Outlook 2023 Indonesia

JAKARTA

DEMAND & VACANCY

NET ABSORPTION (SQM) AND VACANCY RATE (%)

FORECAST

300,000

35.0%

 Demand rebounded strongly in 2022, driven by corporate consolidation and a flight to quality. Net absorption of Grade A office space is forecast to reach 150,000 sqm in 2022.  Net absorption is expected to slow in 2023 as tenants will be cautious and hold off on major decisions in anticipation of the predicted global economic slowdown.  Vacancy is expected to remain high with the completion of large office projects in 2023 which may exceed forecast demand.

30.0%

250,000

25.0%

200,000

20.0%

150,000

15.0%

100,000

10.0%

50,000

5.0%

0.0%

0

2020

2021

2022F 2023F 2024F 2025F 2026F Net Absorption Vacancy Rate

Source: Cushman & Wakefield