Source: Kontan.co.id | August 12, 2024

Consulting institution and property agency, Colliers Indonesia, stated that Indonesia’s economic prospects and controlled inflation in the second quarter of 2024 are considered to be able to increase local purchasing power in the property sector.

Ferry Salanto, Head of Research at Colliers, said that although purchasing power is predicted to increase, property owners must also implement several strategies to attract consumers.

“Property owners who offer competitive rates and attractive packages can continue to attract significant interest from renters. In addition, the market will likely see more branch openings and space expansion throughout the remainder of 2024,” said Ferry in a written statement received by Kontan, Monday ( 12/08).

Property companies are also expected to diversify their business lines as certain sectors show positive performance. A well-thought-out strategy is needed, but post-pandemic recovery will likely provide opportunities for business growth.

The post-election period also provides an opportunity for the government to implement fiscal policies aimed at encouraging strong economic growth. This can be a signal for property owners to prepare for increased space absorption.

For example, in the Jakarta office market, characterized by the abundance of available space, it appears that tenants prioritize quality over floor area. Meanwhile, in Surabaya, despite a variety of choices, demand for office space is expected to remain moderate throughout 2024. Demand for office space is increasing as various business sectors show strong interest in occupying office space. This is mainly driven by the financial sector, with several companies optimistic about opening branch offices in Surabaya, indicating a positive business climate.