Since the COVID-19 pandemic, Jakarta's office vacancy rate has remained high, and the phenomenon of 'ghost office buildings' has persisted, yet to return to normal. Property observers point out that the office and retail sectors remain under pressure; as companies have become accustomed to working from home, the efficiency of office space and retail will continue. In the first three months of 2025, office demand slightly increased compared to the same period in 2024, but due to economic instability, growth was limited, and office absorption is expected to remain suppressed. Some areas, especially the Central Business District, saw a slight increase in occupancy rates compared to the previous quarter. Currently, office landlords remain cautious in setting rental policies, and in the future, they will adopt flexible leasing strategies, such as adjusting rents, lease terms, and office layouts, while improving office building quality by incorporating green building features to enhance attractiveness. Since 2020, office rents have been declining; landlords are unlikely to easily raise base rents and will instead increase service fees to cope with rising costs. Data shows that in the third quarter of 2024, 2 million square meters of office space were vacant in Jakarta, with the vacancy rate reaching 26.8% in 2023. In the first quarter of 2025, the office supply in the CBD stabilized at 7.38 million square meters, with a vacancy rate of about 25.5%, while supply in non-CBD areas was 3.83 million square meters. It is estimated that by 2028, the CBD will add 100,000 square meters of office space, and seven office buildings in non-CBD areas will add 240,000 square meters upon completion. From 2020 to the second quarter of 2024, the average annual office absorption was -54,244 square meters, compared to approximately 327,235 square meters from 2012 to 2019.
Since the COVID-19 pandemic, Jakarta's office vacancy rate has remained high, and the phenomenon of 'ghost office buildings' has persisted, yet to return to normal. Property observers point out that the office and retail sectors remain under pressure; as companies have become accustomed to working from home, the efficiency of office space and retail will continue. In the first three months of 2025, office demand slightly increased compared to the same period in 2024, but due to economic instability, growth was limited, and office absorption is expected to remain suppressed. Some areas, especially the Central Business District, saw a slight increase in occupancy rates compared to the previous quarter. Currently, office landlords remain cautious in setting rental policies, and in the future, they will adopt flexible leasing strategies, such as adjusting rents, lease terms, and office layouts, while improving office building quality by incorporating green building features to enhance attractiveness. Since 2020, office rents have been declining; landlords are unlikely to easily raise base rents and will instead increase service fees to cope with rising costs. Data shows that in the third quarter of 2024, 2 million square meters of office space were vacant in Jakarta, with the vacancy rate reaching 26.8% in 2023. In the first quarter of 2025, the office supply in the CBD stabilized at 7.38 million square meters, with a vacancy rate of about 25.5%, while supply in non-CBD areas was 3.83 million square meters. It is estimated that by 2028, the CBD will add 100,000 square meters of office space, and seven office buildings in non-CBD areas will add 240,000 square meters upon completion. From 2020 to the second quarter of 2024, the average annual office absorption was -54,244 square meters, compared to approximately 327,235 square meters from 2012 to 2019.