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Real estate news in Indonesia

2023: The year of serviced apartments in Jakarta

rent out property in jakarta

Jakarta’s hotel market is gearing up for a year of modest growth in 2023, with an expected addition of 1,002 new rooms, marking a 1.6% year-over-year growth. However, the landscape of this growth is notably different from previous years. A significant shift is underway, with serviced apartments dominating the new hotel supply.

About 72% of these new accommodations, translating to 647 rooms, will be serviced apartments, a trend that underscores the changing preferences of travelers and residents in Jakarta. The Movenpick Jakarta Pecenongan stands out as the only traditional hotel slated to open this year.

Revival of luxury and upscale hotel segments in Jakarta

The luxury hotel segment in Jakarta has witnessed a remarkable recovery, reaching occupancy levels comparable to the pre-pandemic era. This resurgence is not just limited to occupancy rates but is also reflected in the revenue per available room (RevPAR), which has seen substantial year-over-year growth.

Upscale and midscale hotels are not far behind, with these segments also experiencing strong RevPAR growth that surpasses pre-pandemic levels. This revival is a testament to the robustness of Jakarta’s hotel industry and its ability to adapt and thrive post-pandemic.

A bright future for Jakarta’s tourism and hospitality industry

Looking ahead, the outlook for Jakarta’s tourism and hospitality industry is overwhelmingly positive. The upcoming 2024 Indonesian general election is anticipated to further fuel this growth, particularly in the corporate sector, leading to increased hotel occupancy due to political activities. Additionally, the resurgence of Chinese outbound tourism is expected to contribute significantly to the industry, maintaining elevated trading performance levels through 2023 and into early 2024.

Implications for property owners and the festive rental market

For current property owners in Jakarta, especially those with serviced apartments, this growth presents a lucrative opportunity. The increasing demand for serviced apartments and the strong performance of the hotel sector suggest that property rentals in Jakarta could become a highly profitable venture.

The festive days, in particular, offer a golden opportunity to maximize rental income, as travelers and corporate clients seek comfortable and convenient accommodations.

Your guide to buying property in Indonesia

Written by Matt Timmermans

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