Jakarta Indonesia Real Estate
Many Asian cities are struggling with soaring property prices, but Indonesia's capital, Jakarta, is the front-runner. The city, known for its fast-growing real estate market, has outperformed the global average over the past three years, according to a new report by the Real Estate Institute of Asia (REI).
Many of the apartments will be built in the coming years, with a total of 1.5 million homes expected to be built by 2020, according to the report.
If you are looking to invest in any type of commercial property in Jakarta, there are a lot of brokers and real estate developers in this scenario who will provide you with world class services to help you find a property that suits your business needs. Commercial real estate Jakarta also includes the infrastructure and the type of property that is suitable for your establishment.
Whether you are looking for a private island or a beach retreat, we can help you discover the best properties in Indonesia that really suit your needs. We offer investors the opportunity to own land located in one of the most popular tourist destinations in the world in Jakarta, such as Semarang, Surabaya and Bali.
While other islands such as Singapore and Malaysia have air entry points, Indonesia is served mostly from Java, Jakarta or Bali. Compared to Surabaya, which is located on Sumatra, another island, Bekasi is actually located in the city of Semarang. The situation in Jakarta is very different from that in Bali, where foreigners can enjoy the comfort of the property but can never technically own it.
Indonesian citizens cannot buy property in Indonesia and must agree a right of first refusal if they want to marry a foreigner. If the owner leaves Indonesia after living in the country, he must transfer or transfer ownership rights to a person who fulfils the legal obligation to hold property outside Indonesia for one year after leaving Indonesia. Indonesian authorities have the right to seize the property if the property is released after leaving Indonesia or if he surrenders his property.
In August 2019, the Association of Indonesian Real Estate Companies called on the government to intervene to prevent speculators from buying land from locals and manipulating high market prices. The Indonesian government decided to open the real estate market to foreigners in order to increase the competitiveness of its real estate industry, to make it attractive to its regional counterparts, and to increase the government's tax revenues. In 2015, amid a worrisome economic slowdown, it enacted a landmark policy that allows foreigners to buy and own real estate in Indonesia. The three-year programme ended with the inclusion of 97 Indonesian cities in the list of "Smart Cities," which already includes Jakarta, Bandung and Surabaya. Residential property supervised by the Ministry of Finance and Economic Development and the Central Bank of Indonesia (BNP Paribas).
Jakarta deserves special mention because most new real estate projects are sold before construction is completed, meaning that demand is much greater than supply.
It is estimated that residential property availability in Jakarta is only one-third of demand. Indonesia is experiencing rapid urbanization, with fast-developing hubs like Jakarta increasing demand for real estate. This in turn has led to increased demand for residential and commercial property in the city, as well as the development of new commercial and industrial areas. Demand for commercial property in Indonesia has also increased as many foreigners flock to the city to experience its tourist attractions and stay here for their core business.
The $1 billion tower, developed by China Communications Construction Company (CCCC), is supported by a surge in foreign investment. Real estate owned by the Real Estate Investment Trust (REIT), such as Jakarta International Airport (JIA), is forecast to increase foreign direct investment significantly in the coming years, with strong growth. Indonesia's government can introduce more transparent and favorable ownership rules, and the market could be set for a boom. Thus, the investment opportunities for foreign investors in Indonesia's commercial and residential real estate markets remain limited.
Developers of apartments in Indonesia can develop blocks under the "property right" category that locals can buy with a mortgage. However, this provision does not apply to Indonesians, as they could buy the land directly if the developer agrees to sell it or lease it if they want to.
Country houses in Jakarta can be bought with a mortgage, while eligible properties from Bali to Yogyakarta start at $5 billion. Similarly, those who use the title for less than $3 billion can own up to 1.5 million square feet of land in the capital.
Given that Indonesia is known for its about-face policy, which implies that laws can be changed quickly and rigorously, high prices may discourage expats from investing in land and housing. Recent drastic changes in the law have made it clear that the government is serious about making it easier for foreigners to buy property in Indonesia. But there is more good news, as the country's housing market is set to grow significantly in the coming years.