Two-speed Jakarta office market forecast to extend into 2027
Selective tenant expansion signals improving demand, potentially restoring pricing power for well-occupied Premium offices while preserving upgrade and lease-negotiation opportunities elsewhere.
Jakarta’s office recovery is expected to remain two-speed into 2027, with supply-constrained Premium buildings strengthening while higher-vacancy properties continue competing on value.
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The market’s recovery in 2027 hinges on broader tenant expansion.
Jakarta's office market is expected to improve gradually into 2027, but a sustained recovery will depend on whether selective business expansion translates into broader occupancy growth, according to Colliers.
The property consultancy said the market is moving beyond rightsizing towards selective expansion, although the shift remains at an early stage and is uneven across buildings. Energy and technology companies could provide additional demand, but some requirements, particularly oil and gas projects still at the tender or exploration stage, may take time to convert into signed leases.
Colliers expects Jakarta's office market to remain divided between high-performing Premium buildings and properties facing higher vacancy. Well-occupied, high-quality offices are increasingly regaining pricing power, while the wider market remains competitive.
For occupiers, the consultancy said the coming months could present opportunities to relocate, upgrade office space or renegotiate lease terms before tighter conditions extend beyond the best-performing assets.
For landlords, the focus is shifting from filling vacant space to delivering a more compelling workplace proposition. Colliers highlighted building quality, accessibility, environmental, social and governance (ESG) credentials, amenities, fitted or furnished options and flexible lease structures as increasingly important factors in attracting tenants.
The consultancy added that buildings offering operational readiness and lower overall occupancy costs could hold an advantage, even if they do not have the lowest headline rents. Reducing the cost and complexity of relocation will be important in securing tenants.
Colliers said the key indicator to watch in 2027 will be the composition of leasing demand, rather than transaction volumes alone. If expansion spreads across more sectors, Jakarta could move from a relocation-led recovery towards sustained net absorption and genuine occupancy growth.
Until then, the market is likely to remain a two-speed recovery, with supply-constrained Premium buildings strengthening first while higher-vacancy properties continue to compete on value.