The world continues to face several risks and uncertainties, including China’s economic slowdown, commodity price volatility, geopolitical complexities in Ukraine-Russia and Palestine-Israel, alongside climate change and the increase in global oil prices. These factors are impacting global economic growth, which is projected to remain low at 2.9% in 2023 and 2.8% in 2024.
However, Handa Sulaiman, Vice Chairman of Cushman & Wakefield Indonesia, believes that Indonesia remains strong with a solid economic foundation, showing consistent 5% growth over seven consecutive quarters. The growth projection for Indonesia in 2024 is expected to reach 5.2%.
On the other hand, Indonesia’s inflation in September 2023 remained low at 2.28%, with a high level of consumer confidence reflected in the Consumer Confidence Index (CCI), positive growth in the Real Sales Index, and a continuous trade surplus of USD 3.42 billion in September 2023, marking a surplus for 41 consecutive months.
Handa further mentioned, “Although the company’s expansion is postponed due to the owners adopting a ‘wait and see’ approach in light of the elections, high-interest rates, and weakened external consumption, the 2024 election period is expected to contribute an additional approximately 0.3% to the economic growth projection. In the context of global economic uncertainties, the growth of the middle class becomes a primary pillar in supporting Indonesia’s economic stability.”
As one of the world’s leading real estate service companies who serves with dedication and innovation in the property sector, Cushman & Wakefield reviewed the property market conditions in 2023 and explore 2024 projections in a virtual press conference on Thursday, 7 December 2023 by presenting Handa Sulaiman, Vice Chairman of Cushman & Wakefield Indonesia, Arief Rahardjo, Director of Strategic Consulting of Cushman & Wakefield and Lini Djafar, Managing Director of Cushman & Wakefield Indonesia.
Below is the data summary from each sector by Arief Rahardjo, Director of Strategic Consulting of Cushman & Wakefield:
CBD OFFICE 2024
SUPPLY
No new supply is expected to enter the Jakarta CBD Office market in 2024. The absence of new supply in 2024 is mainly due to the “on-hold” status of projects that have been at advance construction stage such as Gedung Indonesia Satu Tower North (62,600 sqm) and Gedung Indonesia Satu Tower South (68,600 sqm).
