Industrial transactions in Greater Jakarta increase by almost twofold

Total transactions hit over 427 hectares in 2024.

Colliers Indonesia initial projection regarding the accelerated growth of the industrial sector relative to other property sectors has been validated by the land sales performance throughout 2024. With such remarkable sales figures, it is evident that the industrial sector is on the right trajectory and experiencing substantial acceleration.

Ferry Salanto, Colliers Indonesia Head of Research mentioned that “We remain optimistic that this sector will continue to expand in the future, provided it is supported by a robust economic foundation, GDP growth aligned with government targets, and a stable political and security environment.”

To maintain competitiveness with neighbouring countries and attract greater foreign investment, local governments must consistently enhance security governance within industrial zones. Security disturbances in these areas often serve as a deterrent for investors considering capital allocation in Indonesia. Therefore, ensuring a secure and conducive industrial environment must be regarded as a top priority.

Colliers anticipate that future industrial land absorption will continue to be dominated by technology-based industries, such as data centers and electric vehicle manufacturing. Beyond the EV sector, the conventional automotive industry remains active, with total transactions amounting to approximately 30.37 hectares across six industrial estates.

Over the past decade, industrial land sales and leasing activities in the Greater Jakarta area have reached record highs. In 2024, total transactions amounted to 427.06 hectares, nearly matching the peak recorded in 2014. Compared to total transactions in 2023, there was an almost twofold increase.

Overall, industrial land sales in the fourth quarter of 2024 exhibited solid performance, providing a positive boost to the broader industrial land market. This growth trend is anticipated to persist in the coming years. This year, prices have already undergone adjustments in several industrial estates and appear to be stabilizing.

However, for newly developed estates that are currently offering competitive pricing, there is significant potential for price increases, particularly if absorption trends continue to show positive growth.