Indonesia's property market is resilient as demand for quality properties of all types is increasing, incomes are rising and available land in prime areas such as Jakarta is limited. For example, Grade-A offices continue to register very high occupancy rates and to achieve substantial increases in rental rates.
Even with the modest economic slowdown during that latter part of 2013, the residential market has maintained its positive momentum as solid demand continues due to a growing young population, an expanding middle class and supporting urbanization initiatives.
Demand beyond Jakarta’s periphery is expected to remain strong in line with the development of new economic centers in suburban areas.
While there's strong competition among retailers and mall owners, the retail market will continue to perform positively as demand continues to grow.
With strong domestic consumption and a growing middle class, foreign and domestic retailers will remain active, expanding and opening new outlets to further capture market share.