Jakarta is the capital city of Indonesia and one of the fastest-growing cities in Southeast Asia. As the city is an important hub for trade, finance, and commerce, many multinational corporations are established in Jakarta. There is a high demand for office and retail space and housing. The ROI and rental yields in Jakarta one can make are some of the main reasons to buy property in Jakarta.
Invest in Jakarta property
Foreigners and Indonesian nationals wanting to invest in real estate might consider Jakarta as the place to do so. There are several reasons why buying and investing in real estate property in Jakarta is wise. The main reason is the strategic location. Jakarta is an essential hub for trade and commerce, which has attracted many multinational corporations to the city. This creates a high demand for office, retail space, and housing.
Jakarta is one of the most populated cities in the world and will continue to grow over the coming years. This growth means there will always be a high demand for housing, which can increase the price. Investors can make high returns on their investments, especially when investing in up-and-coming areas or properties in high demand.
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How much does property in Jakarta cost?
The table below shows an overview of the average property prices in Jakarta per square meter. Note that the cost varies depending on the property’s type, condition, size, location, and building materials. The prices are also subject to change based on market conditions and other factors.
| Property type | Price per square meter |
|---|---|
| Luxury apartment | IDR 50 million ($3,150) – IDR 150 million ($9,450) |
| Mid-range apartment | IDR 20 million ($1,260) – IDR 50 million ($3,150) |
| Landed house | IDR 10 million ($630) – IDR 50 million ($3,150) |
| Office space | IDR 20 million ($1,260) – IDR 70 million ($4,410) |
| Retail space | IDR 30 million ($1,890) – IDR 150 million ($9,450) |
Average property rental yields in Jakarta
The average rental yield of property in Jakarta is 5%, varying between 1.5% and 10.8%. These rental yields make Jakarta an exciting city to invest in real estate, as the rental yields are, on average higher than in most other Indonesian cities and regions. The tables below show an overview of the buying costs, monthly rent, and average yield per Jakarta neighborhood.
South Jakarta
| Type | Buying cost | Monthly rent | yield |
|---|---|---|---|
| Studio | $66,172 | $596 | 10.80% |
| 1-bedroom | $132,344 | $1,191 | 10.80% |
| 2-bedroom | $224,985 | $1,575 | 8.40% |
| 3-bedroom | $363,947 | $2,316 | 7.64% |
| 4-bedroom | $853,621 | $4,764 | 6.70% |
West Jakarta
| Type | Buying Cost | Monthly Rent | Yield |
|---|---|---|---|
| Studio | $39,703 | $193 | 5.83% |
| 1-Bedroom | $58,983 | $292 | 5.95% |
| 2-Bedroom | $76,098 | $331 | 5.22% |
| 3-Bedroom | $185,282 | $662 | 4.29% |
| 4+Bedroom | $324,884 | $744 | 2.75% |
North Jakarta
| Type | Buying Cost | Monthly Rent | Yield |
|---|---|---|---|
| Studio | $21,506 | $138 | 7.69% |
| 1-Bedroom | $59,555 | $248 | 5.00% |
| 2-Bedroom | $39,703 | $210 | 6.33% |
| 3-Bedroom | $165,415 | $551 | 4.00% |
| 4+Bedroom | $221,656 | $827 | 4.48% |
Central Jakarta
| Type | Buying Cost | Monthly Rent | Yield |
|---|---|---|---|
| Studio | $62,858 | $121 | 2.32% |
| 1-Bedroom | $69,474 | $110 | 1.90% |
| 2-Bedroom | $86,016 | $165 | 2.31% |
| 3-Bedroom | $198,498 | $248 | 1.50% |
| 4+Bedroom | $317,597 | $717 | 2.71% |
East Jakarta
| Type | Buying Cost | Monthly Rent | Yield |
|---|---|---|---|
| Studio | $34,406 | $83 | 2.88% |
| 1-Bedroom | $41,685 | $94 | 2.70% |
| 2-Bedroom | $39,045 | $96 | 3.04% |
| 3-Bedroom | $51,609 | $210 | 4.87% |
ROI for real estate in Jakarta
The average return on investment (ROI) for real estate in Jakarta can vary depending on various factors such as the property type, location, condition, and holding period. However, the average ROI for real estate in Jakarta is estimated to be around 8-10% per annum.
Calculate the ROI for your property
You can determine your investment’s (possible) profit or gain by calculating the ROI (Return on Investment). You can calculate this rate with the following formula:
For example, if you buy an apartment in Jakarta for IDR 167.7 million ($10,565) and sell it five years later for IDR 213.44 million ($13,447), the ROI is 27.27% over five years:
- The net profit is IDR 45.74 million ($2,882)
- The ROI is 27.27%
How do you buy and rent out real estate in Jakarta?
Foreigners can buy property in Jakarta through a PT PMA, a foreign-owned company in Indonesia that can be (partially) owned by foreigners. A foreigner or PT PMA cannot buy freehold property through the highest land title in Indonesia, Hak Milik (HM), as this title is only available to Indonesian nationals.
PT PMA can buy a freehold or leasehold property. It is possible to lease land in Jakarta and build a house or villa on this land with the Hak Guna Bangunan (HGB) title and building permits (PBG). The Hak Pakai (HP) title must be acquired to use the property. A real estate object can only be rented with the Hak Sewa (HS) title.
Work with a real estate agent in Jakarta
When you let a real estate agent in Jakarta assist you, you save time and avoid headaches. Imagine no more hassle in finding the right buyers or tenants, handling paperwork, or negotiating deals. The real estate agent handles property viewings, ensures smooth transactions, and helps you get the best value for your property. You can also seek assistance for just one specific aspect of the selling or renting process.
Interested? Make your real estate journey smoother, and consult with our expert real estate agent to discover the possibilities for your property in Jakarta.
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Conclusion
The Jakarta real estate market is attractive to many investors. The capital city of Indonesia is a central hub for trade and commerce. As the population in Jakarta keeps growing, the demand for housing and commercial space also keeps doing so. Investors can earn rental yields of up to 10.8% on the property they rent. The average ROI in Jakarta is estimated to be around 8-10% annually.
Frequently Asked Questions (FAQs)
Can foreigners buy property in Jakarta?
Foreigners can buy property in Jakarta through a PT PMA. With this foreign-owned company, foreigners can lease or purchase land and buildings in Jakarta and use it personally or rent it to generate income.
What are the best neighborhoods to buy property in Jakarta?
Kemang, Kuningan, Senayan, Menteng, Sudirman, Kebayoran Baru, and Pondok Indah are the best neighborhoods in Jakarta to buy property.
Is it smart to invest in property in Jakarta?
Investing in real estate property in Jakarta can be clever as the city offers high rental yields and returns.
