Surge In The Demand Of Real Estate Sector In Indonesia Market Outlook: Ken Research


According to the report analysis, ‘Indonesia Real Estate Market Outlook To 2018 – Expected Burst In Demand Influenced By Bubble Fears’ states that some of the major companies which are currently functioning in this sector with the more developed technologies and strength of serving to the potential consumer involves Lippo Karawaci, Bumi Serpong Damai, Alam Sutera Realty, Ciputra Development, Agung Podumoro Land, Summarecon Agung, Pakuwon jati, Plaza Indonesia Realty, Kawasan Industri Jababeka, Duta Pertiwi and several others. In the current scenario, there has been the significant transformation of areas which resulted in greater cities of Indonesia such as Bandung, Jakarta, and Surabaya. These cities are accounted by the existence of skyscrapers in the form of offices and apartments space where the Central Business districts have seen the extensive development in the properties. Whereas, in 2013, Jakarta real estate market was so buoyant.

In Indonesia, the market of real estate is gaining extensive attention due to the significant development in technology and by growing population. Moreover, with the significant growth in this sector, the Indonesia online real estate market is also established which is providing effective opportunities to both the buyer and seller. Furthermore, the Indonesia property segment has shown a boom in the growth owing to the country’s exploding middle class supported by a low-interest rate regime and vigorous growth in the national economic sector. The frequent cause behind the escalation of the Indonesian real estate market stemmed from the increase in demand which was backed by huge customer confidence. Therefore, this has primarily grown due to the optimism towards the new legislative and presidential election in 2014. Moreover, with the significant establishment of residential, commercial, retail, hotel and industrial segment the Indonesian market of real estates will grow more effectively and make the market more attractive.

The market of Indonesia has performed outstandingly in the support to increasing demand for luxury properties and mid-size properties besides the other real estate sectors which include commercial, retail, residential and several others. In this region the real estate market is showing effective growth with the strong combination of domestic demand whereas, the Jabodebek has been the largest sector in terms of contribution of area and earnings in the overall Indonesia real estate market. This sector is renowned as one of the shinning accommodation spots in this region which has appeared as the top investment destinations for the domestic investors.

In Indonesia, the online real estate portals increased significantly and become an effective tool for research on buying, leasing or selling residential, retail, commercial and several other kinds of properties. The financing decisions of the customers or players in this market is playing a significant role in the real estate industry, as this sector enable the transactions of the large amount which is extremely funded by the external sources. However, the economy of Indonesia has showcased the significant success of the private housing industry and market systems for financing home buys. Therefore, in the coming years, it is expected that the market of real estate in Indonesia will grow more significantly over the recent years.

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Ankur Gupta, Head Marketing & Communications



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