Property Sector Growth In Indonesia Expected to Reach 15% in 2011

10 Mar 2011

The property sector in Indonesia is expected to grow up to 15% in 2011, particularly the office space lease and sale sub-sector.

Local media reported that during the Property Outlook event held in Jakarta early last month, the Chairman of the Advisory Board of the Central Executive Council of Real Estate Indonesia, Mr. Teguh Satria, stated that it is expected that during 2011 the office space lease and sale will be the best preforming property sub-sector.

Mr. Satria was further quoted by saying that the high growth expectations in this sector are based on office space development delays that begun in 2008. Due to this delay, among other factors, it is estimated that the demand for office space will rise beyond the supply: “It is estimated that in 2011 the demand for office space will reach 200,000 square meters, while the supply of the available office space is expected to be no more than 190,000 square meters” Mr. Satria said. In contrast, the growth of the retail sub-sector in big cities is expected to show signs of stagnation.

Data in this article is based on article “Pertumbuhan Property Diperkirakan 15 Persen” published in Komaps, 8 February 2011