Yes, the analysis of Jakarta's property market is included in our pack
The question of 'the best neighborhood to buy a property in Jakarta' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At BambooRoutes, when we write a blog post or when we update our our property pack for Indonesia, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Jakarta into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Jakarta?
The real estate market in Jakarta is experiencing a dynamic phase, reflecting the city's growing significance both regionally and globally.
Jakarta's strengths lie in its unique blend of cultural, economic, and geographical attributes, which are not found elsewhere.
One of Jakarta's most distinctive features is its status as Indonesia's economic and cultural hub. This position attracts a diverse range of individuals and businesses. The city's thriving economy, bolstered by sectors like finance, manufacturing, and services, is a major draw for people looking to invest in property.
Additionally, Jakarta's rich cultural tapestry, from historic sites to contemporary art scenes, adds a unique charm to living in the city.
Foreigners are particularly interested in Jakarta's real estate market due to the city's growing status as a Southeast Asian economic powerhouse. The potential for business opportunities, combined with a relatively lower cost of living compared to other major Asian cities, makes Jakarta an attractive destination for expatriates and international investors.
A key data point illustrating the dynamism of Jakarta's real estate market is the consistent rise in property values over recent years, despite global economic fluctuations. This trend indicates a strong and resilient market.
One specific and positive aspect of properties in Jakarta is their integration of modern amenities with local architectural styles.
This creates living spaces that are not only functional and comfortable but also imbued with local character, a feature that's highly prized by both locals and foreigners.
Looking into the future, the value of properties in Jakarta is expected to rise due to several factors.
The city's ongoing infrastructure development, like improved public transportation and road networks, will enhance connectivity and accessibility, making it more attractive to live and work in.
Additionally, Jakarta's status as a regional business hub is likely to grow, drawing more companies and expatriates, which in turn boosts demand for residential and commercial properties.
Top neighborhoods in Jakarta to consider for living
Areas in Jakarta that are budget-friendly
If you're looking to buy property in Jakarta on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
Neighborhood | Average Price per Sqm | Property Types | Resident Demographics | Strengths | Weaknesses |
---|---|---|---|---|---|
Cengkareng | Lower than Central Jakarta | Townhouses, Small Apartments | Middle-class families, Young professionals | Growing connectivity | Heavy traffic, Less developed |
Bekasi | Competitive | Single-family homes, Budget apartments | Working-class individuals, Small families | Community feel, Local amenities | Less cosmopolitan, Long commutes |
Tangerang | Lower than Jakarta's core areas | Apartments, Standalone houses | Locals, Commuters to Jakarta | Commercial growth, Improved connectivity | Culturally less vibrant, Some areas underdeveloped |
Cengkareng
Cengkareng is a great option if you're looking for affordability.
It's cheaper because it's a bit away from the city center, reducing the demand. However, with Jakarta's expanding infrastructure, areas like Cengkareng could see a rise in property values.
You'll mostly find townhouses and small apartments in Cengkareng, with the average price per square meter being relatively lower than in more central areas. The residents are diverse, ranging from middle-class families to young professionals.
Its strengths lie in its growing connectivity to the rest of Jakarta, but be aware, traffic can be a concern, and it's not as developed as other parts of the city.
Bekasi
Bekasi, on the east side of Jakarta, is known for its affordability.
The lower prices are due to its distance from central Jakarta and the perception of being a suburban area. However, with ongoing infrastructure projects like LRT and improved road networks, property values in Bekasi are expected to rise.
Housing options include modest single-family homes and budget apartments. The average price per square meter in Bekasi is competitive, attracting a mix of working-class individuals and small families.
Its strengths include a sense of community and local amenities, but it's less cosmopolitan and can have long commute times.
Tangerang
Tangerang is another budget-friendly area, mainly because it's seen as more of an industrial zone.
This perception keeps prices down, but with more commercial developments and improved transport links, property values are likely to increase. In Tangerang, you'll find a range of properties, from affordable apartments to standalone houses.
The average price per square meter in Tangerang is lower than Jakarta's core areas. The population is a mix of locals working in nearby industries and commuters to Jakarta.
Tangerang's strengths are its growing commercial sector and connectivity, but it's not as vibrant culturally, and some areas are still underdeveloped.
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Areas in Jakarta that are popular and upscale
When looking to buy property in Jakarta, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
Neighborhood | Average Price/sqm | Resident Profile | Property Types | Strengths | Weaknesses |
---|---|---|---|---|---|
Menteng | High | Wealthy professionals, expats | Luxury houses, upscale apartments | Central location, greenery, historical | Traffic, high cost of living |
Kebayoran Baru | High | High-income families, professionals | Colonial houses, modern apartments | Public spaces, shopping centers | Traffic congestion |
Pondok Indah | High | Business executives, expats | Luxury homes, high-end condos | Infrastructure, green spaces | Cost of living, distance from center |
Menteng
Menteng is a prestigious area in Jakarta, known for its luxurious residences and high-end lifestyle.
The properties in Menteng are quite expensive, with an average price per square meter soaring above most other districts. This area is favored by wealthy individuals, including business professionals and expatriates.
The properties primarily consist of large, opulent houses and upscale apartments. Its strengths lie in its central location, lush greenery, and historical significance, offering a serene escape within a bustling city.
However, its weaknesses include heavy traffic during peak hours and a higher cost of living. While already established as an upscale neighborhood, Menteng is expected to maintain its status due to its historical value and continuous demand from the affluent.
Kebayoran Baru
Kebayoran Baru is another upscale area in Jakarta, renowned for its mix of traditional charm and modern amenities.
The neighborhood is expensive, with property prices reflecting its status as a sought-after residential area. It hosts a variety of properties, from grand colonial houses to contemporary high-rise apartments.
Residents are typically high-income families and professionals in Kebayoran Baru. Kebayoran Baru's strengths include its well-maintained public spaces, shopping centers, and proximity to business districts.
However, like Menteng, it suffers from traffic congestion. Despite its current popularity, it’s anticipated to remain a prime area due to its blend of modernity and heritage.
Pondok Indah
This is a modern, planned neighborhood known for its luxury homes and exclusive shopping malls.
The property prices in Pondok Indah are high, making it a prime choice for the affluent. The area offers a range of properties, including spacious homes and high-end condominiums. It's popular among business executives and expatriates, drawn by its well-organized layout and comprehensive amenities.
The strengths of Pondok Indah lie in its excellent infrastructure, green spaces, and recreational facilities. The downside includes the high cost of living and distance from central Jakarta.
However, its well-planned design and continuous development suggest that it will remain a top choice for upscale living.
Make sure you understand the real estate market in Jakarta
Don't rush into buying the wrong property in Indonesia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Jakarta that emerge as new hotspots
Let's explore these emerging neighborhoods in Jakarta that, according to our local partners and our customers, are getting quite a bit of buzz lately.
Neighborhood | Price Trend | Resident Profile | Current Appeal | Strengths | Weaknesses |
---|---|---|---|---|---|
Kemang | Rising | Young, creative crowd | Bohemian vibe, cultural diversity | Cafes, art scene | Congestion, developing infrastructure |
Cipete | Rising | Young professionals, families | Suburban feel, affordable housing | Growing food scene | Distance from center, transport |
Tebet | Rising | Diverse, young professionals | Local charm, culinary scene | Vibrant nightlife | Traffic, limited green spaces |
Kemang
Initially a quiet residential area, Kemang has evolved into a vibrant neighborhood attracting a younger, creative crowd.
It's becoming popular due to its eclectic mix of cafes, art galleries, and boutiques. Prices in Kemang are more affordable compared to the upscale areas, but they have been steadily rising.
Kemang's appeal lies in its bohemian vibe and cultural diversity, making it a hotspot for artists and entrepreneurs. However, it can get quite congested, and the infrastructure is still catching up with its rapid growth.
Prices in Kemang are expected to continue rising as the area develops further. Its unique blend of culture and affordability makes it a strong candidate for sustained popularity.
Cipete
Cipete is an emerging neighborhood in Jakarta, known for its quieter, more suburban feel.
It was once overlooked but has recently gained attention for its affordable housing and growing number of trendy cafes and restaurants. The area attracts young professionals and families looking for a balance between urban life and a peaceful environment.
Prices in Cipete are lower than in prime districts but are rising due to increasing demand. Strengths include a growing food scene and a relaxed atmosphere, while weaknesses are its relative distance from the city center and limited public transport options.
With its ongoing development, Cipete is expected to become more popular, particularly among those seeking a quieter lifestyle in the city.
Tebet
Tebet is known for its local charm and increasing popularity among young adults.
It started as a predominantly residential area but has recently seen a surge in popularity due to its thriving culinary scene and affordable living options. Property prices in Tebet are lower than in the more established areas but are expected to rise as the neighborhood gains more recognition.
The area is attracting a diverse group of residents, including young professionals and small families.
Strengths include its vibrant food and nightlife scene, while weaknesses are traffic congestion and limited green spaces. Its ongoing evolution and affordability make it a promising area for future growth in popularity.
Make a profitable investment in Jakarta
Better information leads to better decisions. Save time and money. Download our guide.
Top neighborhoods in Jakarta to invest in property
Areas in Jakarta with a strong rental demand
If you're considering buying real estate in Jakarta for renting it out, these neighborhoods with high demand for rentals should be considered.
Neighborhood | Tenant Profile | Property Type | Average Monthly Rent | Annual Rental Yield | Tips | Weaknesses |
---|---|---|---|---|---|---|
Kebayoran Baru | Expatriates, Wealthy Locals | Spacious Apartments/Houses | IDR 25M - 35M | 5-6% | Near expat hangouts, public transport | High costs |
SCBD | Young Professionals, Corporate Expats | Modern 1-2 Bedroom Apartments | IDR 15M - 30M | 6-7% | Walking distance to offices | Market saturation |
Kelapa Gading | Local Families, Young Professionals | Medium Apartments, Townhouses | IDR 10M - 20M | 4-5% | Near malls, schools | Traffic congestion |
Kebayoran Baru
This affluent area attracts a mixture of expatriates and wealthy locals, driven by its proximity to international schools, embassies, and upscale shopping centers.
Tenants often seek spacious, modern apartments or houses, with a preference for added amenities like security and a swimming pool in Kebayoran Baru. Rental income for a well-maintained 3-bedroom apartment in Kebayoran Baru can range from IDR 25 million to IDR 35 million per month, translating to an approximate annual rental yield of 5-6%.
To maximize rental income, focus on properties near popular expat hangouts and with good access to public transport.
However, be aware of the high property prices and maintenance costs in this area.
Sudirman Central Business District (SCBD)
This bustling financial hub is in high demand among young professionals and corporate expats.
The demand in Sudirman Central Business District is for modern, furnished one or two-bedroom apartments, convenient for work and social life. Monthly rents in Sudirman Central Business District can go from IDR 15 million to IDR 30 million for such units, with a rental yield of around 6-7%.
Investing in properties within walking distance to offices, malls, and public transport can increase your rental prospects.
But keep in mind the competition is fierce here, and the property market is already quite saturated.
Kelapa Gading
Known for its shopping and food scene, this neighborhood attracts a mix of local families and young professionals.
The demand in Kelapa Gading is primarily for medium-sized apartments and townhouses. Rental prices for a decent 2-bedroom apartment in Kelapa Gading range from IDR 10 million to IDR 20 million monthly, with a rental yield of about 4-5%.
Properties near malls and schools tend to have less vacancy.
However, traffic congestion can be a downside, potentially affecting tenant retention.
Don't lose money on your property in Jakarta
100% of people who have lost money in Indonesia have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Areas in Jakarta where property prices might increase in the future
In these areas in in Jakarta you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
Neighborhood | Tenant Profile | Property Type | Average Nightly Rate | Tips | Weaknesses |
---|---|---|---|---|---|
Menteng | Tourists, Business Travelers | Boutique Apartments, Colonial Homes | IDR 500K - 1M | Unique features, modern amenities | Strict zoning laws |
Kemang | Young Travelers, Expats | Stylish Apartments, Villas | IDR 400K - 800K | Near bars, art galleries | Noise, traffic |
Pondok Indah | Families, Golf Enthusiasts | Villas, Family Apartments | IDR 600K - 1.2M | Near mall, golf course | High property prices |
Menteng
A central and historic area, Menteng is popular among tourists and short-term business travelers due to its colonial architecture, green spaces, and proximity to major attractions.
Guests typically seek boutique apartments or colonial-style homes in Menteng. Average nightly rates in Menteng are around IDR 500,000 to IDR 1,000,000.
To attract more guests, focus on properties with unique architectural features and modern amenities.
Be mindful, though, that the area's strict zoning laws can limit renovation opportunities.
Kemang
Known for its vibrant nightlife and artistic scene, Kemang appeals to younger travelers and expats looking for short stays.
Small, stylish apartments or villas are in demand in Kemang, with nightly rates ranging from IDR 400,000 to IDR 800,000.
Properties close to bars, cafes, and art galleries are more likely to have higher occupancy rates.
However, noise levels and traffic can be challenging for some tenants.
Pondok Indah
This upscale residential area is favored by families and golf enthusiasts for short stays.
Demand in Pondok Indah is for family-friendly villas or apartments with access to leisure facilities.
The average price per night in Pondok Indah is about IDR 600,000 to IDR 1,200,000. Investing in properties near the Pondok Indah Mall and golf course can be lucrative.
However, the high property prices in this area can be a barrier for some investors.
Make sure you understand the real estate market in Jakarta
Don't rush into buying the wrong property in Indonesia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.