Scarce Until 2029, Jakarta's New Office Supply Dwindles

JAKARTA — The property market in Jakarta and its surroundings in the first quarter of 2026 shows significant changes in the competitive landscape. Colliers Indonesia’s latest report reveals that the office sector is entering a phase of minimal new supply until 2029. This phenomenon is forcing building owners and tenants to reorganise their strategies amid stabilising occupancy rates. This serves as a signal to industry players that the market is moving towards a new equilibrium point. Head of Research at Colliers Indonesia, Ferry Salanto, explained that the limited upcoming supply presents an opportunity for buildings currently with vacant spaces to increase occupancy. However, he cautioned that competition remains tight because tenants are now far more selective in choosing workspaces. “There is still a relatively large amount of vacant space available at present. Developers and investors are choosing to adopt a wait-and-see approach regarding new supply provision. With the limited future supply, it is hoped that occupancy rates will start to strengthen again, thus narrowing the gap between supply and demand,” said Ferry, quoted by Kompas.com on Sunday (12/4/2026). In 2028, it is estimated that there will be an addition of around 60,000 square metres of space in the Sudirman area. Until that time arrives, the market will be dominated by efforts to optimise existing buildings. Outside Jakarta, property growth in supporting regions such as Tangerang, Bekasi, and Bogor continues to be driven by transportation connectivity. The presence of increasingly integrated LRT lines as well as the expansion of toll road sections has changed consumer preferences in selecting residences or business locations. Ferry emphasised that environmental factors are now as important a variable as physical location. “Real estate is about location, but in Jakarta and its surroundings, location also means environment. If congestion and basic issues like waste management are not addressed, the appeal of a property area could shift to other regions that are more infrastructure-ready,” added Ferry. The report also underscores the stable growth in the logistics property and data centre sectors in the Eastern Jakarta corridor, such as Cikarang and Karawang. Meanwhile, in the residential sector, apartments in Jakarta still face purchasing power challenges, so many developers are beginning to shift focus to developing landed houses in areas like Tangerang and Sawangan. Without massive new supply, the key to successful property investment over the next three years lies in the ability of managers to retain tenants through facility improvements and operational cost efficiency.