Jakarta apartment market to remain stable in 2026

Developers adopt cautious pricing amidst a challenging residential market.

Jakarta's apartment market is expected to remain broadly stable in 2026, although economic uncertainty and affordability challenges will continue to constrain growth, according to Savills.

The consultancy said weaker demand and slower sales have made new apartment development increasingly difficult to justify, leading developers to limit new supply and adopt a more cautious approach to expansion.

On the demand side, Savills expects continued fiscal and monetary support measures to underpin market activity. The extension of Indonesia's VAT incentive through 2027 is expected to help sustain buyer sentiment, although its impact on demand is likely to be modest.

The firm also warned that escalating geopolitical tensions in the Middle East could affect the Greater Jakarta apartment market indirectly through higher inflation and interest rates, increasing borrowing costs and reducing buyer confidence, particularly among mortgage-dependent purchasers.

In response, developers are expected to maintain cautious pricing strategies while continuing to offer flexible payment schemes and incentives to support demand in a challenging market environment, Savills said.