DEMAND
Net take-up is projected to increase by approximately 8.000 units in 2024 with 91% of absorption will be in rental condominiums. Demand for serviced apartment sub-sector is estimated to increase in 2024, especially from short-term demand with the return of business travels. Vacancy rate is expected to decline as new demand projected to increase in 2024 even though it has not been fully returned to the pre-pandemic conditions.
RENT GROWTH
Rental rate of Rental apartments is expected to be stable throughout 2024 in response to the projected stable demand. Rental rate of Serviced Apartment sub-sector is projected to experience a slight increase, merely as adjustment of inflation. With the continued increasing demand for condominium-for-lease, rental rate of this sub sector is projected to rise.
INDUSTRIAL 2024
INDUSTRIAL ESTATE SUPPLY
As the available industrial land supply in favorable areas becomes limited, developers may face challenges in identifying appropriate locations to establish or expand their land bank. In 2023, there is an addition of 315 hectares of industrial land supply, including 145 hectares in Jatiluhur Industrial Smart City in Purwakarta Regency, and 100 hectares in Krakatau Industrial Estate Phase 2 in Cilegon.
The remaining 70 hectares represent the expansion of two industrial areas in the Bekasi area Future supplies are expected to come from industrial areas in Bekasi, Karawang, and surrounding areas Approximately 250 hectares of industrial land supply are estimated to enter the market in 2024.
INDUSTRIAL ESTATE DEMAND
Demand for high-tech industries, especially data centers, is not as strong as last year. However, demand for the automotive industry, particularly related to electric vehicles, remains relatively high. Additionally, sectors such as manufacturing, logistics, and chemicals are expected to remain attractive. The industrial land sales over the last 5 years remained stable, with only slight variations. The same demand trend is expected in 2024.
INDUSTRIAL RENT GROWTH
The average price of industrial land stood at Rp. 2,695,000 per sqm, which is an increase of approximately 3.1% from that in the last year Potential price increment is expected in 2024, but it is limited to the favorable locations.
WAREHOUSE SUPPLY & RENTAL RATE GROWTH
In 2023, the vacancy rate of rental warehouses in the Jabodetabek area increase slightly because of new supply that led to high competition in the market. Vacancy rate will remain relatively unchanged. In 2024 due to high competition and new supplies. Demand is still expected to come from third-party logistics, FMCG, and automotive sectors. Rental rate is expected to remain competitive and stand at the current level of Rp 78,000 per sqm/month. An addition supply of 280.000 sqm of rental warehouse space will enter the market in 2024.
HOTEL 2024
SUPPLY
The hotel market is still in the recovery stage, there will be no additional rooms in 2023 and most of proposed hotels are reschedule to 2024. The total cumulative supply of 3-star to luxury hotel rooms as per end of 2023 is 42,922 rooms.
Approximately 1,354 hotel rooms located in Central Jakarta and the CBD are scheduled to operate in 2024 with the distribution of rooms as follows: 27% 3 Star, 48% 4 Star, 12% 5 Star, and 14% Luxury.
