Jakarta prime retail rents up 3.26% in FY2024

Rental growth remained stable due to high occupancy rates.

Despite the introduction of a new shopping mall, JLL said in a report that supply for space in prime shopping malls in Jakarta remains scarce. As such, rent growth continues to persist, with y-o-y growth of 3.26% observed for FY2024.

No new transactions occurred in Jakarta in 2024. However, the retail sector maintains investor interest due to Jakarta’s socioeconomic potential.

Here’s more from JLL:

The quarter showed steady demand, with shopping centres making some adjustments to their tenant mixes to attract visitors.

Shopping malls now consider variety stores as essential tenants. In 2024, brands such as OH! Some, Flying Tiger and Miniso experienced significant growth and expanded their presence.

One new shopping mall comes on stream the quarter

Puri Indah Mall 2, an extension of the Puri Indah Mall, began operations in November. This retail venue includes outdoor areas, offering a different experience compared to other nearby malls.

New prime shopping centre openings are not anticipated in the near future. Standalone retail developments may become less common, with a potential shift towards including shopping facilities as part of mixed-use projects.

Outlook: The occupancy rate will drive rent growth in an upward trajectory

While supply will remain scarce, demand in prime shopping malls continued to show resilience. In 2025, we will likely see more international brands enter the market from sectors such as F&B, beauty and also fashion.

Despite the recent launch of a new shopping centre, rent growth is likely to remain healthy, driven by consistent demand for prime retail spaces.