Jakarta's property market improved across the office, retail and logistics sectors in the second quarter, with the recovery most visible in leasing activity and occupancy levels, according to JLL.
In the Central Business District, office occupancy reached 72.8%, with no new supply added during the period. The lack of fresh stock helped existing buildings absorb demand. Rental rates for Premium and Grade A offices rose moderately, while Grade B and C properties showed signs of stabilising after earlier declines.
"Jakarta's CBD office market continued its recovery trend in the second quarter of 2026, with occupancy rates reaching 72.8%," said James Taylor, Head of Research, JLL Indonesia. "Net demand remained positive throughout the first semester, although economic conditions and political uncertainty impacted the speed of recovery. The absence of new supply in the CBD continues to support absorption of existing inventory. Rental rates for Premium and Grade A buildings showed moderate increases, while Grade B and C properties began showing signs of stabilization after experiencing declines in previous quarters."
Outside the CBD, the office market recorded its highest absorption since 2019, with about 23,000 square metres leased during the quarter. Two new buildings in North and West Jakarta added about 67,000 square metres, while oil and gas companies led leasing activity.
Grade A offices in central locations remained active as occupiers upgraded their space, said Panji Aziz, Head of Tenant Representation, JLL Indonesia.
"Grade A offices in the CBD recorded consistent absorption in the second quarter, with the financial services sector leading leasing activity. Sudirman and SCBD were the most active locations this quarter, driven by relocation activities by companies seeking to upgrade the quality of their office buildings. The trend for furnished office spaces that began in previous quarters continues, with several property owners retaining furniture from previous tenants or offering newly furnished spaces and fit-out contributions to attract prospective tenants," said Aziz.
Landlords also took a restrained approach to pricing.
"Grade A office rental rates in the CBD increased by 0.05% compared to the previous quarter, though slower than first quarter growth. A number of property owners are taking a more cautious approach to rent increases, prioritizing occupancy stability over aggressive pricing. Nevertheless, the absence of new supply until 2029 continues to support property owners' positions in the Grade A building segment," said Aziz.
Retail activity
Shopping centres in Jakarta also reported stronger demand. Net demand reached about 16,500 square metres, with no new supply entering the market, and occupancy rose to about 86% as premium food and beverage brands, specialty drink outlets and experiential retail concepts expanded.
Luxury retailers also contributed to demand through new openings and store expansions in fashion, beauty, fragrance and jewellery, Taylor said.
"The luxury retail segment also showed growth through openings and expansions of international luxury fashion, beauty, fragrance, and jewelry stores in several premium shopping centers. These conditions helped push Jakarta's shopping center occupancy rate to approximately 86%. Meanwhile, two new shopping center projects are still planned for completion by the end of 2026," said Taylor.
Housing trends
Residential performance was mixed. The condominium market saw moderate demand growth, but transaction volumes remained below historical norms. Demand was concentrated in new projects from developers with established buyer bases, with end-users still accounting for most purchases.
"There was one new launch in South Jakarta offering units after project completion," said Taylor. "This supply addition contributed to a slight decrease in the sales rate to 82%. With two new launches throughout 2026, total supply addition this year is recorded as the highest since 2020."
In Greater Jakarta's landed housing market, first-half sales were higher than a year earlier. Demand shifted toward four-bedroom homes starting from IDR 600 million, suggesting developers are offering more space at prices buyers still consider manageable.
"Four-bedroom homes are dominating sales, with prices starting from IDR 600 million. This trend reflects developers' strategy of offering homes with more optimal space within an affordable price range. The IDR 600 million to 1.3 billion segment continues to dominate the market, offering various unit types from two to four bedrooms," said Vivin Harsanto, Head of Growth and Head of Strategic Consulting, JLL Indonesia.
Demand also diverged across price bands, Harsanto said.
"Homes priced below IDR 600 million have increased, as have homes above IDR 3.0 billion. Meanwhile, homes priced between IDR 1.3 billion and 3.0 billion have slightly slowed, showing diverse demand patterns across different price levels. The market also recorded joint venture collaborations between local and foreign developers, demonstrating confidence in the landed housing sector. Developers continue to offer flexible payment schemes and various incentives to maintain sales momentum," said Harsanto.
Investment focus
Property investment remained concentrated in assets with steady income, with logistics, industrial and data centres leading activity. Investors were also seeking office, hotel, serviced apartment, education and healthcare assets offering double-digit yields.
"The logistics, industrial, and data center sectors continue to lead investment activity, supported by stable GDP growth, a strong manufacturing base, and healthy foreign and domestic capital flows. Investors are actively pursuing income-producing assets offering double-digit yields, with particular focus on office, hotel, serviced apartment, education, and healthcare sectors," said Herully Suherman, Senior Director, Capital Markets, JLL Indonesia.
Interest in hotels has also strengthened among investors from North Asia, the Middle East and Indonesia as they assess demand in Bali and Jakarta.
"Hotel investment is increasingly favored by investor groups from North Asia, the Middle East, and domestic sources who view Indonesia, particularly Bali for international tourists and Jakarta for business travelers, as an attractive destination with consistent tourism demand. However, market liquidity remains sensitive to currency fluctuations and political conditions, so investors need to continue monitoring market developments carefully," said Suherman.
Logistics strength
The modern warehousing market in Greater Jakarta remained one of the steadiest parts of the property sector, with occupancy holding at 95%. Demand came from last-mile delivery operators, third-party logistics groups, eCommerce, manufacturing, fast-moving consumer goods and electrical and electronics companies, while tenants seeking large facilities faced limited availability.
"Demand is diverse, from last-mile delivery operators, third-party logistics, eCommerce, manufacturing, FMCG, as well as electrical and electronic equipment companies. Tenants seeking large-scale warehousing face challenges due to limited availability. The entry of new international brands, particularly Chinese companies, continues to drive demand," said Farazia Basarah, Country Head and Head of Logistics & Industrial, JLL Indonesia.
Basarah also pointed to active demand in data centres linked to artificial intelligence, as well as continued increases in rents and land prices.
"The data center sector is also active and attractive, especially related to Artificial Intelligence, with opportunities supported by adequate infrastructure including sufficient electricity supply, clean water availability, efficient cooling systems, and high-quality industrial estates. Rental and land prices continue to rise, with transaction values depending on negotiations. Tenants prioritize locations close to target markets with access to toll roads, airports, and ports. The logistics and industrial sector represents a segment with healthy performance and is monitored as stable in Indonesia's property market," said Basarah.