Are rents in Jakarta still rising?

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Are Jakarta rents actually rising right now?

Yes, but Jakarta rents are rising much more slowly and unevenly than the strongest headline numbers suggest. When we compare the latest professional rental data with live asking-price data, the clearest conclusion is that Jakarta has moved back into modest rental growth, not into a new citywide rent boom.

Cushman & Wakefield recorded the strongest recent improvement in the condominium-for-lease segment: average rents increased 2.1% quarter on quarter and 1.9% year on year in Q2 2026. Yet the same report said operators and landlords were generally keeping rents at existing levels to preserve occupancy. One segment is recovering, but landlords still do not behave as if tenants have lost bargaining power.

Rumah123 gives a much stronger number. Its current DKI Jakarta apartment listings show a 7.35% increase in the median asking rent over six months, based on 110,776 properties tracked over the previous year. We would not interpret that as evidence that the typical Jakarta tenant is suddenly paying 7.35% more. Listing prices, effective rents and the changing mix of apartments advertised are three different things.

Measure	Market covered	Latest movement	What it tells us
Rumah123 asking rents	DKI Jakarta apartments	+7.35% over 6 months	Landlords are advertising units at higher prices
Cushman condo-for-lease	Greater Jakarta	+2.1% QoQ	Rental momentum improved recently
Cushman condo-for-lease	Greater Jakarta	+1.9% YoY	Annual rent growth has turned positive
Cushman overall rental market	Q1 2026	-1.6% YoY	The broader recovery was still incomplete one quarter earlier
Jakarta inflation	Consumer prices	+2.50% YoY in latest BPS reading	Professional rent growth is not unusually strong in real terms

Why do Jakarta rent statistics seem to contradict each other?

Jakarta rent statistics disagree because they are measuring different apartments and, more importantly, different prices. We found unusually strong evidence that the current portal headline is being influenced by the mix of properties listed rather than simply by landlords raising the rent on comparable units.

Rumah123 currently reports DKI Jakarta apartment rents up 7.35% over six months. But its individual city sections show South Jakarta up 5.58%, East Jakarta 4.36%, North Jakarta 3.45%, Central Jakarta 2.67% and West Jakarta only 1.54%. The striking point is that the DKI-wide increase is higher than the increase in every one of those five constituent markets.

The listing counts make the discrepancy even more interesting. Rumah123 reports 25,297 apartments for South Jakarta, 13,942 for Central Jakarta, 34,222 for West Jakarta, 34,949 for North Jakarta and 2,366 for East Jakarta. Those numbers add up exactly to the 110,776 properties cited in its DKI-wide dataset. A simple weighted average of five district growth rates therefore cannot produce a citywide increase above all five rates.

That does not make the portal data wrong. It tells us the citywide median is moving partly because the composition of listings is moving. More expensive apartments, different lease periods or different neighborhoods can raise the aggregate median even if comparable apartments are increasing much less.

Did Jakarta rents just start recovering after falling?

Yes. The latest Jakarta rental improvement looks more like a reversal from a weak period than the continuation of a long rent surge. That distinction changes how we should read the current positive numbers.

At the end of 2025, Cushman & Wakefield calculated average effective rents across its rental-apartment universe at roughly Rp261,929 per square metre per month, virtually unchanged year on year at +0.09%. The enormous condominium-for-lease segment was actually down 4.22% year on year.

Conditions weakened again at the beginning of 2026. Overall effective rent slipped to Rp261,181 per square metre per month, 1.6% lower than a year earlier. Condominium-for-lease rents were down 5.9% year on year. By Q2, however, that same condominium segment had swung to +1.9% year-on-year growth.

That is a 7.8-percentage-point change in the annual growth rate in one quarter. We see a real rebound, but not several consecutive years of steadily accelerating rents.

Period	Market	Annual rent growth	Reading
Q4 2025	Overall rental apartments	+0.09%	Essentially flat
Q4 2025	Condo-for-lease	-4.22%	Clear decline
Q1 2026	Overall rental apartments	-1.6%	Market still weakening
Q1 2026	Condo-for-lease	-5.9%	Weakest major segment
Q2 2026	Condo-for-lease	+1.9%	Recovery becomes visible

Are landlords actually getting these higher Jakarta rents?

Not consistently. Jakarta asking rents are currently rising faster than the rents landlords appear to be successfully collecting, which is why we would be cautious with portal headlines.

Cushman & Wakefield measures effective rents, making its figures more useful for determining what the professional rental market is actually clearing at. Its Q2 assessment explicitly said landlords and operators were keeping rental rates relatively stable to support occupancy retention. That is not how a market with severe tenant competition normally behaves.

Portal prices answer another question: what price are owners trying to obtain? They are useful for measuring direction, inventory and differences between neighborhoods, but advertised rents can include units that remain on the market, duplicates, different furnishing standards and properties that will ultimately be negotiated downward.

The gap between the two datasets is itself informative. Owners have become more confident about asking for higher rents, but the institutional market is still forcing many of them to defend occupancy rather than maximize price.

Is South Jakarta pushing rents higher?

Yes. South Jakarta is one of the clearest pockets of current rental strength, particularly around established business, diplomatic and expatriate districts, but even there the rise is selective rather than universal.

Rumah123 currently measures South Jakarta apartment asking rents about 5.58% higher over six months, stronger than Central, North, West or East Jakarta. Within South Jakarta, its listings put median annual asking rents around Rp300 million in both Kuningan and Setiabudi, roughly Rp450 million in Kebayoran Baru and Rp288 million in Kemang. Setiabudi was showing a 3% increase, Kemang about 4% and Kebayoran Baru roughly 1%, while Sudirman listings were around Rp265 million and down approximately 4%.

The supply side also reinforces South Jakarta's importance. Colliers estimated that roughly 60% of the additional Jakarta apartment supply expected during 2026 would be concentrated in South Jakarta.

That creates an awkward tension. South Jakarta has some of the strongest tenant demand, but developers also keep sending a disproportionate share of new stock there. Prime projects can raise rents while ordinary or older buildings compete aggressively a few kilometres away.

Are rents rising across every part of Jakarta?

Broadly yes at the district level, but the size of the increase varies enormously and several neighborhoods inside those districts are still falling. Jakarta is better described as a collection of local rental markets than as one synchronized market.

South Jakarta has the strongest district-level increase in the current Rumah123 dataset, followed by East and North Jakarta. West Jakarta is barely rising. Yet neighborhood numbers move in both directions: Pantai Indah Kapuk was around 5% lower, Ancol about 4% lower, Central Park roughly 3% lower and Pulo Gadung around 15% lower in the latest listings, while some other pockets were increasing.

East Jakarta illustrates why small markets can also be volatile. Rumah123 tracks only 2,366 apartment listings there, barely 2% of its DKI sample, compared with more than 34,000 each in West and North Jakarta. Individual projects can therefore shift the median more visibly.

Area	Listings tracked	Share of DKI sample	6-month rent trend
South Jakarta	25,297	22.8%	+5.58%
Central Jakarta	13,942	12.6%	+2.67%
West Jakarta	34,222	30.9%	+1.54%
North Jakarta	34,949	31.5%	+3.45%
East Jakarta	2,366	2.1%	+4.36%

Is Jakarta’s premium expatriate rental market stronger than the normal apartment market?

Yes. Premium expatriate housing is currently one of the clearest places where Jakarta landlords have genuine pricing power, because demand for suitable properties is tighter than the citywide vacancy numbers imply.

Colliers described the expatriate housing market in H1 2026 as entering a new demand cycle associated with investment activity in energy, mining, technology and industrial projects. More importantly for rents, it found that demand for quality expatriate housing was exceeding the available supply and that premium stock in established locations remained limited.

That is why a luxury house in Kebayoran Baru, a serviced apartment around the CBD and an ordinary investor-owned studio in a large condominium complex should never be treated as one rental market.

The shortage is about specifications as much as unit numbers. Corporate tenants often need particular locations, security, maintenance standards, layouts and lease arrangements. Jakarta can have substantial aggregate apartment vacancy while simultaneously having too few properties that satisfy a narrow group of high-budget tenants.

Is Jakarta apartment occupancy high enough to force rents upward?

No. Jakarta apartment occupancy has improved in places, but the rental market as a whole is nowhere near tight enough to force landlords into aggressive citywide rent increases.

Cushman & Wakefield reported a 40.6% vacancy rate across its market at the end of 2025 and 40.4% in Q1 2026. Within Q1, purpose-built rental apartments had 34.1% vacancy, serviced apartments 37.1%, and the much larger condominium-for-lease market 40.6%.

The movement was at least going in the right direction. Purpose-built occupancy improved by 0.5 percentage points quarter on quarter, serviced apartments by 0.4 points and condominiums-for-lease by 0.3 points. But a market in which around one-third to two-fifths of tracked rental stock is vacant still gives tenants choices.

That is why the language in the professional reports remains cautious despite better rents. Occupancy is recovering incrementally; it has not crossed into genuine scarcity.

Rental segment	Q1 2026 vacancy	Approx. occupancy	YoY rent change
Purpose-built apartments	34.1%	65.9%	+0.4%
Serviced apartments	37.1%	62.9%	-0.8%
Condominiums-for-lease	40.6%	59.4%	-5.9%
Entire tracked market	40.4%	59.6%	-1.6%

Is limited new apartment supply finally helping Jakarta rents?

In the short term, yes, but Jakarta does not have a simple apartment shortage. Completed supply has slowed markedly, which gives existing good-quality buildings more breathing room, while a substantial pipeline still limits how far we should extrapolate that advantage.

Colliers counted roughly 232,000 strata-title apartments in Jakarta in Q2 2026 and recorded no new project completion during the quarter. It had expected approximately 2,000 additional units during 2026, but only about 10% of that figure had been completed by the end of Q1, suggesting that some handovers were slipping.

Cushman & Wakefield's rental universe tells the same short-term story from a different angle. Q1 added only about 205 condominium-for-lease units through Newville Zeta and The Belton Residence.

Yet there was still a very large longer-term pipeline. Its Q1 dataset contained approximately 39,235 condominium-for-lease units under construction across Greater Jakarta. We should not compare that number directly with Colliers' Jakarta-only pipeline because their definitions and geographies differ, but both datasets point in the same direction: immediate deliveries are light; future competition has not disappeared.

Is short-stay demand making Jakarta’s rental recovery look stronger than it really is?

Yes. Some of the recent improvement in Jakarta rental occupancy comes from short stays rather than a decisive revival in conventional long-term leasing.

Cushman & Wakefield saw serviced-apartment occupancy improve during the Eid holiday period in Q1 2026 because of additional short-term demand. The pattern was already visible in late 2025: serviced properties in prominent or leisure-oriented locations were achieving nearly full occupancy on strong weekends and during year-end holidays, while long-stay demand remained much slower.

A three-night booking does not create the same pricing environment as a multinational company signing a one-year lease.

Operators have adapted accordingly. Some serviced apartments have leaned further into daily stays and holiday periods rather than waiting for long-term corporate demand to return fully. Rising occupancy can therefore coexist with weak long-stay negotiating power.

For the central question, we give more weight to sustained effective rents and annual leases than to temporary occupancy spikes.

Is Jakarta’s population growing fast enough to explain higher rents?

No. Jakarta's underlying population trend is surprisingly weak, so demographic pressure alone cannot explain the current increase in apartment rents.

BPS's 2025 intercensal population survey found that DKI Jakarta's population had grown at an average annual rate of only 0.32% over the previous five years. More strikingly, recent out-migration exceeded in-migration, producing a net migration figure of -5.40%.

That is almost the opposite of the demographic profile we would expect in a classic rent-squeeze story, where rapid population inflows chase a constrained housing stock.

Jakarta remains the economic core of a metropolitan region containing tens of millions of people, of course, and administrative DKI boundaries do not capture commuting from Tangerang, Bekasi, Depok and Bogor. But the distinction reinforces the broader point. Apartment rents inside Jakarta are being determined increasingly by job location, building quality, transport access and particular tenant groups, not simply by the city adding residents faster than it can house them.

Is the Jakarta office recovery helping apartment rents?

A little, especially in prime corridors, but the office recovery is not yet large enough to explain a citywide rental surge. What we see is a flight toward better workplaces that can support nearby premium housing without creating equivalent demand everywhere else.

Cushman & Wakefield recorded 26,000 square metres of positive Jakarta CBD office net take-up during Q2 2026, bringing the first-half figure to about 45,500 square metres. Grade A buildings accounted for a large share of that demand.

At the same time, Grade C offices lost around 13,000 square metres of occupied space as tenants relocated toward better buildings. Part of the apparent Grade A recovery therefore represents companies moving within Jakarta rather than entirely new employers filling the city.

The residential effect should be concentrated around business districts and convenient commuting corridors. Kuningan, Setiabudi, Sudirman and surrounding South/Central Jakarta locations can benefit more than the aggregate city.

Is the weak rupiah pushing Jakarta rents higher?

Not in a straightforward way. A weaker rupiah can support some IDR-priced properties, but it is simultaneously making foreign-currency housing budgets more difficult for the corporate tenants who underpin Jakarta's premium rental market.

Colliers found that rupiah depreciation was reducing the purchasing power of companies whose housing decisions were constrained by USD-based budgets or contracts. That encouraged renegotiation and changes in housing strategy rather than simply allowing landlords to increase rent.

The currency pressure became meaningful during 2026. Bank Indonesia reported the rupiah around Rp16,880 per US dollar in February, while official and market reference rates moved materially weaker later in the first half of the year.

One beneficiary has been serviced accommodation quoted directly in rupiah. Colliers noted that IDR-denominated serviced apartments can provide multinational companies with greater cost certainty.

So currency weakness creates another split: prime landlords may have scarce properties, but the tenant paying for them is becoming more price-sensitive at exactly the same time.

Are Jakarta rents actually rising faster than inflation?

For most professionally measured apartments, no. Current Jakarta rental growth is modest once we compare it with general price inflation, which is another reason the market does not yet qualify as a strong rental boom.

BPS measured Jakarta consumer-price inflation at 2.50% year on year in its latest published reading. Against that benchmark, Cushman & Wakefield's Q2 condominium-for-lease increase of 1.9% year on year was still below inflation. At the beginning of the year, purpose-built rents were only 0.4% higher year on year, serviced-apartment rents were 0.8% lower and condominium-for-lease rents were 5.9% lower.

Rumah123's 7.35% increase looks very different, but it covers a six-month movement in listing medians rather than a year-on-year change in effective comparable rents. It cannot be compared directly with annual CPI.

In real purchasing-power terms, the institutional data points to stabilization and recovery rather than exceptional rental inflation.

Measure	Change	Comparison with Jakarta inflation
Jakarta CPI	+2.50% YoY	Baseline
Condo-for-lease rent, Q2	+1.9% YoY	Below inflation
Purpose-built rent, Q1	+0.4% YoY	Well below inflation
Serviced-apartment rent, Q1	-0.8% YoY	Falling in nominal terms
Rumah123 DKI asking median	+7.35% over 6 months	Not directly comparable

Do Jakarta landlords finally have pricing power?

Only some of them. Pricing power in Jakarta is attached to the property, location and tenant segment rather than to apartment ownership itself.

The best evidence is the contrast between Colliers and Cushman & Wakefield. Colliers sees limited premium expatriate stock and demand exceeding supply for suitable high-quality housing, which strengthens the position of landlords in prime areas. Cushman, looking at the broader rental-apartment universe, still sees operators deliberately keeping rents stable to retain tenants.

Both can be true at the same time.

A well-maintained apartment in a preferred South Jakarta compound serving corporate tenants may have genuine scarcity value. A generic unit in a large condominium with dozens of similar landlord listings does not. The latter competes on furnishing, payment terms and price even when the area's headline median is increasing.

This is probably the biggest mistake in saying simply that “Jakarta rents are rising.” The citywide direction is improving, but individual landlord bargaining power remains radically unequal.

Could Jakarta rents keep rising from here?

Yes, but a sustained rise now requires more than higher asking prices. We would want to see long-stay demand, occupancy and effective rents move upward together before calling the next phase a durable rental upswing.

Several conditions are favorable. Completed apartment supply has been unusually light. Grade A office demand is improving. Premium expatriate housing remains scarce. South Jakarta continues to concentrate both corporate demand and high-value housing. And the condominium-for-lease market has already moved from a 5.9% year-on-year rent decline in Q1 to 1.9% growth in Q2.

The constraints are just as visible. Vacancy remains high. Long-stay demand is still cautious. Jakarta's population is barely growing and has experienced net outward migration. Currency weakness is squeezing some corporate housing budgets. A substantial apartment pipeline also remains outside the immediate delivery window.

If effective rents keep increasing while vacancy falls meaningfully over several quarters, the story changes. For now, we have the beginning of a recovery rather than evidence of an undersupplied rental market.

So, are rents in Jakarta still rising?

Yes, but only partly: Jakarta rents are rising in asking-price data and in several important apartment segments, while the broader effective-rent market is experiencing a modest, uneven recovery rather than a powerful citywide surge.

The strongest bullish number is Rumah123's 7.35% six-month increase in DKI apartment asking rents. We would not use it as the headline estimate of what tenants are actually paying because the aggregate rise exceeds the reported increase in every individual Jakarta district, revealing a significant listing-mix effect.

The harder institutional data gives us a more restrained answer. Condominium-for-lease rents recovered to +1.9% year on year in Q2 after being down 5.9% in Q1 and 4.22% at the end of 2025. Premium expatriate properties and parts of South Jakarta are genuinely tighter. Yet vacancy remains around 40% in the professional rental dataset, operators are still protecting occupancy, long-term leasing is weaker than short-stay demand, and professional rent growth is not clearly beating Jakarta inflation.

So the claim is mostly true, but easily exaggerated. Jakarta has moved from falling or stagnant rents into selective rental growth. It has not yet moved into a broad rental boom.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Jakarta. If you’d like to learn more about us, you can check our presentation page.