Is buying a property in Jakarta Timur a good investment?

Last updated on December 20, 2023

Yes, the analysis of Jakarta's property market is included in our pack

If you've embraced the cultural diversity and local culture of Jakarta Timur, you might have considered settling in this diverse Jakarta district, immersing yourself in its vibrant atmosphere and community spirit.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Indonesia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Jakarta Timur?

Jakarta Timur, or East Jakarta, has gradually emerged as a favored destination for property buyers, distinguishing itself from other real estate markets in several key ways.

What makes Jakarta Timur stand out is its unique blend of urban development and cultural richness. Unlike some of the more densely populated and bustling central areas of Jakarta, Jakarta Timur offers a more balanced lifestyle, combining the convenience of city living with relatively more tranquil residential areas.

One of the most compelling reasons for its popularity is the affordability of properties here. Compared to more central areas like Jakarta Pusat or the upscale Jakarta Selatan, Jakarta Timur offers a range of housing options at more accessible price points.

This affordability factor started to gain significant attention around the early 2010s, as Jakarta's overall real estate market was heating up.

Developers and homebuyers alike began to see the potential in this area, leading to a steady increase in investment and interest.

However, it's not just about the cost. Jakarta Timur has seen substantial infrastructure development over the past few years.This includes improvements in transportation, with better road networks and public transport options, making it more accessible than ever.

These developments have enhanced its appeal, especially among young professionals and families looking for a balance between work and lifestyle.

The area attracts a diverse group of people, from first-time homebuyers to those looking for investment opportunities. Its appeal to a younger demographic is particularly notable, as they are drawn to the combination of affordability, accessibility, and the burgeoning urban lifestyle that the area offers.

This demographic shift has also influenced the local culture, bringing in a vibrant mix of culinary, entertainment, and lifestyle options.

However, like any growing urban area, Jakarta Timur has its share of challenges. One of the primary concerns is the pace of development, which can sometimes outstrip the local infrastructure.

Traffic congestion, a common issue in many parts of Jakarta, is also a factor here, especially during peak hours.

Additionally, as the area continues to grow, there's the risk of overdevelopment, which could potentially lead to issues like increased pollution and a strain on public services.

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Why is Jakarta Timur a nice place to live?

Living in Jakarta Timur offers a unique experience that combines the vibrancy of city life with a more laid-back suburban feel.

This area is known for its diverse lifestyle and cultural offerings, making it an appealing choice for many, including the expatriate community.

The lifestyle in Jakarta Timur is characterized by its cultural richness. With a mix of traditional markets, local eateries, and modern shopping centers, it provides a blend of the old and new.

Areas like Kelapa Gading are renowned for their culinary scene, offering a wide range of local and international cuisines. For shopping and entertainment, malls like Mall Kelapa Gading and Pulo Gadung Trade Center are popular destinations.

The expat community in Jakarta Timur is growing, attracted by the area's relatively affordable cost of living compared to more central parts of Jakarta. This affordability does not come at the expense of quality, as the area boasts reasonably priced housing options, from apartments to standalone homes.

The cost of living here is generally lower, making it an attractive option for those looking to enjoy the perks of living in Jakarta without the high expenses associated with other districts.

Safety is a consideration in any major city, and Jakarta Timur is no exception. While it shares common urban safety concerns, residents generally find it to be a secure place to live, especially in gated communities or apartment complexes which offer additional security measures.

Jakarta Timur is well-equipped with amenities and facilities, catering to the needs of its diverse residents. It houses reputable educational institutions like the Jakarta International Korean School and the British School Jakarta, catering to both local and expatriate families.

Healthcare facilities are also readily available, with hospitals like Omni Hospital and Premier Jatinegara Hospital providing quality medical care.

The quality of infrastructure in Jakarta Timur is continually improving. Roads and utilities are regularly upgraded to meet the growing population's needs. Internet connectivity is generally reliable, supporting the needs of both residents and businesses.

However, like many parts of Jakarta, traffic congestion can be a challenge, especially during peak hours.

Accessibility is one of Jakarta Timur's strong points. It's well-connected to other parts of Jakarta, making commuting relatively straightforward. Major transport hubs, like Soekarno-Hatta International Airport, are accessible via toll roads, making travel in and out of the area convenient.

Public transportation options are diverse. The TransJakarta bus service provides an affordable and efficient way to navigate around the city.

Additionally, the development of mass rapid transit (MRT) and light rail transit (LRT) systems is set to further enhance connectivity, making travel within Jakarta more efficient.

How much does it cost to buy real estate in Jakarta Timur?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Indonesia.

When you're looking into buying property in Jakarta Timur, you'll find a diverse range of residential properties available, each catering to different needs and budgets.

The types of properties you'll commonly come across include apartments, standalone houses, and, in some areas, luxury villas.

The demand for specific types of properties in Jakarta Timur often reflects the lifestyle preferences and budgets of the buyers. Apartments, particularly those in well-connected areas or near business districts, are in high demand due to their affordability and convenience, making them ideal for young professionals or small families.

On the other hand, standalone houses and luxury villas are sought after by those looking for more space and privacy, often attracting larger families or more affluent buyers.

In terms of property developments, Jakarta Timur has a mix of both new developments and resale properties. In recent years, there has been a noticeable increase in new residential projects, including high-rise apartment complexes and gated communities.

These developments are often equipped with modern amenities, appealing to buyers looking for contemporary living spaces.

Regarding the price range, properties in Jakarta Timur can vary significantly based on size, location, and amenities. As a general guideline, prices per square meter can range from relatively affordable to more upscale costs, particularly for luxury properties or those in highly sought-after locations.

It's important to note that these prices have been subject to change over recent years, influenced by factors such as economic growth, infrastructure developments, and the overall demand for housing in Jakarta.

Looking at how property values have changed, there's been a steady increase in prices over the years, reflecting Jakarta Timur's growing popularity and development. This trend is expected to continue, especially with ongoing and upcoming developments.

For instance, new infrastructure projects, such as improved transportation networks, are likely to boost property values in the areas they serve.

Predicting the future real estate market in Jakarta Timur can be challenging, but given the current trends and planned developments, it's reasonable to anticipate continued growth in property values.

Factors like the expansion of public transportation, ongoing urban development, and the area's increasing appeal to a broader demographic are likely to play significant roles in driving this growth.

When considering a property purchase in Jakarta Timur, it's crucial to look at specific factors that might indicate a potential increase in value.

These include the property's proximity to key amenities like schools, hospitals, and shopping centers, the quality of infrastructure in the area, and any future city planning changes that could enhance the neighborhood's appeal or accessibility.

By carefully evaluating these factors, you can make a more informed decision on investing in Jakarta Timur's dynamic real estate market.

Where is the best area to buy a property in Jakarta Timur?

When considering the best area to buy a property in Jakarta Timur, it's important to recognize that different parts of the district offer varied experiences in terms of atmosphere, property types, and prices.

Your choice will largely depend on what you're looking for in terms of lifestyle, budget, and long-term investment potential.

Jakarta Timur is quite diverse, with each neighborhood offering its unique flavor. For instance, areas like Kelapa Gading are known for their vibrant lifestyle, with an abundance of shopping centers, eateries, and entertainment options.

This area predominantly features modern apartments and townhouses, appealing to young professionals and families who enjoy an urban lifestyle. Property prices here tend to be on the higher side, reflecting the area's popularity and development.

On the other hand, if you're looking for something more serene, areas like Cibubur might be more your style. Known for its quieter, more suburban feel, Cibubur offers a variety of housing options, from modest homes to larger, more luxurious properties.

The prices here can be more affordable compared to the bustling central areas of Jakarta Timur, making it a good choice for those seeking a balance between city life and a more relaxed environment.

For buyers interested in up-and-coming areas, places like Cakung and Pulo Gadung are gaining attention. These areas are experiencing growth in terms of new housing developments and improved infrastructure, making them potentially good investments for the future.

The property prices in these areas are generally more affordable, but as development continues, they could see a significant increase in value.

In terms of where to look for a property, it's worth considering areas that balance lifestyle preferences with investment potential. Kelapa Gading, with its blend of modern living and robust amenities, is a great option for those who prioritize convenience and an active urban life.

Cibubur, offering a more laid-back setting, is ideal for families or individuals seeking a quieter place to call home.

However, there are areas in Jakarta Timur that might not be advisable for everyone. Regions that are prone to traffic congestion or lack adequate public transportation facilities could pose daily challenges.

Also, areas that haven't seen much development or investment might not offer the same growth potential as others.

Ultimately, the best area to buy a property in Jakarta Timur will depend on your personal preferences, lifestyle needs, and investment goals. It's crucial to consider the atmosphere of the neighborhood, the type of properties available, and the current and potential future prices.

By weighing these factors, you can make a well-informed decision that aligns with both your immediate needs and long-term objectives.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Indonesia.

Area	Atmosphere	Property Types	Price Range
Kelapa Gading	Vibrant, urban lifestyle with abundant amenities	Modern apartments, townhouses	Higher side
Cibubur	Serene, suburban feel	Modest homes to luxurious properties	More affordable
Cakung	Up-and-coming, developing	Various housing options, new developments	Generally affordable
Pulo Gadung	Growing, potential future development	New housing developments	More affordable, potential for increase

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Is there a strong rental demand in Jakarta Timur?

In Jakarta Timur, the rental market is indeed strong, but it's essential to understand its dynamics to make informed decisions as a property investor or landlord.

The demand in this area spans both short-term and long-term rentals, though they cater to different demographics and have distinct characteristics.

For short-term rentals, the demand primarily comes from tourists, business travelers, and locals seeking temporary accommodations. These renters often look for properties that offer convenience and proximity to key attractions or business districts.

The rise in popularity of platforms like Airbnb has also contributed to this demand. Short-term renters typically prefer fully furnished apartments or studio units in areas like Kelapa Gading, known for its shopping and dining options, or closer to business hubs.

Long-term rentals, on the other hand, cater to a different demographic, primarily consisting of working professionals, expatriates, and families.

These tenants usually look for stability and a sense of community, often seeking apartments or houses that can accommodate their lifestyle for an extended period. They tend to prioritize locations with easy access to work, good schools, and essential amenities.

Areas like Cibubur, which offers a more suburban feel, are popular among families, while younger professionals might lean towards more urban areas like Kelapa Gading or Pulo Gadung.

The profiles of potential tenants in Jakarta Timur are diverse. For instance, expatriates and high-income professionals often look for well-furnished, modern apartments or spacious houses.

Meanwhile, young professionals and small families might prioritize affordability and proximity to public transport and commercial centers.

When it comes to reducing vacancy and enhancing rental appeal, amenities play a crucial role. Properties with access to facilities like gyms, swimming pools, and communal areas are often more attractive.

Additionally, features like high-speed internet, modern appliances, and security services can significantly boost a property's rental appeal.

Regarding potential returns on investment, properties in Jakarta Timur can offer attractive yields, but these depend on various factors like location, property type, and the quality of amenities.

Generally, well-located properties in areas with growing demand, like Kelapa Gading or Cibubur, can see higher rental yields. You might expect annual rental yields to range from a modest percentage to more lucrative figures for premium properties or those in high-demand locations.

In terms of which properties are gaining increasing demand and could potentially yield better returns, modern apartments in well-connected areas or properties close to business districts are showing promising trends.

As Jakarta Timur continues to develop and attract a diverse population, these types of properties are likely to remain in high demand, offering potential for good rental yields and long-term value appreciation.

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Is it easy to buy a property as foreigner in Jakarta Timur?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Indonesia.

Buying property in Jakarta Timur, Jakarta, as a foreigner involves navigating a set of specific regulations and understanding the local real estate market.

Indonesia has certain restrictions and rules for foreign property ownership, but it's not an insurmountable process.

Firstly, it's important to know that foreign buyers are typically limited to purchasing properties under a leasehold agreement, rather than owning freehold titles.

This means foreigners can lease the property for an initial period of up to 30 years, with the possibility of extension. Freehold ownership is generally reserved for Indonesian citizens.

When it comes to the purchasing process, it usually involves several key steps; selecting the property, negotiating the price, signing a lease agreement, and processing the payment. It's crucial to ensure that all legal documents are in order, which typically includes checking the property's land title and obtaining a leasehold certificate.

One of the primary risks associated with property investment in Jakarta Timur, as in many parts of Indonesia, is the complexity of land ownership rules.

The existence of different types of land titles and rights can be confusing, and it's not uncommon for foreign investors to encounter issues related to land disputes or unclear land status.

Additionally, fluctuations in the local real estate market, economic conditions, and changes in regulations can also pose risks.

Common pitfalls for foreigners when buying property in Jakarta Timur include misunderstanding the legal framework for property ownership, underestimating the importance of due diligence, and encountering language barriers.

A unique aspect to be aware of in Indonesia is the "right of use" (Hak Pakai) title for foreigners, which differs from the "right to own" (Hak Milik) title that is available to Indonesian citizens. It's vital to understand these distinctions to avoid legal complications later on.

Working with a local real estate agent or lawyer is highly recommended. A knowledgeable local agent can provide insights into the best areas for investment and help navigate the complexities of the Indonesian property market.

A lawyer, on the other hand, can ensure that all legal procedures are correctly followed, protecting your investment and reducing the risk of future disputes.

As for exit strategies, property investors in Jakarta Timur typically consider a few options. Renting out the property is a common strategy, providing regular income and potential property value appreciation over time.

Another strategy is to sell the leasehold interest in the property, especially if the area has seen significant development and property values have increased.