Indonesia Commercial Real Estate Market Size, Share, Trends and Forecast by 2025-2033

Indonesia Commercial Real Estate Market Overview

The Indonesia commercial real estate market size was valued at USD 21.78 Billion in 2024. It is expected to grow steadily, reaching a projected market size of USD 42.46 Billion by 2033. The market is forecasted to expand at a compound annual growth rate (CAGR) of 7.32% during the period from 2025 to 2033. Key growth drivers include urban migration, infrastructure development, green building practices, and rising investments in digital and experiential real estate developments. For more information, visit [Indonesia Commercial Real Estate Market](.

Indonesia Commercial Real Estate Market Study Assumption Years

Base Year : 2024

Historical Year/Period : 2019-2024

Indonesia Commercial Real Estate Market Key Takeaways

Current Market Size : USD 21.78 Billion (2024)

CAGR : 7.32%

Forecast Period : 2025-2033

• The market is driven predominantly by rapid urbanization, increasing disposable incomes, and a growing middle-class population.
• Significant decline in impoverished populations observed in both metropolitan and rural areas, supporting economic growth.
• Expansion of coworking spaces and small to medium enterprises enhances the demand for office spaces.
• Growth in tourism fuels the hospitality real estate segment, while retail trends drive investment in mixed-use developments.
• Technological advances and sustainability practices improve design and operational efficiencies within the sector.

Indonesia Commercial Real Estate Market Growth Factors

The Indonesia commercial real estate market is propelled by rapid urbanization, which is significantly increasing the disposable incomes and expanding the middle-class population. This demographic shift underpins greater demand across office, retail, hospitality, and industrial real estate segments. The reduction in impoverished population in metropolitan and rural areas further supports economic stability and real estate growth potential.

Continual technological advancements and sustainability efforts are pivotal growth factors. Digital technology adoption along with green building certifications enhance operational efficiencies and tenant satisfaction. The government’s focus on sustainable and energy-efficient constructions promotes green building practices, making sustainability a central aspect of future projects and boosting market appeal.

Economic diversification and infrastructural development also drive real estate demand. The expansion of e-commerce and manufacturing sectors is fueling requirements for industrial and logistics properties near strategic transport nodes. Large investments in new industrial parks, export facilities, and smart building technologies increase the commercial real estate market's dynamism, supporting long-term growth.

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Indonesia Commercial Real Estate Market Trends

Government initiatives have played a major role in vitalizing the commercial property sector. Policies such as tax breaks, subsidies, and foreign investor incentives have been implemented to channel growth. Notably, in August 2024, Indonesia reinstated a full tax break on property purchases up to approximately USD 323,000, targeting the middle class and boosting demand, particularly in urban centers like Jakarta and Surabaya. Infrastructure projects, especially transportation networks, are enhancing connectivity, increasing investor confidence, and supporting market expansion.

Sustainable development has become a primary market trend with rising focus on green building certifications and eco-friendly construction practices. The government's National Roadmap for Green Building Implementation launched in October 2024 reinforces national efforts to reduce emissions and energy use in buildings. Collaboration among ministries and private sectors promotes greener urbanization and decarbonization, making sustainability a critical growth pillar for real estate.

The industrial and logistics real estate segment is growing rapidly due to e-commerce growth and manufacturing expansion. Strategic locations near ports and transport hubs, enhanced by improved highways and ports, cater to demand. Investments such as Frasers Property Thailand planning warehouse expansions exemplify market confidence. The trend toward innovative retail concepts fueled by tourism and experiential retail also contributes to market transformation. Smart building technology integration further optimizes operational efficiency and tenant experience across commercial real estate.

Indonesia Commercial Real Estate Market Segmentation

Analysis by Type:

• Offices: Significant due to an active economy and rising demand in Jakarta, Surabaya, and Bandung from local and multinational companies, influenced by infrastructure and digital economy growth.
• Retail: Plays a vital role owing to Indonesia’s large population and growing middle class, with constant demand for malls, shopping centers, and street-front shops. Tourism growth in Jakarta and Bali heightens demand.
• Industrial: Rapidly expanding with demand for warehouses, factories, and logistics centers driven by strategic trade positions and e-commerce growth, concentrated in Jakarta, Surabaya, and Batam.
• Logistics: Integral for efficient supply chains near ports and transport nodes, boosted by infrastructure improvements and industry growth.
• Multi-family: Not detailed explicitly in source beyond segmentation listing.
• Hospitality: Growth fueled by the tourism industry, requiring hotels and hospitality properties.

Indonesia Commercial Real Estate Market Regional Insights

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

Java is the dominant region in the Indonesia commercial real estate market, hosting the largest population and economic hubs like Jakarta, Surabaya, and Bandung. It holds the majority market share supported by continuous infrastructure and business development. The market across Indonesia is projected to grow with a CAGR of 7.32% driven by regional growth and urban expansion.

Indonesia Commercial Real Estate Market Recent Developments & News

• On February 8, 2024, Indonesia initiated construction of its new capital city, Nusantara, in East Kalimantan, a USD 35 Billion sustainable mixed-use development aiming for a 1.2 Million population by 2029.
• On June 14, 2024, Agung Podomoro Land announced plans to invest over USD 270 Million in 15 apartment towers within Nusantara, the first private housing project in the new capital.
• On September 25, 2024, Indonesian President Joko Widodo officiated the groundbreaking for China’s Delonix Group’s USD 33 Million property complex in Nusantara.
• On October 28, 2024, the Indonesia Investment Authority and partners acquired sections of the Trans Sumatra Toll Road for around IDR 21 trillion (~€1.2 Billion) as part of broader infrastructure investment totaling USD 2.75 Billion.

Indonesia Commercial Real Estate Market Key Highlights of the Report

• Comprehensive quantitative analysis of market segments and trends from 2019-2033.
• Detailed assessment of market drivers, challenges, and opportunities.
• Porter’s Five Forces analysis to evaluate industry competitiveness.
• Competitive landscape insights detailing key players and market positioning.
• Segment-wise and regional market forecasts for strategic decision-making.

Indonesia Commercial Real Estate Market Key Players

• Agung Podomoro Land
• Ciputra Group
• Duta Anggada Realty
• Lippo Group
• PP Properti (PT PP (Persero) Tbk)
• RDTX Group
• Sinar Mas Land (Sinar Mas)

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