Jakarta retail rents remain stable but service charges grow

The average rental rate in Jakarta was IDR 563,428 in Q1.

Average retail rents in Jakarta generally remained relatively stable. According to a Colliers report, most landlords seem to need more time to determine the right time to adjust rental rates. 

However, landlords currently have a stronger bargaining position and are offering more competitive discounts to both new and renewal tenants compared to during the pandemic. 

Here’s more from Colliers:

Nevertheless, several malls have achieved higher revenues compared to last year, making it possible for landlords to consider increasing rental rates. However, negotiations may be more complicated for new tenants as it will be challenging to achieve the same rental rates as during the pandemic. Additionally, the calculation of the average rental rate will be also influenced by newly operating malls, which are expected to set rental rates equivalent to existing malls. 

In Q1 2024, the average rental rate in Jakarta was IDR 563,428, remaining relatively stable compared to the previous year. The contribution of new malls, which historically have been able to attract tenants and visitors, has resulted in an average rent of IDR 390,677 in the Greater Jakarta area, representing a slight increase compared to Q4 2023.

Service charges in Jakarta and the Greater Jakarta area were at IDR 153,519 and IDR 122,977, respectively. As with rentals, landlords are likely to consider gradually increasing service charges. However, adjustments will not be made by all landlords at the same time. Consequently, average service charges are expected to increase periodically throughout 2024.