Market shows continued positive net demand at the start of the year

• Jakarta’s office market is showing positive net demand at around 18,000 sqm in Q1 2026. Technology and professional services sectors maintained the highest take-up rates alongside financial services companies during the quarter.
• One flex-space company has expanded its operations in a Grade A office building in Sudirman area.

No new buildings were completed in Q1 2026

• In recent years, a common trend in expansion strategy has been joint operations with landlords. No new office completions were recorded year to date, with no additional completions expected throughout 2026.
• The Grade A occupancy rate was recorded at 67% in Q1 2026, slightly up by 0.5 percentage points from the previous quarter. As the market gradually absorbs existing supply, landlords with higher vacancies are showing some flexibility in their tenant acquisition strategies.

Rents show sustained growth amid supply-constrained market conditions

• Grade A rents continued their upward trajectory in early 2026, increasing by 0.95% q-o-q. This is in line with the generally optimistic rental projections for the full year. The limited supply pipeline is expected to support the Jakarta office market recovery through 2026.
• Office vacancy rates are forecast to improve to 31% by year-end. Technology and financial services sectors are expected to remain primary demand drivers.

Outlook: No new supply is expected over the next two years

• The limited supply pipeline is expected to support the Jakarta office market recovery through 2026. Office vacancy rates are forecast to improve to 32% by year-end. Technology and financial services sectors are expected to remain primary demand drivers.
• Rents are projected to continue improving throughout 2026. Premium buildings have led the overall rental recovery thus far. However, we may start to see the rest of the Grade A market attracting demand and raising rents from a low base in 2026.