Lifestyle and fashion brands drive expansion, following earlier F&B growth momentum in prime retail spaces

• Fourth-quarter demand remained strong, led by lifestyle and fashion retailers building on earlier F&B expansion trends. Notable new market entries included Abercrombie & Fitch, Sanfu, Christy NG, BHC Chicken and Sparkora BBQ across Jakarta’s prime shopping centres.
• ZARA prepared to reopen its Plaza Indonesia location, which was set to become the brand’s largest Indonesian store. The matcha trend continued to influence shopping centres through dedicated events and promotional activities during the quarter.

No new prime shopping malls entered the market during Q4, keeping supply constrained

• Q4 2025 saw no prime shopping mall openings, with vacancy rates holding steady around 4%. Sustained demand in established prime locations continued to support stable occupancy levels despite limited space availability.
• With no new prime mall supply anticipated, retailers continued adapting to space constraints. The limited inventory reinforced competition for quality locations, particularly during the busy holiday shopping season.

Rental rates show healthy quarterly growth of 0.8%, supported by strong seasonal performance

• Mall rents increased 0.8% quarter-on-quarter, bringing full-year 2025 growth to 2.6%. Prime locations maintained stable rental levels with selective modest adjustments, reflecting sustained occupancy and foot traffic performance.
• No retail investment transactions were recorded during Q4. Market conditions supported landlord confidence in rental stability, with seasonal events such as Halloween, Christmas and New Year boosting both exhibition activities and visitor traffic.

Outlook: Demand is expected to increase slightly, while supply constraints persist through 2026

• More international brands are expected to enter Jakarta’s retail market in 2026, with F&B operators likely to continue dominating leasing activity. This sustained demand from food and beverage tenants will maintain competition for prime shopping mall space.
• Property owners are taking cautious approaches to pricing, monitoring tenant performance and broader market conditions before implementing adjustments. Limited supply will continue supporting stable occupancy levels in prime locations.