Data Centers Dominate Industrial Take-Up in Jakarta for H1 2022
Following the lifting of lockdown measures in Indonesia, pent-up demand has strengthened the industrial land sales volumes in the first half with data center and chemicals industries continuing to emerge as key sources of demand in Jakarta.
10 October 2022
Since last year, Knight Frank Global has stated that the industrial sector is the sector with continual development. A related publication from Knight Frank Asia Pacific has also projected that the industrial sector (logistics and data centres) will be the sectors of most potential - with an average rental growth for modern warehouses of approximately 3% in the first half of 2022 (yoy). Jakarta was also stated as one of the cities with stable logistics growth at 2.8%.
The latest research from Knight Frank Indonesia, the Jakarta Property Highlight, states that in the first half of 2022, the take-up for industrial estates was recorded at 67.25% or 133 hectares in the Greater Jakarta Area. Meanwhile, Bekasi remained as the largest industrial take-up, approximately 38% from the total take-up in the Greater Jakarta Area.
The total supply of industrial estates increased slightly from the expected available land banks, while prices remained stable despite of the potential growth in the eastern corridor submarket.
Another interesting finding was the growing take-up from the data center sector. The Jakarta Property Highlight stated that data centers have dominated the demand for industrial land area in the eastern corridor for the past two years.
Technically, space management and risk management for land and building utilized by data centers must be based on strict Healthy, Safety and Environment (HSE). This is because data centers with four tiers of international quality can only have 30 minutes of downtime in a year or 99.995% uptime in a year.
The latest Jakarta Property Highlight also stated that the industrial sector recorded the best performance among other property sectors in the first half of 2022.
As predicted, the industrial sector will continue to grow amidst the pandemic and various global economic challenges. Compared to last year’s growth; demand from data center, chemical, and logistics has been the main driver for transactions in the first half of this year.
To get more insights from the Industrial Market Overview H1 2022, please visit this link: https://kfmap.asia/research/industrial-market-overview-h1-2022/2177. For further information, please contact Syarifah Syaukat (syarifah@id.knightfrank.com) or Monicha Nelis (monicha.nelis@id.knightfrank.com).
