Greater Jakarta logistics records nearly 500,000 sqm of net absorption as solid demand continues through 2025

• Net absorption recorded its highest-ever level at approximately 489,500 sqm, exceeding the 2023 record. Most demand was focused on the eastern corridor, which remained the most favourable area, while limited demand occurred in the Depok-Bogor area.
• Greater Jakarta showed steady demand with healthy occupancy rates and limited available space. Inquiries came from electronics, automotive and F&B sectors, with Chinese companies consistently active. Tenants sought facilities with assembly permits and flexibility.

Greater Jakarta logistics vacancy drops to 3.6% as strong demand maintains healthy single-digit vacancy levels

• Two new developments entered the market in the quarter in Jakarta and Karawang. Genesis completed its multi-storey warehouse in North Jakarta, offering dry storage areas for ambient inventory and temperature-controlled zones for frozen and chilled goods.
• Total new supply reached approximately 220,500 sqm for the full year, slightly lower than the previous year as several projects originally scheduled for Q4 2025 completion experienced delays. Greater Jakarta’s cumulative modern logistics supply surpassed 3.1 million sqm.

New Jakarta completions led by Genesis development push rental rates modestly higher

• Modest rental growth continued as premium projects with prime specifications, strategic locations and flexible retrofit options commanded higher pricing. Genesis development led with premium rents above IDR 100,000 per sqm for dry warehouse space.
• The logistics investment market was led by conglomerates focusing on data centres, hotels and residential properties. Chinese funds actively entered due to manufacturing demand, while Sovereign Wealth Funds (SWF) looked for partnerships and capital investments.

Outlook: Limited space keeps vacancy at single digits, with lower absorption expected

• The eastern corridor will continue dominating new supply next year, followed by the Tangerang area. Modest 2026 supply will push cumulative totals to 3.4 million sqm while maintaining single-digit vacancy around 5%, with 2027 expected to be a record supply year.
• Greater Jakarta maintains dominance with established infrastructure, while Special Economic Zone (SEZ) areas emerge as attractive alternatives through incentives. A stable economy, Foreign Direct Investment (FDI) and manufacturing growth continue supporting logistics investments.