Colliers, a leading real estate company that performs worldwide research, has said that the real estate market in Jakarta will continue to grow in 2018. The centre area of Jakarta will have the largest amount of construction projects.
These projects are aimed at people that want to live in close proximity to their work and young families that want to have shopping malls widely available.
Because this area has great accessibility to public transport and is very strategically located, there is good potential in apartment leases, according to Colliers. Occupancy rates for lease apartments in central Jakarta has been around 81% throughout 2014, which is 10% higher than the other areas.
This makes the risk quite low to partake in Jakarta’s apartment lease market.
Many apartments will be built outside of the CBD and in East and North Jakarta in the coming years. The Prime International Residential Index of 2014 has shown that Jakarta’s current growth is not as explosive anymore as it was, but it’s still on the high side compared to other world cities.
Jakarta’s most popular area to live in, by far, is the city centre. The congestion in Jakarta is one of the worst in the world and as a result, people want to live as close as possible to their workplace. As most workplaces are located in the centre area of Jakarta, this is where most of the people want to live.
Real estate in the centre of Jakarta makes for a very good and stable investment and is less likely to drop in value, compared to the outer areas of Jakarta.
To improve the traffic problems of Jakarta, a metro line is being constructed that should be finished by the end of 2018. The areas around the metro stations are exploding in value as a result of this.
The land prices at the northern part of the new metro line have already shown a 30 to 40 percent price increase. It’s expected that the southern part of the metro line will have a similar price explosion and turn into a new hotspot area.
This offers possibilities for those willing to invest in Jakarta’s growing real estate market and are looking for interesting areas to focus on.