Outlook 2023 Indonesia

JAKARTA

RENT GROWTH

RENT (IDR/SQM/MO) AND RENT GROWTH (% PER ANNUM)

FORECAST

350,000

10.0%

 Despite ongoing positive net absorption, rents are expected to remain under pressure in 2023 due to the tough competition in a relatively ‘thin market’.  Some landlords will likely continue offering very ‘generous’ discounts to their published rates to attract new tenants into their buildings.  Rental growth is expected to return to positive territory starting in 2024 following the improved economic forecast.

8.0%

340,000

6.0%

330,000

4.0%

320,000

2.0%

310,000

0.0%

300,000

-2.0%

290,000

-4.0%

280,000

-6.0%

270,000

-8.0%

260,000

-10.0%

2020

2021

2022F 2023F 2024F 2025F 2026F

IDR/SQM/MO

Rent growth (%)

Source: Cushman & Wakefield