This is how Jakarta’s retail property market is evolving

New concept stores are growing as the tenant mix diversifies.

As of Q3 2025, mall owners in Jakarta continue to adapt their spaces to evolving consumer demands, with a strong focus on maintaining and improving occupancy levels. 

According to data from a Colliers report, the overall occupancy rate stood at around 74% in Jakarta and 69% in Greater Jakarta.

Here’s more from Colliers:

Premium and middle-upper segment malls in both Jakarta and Greater Jakarta continue to perform strongly, maintaining occupancy close to 90%. These malls benefit from established tenant bases, including international and luxury brands, which consistently attract affluent shoppers. Sustained demand for superior retail experience has helped this segment maintain resilience. By contrast, occupancy at middle- to lower-grade malls remains subdued, averaging around 60%.

Several department stores in Jakarta have downsized, reallocating space to new brands in order to refresh their tenancy mix. This strategy accommodates waitlisted retailers, enhances variety, and support higher footfall. For landlords, subdividing large anchor spaces into multiple lifestyle and specialty tenants has proven to be an effective adaptation strategy— diversifying offerings, boosting rental income, and strengthening competitiveness.

Examples include Matahari Department Store at Blok M Plaza reducing its footprint to accommodate SUKO and zes; SEIBU at Pondok Indah Mall reallocating space to Sephora; and Lotte Department Store at Lotte Mall Jakarta downsizing to introduce brands like Decathlon and Dekoruma.

Asian retailers, particularly from China, remain eager to enter Jakarta’s retail market, drawn by the city’s reputation as a lifestyle trendsetter among younger consumers. Landlords are expected to continue curating balanced tenant mixes and zoning strategies to ensure that new entrants complement existing retailers, avoiding oversaturation while enriching the shopping environment.

Occupancy rates are anticipated to improve gradually as malls adapt to shifting consumer habits. Welllocated premium malls are likely to sustain stable or slightly higher occupancy, while lower-performing malls will focus on diversification and operational adjustments to drive improvements over time.