presentation on jakarta real estate market

1. Jakarta City Real
Estate Market Analysis
by :
akshay raj solanki
Abhijeet Agarwal
Hari khrisnan
Harshil patel
Ashish Panchal

2. Real Estate Market Overview
1 Thriving Market
Jakarta's real estate
market has
experienced rapid
growth in recent years,
attracting both local
and international
investors.
2 Diverse
Opportunities
The market offers a
wide range of
residential,
commercial, and
industrial properties,
catering to various
preferences and
needs.
3 Investment
Potential
Investors can expect
attractive returns on
their investments,
given the increasing
demand for real estate
in the city.

3. Real Estate Market Size
Residential
The residential sector
dominates the market, with
a plethora of apartments,
houses, and townhouses
available for sale or rent.
Commercial
Jakarta boasts a vibrant
commercial real estate
sector, offering a range of
office spaces, retail outlets,
and hospitality
establishments.
Industrial
The city's strategic location
and well-developed
infrastructure have
attracted numerous
industrial projects, including
factories and warehouses.
The Indonesian Real Estate market size is expected to grow from USD 61.22 billion in 2023 to USD 81.24 billion by 2028, at a CAGR
of 5.82% during the forecast period (2023-2028).

4. Market Opportunities and Future
Trends
New Property
Developments
Investing in emerging areas
and upcoming property
projects presents significant
growth opportunities.
Sustainability Focus
Increasing interest in eco-
friendly buildings and
sustainable practices shows
promising trends in the
market.
Tech Integration
Real estate technology
innovations such as virtual
tours and smart home
systems are reshaping the
market.

5. Major Players
• PT Intiland Development Tbk
• Tokyu Land Indonesia
• Agung Podomoro Land
• Ciptura Group
• Sinar Mas Land

6. Property Rates
he average house price in Jakarta is IDR 18.2 million ($1,183) per square meter, while the average rent price is IDR 88.7 million
($5,766) per year. The gross rental yield on houses in Jakarta is 30.9%. Further, the government is already changing the capital city
from Jakarta to Nusantara.
Average buy price
Average price/sqm. Average rent price
House IDR 3.4 billion ($221,000) IDR 18.2 million ($1,183) IDR 88.7 million ($5,766)
Condo IDR 251 million ($16,315) IDR 1.9 million ($124) IDR 145 million ($9,425)
Townhouse IDR 1.4 billion ($91,000) IDR 18.1 million ($1,177) IDR 151 million ($9,815)
Apartment IDR 906 million ($58,890) IDR 18 million ($1,170) IDR 5 million ($325)
Commercial IDR 4.3 billion ($279,500) IDR 25.2 million ($1,638) IDR 38.7 million ($2,516)
Land IDR 4 billion ($260,000) IDR 12.6 million ($819) IDR 443 million ($28,795)

7. Policies Supporting Growth and
Growth Drivers
Policies Supporting Growth
• Government incentives for foreign investors
• Simplified regulations for property
development
• Infrastructure investment to enhance
connectivity
Growth Drivers
• Rising population and urbanization
• Increasing middle-class income and
purchasing power
• Growing demand for modern and
sustainable living spaces

8. Government Incentives is Expected to Boost the Housing Starts Trend in the Country
• As per estimates, the residential construction starts in Indonesia decreased by nearly 10% Y-o-Y in
2021, compared to 2020. In 2020 housing starts declined 5.6% compared to 2019. Small properties
led the demand surge, followed by medium houses and big houses. In order to meet the property
demand, the Indonesian government adopted several measures, such as lowering the key interest
rates, giving tax incentives to Indonesian REITs, easing restrictions on individual foreign ownership,
and increasing loan-to-value ratios.
• The government also increased the price threshold for luxury property taxes, to encourage home
buying in Indonesia. The 20% tax will now be applied only to any purchase of landed property or
apartment worth at least IDR 30 billion (USD 2.10 million). The government support to the residential
construction sector is expected to increase property sales in the country during the forecast period.
• The Indonesian government introduced the 'One Million Houses' (OMH) program to construct at
least 1 million units per year. According to the Ministry of Public Works and Public Housing (PUPR),
under the One Million Houses program, about 312,290 housing units were recorded until the end of
May 2021.

9. SWOT Analysis
• Strengths: Favorable investment climate, diverse property options
• Weaknesses: Limited availability of affordable housing, bureaucratic processes
• Opportunities: Emerging areas, rising demand for sustainable properties
• Threats: Economic fluctuations, competition from other markets

10. Thank you