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
What is happening in Jakarta’s real estate market? Are prices on the rise or decline? Is the city still a magnet for international investors? How are Indonesia’s government policies shaping real estate regulations and taxes in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Jakarta and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and individuals like you, exploring the Jakarta real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Stricter property ownership rules will affect foreign investment in some areas
Stricter regulations on property ownership in Jakarta are reshaping the landscape for foreign investors.
In recent years, the Indonesian government has rolled out new rules, like Government Regulation No. 103 of 2015 and Government Regulation No. 18 of 2021, which have made it tougher for foreigners to buy property. These regulations introduced a minimum price for properties that foreigners can purchase. For instance, in Jakarta, foreigners need to shell out at least Rp 3 billion for an apartment and Rp 5 billion for a landed house. This high price threshold is a significant barrier for many potential investors.
Foreigners are also limited to owning just one plot of land, and it can't be more than 2,000 square meters for a landed house. If they want to expand, they must prove their investment will have a positive economic impact. This requirement, along with the need to comply with specific residential zoning rules, makes it even more challenging for foreign buyers to find suitable properties.
These zoning requirements mean that not all types of properties are available to foreign buyers, further narrowing their options. The combination of these factors has led to a noticeable decline in foreign investment in Jakarta's property market.
Sources: The Jakarta Post, Invest Indonesia
2) Foreign investment in Jakarta’s residential market will rise as new regulations ease ownership restrictions
Jakarta's residential market is buzzing with increased foreign investment thanks to new regulations.
In 2023, the Indonesian government made a game-changing decision by relaxing property ownership rules for foreigners. Now, with a minimum price set at IDR 3 billion, foreigners can own up to 20% of property units. This move has opened doors for international buyers, making Jakarta a hot spot for real estate investment.
By 2024, the effects of these changes were clear. There was a surge in interest from foreign buyers, especially in the residential market. Properties priced between IDR 1 billion and IDR 3 billion became a favorite, making up 34.7% of property searches by foreign nationals. Landed houses and apartments were particularly in demand, showing a clear preference for these types of homes.
Real estate agencies like JLL Indonesia have reported a growing interest from international investors. The market in Jakarta, particularly in the CBD’s Class A office rental sector, is thriving. Premium rental spaces have seen a rise in rates, reflecting the market's recovery and the appeal of investing in Jakarta.
With these relaxed regulations, Jakarta is now a favorable environment for foreign investment. The combination of regulatory changes and market recovery is drawing more international attention, making it an exciting time for potential buyers.
Sources: Kompas, Asianews Network, Invest Indonesia
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
4) New tax incentives will boost interest in eco-friendly residential developments
In Jakarta, there's been a surge in eco-friendly residential projects recently.
Back in 2023, the city saw green buildings exceeding expectations by reaching 3.99% of the target, which was initially set at 2.5%. This upward trend is likely to continue, with predictions that by 2025, green buildings will make up 11.97% of the total, surpassing the target of 7.5%.
What's driving this growth? The DKI Jakarta Provincial Government has introduced new tax incentives for green buildings. They offer significant tax breaks: a 30% PBB discount for Bronze-certified buildings, 50% for Silver-certified, and 60% for Gold-certified buildings. These incentives make it financially attractive for developers and homeowners to invest in eco-friendly residential developments.
Moreover, the market for green building materials in the Asia Pacific region is booming. In 2023, it was valued at USD 105.78 billion, and it's projected to grow to USD 344.79 billion by 2033. This growth indicates a rising demand for sustainable building materials, further fueling interest in green residential projects.
For those considering buying property in Jakarta, these developments mean more options for sustainable living. The city's commitment to eco-friendly construction is not just about meeting targets; it's about creating a healthier environment for its residents.
Sources: Jurnalku, Precedence Research
5) Property interest in flood-prone areas will decline as climate concerns increase
Jakarta is seeing more floods, with 1,255 incidents in 2023 alone.
As climate change worsens, flood-prone areas are becoming less attractive to property buyers. The costs of flood damage in Jakarta are expected to skyrocket, potentially increasing by 322% to 402% by 2050. This means property values in these areas could take a hit.
Living in a flood zone also means higher insurance premiums. With economic losses from flooding reaching USD 500 million annually, these extra costs make such properties less appealing.
Reports from the World Bank Group and Asian Development Bank highlight Jakarta's vulnerability to climate hazards like flooding and sea-level rise. This official recognition of risk is a red flag for potential buyers.
Buyers are shifting away from high-risk areas as they become more aware of climate change impacts. Real estate agents note that flooding risks are a growing concern for those considering property in Jakarta.
Neighborhoods like Kec. Pancoran and Kec. Kebayoran Lama, which have faced recurrent flooding, are seeing reduced demand due to these risks. Media and social media discussions further emphasize the dangers, contributing to decreased interest in these areas.
Sources: Statista, PreventionWeb, Yale Climate Communication, ReliefWeb, PubMed
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6) Interest in developments with shared amenities will grow due to the rising popularity of community-focused living
In Jakarta, co-living spaces are becoming increasingly popular due to the city's high living costs and limited affordable housing.
Many young professionals and millennials are drawn to these spaces because they offer affordability, convenience, and social opportunities. Developments like Cove Prima in Antasari and Cozy Coliving in Fatmawati are leading the way, providing fully furnished private rooms with en-suite bathrooms and shared amenities like co-working spaces, fitness centers, and rooftop gardens.
These shared amenities not only make living more affordable but also enhance the social experience for residents. People enjoy the sense of community and support that comes with co-living, making it a preferred choice for digital nomads, expats, and even pet owners.
Consumer surveys highlight a strong preference for community-focused living. This trend is evident in the growing number of real estate projects in Jakarta that emphasize communal spaces. The "Kampung Deret" program, for example, is transforming slum areas into organized two-storey buildings with public facilities, addressing the need for affordable and convenient housing solutions.
As more people seek out these community-oriented living arrangements, the demand for developments with shared amenities is expected to rise. This shift is not just about affordability but also about creating a lifestyle that fosters connection and collaboration among residents.
In Jakarta, the trend towards co-living is reshaping the real estate landscape, with more projects focusing on creating vibrant communities rather than just providing a place to live.
Sources: Social Expat, Kompas
8) Jakarta’s southern neighborhoods will attract more buyers with new green spaces and parks being developed
The southern neighborhoods of Jakarta are becoming a hot spot due to the development of new green spaces and parks.
Since 2022, the area has seen the establishment of 54 new parks, making it more attractive and driving up property prices. People are flocking to these neighborhoods, eager to live near these lush, beautiful spaces. The demand for homes in southern Jakarta is on the rise, with more real estate transactions happening as buyers seek properties close to these green areas.
Surveys indicate that buyers have a strong preference for homes near parks, and the high demand for such properties reflects this trend. The Jakarta government's urban development plans have prioritized creating new parks, enhancing the area's livability and appeal. This focus on green infrastructure not only improves climate resilience but also boosts the desirability of the neighborhoods.
Media coverage has been buzzing about the benefits of living near parks, such as improved health and quality of life, which draws even more residents. The new parks have also sparked increased foot traffic and business activity, with a noticeable uptick in cafes and restaurants opening nearby. This vibrant atmosphere adds to the charm and allure of the southern neighborhoods.
Investments in green infrastructure have not only improved living conditions but have also made these areas more appealing to potential buyers. The government's efforts to enhance climate resilience through these developments have further fueled the demand for properties. As a result, the southern neighborhoods are experiencing a surge in popularity and growth.
Sources: WRI, EEER, Frontiers in Human Dynamics
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Central Jakarta will see stable demand as it stays the city’s business and cultural hub
Central Jakarta's commercial real estate is buzzing with high occupancy rates.
In 2024, the Central Business District (CBD) saw an average occupancy rate of 73.0%, with premium office buildings at 74.4% and Grade A offices reaching 76.4%. This shows a strong demand for office space, thanks to its strategic location that pulls in both local and multinational companies.
The tech sector is a big player here, leasing over 8,000 square meters per quarter. The "golden triangle" in Central and South Jakarta is a hot spot, offering a large chunk of the city's Grade A office space. This area alone makes up about 51% of the total stock in the CBD, underscoring its importance in the business scene.
Property prices in Central Jakarta are either stable or on the rise, showing how desirable the area is. In 2025, the average price per square meter for residential properties in Jakarta is expected to be around IDR 25 million. This trend points to a growing demand and limited supply of prime real estate, making Central Jakarta a top pick for investors and residents.
High foot traffic and consumer spending keep Central Jakarta thriving as a business and cultural hub. Retail occupancy rates are predicted to stay steady at 74%-75% by the end of 2024, thanks to committed tenants and more visitors during festive seasons. The area is bustling with F&B retailers, pastry shops, and coffee spots, showing strong consumer spending.
Sources: Real Estate Asia, JLL Indonesia, Real Estate Asia
11) High-rise apartment demand will grow as land scarcity pushes vertical development
Jakarta's population boom has made land a rare commodity, pushing the city to build upwards.
With skyrocketing land prices in central Jakarta, developers find high-rise apartments more feasible than low-rise buildings. The government is on board too, encouraging vertical growth, especially near transit hubs, to make city travel easier.
Land scarcity is a real issue, with only 10% of green space available, far from the ideal 30%. This makes high-rise projects a smart way to use land efficiently, and you can see this in the increasing number of such developments popping up around the city.
People's tastes are changing too. More folks want the urban lifestyle that high-rise apartments offer, thanks to the convenience and amenities. The new Jakarta MRT is a game-changer, making city living even more appealing.
There's also a shift in household dynamics. More single and smaller households are looking for affordable and convenient living, which high-rise apartments provide. This trend aligns perfectly with the growing demand for these types of homes.
So, if you're considering buying property in Jakarta, high-rise apartments are where the action is. They're not just a trend; they're a response to real urban challenges and changing lifestyles.
Sources: JPI, C40, JLL Research
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12) Planned waterfront developments will boost interest in North Jakarta
North Jakarta is poised to become a hotspot due to planned waterfront developments.
One of the main drivers is the government's significant investment in infrastructure, especially the 11-kilometer coastal defense project. This is part of the National Capital Integrated Coastal Development (NCICD) Phase A, which includes a seawall and other coastal defenses. These enhancements are set to make the area more appealing for both development and investment.
Moreover, the announcement of major waterfront development projects is stirring interest. The NCICD project not only tackles flooding but also manages the northern coastal areas, ensuring sustainable development. This initiative aims to protect the area from coastal erosion, making it a safer and more attractive place to live and invest.
Real estate developers are increasingly eyeing North Jakarta. The completion of projects like Pluit Sea View (Ibiza Tower) and Cleon Park (North Tower) highlights a trend of growing development activity. These projects contribute to the existing apartment landscape, indicating that developers see significant potential in the area.
Transportation improvements are also on the horizon, with the ongoing construction of MRT phase 2A. This will enhance connectivity to North Jakarta, making it more accessible and attractive to potential residents and investors. Improved transport links are expected to boost the area's appeal even further.
Sources: Social Expat, Real Estate Asia, Smart City Jakarta
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.