Is buying a property in Jakarta Utara 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 appreciated the suburban charm and family-friendly vibe of Jakarta Utara, you may have thought about making this peaceful Jakarta district your tranquil and welcoming home.

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 North Jakarta?

Jakarta Utara, a part of the bustling metropolis of Jakarta, Indonesia, has emerged as a highly attractive location for property buyers, and there are several reasons why.

This district stands out in the Jakarta property market due to its unique blend of attributes. Let's explore these aspects to give you a better understanding of what makes Jakarta Utara a sought-after area for real estate investments.

One of the primary factors that draw buyers to Jakarta Utara is its strategic location. Nestled along the coastline, it offers easy access to the Java Sea, making it ideal for those who love the waterfront lifestyle.

This coastal charm is something that many other areas in Jakarta don't offer, giving Jakarta Utara a distinct edge.

Additionally, this area is known for its improved infrastructure and connectivity, which has been a game changer. The enhanced road networks and public transport options make commuting to other parts of Jakarta relatively hassle-free. This kind of connectivity is crucial in a city known for its traffic congestion.

Jakarta Utara's popularity as a real estate hotspot didn't happen overnight. It's been a gradual process, gaining momentum particularly in the last decade. This surge in interest is partly due to the government's focus on developing infrastructure and public amenities in the area.

As a result, Jakarta Utara has seen a steady rise in property values, and this trend is likely to continue. The area has become synonymous with growth and potential, a factor that property investors find particularly appealing.

When it comes to the kind of people Jakarta Utara attracts, it's quite a diverse mix. You'll find young professionals drawn to the urban lifestyle and modern amenities, families who appreciate the area's relative tranquility compared to Jakarta's more frenetic districts, and investors who see the long-term growth potential.

The blend of residential and commercial developments, along with leisure and entertainment facilities, caters to a wide range of needs and preferences.

However, it's important to consider some of the potential drawbacks. Jakarta Utara, like many rapidly developing areas, faces challenges such as the risk of overdevelopment, which can lead to issues like increased traffic and environmental concerns.

Additionally, the property prices in North Jakarta are on the higher side, especially when compared to other parts of Jakarta. This aspect might deter some buyers, especially those looking for more affordable options.

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Why is Jakarta Utara a nice place to live?

Jakarta Utara offers a unique living experience that combines urban convenience with a touch of coastal charm.

Understanding the lifestyle, culture, and amenities this area offers is essential if you're considering making it your home.

The lifestyle in North Jakarta is diverse, reflecting a mix of traditional Indonesian culture and modern urban living. The area is known for its lively markets, rich culinary scene, and waterfront activities, offering a blend of leisure and cultural experiences.

You'll find a variety of local eateries and high-end restaurants, showcasing the rich flavors of Indonesian cuisine and international fare.

There's a significant expat community in North Jakarta, contributing to its cosmopolitan atmosphere. This community is supported by various international schools and social groups, making it easier for newcomers to settle in and find like-minded individuals.

The presence of international schools such as the Jakarta International School and the North Jakarta Intercultural School indicates the area's appeal to expatriate families.

Living in North Jakarta can be more expensive compared to other districts in Jakarta. The cost of living reflects the quality of amenities and lifestyle it offers. Housing, in particular, can be a major expense, with prices varying depending on the type and location of the property.

Safety is a concern in any major city, and Jakarta Utara is no exception. However, the area is generally considered safe, with active community policing and security measures in residential and commercial areas.

Amenities and facilities in North Jakarta are top-notch. You'll find well-equipped hospitals like Pluit Hospital and RS Atma Jaya offering excellent healthcare services.

For shopping and entertainment, malls like Emporium Pluit Mall and Mall of Indonesia provide a wide range of retail and dining options.

The quality of infrastructure in North Jakarta has seen significant improvements. Roads are generally well-maintained, although traffic congestion can be an issue during peak hours, as in many parts of Jakarta.

Utilities and internet connectivity are reliable, catering to the needs of both residents and businesses.

Accessibility is one of Jakarta Utara's strengths. It's well-connected to other parts of Jakarta through major road networks, making commuting relatively straightforward. Proximity to major transport hubs like Soekarno-Hatta International Airport is a bonus, especially for frequent travelers.

Public transportation options are varied, with access to bus services, and the TransJakarta busway system. These services make it easier to navigate around Jakarta Utara and to other districts in the city.

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

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.

Buying a property in North Jakarta, involves navigating a diverse and dynamic real estate market.

Understanding the types of properties available, their demand, price ranges, and future market trends is key to making an informed decision.

Jakarta Utara offers a variety of residential properties, including apartments, houses, and luxury villas. Apartments are particularly popular, especially for young professionals and small families, due to their affordability and modern amenities.

Houses, ranging from modest townhouses to larger, standalone units, are preferred by families looking for more space.

Luxury villas, often located in exclusive gated communities, are the choice of the affluent, offering privacy and high-end amenities.

The demand in North Jakarta is primarily for properties that balance affordability with quality and location. Apartments in well-connected areas and houses in quieter, residential neighborhoods are particularly sought after.

This demand is driven by the district's strategic location, access to amenities, and its reputation as a growing economic and cultural hub.

The real estate market in North Jakarta includes both new developments and resale properties. New developments are on the rise, reflecting the growing interest in the area. These often come with modern designs and amenities that appeal to a contemporary market.

Property prices in North Jakarta vary widely. For apartments, prices per square meter can range significantly based on the location, size, and amenities offered.

Houses and villas, given their larger size and often more exclusive locations, command higher prices. It's important to research current market prices, as they can fluctuate based on demand and economic conditions.

Over recent years, property values in North Jakarta have shown a trend of steady growth. This is attributed to ongoing development in infrastructure, increasing demand for housing, and the district's growing reputation as a desirable place to live.

Upcoming developments and city planning changes, such as new transportation projects or commercial hubs, could further impact property values. These developments typically lead to increased demand in surrounding areas, potentially driving up prices.

Predicting the real estate market's future in North Jakarta involves considering various factors. With the district's ongoing development and its strategic importance in Jakarta, the market is expected to remain robust.

However, external economic factors and policy changes can influence market dynamics.

Specific factors that indicate a potential increase in property value in North Jakarta include the development of new infrastructure projects, the continuous influx of businesses and commercial activities, and the general trend of urbanization in Jakarta.

These factors suggest that investing in North Jakarta's real estate could be a wise decision for those looking for growth potential in their investment.

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

When considering the best area to buy property in North Jakarta, it's important to understand that each neighborhood offers its own unique atmosphere, types of properties, and price ranges.

The choice largely depends on your personal preferences, lifestyle needs, and investment goals.

Jakarta Utara is known for its diverse localities, each with its distinct character. For instance, areas like Kelapa Gading and Pantai Indah Kapuk (PIK) are popular choices.

Kelapa Gading is renowned for its vibrant urban atmosphere, with a plethora of shopping centers, restaurants, and entertainment options. It's an area that appeals to those who enjoy a lively urban lifestyle.

Property types here range from high-rise apartments to comfortable townhouses, catering to various budgets.

Pantai Indah Kapuk, on the other hand, offers a more upscale living experience. Known for its luxury housing, including high-end apartments and spacious villas, PIK attracts those looking for a more exclusive lifestyle.

The area boasts of well-maintained streets, high-quality amenities, and is known for its green spaces. Properties here tend to be on the pricier side.

For buyers looking for up-and-coming areas, Pluit is worth considering. It has been undergoing significant development in recent years, transforming into a modern residential and commercial hub.

The area is becoming increasingly popular for its relatively more affordable housing options compared to the more established parts of Jakarta Utara.

Another area to consider is Sunter. Known for its mix of residential and industrial developments, Sunter offers a range of housing options, from modest apartments to standalone houses. The area is well-connected to other parts of Jakarta, making it convenient for commuting.

However, some areas might not be as advisable for property buyers. Regions that are prone to flooding or have less developed infrastructure could pose challenges.

Areas that are overly industrial might not offer the most pleasant living environment, especially for those seeking a more residential atmosphere.

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	Remarks
Kelapa Gading	Vibrant urban atmosphere	High-rise apartments, townhouses	Varies	Known for shopping, dining, entertainment
Pantai Indah Kapuk (PIK)	Upscale, exclusive	Luxury apartments, spacious villas	Higher end	Green spaces, high-quality amenities
Pluit	Developing, modernizing	Affordable housing, mixed use	Moderate	Emerging as a residential and commercial hub
Sunter	Mixed residential and industrial	Apartments, standalone houses	Varies	Well-connected to other areas

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Is there a strong rental demand in North Jakarta?

Jakarta Utara indeed shows a strong rental demand, and understanding the nuances of this demand can help you make informed decisions if you're considering investing in rental properties here.

The rental market in North Jakarta caters to both short-term and long-term rentals, but the demand largely leans towards long-term leasing. This is due to the area's appeal to families, professionals, and expatriates looking for stable and comfortable living arrangements.

Short-term rentals do exist, often sought by tourists or business travelers, but they're more niche compared to the robust long-term market.

The target demographic for rentals in North Jakarta is quite varied. You have young professionals, often working in the business districts, who prefer modern apartments close to their workplaces.

These apartments are generally in areas like Kelapa Gading and Pantai Indah Kapuk, known for their urban amenities and lifestyle.

Families, on the other hand, look for larger spaces like townhouses or villas, preferably in neighborhoods that are quieter yet still close to schools and essential services. Areas such as Pluit and Sunter are popular among families for these reasons.

Potential tenants often have specific preferences when it comes to rental properties. For instance, young professionals tend to look for properties that are not only close to their work but also near leisure and lifestyle amenities like malls, restaurants, and entertainment centers.

High-speed internet, a modern kitchen, and a well-equipped gym are amenities that can significantly reduce vacancy rates, as they cater to the lifestyle expectations of this demographic.

On the other hand, families prioritize safety, space, and proximity to educational institutions. Gated communities or properties with good security systems, extra bedrooms, and nearby schools are in high demand among this group. Adding amenities like a playground or a pool can also be a significant draw.

Speaking of potential returns on investment, properties in North Jakarta can offer promising yields, especially if they align well with tenant preferences. Depending on the property type and location, landlords can expect a reasonable rate of return.

For example, modern apartments in Kelapa Gading or Pantai Indah Kapuk, catering to young professionals, might offer higher yields due to their consistent demand.

Similarly, family-oriented properties in Pluit or Sunter can also be lucrative, particularly if they offer the amenities that families desire.

Currently, there's an increasing demand for properties that blend affordability with modern amenities. Apartments and condominiums that offer a good balance of price and lifestyle features are seeing rising interest.

Such properties not only cater to the growing middle-class segment but also appeal to expatriates who look for comfortable yet cost-effective living options.

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

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 as a foreigner in North Jakarta, is feasible, but it comes with its own set of regulations, challenges, and considerations that are crucial to understand for a smooth transaction and investment experience.

Firstly, Indonesia has specific regulations regarding property ownership by foreigners. Foreigners are allowed to own property under the 'Hak Pakai' (right to use) title, which is different from the 'Hak Milik' (freehold) title available to Indonesian citizens.

The 'Hak Pakai' title is usually valid for a certain period, often 25 years, and can be extended. It's important to note that as a foreigner, you can only purchase property in Indonesia with a value above a certain threshold, which the government periodically adjusts.

The purchasing process in North Jakarta involves several steps. After selecting a property, you'll need to negotiate the terms, sign a sales and purchase agreement, and make a down payment. The full payment is usually required upon transfer of the property title.

Working with a reliable local real estate agent can significantly ease this process, as they understand the local market dynamics, legal requirements, and negotiation customs.

There are risks associated with property investment in North Jakarta, as with any real estate market. These include market fluctuations, legal complexities, and potential property disputes.

A classic pitfall is neglecting to conduct thorough due diligence on the property. This includes verifying the property's legal status, ensuring there are no outstanding disputes, and checking for any zoning or development plans that might affect the property's value.

Working with a local real estate agent and a lawyer is highly important. They can provide invaluable assistance in navigating the local real estate laws, conducting due diligence, and ensuring that all legal and financial aspects of the transaction are handled correctly.

They can also help in understanding and adhering to the specific nuances of the Indonesian property market.

Common exit strategies for property investors in North Jakarta include selling the property after a period of appreciation or renting it out for a steady income stream. Given the dynamic nature of Jakarta's real estate market, these strategies can be profitable, but they require good timing and market understanding.

Selling a property owned under a 'Hak Pakai' title may involve additional steps or restrictions, as the market for resale to other foreigners might be limited.