Jakarta and Kolkata Ranked the Most and Least Variable Office Rental Markets Respectively

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Rent Variability Index

Jakarta is the most variable office rental market in Asia Pacific in the past decade, according to Cushman & Wakefield’s Asia Pacific Office Rental Variability Index 2021.

Between 2010 and 2015, rents in the city more than doubled and then subsequently tumbled by 30% over the next five years as a large amount of new supply came to market. 

Following the strong market in 2014, Jakarta office market was flooded with huge additional supply of about 2.4 million sqm between 2015 and 2020, which soar the vacancy rate to the ‘over supply’ condition that put rental rate under pressure.

During 2019, Jakarta Office market has actually started to improve where the new supply was well balanced by strong demand.

Unfortunately, the covid-19 pandemic in 2020 has blown away the positive trend and sunk the market with further downward pressure on the rental rate.  

Rental rate is forecasted to remain under heavy pressure and landlords will continue facing challenge between maintaining appropriate rentals and retaining tenants, said Lini Djafar, Managing Director, Indonesia.

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