Jakarta office occupancy rate forecast to remain low

There is an influx of new supply in the next two years.

In the midst of an uncertain global economy, Indonesia is considered a promising country to invest in, reflected in the country’s outstanding economic indicators. 

According to a Savills report, positive office market sentiment will continue in 2024 and will bring higher transaction volumes. However, the occupancy rate will remain low as there is a large amount of new supply anticipated to come on stream within the next two years.

Here’s more from Savills:

The office market is expected to remain competitive over the next one to two years, and rents will be under pressure even if there will be no significant declines. 

The trend in the office sector will increasingly shift to the concept of green buildings as a basic principle of sustainable development based on environmental, social and governance (ESG) strategies. Landlords who embrace the concept of green building and sustainability are expected to be more popular with the market in 2024.

More stable business types such as banking and finance, virtual offices and serviced offices, tech companies, oil, gas & mining will generate demand in the short to medium term. Regulatory reform will continue to have a positive impact on both foreign and local investors.