Jakarta’s cumulative office supply to grow 2.5% annually until 2025
Almost 80% of the upcoming supply is premium buildings.
According to a Colliers report, the pace of construction progress in Jakarta’s office building sector has been notably slow, leading to the rescheduling of completion dates for some projects.
Nonetheless, a few projects managed to reach completion and commence operations in Q2 2023.
Here’s more from Colliers:
In the CBD, T Tower, situated in Gatot Subroto, contributed to a cumulative supply of 7.36 million sq m in Q2 2023. Presently, three projects remain under construction. Luminary Tower, located within Thamrin Nine, is expected to meet completion by the end of 2023.
Additionally, Indonesia-1 North and South Towers are projected to be completed in 2025. Apart from the ongoing construction, some developers are poised to initiate new projects. The conducive environment is likely to facilitate the commencement of at least three new office developments in the near future.
Outside the CBD, Lippo Tower Holland Village has become operational, contributing to a cumulative supply of 3.85 million sq m in Q2 2023. Currently, six projects are under construction, collectively expected to deliver about 260,000 sq m of new supply by 2025 outside the CBD area.
Almost 80% of the total supply projected for 2023 to 2025 comprises premium and Grade A office buildings. The cumulative supply is expected to grow at a rate of 2.0–2.5% per year during this period.