Good News, Office Demand Is Expected To Keep Rising

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Good News, Office Demand Is Expected To Keep Rising

Friday, 28 Feb 2025

The office market in Jakarta is growing steadily, creating opportunities for positive development. As the market adjusts, the potential for growth in the office sector remains strong, especially since some companies are starting to implement in-office work policies. This trend encourages prospective tenants to actively seek office spaces that provide better facilities and a collaborative environment. According to Ferry Salanto, Head of Research at Colliers Indonesia, some tenants are expanding their office spaces to relocate business units that were previously outside of office buildings.

"In the long run, as business activities recover, demand for office space is expected to rise, making the office market more dynamic," Ferry stated.

Research from Colliers shows that leasing activity in the third quarter of 2024 continued and showed a slight increase compared to the previous quarter. This is a positive sign, especially as some companies reassess their workspace needs while improving their business performance. Colliers notes that building owners are still receiving requests from sectors like fintech, mining, retail, and insurance.

However, budget constraints often pose challenges for potential tenants when selecting office spaces. Additionally, building owners' decisions to offer fit-out incentives and discounts are expected to attract tenants.

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