RealEstat.id (Jakarta) – Numerous questions have arisen about Jakarta’s future following its cessation as the nation’s capital.
As Indonesia’s largest economic hub, it is only natural that concerns would surface, particularly about the continuity of business activities within the city.
Ferry Salanto, Head of Research at Colliers Indonesia mentioned that in the context of Indonesia’s capital relocation to Ibu Kota Nusantara (IKN), Jakarta is projected to become more livable with reduced traffic congestion, which may, in turn, increase property values in various areas.
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"The vacating of government buildings in strategic locations could create new opportunities for commercial development within the city,” he explained.
Based on Colliers Indonesia research, Jakarta, with its rapidly developed infrastructure and strong economic history, remains an investment magnet for both domestic and international business players.
As the largest city and the national economic center, Jakarta plays a pivotal role through its trade, information and communications, industrial, and financial sectors.
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According to Ferry, there are several things that need to be considered regarding the property market in Jakarta after the capital city moves to IKN.
Converting Offices Into Residences
Jakarta’s commercial office sector is facing an oversupply, with 2.43 million square meters of vacant space, intensifying competition and making it difficult for older buildings to attract tenants.
In this context, converting former government offices into residential units seems to be the most realistic and strategic option.
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Conversion of Government Buildings for Hospitality
As government buildings in Jakarta become vacant, one option is to convert them into hotels.
Not all buildings are suitable for transformation into large business hotels. Smaller, unique structures may be better suited for conversion into boutique hotels with approximately 60 rooms.
Although Jakarta is currently recognized as a business hub, the city has significant potential to be developed as a tourist destination.
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