As Indonesia’s bustling capital and economic powerhouse, Jakarta offers a diverse range of places to live.
Whether you’re seeking a luxury condo in the CBD or a spacious suburban home for your family, our full guide to Jakarta’s top neighborhoods has you covered.
Jakarta’s real estate market is experiencing a dynamic phase, reflecting the city’s growing significance both regionally and globally. The city’s thriving economy, bolstered by finance and manufacturing, is a major draw for those looking to invest in property here.
Foreigners are particularly interested in Jakarta’s real estate market because of the city’s growing status as a Southeast Asian economic powerhouse.
The potential for business opportunities, combined with a relatively lower cost of living compared to other major Asian cities, makes Jakarta an attractive destination for expatriates and international investors.
A key data point illustrating the dynamism of Jakarta’s real estate market is the consistent rise in property values over recent years, despite global economic fluctuations. This trend indicates a strong and resilient market.
Looking into the future, the value of properties in Jakarta is expected to rise due to several factors, including the city’s status as a regional business hub which naturally draws foreign companies and expats.
So, let’s dive into the top neighborhoods for real estate investment in Jakarta, categorized by different criteria such as affordability, prestige, and rental demand.
Most Expensive Areas in Jakarta
Generally, the highest-end areas of any major city tend to appreciate in value over time. Jakarta certainly isn’t any different.
You might want to consider these three luxury neighborhoods below if you’re seeking stability and high-occupancy rates.
1. Menteng
Menteng is a prestigious area in Jakarta, known for its luxurious residences and high-end lifestyle.
The properties in Menteng are quite expensive, with an average price per square meter soaring above most other districts. This area is favored by wealthy individuals, including business professionals and expatriates.
If considering a move to this area, your choices primarily consist of large, opulent houses and upscale apartments.
Meneng’s strengths lie in its central location, lush greenery, and historical significance, offering a serene escape within a bustling city. Neighborhoods in Jakarta rarely have all these perks at once.
2. Kebayoran Baru
Kebayoran Baru is another upscale area in Jakarta, renowned for its mix of traditional charm and modern amenities.
The neighborhood is expensive, with property prices reflecting its status as a sought-after residential area.
It hosts a variety of properties, from grand colonial houses to contemporary high-rise apartments. Residents are typically high-income families and professionals.
Kebayoran Baru’s strengths include its well-maintained public spaces, shopping centers, and proximity to business districts.
3. Pondok Indah
This is a modern, planned neighborhood known for its luxury homes and exclusive shopping malls.
Real estate prices in Pondok Indah are high, making it a prime choice for the affluent. The area offers a range of properties, including spacious homes and high-end condominiums.
It’s popular among business executives and expatriates, drawn by its well-organized layout and comprehensive amenities.
Menteng, a prestigious area in Jakarta, is now known for its luxurious residences and high-end lifestyle. Several important figures of the nation, including former president Suharto, calls this area home.
The strengths of Pondok Indah lie in its excellent infrastructure, green spaces, and recreational facilities.
Budget Neighborhoods in Jakarta
On average, you’ll pay about $4,000 per square meter in prime areas of Jakarta. It’s possible to spend significantly less if looking further out in the suburbs though.
Here are several neighborhoods where real estate costs significantly less than the city center. Just keep in mind that you might have to deal with long commutes and traffic.
1. Cengkareng
Cengkareng is a great option if you’re looking for affordability. It’s cheaper because it’s a bit away from the city center, reducing demand.
However, with Jakarta’s expanding infrastructure, areas like Cengkareng could see a rise in property values. You’ll mostly find townhouses and small apartments here, with the average price per square meter being relatively lower than in more central areas.
The residents are diverse, ranging from middle-class families to young professionals.
2. Bekasi
Bekasi, on the east side of Jakarta, is known for its affordability.
The lower prices are due to its distance from central Jakarta and the perception of being a suburban area.
However, with ongoing infrastructure projects like LRT and improved road networks, property values in Bekasi are expected to rise.
Housing options include modest single-family homes and budget apartments.
3. Tangerang
Tangerang is another budget-friendly area, mainly because it’s seen as more of an industrial zone.
This perception keeps prices down, but with more commercial developments and improved transport links, property values are likely to increase.
In Tangerang, you’ll find a range of properties, from affordable apartments to standalone houses.
The population is a mix of locals working in nearby industries and commuters to Jakarta.
Jakarta’s Up-And-Coming Areas
If you’re seeking high capital appreciation, you’ll want to choose a place where lots of people are moving in.
Below are three neighborhoods in Jakarta that are primed to benefit the most from Indonesia’s population growth and urbanization rate.
1. Kemang
Initially a quiet residential area, Kemang has evolved into a vibrant neighborhood attracting a younger, creative crowd.
Not only packed with cafes and boutiques, Kemang Village’s Lippo Mall is another destination for the neighborhood for local families to enjoy.
It’s becoming popular due to its eclectic mix of cafes, art galleries, and boutiques.
Prices in Kemang are more affordable compared to the upscale areas, but they have been steadily rising.
Kemang’s appeal lies in its bohemian vibe and cultural diversity, making it a hotspot for artists and entrepreneurs.
2. Cipete
Cipete is an emerging neighborhood in Jakarta, known for its quieter, more suburban feel.
It was once overlooked but has recently gained attention for its affordable housing and growing number of trendy cafes and restaurants.
The area attracts young professionals and families looking for a balance between urban life and a peaceful environment.
Prices in Cipete are lower than in prime districts but are rising due to increasing demand.
3. Tebet
Tebet is known for its local charm and increasing popularity among young adults.
It started as a predominantly residential area but has recently seen a surge in popularity due to its thriving culinary scene and affordable living options.
Property prices in Tebet are lower than in the more established areas but are expected to rise as the neighborhood gains more recognition.
The area is attracting a diverse group of residents, including young professionals and small families.
Top Areas in Jakarta for Rental Yields
You’ll find that Jakarta’s rental yields are some of the highest in Southeast Asia at above 5% in most neighborhoods.
We’ll quickly cover three places where rental yields are even higher than the city’s already generous average.
1. Kebayoran Baru
This affluent area attracts a mixture of expatriates and wealthy locals, driven by its proximity to international schools, embassies, and upscale shopping centers.
Tenants often seek spacious, modern apartments or houses, with a preference for added amenities like security and a swimming pool.
Rental income for a well-maintained 3-bedroom apartment in Kebayoran Baru can range from IDR 25 million to IDR 35 million per month, translating to an approximate annual rental yield of 5-6%.
2. Sudirman Central Business District (SCBD)
This bustling financial hub is in high demand among young professionals and corporate expats.
Kebayoran Baru comes equipped with international schools, embassies, and upscale shopping centers; properties in the neighborhood are highly sought-after by expats and affluent locals.
The demand is for modern, furnished one or two-bedroom apartments, convenient for work and social life.
Monthly rents in SCBD can go from IDR 15 million to IDR 30 million for such units, with a rental yield of around 6-7%.
Investing in properties within walking distance to offices, malls, and public transport can increase your rental prospects.
3. Kelapa Gading
Known for its shopping and food scene, this neighborhood attracts a mix of local families and young professionals.
The demand in Kelapa Gading is primarily for medium-sized apartments and townhouses.
Rental prices for a decent 2-bedroom apartment range from IDR 10 million to IDR 20 million monthly, with a rental yield of about 4-5%.
Properties near malls and schools tend to have less vacancy.
Where Should You Buy Property in Jakarta?
Jakarta’s property market offers a wealth of opportunities for investors, from the glitzy towers of Central Jakarta to the emerging neighborhoods of Kemang and Cipete.
Quite simply, the specific place you choose to buy property will determine its investment prospects for decades to come.
It’s key to work with reputable partners and stay attuned to the city’s constantly evolving landscape. We’re talking about a place that’s seeing rapid change in line with its growing population.
One thing is practically certain though – with Jakarta’s strategic location and rising middle class, it’s poised for continued growth in the years ahead.
FAQs: Neighborhoods in Jakarta
What's the Most Expensive Area of Jakarta?
The most expensive areas in Jakarta are generally the prestigious, central neighborhoods like Menteng, Kebayoran Baru, and Pondok Indah. Menteng in particular is known for its luxurious mansions. Home prices in these upscale districts soar above the Jakarta average beyond $4,000 per sqm.
Kebayoran Baru and Pondok Indah also command premium prices, being renowned for their mix of traditional charm and proximity to business districts. These areas primarily feature grand houses and high-end apartments popular among affluent families and expats.
How Much Does Real Estate in Jakarta Cost?
Property prices in Jakarta vary significantly based on location. On average, you can expect to pay around $4,000 per square meter in the prime central areas. However, prices can be much higher in the most prestigious neighborhoods like Menteng, where luxury properties command top dollar.
In more affordable suburban areas further from the city center, like Cengkareng, Bekasi, and Tangerang, prices are relatively lower. These districts mostly feature modest townhouses, small apartments, and standalone homes at budget-friendly rates.
Up-and-coming areas like Kemang, Cipete, and Tebet also offer more reasonable prices compared to the established high-end locations.
What Are the Cheapest Neighborhoods in Jakarta?
Some of the most affordable neighborhoods in Jakarta are Cengkareng, Bekasi, and Tangerang. These areas have lower prices primarily due to their distance from central Jakarta and perception as suburban or industrial zones.
Cengkareng, while cheaper, has potential for property appreciation with Jakarta's expanding infrastructure. Bekasi's affordability is tied to ongoing development projects that are expected to boost values.
And Tangerang, although industrial, is seeing more commercial projects and transport links that could drive prices. These areas mostly have modest apartments, townhouses, and single-family homes for sale.
Which Areas of Jakarta Have the Highest Rental Yields?
Jakarta boasts some of the highest rental yields in Southeast Asia, exceeding 5% in most neighborhoods. A few areas stand out with even higher returns though.
Kebayoran Baru is popular among wealthy locals and expats due to its proximity to international schools, embassies, and high-end shopping. Rental income for a well-maintained 3-bedroom apartment here ranges from IDR 25-35 million per month, with annual yields around 5-6%.
The Sudirman Central Business District (SCBD) attracts young professionals and corporate expats seeking modern, convenient apartments. Monthly rents are IDR 15-30 million for 1-2 bedroom units, with yields of 6-7%.
