By: Marilyn Ardipradja for Colliers International

Indonesia continues to maintain the interest of international investors due to its large population in addition to therefore potentially large consumer market. Several very large infrastructure projects are within the planning stages or have recently started out up. Combined with rapid growth in multiple sectors, This kind of has created the need for additional expatriate staff in addition to management personnel which eventually affects the housing market.

Some reports indicate a decrease within the number of incoming expatriates in middle in addition to lower management positions due to the fact that will working permits for these levels are being restricted. Multinational corporations, however, continue to operate, expand or establish their companies in Indonesia in addition to therefore require expatriates in many higher management positions.

that will can be not surprising that will the stimulated economy has resulted in cost increases in addition to This kind of can be particularly noticeable within the Jakarta residential rental property market. An influx of foreigners seeking suitable residences has been a factor in causing rents to climb higher over the past year. Although there can be still no shortage of housing, prime properties that will fulfil all or many of the multinational companies’ security requirements, such as being in a gated community or in close proximity to an international school, are definitely increasing in cost in addition to are becoming more difficult to find. South Jakarta continues to be the most favorite choice for expatriate families because of the shorter commute time to most of the international schools.

Due to the increase in demand for houses that will meet these standards, landlords who were previously asking for rental payments one year in advance are at This kind of point able to request a minimum of two to three years in advance. Landlords are seldom willing to negotiate a one year lease on a house. Rental prices in general have increased substantially with at least a 20% increase, in addition to in some cases 30% or more. These drastic increases come as a shock to many tenants who are forced to rent smaller, older properties or those not in a prime location. Although multinational companies typically plan for rent increases coming from year to year, few are prepared or willing to accommodate rent increases of This kind of scale in addition to are unwilling to revise their employees’ living allowances. As almost all rents are quoted in US dollars, a huge additional strain has been put on housing budgets due to the increase of the US dollar against the Rupiah.

As land prices in Jakarta increase, landlords are demanding a better return on their investment. They are currently enjoying high market demand in addition to therefore are able to dictate the pricing for their properties. Housing in prime locations will seldom be empty more than a month before a brand-new tenant moves in.

Rental rates for apartments are more stable, in particular if they are part of an international chain as they rely on corporate pricing usually dictated by overseas headquarters. Typically, apartment rentals will undergo a 10% – 12% yearly increase. Because of This kind of predicted increase, apartment leases are normally for only one year so This kind of increase can be incorporated. However, service fees can vary greatly coming from building to building depending on the extent of surrounding grounds in addition to what kinds of facilities are provided. Apartment rentals are typically subject to 10% VAT in addition to 11% service charge. numerous apartment buildings have given notice that will as of January 1st 2014, their service charge will increase to 13.5%. This kind of will inflate rental rates even higher within the upcoming year.

In spite of the fact that will there will be several brand-new apartment buildings being completed in 2014, apartment owners in addition to management remain very optimistic that will they will be able to maintain their pricing in addition to keep their occupancy rates very high. The supply of stand-alone housing however, can be not keeping up with demand, therefore that will can be highly unlikely that will rents will be decreasing within the foreseeable future. As long as Indonesia continues to experience rapid growth in addition to still requires the assistance of expatriates, Jakarta landlords will be in a strong position to dictate rental prices.

With the ongoing increase in rental prices, finding your home in Jakarta has become increasingly challenging. If you are given the option by your company of selecting your own home in Jakarta, you may first wish to become familiar with the various residential areas. that will can be important in all cases to take into account the traffic problem in Jakarta, in addition to the time you will spend commuting between work, school, activities, friends in addition to home.

These are a few of the most favorite areas:

Kemang (South Jakarta)
Kemang can be one of Jakarta’s most desirable residential areas that has a nice variety of stores well stocked with Western in addition to Asian food items. brand-new restaurants, boutiques in addition to home furnishing shops are sprouting up every day in addition to flourishing. Kemang can be also close to several clubs in addition to organizations, cultural centres in addition to sports facilities.

Pondok Indah (South Jakarta)
This kind of area can be slightly newer, with streets, homes in addition to shopping areas which could appeal to those who prefer a more Western style home. Homes here range coming from the more modest to the particularly grand. Pondok Indah can be blessed with elegant, tree-lined streets in addition to sidewalks.

Cipete / Cilandak (South Jakarta)
This kind of area, located between Kemang in addition to Pondok Indah, boasts the same advantages as the former in terms of location, however can be decidedly more local in flavour. There are many beautiful homes, some of which have relatively large gardens. The streets are relatively quiet in addition to retain their Indonesian character.

Menteng (Central Jakarta)
Menteng can be a very special area to Jakartans, set apart coming from some other areas by its history. Menteng can be described as old, elegant in addition to aristocratic. Here you will find many of the original stately Dutch homes, in addition to what can be left of any colonial architecture or character. This kind of neighbourhood can be noted for its embassies in addition to ambassadors’ residences, in addition to can be home to many Indonesian government officials.

Kebayoran Baru (South Jakarta)
Much the same as Menteng, This kind of area consists of many beautiful homes in addition to landscaped areas. that will can be also favorite with many government officials. Kebayoran Baru encompasses the busy Blok M in addition to Panglima Polim shopping areas.

Kuningan (Central Jakarta)
Kuningan can best be described as a residential area within the business district. There are attractive brand-new apartment complexes here, as well as the older Pertamina Oil Village housing development, with its American style streets in addition to sidewalks. Kuningan incorporates a metropolitan atmosphere, in addition to can be close to shopping centres, restaurants, hotels, office buildings in addition to medical facilities.

Permata Hijau / Simpruk (South Jakarta)
This kind of area, very close to the large Senayan Sports Stadium in addition to the very elegant in addition to chic Plaza Senayan in addition to Senayan City malls, incorporates a wide variety of homes in addition to apartments. Here you will find wide, quiet streets in addition to particularly Great access to sports facilities.

Bintaro (South Jakarta)
Bintaro can be an area on the southwest outskirts of Jakarta, comprising newer, middle class housing developments in addition to private homes. Because that will can be a newer residential area, there are few amenities aside coming from a shopping plaza in addition to basic supermarkets.