Millennials Reluctant to Buy Condominiums, Logistics and Luxury Retail Become Favourites

As the first quarter of 2026 progresses, the dynamics of Jakarta’s property market show a contrasting yet intriguing direction that warrants fundamental analysis. According to market reports released by JLL, the commercial sector, particularly offices in the central business district (CBD) and the logistics sector, has become the main driver amid the cautious sentiment enveloping the vertical residential market or condominiums. Jakarta’s CBD office sector recorded a significant recovery with stable occupancy rates at 72% to 73.7%. Head of Research at JLL, James Taylor, stated that demand in the first quarter of 2026 increased more than twofold compared to the same period the previous year. “Absorption in the CBD area reached 24,325 square metres, driven by traditional sectors such as information technology (IT), banking, and oil and gas,” said James on Tuesday (12/5/2026). The absence of new supply in the CBD has become a crucial factor supporting building owners’ bargaining power. Head of Tenant Representation at JLL, Panji Aziz, noted that Grade A office rental prices in the CBD experienced a 0.95% increase compared to the previous quarter. This price strengthening reflects the limited high-quality inventory amid continuous demand from the financial services and technology sectors. In contrast, conditions outside the central business district (OCBD) face heavier challenges. Reports from Leads Property indicate negative net absorption of 26,156 square metres in the OCBD market. This is due to many tenants choosing to relocate their offices back to the CBD for better prestige and accessibility. As a result, occupancy in OCBD dropped to 76.0%, a decrease of about 0.6 percentage points from the previous quarter. The average rental price in this area also saw a slight correction of 0.6% to Rp 238,100 per square metre per month. Shifting to the retail sector, Jakarta’s market shows very positive performance with occupancy rates reaching 86% to 90.6%. Demand for leasing space in shopping centres recorded figures of around 10,000 to 26,465 square metres in this quarter.