Indonesia's Real Estate

The Jakarta real estate market is the best performing, and holds the most promise, of any in Asia.

The Emerging Trends in Real Estate Asia Pacific 2013 report by global accounting firm PWC found that Indonesia ranked as Asia's top real estate market ahead of Hong Kong, Singapore, Shanghai and Sydney.

The report commented that: Jakarta is seen by many real estate professionals as the most favorable emerging market in the region, with business transactions generally easier and more transparent than in other frontier markets such as Vietnam. The country's interest rates and inflation are stable; the gross domestic product is growing steadily; and foreign direct investment grew by 39 percent in the first half of 2012. Demand for property is strong, resulting in year-to-year office rents leaping by 29 percent. Despite some challenges, such as difficulties securing bank debt and locating reliable local partners, Jakarta holds significant promise.

A report in August 2012 by global real estate firm Jones Lang LaSalle found that: Jakarta has outperformed its neighbouring markets once again this quarter [Q2 2012] in the high-end residential sector. The market has been fuelled by strong wage and employment growth, low interest rates and high consumer confidence. We expect this upward trend to continue for the rest of the year, in line with projections that Jakarta will see the strongest price growth in the luxury residential space in 2012.

The Jones Lang LaSalle Asia Pacific Residential Index found that Jakarta led all Asian Pacific markets with 6.3% quarter on quarter growth, and 24.2% year on year growth, in luxury residential prices in Q3 2012.