The Jakarta Rental Apartment Market is experiencing steady growth, driven primarily by expatriates. With an increasing number of foreign professionals and corporate relocations, rental demand continues to rise.
According to recent data from Knight Frank Indonesia, the total supply of rental apartments has reached 10,050 units, with occupancy rates climbing to 65.73%. Industry experts predict this upward trend will persist, fueled by Jakarta’s expanding business landscape and international workforce.
Jakarta Rental Apartment Market: Rising Demand from Expats
Expatriates play a crucial role in the Jakarta rental apartment market, with tenants coming from countries such as Japan, Korea, China, Vietnam, the Middle East, and Europe. Many of these professionals seek long-term rentals, typically ranging from six months to a year.
Foreign tenants prefer rental apartments over other housing options due to their convenience, security, and strategic locations. High-end rental properties offer premium facilities, including 24/7 security, gated communities, and proximity to business districts. As a result, expatriates and corporate clients remain the primary drivers of demand in this sector.
Factors Driving the Growth of Rental Apartments in Jakarta
Several factors contribute to the increasing demand for rental apartments. Jakarta’s expanding economy and growing number of multinational corporations attract foreign professionals who require quality housing.
Proximity to business hubs, toll roads, international schools, and entertainment centers also makes rental apartments highly desirable. Additionally, the post-pandemic economic recovery has revitalized corporate relocations, further boosting the demand for rental properties.
Premium Expat-Friendly Housing Remains Limited
Despite high demand, premium housing options tailored for expatriates remain scarce. South Jakarta, particularly in areas like Cilandak, is home to sought-after rental complexes such as Executive Paradise and Astoria Residence. These developments cater specifically to expatriates, offering exclusive facilities and a comfortable living environment.
The limited supply of high-end rental housing presents a challenge for both tenants and property developers. To meet growing demand, developers may need to expand offerings in prime locations while maintaining the standards expected by international tenants.
Jakarta Rental Apartment Market Trends and Pricing
The Jakarta rental apartment market continues to show positive trends. Occupancy rates have risen to 65.73%, with rental prices increasing by 3.8% year-on-year. However, actual rental rates often undergo corrections of 5–10% from initial asking prices.
Below are the average rental rates in key areas:
- Serviced Apartment – CBD: Over IDR 400,000 per square meter per month
- Serviced Apartment – Prime Non-CBD: Around IDR 350,000 per square meter per month
- Non-Serviced, Purpose-Built Rental – CBD: IDR 150,000 per square meter per month
- Non-Serviced, Purpose-Built Rental – Prime Non-CBD: Over IDR 200,000 per square meter per month
To attract tenants, some property operators continue to offer promotions and negotiable pricing options.
Will the Growth Continue?
Industry experts anticipate continued growth in the Jakarta rental apartment market. “In line with the findings of the Property Outlook 2025, the rental apartment market is expected to continue improving and remain stable.” said Willson Kalip, Country Head of Knight Frank Indonesia, as reported by detik.com.
With an expected increase of 601 new rental units this year, the market will likely see expanded options for expatriates and corporate tenants. To maintain demand, developers and property managers should focus on offering housing that meets expatriate preferences, including accessibility to key city locations and premium amenities.
Jakarta Rental Apartment Market: A Promising Future
The Jakarta rental apartment market remains on an upward trajectory, largely due to expatriate demand. Rising occupancy rates and price growth indicate a stable and expanding sector. As more multinational companies establish operations in Jakarta, the need for high-quality rental housing will persist. For investors and property owners, this market presents an opportunity for sustained growth and profitability.
Source: Kompas.com, detik.com
Image: Getty Images