priciest, averaging 20% above the citywide average
In South Jakarta, property prices are consistently 20% higher than the citywide average.
Over the past few years, including 2023 and 2024, this trend has remained steady. The main reason is the presence of upscale neighborhoods like Menteng and the Golden Triangle. These areas are highly sought after by both expats and affluent locals, which naturally drives up demand and, consequently, prices.
For instance, a condo in Menteng can cost around $700,000, showcasing the premium nature of properties in this part of the city. In contrast, more affordable options, like an apartment in Kebayoran Baru, might be priced closer to $100,000. This significant price difference between neighborhoods highlights why South Jakarta remains more expensive.
The area's reputation for luxury and exclusivity continues to attract buyers willing to pay a premium, keeping prices elevated compared to other parts of Jakarta. South Jakarta's allure is not just about the properties themselves, but also the lifestyle and amenities that come with living in such a prestigious area.
Whether you're looking for a high-end condo or a more budget-friendly apartment, understanding the dynamics of South Jakarta's real estate market is crucial. Properties in South Jakarta remain the most expensive, with prices averaging 20% higher than the citywide average.
Sources: InvestAsian, Detik
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9) Foreign investors are buying at least 30% of Jakarta's residential real estate
In 2024, foreign investors made up at least 30% of residential real estate buyers in Jakarta.
Jakarta's property market has become a hotspot for foreign nationals, especially in areas like South Jakarta. Reports from 2023 highlighted a surge in interest from foreigners, showing a clear trend of growing demand. This interest is not just a passing phase; it's a significant shift in the market dynamics.
Despite restrictions on direct property ownership, foreigners have found creative ways to invest. Many opt for leaseholds or establish foreign-owned companies to navigate these legal hurdles. This flexibility has opened doors for international buyers, making it easier for them to tap into Jakarta's real estate opportunities.
Jakarta's market dynamics are also a big draw. Luxury hotels are performing better, and there's a rising demand for premium office spaces. These improvements signal a thriving environment, attracting investors who are keen on lucrative prospects.
With these factors in play, it's no wonder that Jakarta is on the radar for many foreign investors. The city's evolving landscape offers a mix of challenges and opportunities, making it an intriguing option for those looking to invest in real estate.
Sources: Kompas, JLL Indonesia, InvestinAsia, Invest Indonesia
10) Over 25% of luxury homes in Jakarta are bought as second homes or investments
The luxury property market in Jakarta is buzzing with activity, driven by strong interest from both local and foreign investors.
In 2024, the spotlight was on luxury accommodations and serviced apartments, showing a robust demand for high-end living spaces. This trend highlights Jakarta's appeal as a prime location for luxury real estate investments.
Jakarta's residential sector is thriving, with investment trends acting as a major growth catalyst. The city's growing middle class is fueling the demand for affordable housing and mortgages, but luxury properties are also in high demand, serving as both primary residences and lucrative investment assets.
Historically, Indonesia's foreign investment restrictions have been a hurdle for foreign property ownership. However, there's a buzz about potential regulatory changes that could open the doors for more foreign investments. This shift could make luxury properties even more attractive as second homes or investment opportunities.
Interestingly, at least 25% of luxury residential properties in Jakarta are purchased as second homes or investment assets. This statistic underscores the city's allure for investors looking to diversify their portfolios.
As the market evolves, Jakarta continues to be a hotspot for those seeking luxury real estate, with potential regulatory changes promising to further boost foreign interest in the city's high-end properties.
Sources: Nomad Capitalist, The Lets Move Group, Social Expat, Asia News Network
11) Residential property prices in Jakarta are rising by at least 3% annually
Residential property prices in Jakarta are on the rise, with steady growth observed in 2023 and 2024.
In the second quarter of 2024, the property price index in Greater Jakarta increased by about 1.4%, reflecting a consistent upward trend. This growth is not just a blip; it's part of a larger pattern of increasing property values.
Looking towards 2025, experts from Swa.co.id predict that residential property prices in Jakarta could jump by 5-7%. This anticipated rise is largely due to a 12% hike in Value-Added Tax and inflation, both of which naturally drive property prices up.
Jakarta's housing market is experiencing a continuous rise in property prices, primarily because of increasing demand and limited supply. The city's economic growth and the scarcity of affordable housing options are key factors pushing this trend.
As Jakarta continues to grow economically, the demand for housing is outpacing supply, leading to higher property prices. This makes it a crucial time for potential buyers to consider their options.
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12) Jakarta's serviced apartments are seeing a 9% rise in occupancy rates
In 2024, Jakarta's serviced apartments experienced a 9% growth in occupancy rates.
This surge was evident in Q2 2024, where the average occupancy rate hit 62.4%, a notable increase of 6.1 percentage points from the previous quarter. The rise was fueled by consistent business activities and international events, such as the Indonesia International Sustainability Forum in September 2024.
In the bustling CBD area, the demand for serviced apartments pushed the average rental rate to IDR 464,453 per square meter per month. This trend reflects a positive market shift, as higher demand typically leads to increased rental prices.
Such growth in occupancy and rental rates highlights Jakarta's appeal as a vibrant hub for both business and international gatherings. The city's ability to attract global events and maintain steady business activities plays a crucial role in this upward trend.
For potential property buyers, this data suggests a promising investment opportunity in Jakarta's serviced apartment sector. The combination of rising occupancy rates and rental prices indicates a robust market with potential for future growth.
Sources: Serviced Apartment News, JLL Research, Real Estate Asia
13) Expatriates occupy over 30% of luxury apartments in Jakarta's CBD
In Jakarta's CBD, luxury apartments are a magnet for expatriates, especially those from India, Korea, China, and Japan.
These expatriates often hold high-level positions and seek modern, well-equipped living spaces. The allure of these apartments lies in their premium quality and extensive amenities, which cater to both expatriates and affluent local families.
Located in prime areas, including the CBD, these apartments are strategically positioned to attract expatriates. The stable occupancy rates in these high-end properties hint at a significant expatriate presence, even if exact figures aren't readily available.
Expatriates are drawn to the convenience and lifestyle offered by these luxury apartments, which are often situated near business hubs and entertainment centers. This makes them a preferred choice for those who value both work and leisure.
While specific numbers are elusive, the consistent demand and occupancy trends suggest that expatriates form a substantial portion of the residents in these upscale properties.
Sources: Expat Life Indonesia, Real Estate Asia, Savills Asia
14) Jakarta's new residential projects are now 60% in suburban areas
In 2024, around 60% of Jakarta's new residential projects were in suburban areas.
This shift happened because Jakarta's population was growing, which meant more people needed places to live. As the city expanded, the demand for affordable housing options became more pressing. Suburban areas became the go-to choice because they offered cheaper land compared to the city center.
Developers saw an opportunity here. By focusing on suburban areas, they could build new projects that were within people's budgets. For instance, Kota Podomoro Tenjo experienced significant sales of affordable housing units, showing just how appealing suburban living had become.
Infrastructure development was a game-changer in this trend. Developers teamed up with the government to enhance roads, schools, and hospitals in these suburban areas. This collaboration made these places more attractive to potential homeowners, ensuring they could support the growing population.
With better infrastructure, suburban areas became more than just affordable—they became desirable. Improved roads and facilities made commuting and daily life easier, drawing more people to consider these areas for their new homes.
As a result, suburban living wasn't just about affordability anymore; it was about quality of life. People found they could enjoy a comfortable lifestyle without breaking the bank, thanks to the strategic development in these areas.
Sources: The Lets Move Group, The Straits Times
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15) Cash buyers now dominate 35% of Jakarta's property transactions
In 2024, 35% of property transactions in Jakarta were made by cash buyers.
This trend is largely driven by increased foreign interest in Jakarta's real estate, particularly in bustling business and tourist hotspots. Many international investors prefer cash deals to speed up the process and sidestep the complexities of local financing.
While housing loans still dominate, cash transactions are becoming more popular due to the scarcity of properties in prime locations. Buyers are eager to close deals quickly, often paying upfront to avoid future price increases, especially in the stable-priced Jakarta CBD.
High property prices and interest rates are pushing more Jakartans to rent rather than buy, which means those who can afford to purchase are likely using cash. This aligns with the trend of increasing cash buyers, as they aim to bypass the long-term costs of loans.
For those with the means, paying cash is a strategic move to avoid the financial burdens associated with borrowing. This behavior is evident in the market, where cash buyers are taking advantage of their financial flexibility to secure properties swiftly.
Sources: Invest in Asia, Ciptadana, The Jakarta Post
16) Luxury apartment rents in Jakarta are rising by 4-5% on average
In 2024, luxury apartment rents in Jakarta increased by 4-5%.
This rise is part of a larger trend in Jakarta's property market, driven by strong economic fundamentals and a rapidly growing middle class. As more people move to the city, the demand for housing, especially in the luxury segment, has surged.
High-net-worth individuals have shown increased interest in luxury properties, further pushing up prices and rents. This demand is not just local; international investors are also eyeing Jakarta as a prime location for luxury real estate.
While exact figures on rent hikes are scarce, the overall market dynamics make a 4-5% increase in luxury apartment rents quite believable. The city's urbanization and economic growth are key factors supporting this trend.
Jakarta's residential sector has been a major player in the market's expansion, with robust growth in the luxury segment. This has been fueled by both domestic and international interest, making it a hotspot for property investment.
As the city continues to develop, the luxury property market is expected to remain strong, with ongoing demand from affluent buyers driving further growth. This makes Jakarta an attractive option for those looking to invest in high-end real estate.
Sources: Jakarta Property Market Trends 2024, Leads Property Insight, Sewa Apartemen Bulanan di Jakarta Selatan
17) First-time homebuyers in Jakarta are now averaging 32 years old
The average age of first-time homebuyers in Jakarta is now 32 years old.
This shift is influenced by Millennials and Gen Z, who prefer renting co-living spaces with all the amenities over buying a house. High property prices and complicated buying processes make renting more appealing for these younger generations.
Interestingly, Jakarta's property market is seeing more activity, with people spending more time on property visits. Most of these seekers are aged 25-34, which matches the average age of first-time buyers. Males slightly outnumber females in these property searches.
Renting over buying is a growing trend among younger people, contributing to the average age of first-time homebuyers being 32 years old in Jakarta.
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18) Landed house prices in suburban Jakarta surged 8-10% last year
The average price of a landed house in suburban Jakarta has increased by 8-10% over the past year.
One reason for this rise is the steady increase in land prices. According to Statista, the average land price for residential homes in Jakarta was about 15.9 million Indonesian rupiah per square meter in the first half of 2024. This trend in land prices naturally pushes up the cost of landed houses.
There's also a noticeable shift of people moving to suburban areas. KFMAP Asia points out that this movement is driven by the high cost of properties in central Jakarta and the desire for a more peaceful and green environment. This increased demand in suburban areas contributes to the rise in house prices.
Moreover, the overall real estate market in Jakarta is experiencing steady growth. InvestAsian highlights the affordability and potential for long-term growth in the Jakarta property market, which supports the trend of increasing property prices.
These factors combined have led to a significant rise in the average price of landed houses in suburban Jakarta. The trend is particularly notable as more people seek affordable and spacious living options outside the bustling city center.
Sources: Statista, KFMAP Asia, InvestAsian
19) Jakarta's premium condo prices surged 5-8% last year
In 2024, Jakarta's premium condominiums saw a price increase of 5-8%.
Jakarta's premium residential market showed a steady growth of about 0.6%, but premium condominiums outperformed this, highlighting a stronger demand. In sought-after areas like South Jakarta, property prices hit around $4,000 per square meter, with rental yields averaging 8%. This indicates that investors are keen on these properties, pushing prices higher.
High-end apartment units in Jakarta were priced at IDR 57.7 million per square meter, showcasing a robust demand for luxury living spaces. This trend mirrors global patterns seen in cities like Monaco, Hong Kong, and Singapore, suggesting Jakarta's rising status in the luxury property market.
Investors are drawn to Jakarta's premium condominiums due to their attractive rental yields and the city's growing reputation as a luxury destination. The demand for these properties is not just local but also international, as more people recognize Jakarta's potential.
As Jakarta continues to develop, the appeal of its premium condominiums is expected to grow, attracting more investors and driving prices further. The city's infrastructure improvements and economic growth contribute to this positive outlook.
With these factors in play, Jakarta's premium condominium market is set to remain a hot spot for investment, offering promising returns for those looking to enter the luxury property scene.
Sources: Knight Frank
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.