December 17, 2025 | 09:37 pm
TEMPO.CO, Jakarta - The mass rapid transit (MRT) corridor is serving a strategic role in the property market boom in Jakarta this year, according to Cushman & Wakefield Indonesia. This is the result of implementing the Transit Oriented Development (TOD) concept along the MRT line, the real estate service firm said.
Director of Strategic Consulting at Cushman & Wakefield Indonesia, Arief Rahardjo, said the TOD concept doesn't just bolster connectivity, but also strengthens the pull of cross-sector investments.
"The MRT corridor is the main catalyst for the development of integrated areas. The impact is felt directly through the increased demand for office space, retail, housing, and other supporting sectors," said Arief during a virtual press conference on Wednesday, December 17, 2025.
According to him, the TOD concept also affects mass transportation integration and city planning, as seen from the robust growth of Jakarta's property market.
In the office sector, Arief mentioned that the Jakarta CBD market recorded a net absorption of 105,000 square meters throughout 2025, dominated by Grade A buildings. The occupancy rate surged to 76.7 percent and is projected to rise to 78.8 percent in 2026, as no new supply is expected until 2027.
The average basic rental price is recorded at Rp173,900 per square meter per month, growing by 3 percent y-o-y and expected to increase by 4 percent in 2026. According to Arief, office buildings located along the MRT line show stronger performance compared to non-MRT locations.
"Direct access to the MRT has been proven to improve occupancy. We see that the Thamrin-Kota Tua corridor will become the next development hotspot," he said.
In the retail sector, Cushman & Wakefield noted that the Jakarta market continues to display resilience with an occupancy rate of 77.2 percent despite the continuous influx of new supply. In 2026, an additional 61,000 square meters of retail space is expected to be added, especially outside the CBD area.
Arief said the demand for retail is driven by the expansion of international brands and F&B, such as 88SEOUL and Beauty in the Pot, as well as luxury fashion brands Hermes, Loewe, and Jimmy Choo. Retail areas along MRT Phases 1 and 2 are the primary growth hub with a relatively stable basic rental price at Rp834,900 per square meter per month.
For the condominium segment, it is projected that around 11,300 units will be added in 2026, with the largest concentration in Tangerang and Bekasi. Arief mentioned that affordability and absorption level are expected to remain strong at 94 percent thanks to the extended DTP VAT incentives until 2027.
Meanwhile, landed housing also showcased resilience. Land prices rose by about 3 percent to Rp13.2 million per square meter, supported by township development and toll road access.
"Housing projects connected to the MRT, LRT, and KRL recorded better sales performance compared to other locations," he said.
As for the rental apartment and serviced apartment market, it continues the post-pandemic recovery trend with ever-growing occupancy rates. Arief said limited rental price adjustments are expected.
Arief reckoned that the synergy between mass transportation development and urban planning would be key to maintaining the future resilience of the property market.
"With the support of infrastructure and appropriate policies, the MRT corridor will continue to shape Jakarta as a more livable, inclusive, and highly competitive city," he said.
Read: Bali Inks Deal with Jakarta for MRT Development
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