Office space in Jakarta to increase

Foreign investors looking to expand their presence in Indonesia over the upcoming four years will find generous office options to choose from in Jakarta, according to a report from worldwide real estate services firm Colliers International.

Whilst total office space in Jakarta rose by just 1% during the first half of 2014, the capital will see an accumulated 10.7million square metres of new office space developed by 2018, up 51% from today‘s 7.1million square metres, according to the report released last Wednesday.

The projection assumes 74 buildings currently under construction or being planned will be completed on schedule. The increase will result in a decrease in office occupancy to under 90% from 96% at the end of the former half.

West and South Jakarta promising for high rise building development

 

Leading global commercial real estate firm, Colliers International, has expectations for South and West Jakarta to become high potential regions for the development of high rise buildings including offices. The firm explained that the capital’s infrastructure development plans, particularly new road construction, are the major reason as to why prospects of property development have become more promising within T.B. Simatupang (South Jakarta) and Kebon Jeruk (West Jakarta).

The Jakarta Outer Ring Road, which will link Kebon Jeruk (West Jakarta) and Ulujami (South Jakarta), is expected to aid businessmen in efficient travel. State-owned toll road operator, Jasa Marga, aim for the 7.67km road to be ready for operation by the end of June 2014.

T.B. Simatupang, known as the new Thamrin (the central street of Jakarta's Central Business District), is strategic in location owing to its proximity to the toll road (with direct links to seaports, airports and the Tangerang and Bekasi industrial estates, both situated just outside Jakarta).

Colliers International’s data suggest that base rental rates for offices within T.B. Simatupang will increase to USD $20 per square metre, each month, with purchasing prices starting at IDR30million (USD$2,608), per square metre.