Developers favour asset upgrades over new malls in Jakarta

New retail supply remained limited in Q2.

Jakarta's retail market is entering a more mature phase, with developers increasingly prioritising the evolution of existing retail assets over the construction of new shopping malls, according to Colliers.

In its Q2 2026 market report, Colliers said new retail supply remained limited during the quarter, with activity largely centred on mall extensions, asset repositioning and the integration of retail into mixed-use developments rather than standalone projects.

The property consultancy said developers are adopting a more disciplined strategy in response to changing consumer behaviour, higher development costs and the need to maximise the long-term performance of established assets.

Colliers noted that extending successful malls allows owners to refresh tenant mixes, introduce new experiential concepts and respond to evolving consumer demand while reducing development risk compared with building entirely new shopping centres.

Neighbourhood retail centres are also becoming a more prominent part of Jakarta's retail landscape, supported by growing residential catchments and demand for convenience, food and beverage, daily services and community-focused experiences.

Looking ahead, Colliers expects retail supply to remain measured, with future growth focused on selective expansion, asset enhancement and repositioning. The consultancy said developers that modernise existing assets and strengthen retail ecosystems are likely to deliver more sustainable long-term performance than those relying on new supply.