Jakarta’s property market: A Brief Overview
If you are interested in buying a luxury property in Indonesia, know that Jakarta is the city with the highest growth rate. A world record, it could be said, for this city that, just in the last year, has seen prices rise exponentially reaching a record increase of 37.7% in Jakarta real estate market.
Growing luxury real estate market
The cause of this enormous growth is due to the economic well-being of the city, which in recent years has experienced a real boom. There are a huge amount of new successful activities, born and developed in this area of Indonesia. Jakarta still has many opportunities to play for your future. This incredible development of the economy has led to the birth of a wealthy class in continuous search for luxury to buy to show off their wealth.
Property is undoubtedly the best asset on which to invest one’s wealth. It is especially taking into account the extremely positive moment that Indonesia is experiencing. It could lead to an important capitalization of the investment made that increases the value even more
The inhabitants of Jakarta were rediscovered in beauty and art lovers. They are in continuous search for luxury real estate. This is why, as the supply of high-class properties is quite limited, the prices have grown in such a short time.
Now we must wait to see what decisions are made in Jakarta. In which, in the coming months will be occupied in the presidential and parliamentary elections. These could revolutionize the real estate market in Jakarta as has happened in Singapore and Hong Kong, where the respective governments have blocked the crazy rise in prices to avoid the so-called bubble.
The capital of Indonesia moves from the eleventh position to the first position in the ranking of best destinations for investment in real estate and development prospects thanks to the huge annual economic growth that is already experiencing its internal consumption
Jakarta has taken the first position in the ranking of the best destinations for investment in real estate, surpassing cities such as Shanghai, Singapore, Sydney or Kuala Lumpur, according to the survey ‘Emerging Trends in Real Estate: Asia Pacific 2013’ published by Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC). The report shows how the Indonesian capital leads investment and development prospects, with scores of 6.01 and 6.10, respectively.
Real Estate Demand in Jakarta
The study highlights the strong demand for property that exists in Jakarta, backed by the stability of interest rates and inflation in Indonesia, as well as having a growing Gross Domestic Product (GDP) and high levels of Foreign Direct Investment (with an annual growth of 29%).
In addition, Jakarta leads the list in the retail sector, followed by Shanghai, secondary enclaves of China, Ho Chi Minh and Manila. This circumstance rests on the strong increase in the purchasing power of Indonesian consumers. However, they warn that the retail market may become difficult for the average investor.
Regarding the sector that includes offices and residences, 52.3% of respondents recommend buying properties in the city, while 37.6% choose to keep them.
Finally, despite the lack of infrastructure and the capacity to absorb a large amount of investment in real estate, Jakarta has attracted 660.5 million dollars (approximately 505 million euros) last year, with the forecast of a bright future.