Jakarta office vacancy rate to decrease to 34% by year-end

Limited supply is expected for the remainder of 2025 and 2026.

Based on current net demand projections by JLL, the office vacancy rate in Jakarta is expected to decrease slightly to around 34% by end-2025, supported by no anticipated new supply and gradual demand improvement.

“Flight-to-quality and rightsizing are expected to persist as key trends in 2025, driven by tenants’ ongoing focus on cost-saving strategies. Despite these trends, rents are projected to remain positive over the next 12 months,” the analyst said.

Here’s more from JLL:

Positive net demand continued in the quarter, reaching approximately 19,700 sqm—a 35% increase from the previous quarter. This brought the annual total to around 47,200 sqm, aligning with positive expectations for total net demand by end-2025.

The financial services sector accounted for the largest portion of office space demand in terms of size, followed by professional service and mining sectors. During the quarter, flexible space operators showed no pre-commitment activity.

No new developments expected for remainder of 2025

No new supply was delivered in Q3 2025. The last completion was Luminary Tower in the first quarter of 2024, and projections indicate no new Grade A office space will enter the market throughout 2025.

The office vacancy rate stood at approximately 34.3%, showing a decrease of 0.5 percentage points compared to Q2 2025. This slight decrease in vacancy can be attributed to the limited introduction of new office spaces throughout the year.

Grade A rents maintain upward trajectory

The Grade A office rental market continued to show a positive trend with a 1.5% increase quarter-on-quarter. This is in line with the positive rental projections for 2025.

Several landlords with high occupancy levels began implementing modest rental rate increases. However, buildings with lower occupancy continue offering competitive rates to attract tenants.