Jakarta leading property investment destination

Major development within the property sector of Jakarta during recent years has led to the capital city being acknowledged as one of the leading property investment destinations in the world.

Jakarta was recently titled the hottest spot for prime real estate in the world, for a second consecutive year, reported by Knight Frank property consultant.

The Global Cities Prime International Residential Index (PIRI) report, tracked the luxurious property markets of 30 cities around the world.

It was confirmed that the Asian markets headed by Jakarta, experienced the largest price growth last year, followed by Auckland, Bali (also in Indonesia), Christchurch and Dublin.

Therefore, prices for prime real estate within Jakarta rose higher than within any other city, up 38% by the end of 2013 compared to 2012. The figure was near exactly similar to the rate seen during 2012. Bali ranked third with a 22%.

Very strong demand contributes in motivating Jakarta’s luxury property prices higher. The rise in Jakarta was over double that of Dublin city (17.5%), which came second. Beijing (17.1%) came third. Following were Dubai and Los Angeles ranked fourth and fifth, with 17% and 14% increases respectively.

Other countries in the top ten included Tel Aviv (12.7%), Bangkok (12.3%), San Francisco (10.4%), New York (10.4%) and Sydney (9.3%).

The report may have been limited to only luxury real estate, however it provides a view of the current Indonesian property market, useful for individuals who plan to purchase residences as investments.

Cushman and Wakefield, property consultant firm, claimed that property demand within Greater Jakarta remained high during the first quarter of this year, despite political tensions ahead of the legislative election held earlier in the month.

Furthermore, the first quarterly report from the firm revealed that the majority of the sectors, such as residences and offices, experienced high demand during the first three months of this year.

According to the report, the positive trend owes to strong investor confidence as the macroeconomic conditions improved during the January to March period.

Jakarta has opportunities for those shining an interest towards in investments within real estate, particularly within strategic locations including the Kemayoran, Slipi and Tebet regions, in addition to the famed golden triangle of Gatot Subroto, Kuningan and Sudirman.

Demand for apartments within these strategic regions still remains high, regardless of rapid transit within the city still being some time away.

Funds are amongst the first and most significant areas to consider when investing in apartments or any other property. It should be reviewed how much of mortgage may be paid by installments over the preferred period. Potential investors should may then select apartment projects suiting their budget.

Additionally, people intending to purchase apartments as investments should consider several areas to avoid disappointment:-

• The developers and their track records
• The location and access to the apartment
• The compound including whether it is included in an office, business or commercial district or shopping mall
• The ideal floor of the unit to be situated
• Plus facilities including security, sport centres, adequate parking, swimming pools and eateries.