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Indonesia's resilient economic outlook, despite global geopolitical tensions and market uncertainties, is expected to underpin positive sentiment in the Jakarta office market for the coming years. As the nation's financial and commercial hub, Jakarta's strategic importance continues to fuel its growth trajectory.
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The prolonged escalation of the war in Europe has brought series of problems that narrows down to growing inflation, increase of interest rate, and concerns about global recession in 2023. With all of the factors in play, the property market has faced a new challenge after shifting from the covid-19 problem.
The improving pandemic situation earlier this year, along with the sign of a resurgence of office leasing activity, the market is expected to be more positive in the long run. The continued use of remote working practices especially in service-based industries is leading to a tendency for larger corporation to consolidate their office. Logistics and technology-based companies that are concerned with flight-to-quality are expected to drive the growth in demand in the Jakarta office market.
The positive sentiment towards recovery in 2022 has been high as the projected economic growth of 2022 by the government ranges 4.7%-5.5%. Some factors including vaccination rollout, the resume of business activities, and government stimulus would boost market confidence. The third dose of vaccination has been planned by the government and will be starting in the first quarter of 2022. A positive economic outlook driven by ongoing global economic improvement is expected to drive next year’s property demand growth.
The lockdown (PPKM) entering the Q3 2021 seemed to lengthen the delay of tenant activities. However, the vaccination program and such lockdown had been successful in suppressing the pandemic spread.
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