Indonesia Office Real Estate Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

Indonesia office real estate market, valued at USD 13 billion, is growing due to urbanization, FDI, and infrastructure developments, with key segments including Class A offices and co-working spaces.

Region:Asia

Author(s):Rebecca

Product Code:KRAA6512

Pages:86

Published On:January 2026

About the Report

Base Year 2024

Indonesia Office Real Estate Market Overview

  • The Indonesia Office Real Estate Market is valued at approximately USD 13 billion, based on a five-year historical analysis. This growth is primarily driven by urbanization, increasing foreign investments, a growing demand for modern office spaces, and the expansion of businesses seeking well-equipped workspaces in prime business districts.
  • Key cities dominating the market include Jakarta, Surabaya, and Bandung. Jakarta, as the capital city, serves as the economic and business hub of Indonesia, attracting numerous multinational companies and fostering a vibrant office space demand. Surabaya and Bandung also contribute significantly due to their growing economies and infrastructure developments, making them attractive locations for businesses.
  • The Green Buildings National Standard SNGS 03-2014, issued by the Ministry of Public Works and Housing in 2014, establishes certification requirements for sustainable buildings including offices, mandating compliance through energy efficiency benchmarks, water conservation measures, and material standards for developers seeking green incentives.
Indonesia Office Real Estate Market Size

Indonesia Office Real Estate Market Segmentation

By Type:The office real estate market can be segmented into various types, including Class A Office Spaces, Class B Office Spaces, Co-working Spaces, Serviced Offices, Virtual Offices, and Others. Class A office spaces are typically the most sought after due to their prime locations and modern amenities, appealing to high-profile tenants. Co-working spaces have gained popularity, especially among startups and freelancers, due to their flexibility and cost-effectiveness.

Indonesia Office Real Estate Market segmentation by Type.

By End-User:The end-user segmentation includes Corporate Sector, Government Agencies, Non-Profit Organizations, Startups and SMEs, and Others. The corporate sector is the dominant end-user, driven by the need for professional office environments that enhance productivity and collaboration. Startups and SMEs are increasingly opting for flexible office solutions, such as co-working spaces, to minimize overhead costs while maintaining a professional image.

Indonesia Office Real Estate Market segmentation by End-User.

Indonesia Office Real Estate Market Competitive Landscape

The Indonesia Office Real Estate Market is characterized by a dynamic mix of regional and international players. Leading participants such as Lippo Group, Agung Podomoro Land, Sinar Mas Land, Ciputra Development, Pakuwon Jati, JLL Indonesia, Colliers International Indonesia, Savills Indonesia, Knight Frank Indonesia, Cushman & Wakefield Indonesia, DTZ Indonesia, BCA Finance, Bank Mandiri, Trisula Corporation, Intiland Development contribute to innovation, geographic expansion, and service delivery in this space.

Lippo Group

1950

Jakarta, Indonesia

Agung Podomoro Land

1969

Jakarta, Indonesia

Sinar Mas Land

1982

Jakarta, Indonesia

Ciputra Development

1981

Jakarta, Indonesia

Pakuwon Jati

1982

Surabaya, Indonesia

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Occupancy Rate

Revenue Growth Rate

Average Lease Duration

Customer Satisfaction Score

Market Penetration Rate

Indonesia Office Real Estate Market Industry Analysis

Growth Drivers

  • Urbanization and Population Growth:Indonesia's urban population is projected to reach 68% in the future, up from 56% in 2020, according to the World Bank. This rapid urbanization drives demand for office spaces, particularly in major cities like Jakarta and Surabaya. The population is expected to grow to approximately 277 million in the future, creating a larger workforce and increasing the need for commercial real estate. This demographic shift is a significant catalyst for the office real estate market.
  • Increasing Foreign Direct Investment (FDI):Indonesia attracted $21 billion in FDI in the future, with a focus on sectors like technology and manufacturing. The government aims to increase this figure to $26 billion in the future, as reported by the Investment Coordinating Board (BKPM). This influx of capital not only boosts economic growth but also enhances demand for office spaces, as foreign companies establish operations and seek modern facilities to accommodate their workforce.
  • Government Infrastructure Development Initiatives:The Indonesian government has allocated $42 billion for infrastructure projects in the future, including transportation and utilities. These initiatives are expected to improve connectivity and accessibility in urban areas, making them more attractive for businesses. Enhanced infrastructure will likely lead to increased demand for office spaces, as companies prefer locations that offer better logistics and employee accessibility, thereby stimulating the real estate market.

Market Challenges

  • Regulatory Hurdles:The Indonesian office real estate market faces significant regulatory challenges, including complex land acquisition processes and inconsistent zoning laws. According to the World Bank's Doing Business report, Indonesia ranks 73rd out of 190 countries in ease of doing business. These regulatory hurdles can delay project timelines and increase costs, discouraging both local and foreign investors from entering the market.
  • Economic Volatility:Indonesia's economy is susceptible to fluctuations, with GDP growth projected at 5.2% in the future, down from 5.3% in the previous year, according to the IMF. This economic volatility can impact business confidence and investment in office spaces. Companies may delay expansion plans or reduce office space requirements during uncertain economic times, leading to potential oversupply in the market and affecting rental rates.

Indonesia Office Real Estate Market Future Outlook

The future of Indonesia's office real estate market appears promising, driven by ongoing urbanization and a growing economy. As businesses adapt to hybrid work models, demand for flexible office spaces is expected to rise. Additionally, the government's commitment to infrastructure development will enhance urban connectivity, further attracting investments. The focus on sustainability and smart building technologies will likely shape the market, creating opportunities for innovative real estate solutions that meet evolving tenant needs.

Market Opportunities

  • Growth in E-commerce and Tech Startups:The e-commerce sector in Indonesia is projected to reach $75 billion in the future, according to Statista. This growth is driving demand for office spaces tailored to tech startups and e-commerce companies, which require modern facilities to support their operations. The influx of these businesses presents a significant opportunity for real estate developers to cater to this expanding market segment.
  • Expansion of Green Building Initiatives:With increasing awareness of environmental sustainability, the demand for green buildings is on the rise. The Indonesian government aims for 35% of new buildings to meet green certification standards in the future. This shift presents opportunities for developers to invest in eco-friendly office spaces, attracting tenants who prioritize sustainability and reducing operational costs through energy-efficient designs.

Scope of the Report

SegmentSub-Segments
By Type

Class A Office Spaces

Class B Office Spaces

Co-working Spaces

Serviced Offices

Virtual Offices

Others

By End-User

Corporate Sector

Government Agencies

Non-Profit Organizations

Startups and SMEs

Others

By Location

Jakarta

Surabaya

Bandung

Medan

Others

By Lease Type

Long-term Leases

Short-term Leases

Flexible Leases

Others

By Building Age

New Developments

Mid-aged Buildings

Older Buildings

Others

By Amenities Offered

Basic Amenities

Premium Amenities

Smart Building Features

Others

By Sustainability Certification

LEED Certified

BREEAM Certified

Green Building Council Certified

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Badan Koordinasi Penanaman Modal, Kementerian Pekerjaan Umum dan Perumahan Rakyat)

Real Estate Developers

Property Management Companies

Commercial Tenants and Corporations

Financial Institutions and Banks

Construction Firms

Real Estate Investment Trusts (REITs)

Players Mentioned in the Report:

Lippo Group

Agung Podomoro Land

Sinar Mas Land

Ciputra Development

Pakuwon Jati

JLL Indonesia

Colliers International Indonesia

Savills Indonesia

Knight Frank Indonesia

Cushman & Wakefield Indonesia

DTZ Indonesia

BCA Finance

Bank Mandiri

Trisula Corporation

Intiland Development

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Indonesia Office Real Estate Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Indonesia Office Real Estate Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Indonesia Office Real Estate Market Analysis

3.1 Growth Drivers

3.1.1 Urbanization and Population Growth
3.1.2 Increasing Foreign Direct Investment (FDI)
3.1.3 Demand for Flexible Workspaces
3.1.4 Government Infrastructure Development Initiatives

3.2 Market Challenges

3.2.1 Regulatory Hurdles
3.2.2 Economic Volatility
3.2.3 Competition from Alternative Workspaces
3.2.4 Environmental Sustainability Concerns

3.3 Market Opportunities

3.3.1 Growth in E-commerce and Tech Startups
3.3.2 Rise of Co-working Spaces
3.3.3 Development of Smart Buildings
3.3.4 Expansion of Green Building Initiatives

3.4 Market Trends

3.4.1 Shift Towards Hybrid Work Models
3.4.2 Increased Focus on Health and Safety in Workspaces
3.4.3 Adoption of Technology in Property Management
3.4.4 Growing Interest in Sustainable Real Estate

3.5 Government Regulation

3.5.1 Land Use Regulations
3.5.2 Tax Incentives for Real Estate Development
3.5.3 Building Code Compliance
3.5.4 Environmental Regulations

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Indonesia Office Real Estate Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Indonesia Office Real Estate Market Segmentation

8.1 By Type

8.1.1 Class A Office Spaces
8.1.2 Class B Office Spaces
8.1.3 Co-working Spaces
8.1.4 Serviced Offices
8.1.5 Virtual Offices
8.1.6 Others

8.2 By End-User

8.2.1 Corporate Sector
8.2.2 Government Agencies
8.2.3 Non-Profit Organizations
8.2.4 Startups and SMEs
8.2.5 Others

8.3 By Location

8.3.1 Jakarta
8.3.2 Surabaya
8.3.3 Bandung
8.3.4 Medan
8.3.5 Others

8.4 By Lease Type

8.4.1 Long-term Leases
8.4.2 Short-term Leases
8.4.3 Flexible Leases
8.4.4 Others

8.5 By Building Age

8.5.1 New Developments
8.5.2 Mid-aged Buildings
8.5.3 Older Buildings
8.5.4 Others

8.6 By Amenities Offered

8.6.1 Basic Amenities
8.6.2 Premium Amenities
8.6.3 Smart Building Features
8.6.4 Others

8.7 By Sustainability Certification

8.7.1 LEED Certified
8.7.2 BREEAM Certified
8.7.3 Green Building Council Certified
8.7.4 Others

9. Indonesia Office Real Estate Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Occupancy Rate
9.2.4 Revenue Growth Rate
9.2.5 Average Lease Duration
9.2.6 Customer Satisfaction Score
9.2.7 Market Penetration Rate
9.2.8 Pricing Strategy
9.2.9 Return on Investment (ROI)
9.2.10 Net Operating Income (NOI)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Lippo Group
9.5.2 Agung Podomoro Land
9.5.3 Sinar Mas Land
9.5.4 Ciputra Development
9.5.5 Pakuwon Jati
9.5.6 JLL Indonesia
9.5.7 Colliers International Indonesia
9.5.8 Savills Indonesia
9.5.9 Knight Frank Indonesia
9.5.10 Cushman & Wakefield Indonesia
9.5.11 DTZ Indonesia
9.5.12 BCA Finance
9.5.13 Bank Mandiri
9.5.14 Trisula Corporation
9.5.15 Intiland Development

10. Indonesia Office Real Estate Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Finance
10.1.2 Ministry of Public Works and Housing
10.1.3 Ministry of Trade
10.1.4 Ministry of Industry

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Corporate Investment Trends
10.2.2 Budget Allocation for Office Spaces
10.2.3 Infrastructure Development Spending

10.3 Pain Point Analysis by End-User Category

10.3.1 Corporate Sector Challenges
10.3.2 Government Agency Needs
10.3.3 Non-Profit Organization Constraints

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Levels
10.4.2 Infrastructure Readiness

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 ROI Measurement Techniques
10.5.2 Use Case Expansion Opportunities

11. Indonesia Office Real Estate Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government reports on real estate trends and regulations in Indonesia
  • Review of market research publications focusing on the Indonesian office real estate sector
  • Examination of economic indicators and demographic data relevant to urban development

Primary Research

  • Interviews with real estate developers and property managers operating in major Indonesian cities
  • Surveys targeting corporate real estate decision-makers regarding office space requirements
  • Field visits to key office locations to assess occupancy rates and tenant profiles

Validation & Triangulation

  • Cross-validation of findings with data from industry associations and real estate agencies
  • Triangulation of insights from primary interviews with secondary data trends
  • Sanity checks through expert panel discussions with real estate economists

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total office space supply based on urban development plans and zoning regulations
  • Analysis of historical occupancy rates and rental price trends across major cities
  • Incorporation of macroeconomic factors influencing demand for office space

Bottom-up Modeling

  • Data collection on square footage and rental rates from leading office buildings
  • Estimation of market share for different property types (e.g., co-working spaces, traditional offices)
  • Calculation of total addressable market based on firm-level occupancy and leasing data

Forecasting & Scenario Analysis

  • Multi-variable forecasting using economic growth rates, urbanization trends, and remote work impacts
  • Scenario modeling based on potential regulatory changes and shifts in corporate real estate strategies
  • Development of baseline, optimistic, and pessimistic market projections through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Corporate Office Space Users120Real Estate Managers, Facility Directors
Real Estate Developers80Project Managers, Development Executives
Property Management Firms60Property Managers, Leasing Agents
Co-working Space Operators50Community Managers, Operations Directors
Investment Analysts in Real Estate50Investment Managers, Financial Analysts

Frequently Asked Questions

What is the current value of the Indonesia Office Real Estate Market?

The Indonesia Office Real Estate Market is valued at approximately USD 13 billion, driven by urbanization, foreign investments, and the demand for modern office spaces in key cities like Jakarta, Surabaya, and Bandung.

Which cities are the main hubs for office real estate in Indonesia?

What types of office spaces are available in Indonesia?

Who are the primary end-users of office spaces in Indonesia?

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