Analysis of Real Estate Market in Indonesia - Market Sizes, Market Share by Distribution of Revenues between Segments, Competition (2016 - 2021)

Analysis of Real Estate Market in Indonesia - Market Sizes, Market Share by Distribution of Revenues between Segments, Competition (2016 - 2021)

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In 2012 and the first half of 2013 the real estate sector in Indonesia experienced a rapid and robust growth with 26 out of 45 property companies, listed on the Indonesian Stock Exchange, posting net profit growths over 50%. That was the golden time for the Indonesian Real Estate market. Thereafter, the sector experienced a rough patch during the year 2014 and the beginning of 2015 performing below its potential. Despite several factors having managed to slow the growth over the past two years the residential property sector of Indonesia has remained attractive in 2016. The real estate market in Indonesia is poised for growth at an estimated CAGR of XX.X% over the forecast period, from 2016 to 2021. The projected market value of the real estate sector in 2021 is USD XXXX.XX million.

Drivers

In Indonesia, the difference between the rich and poor is on the decline leading to a growing middle-class population that can afford to buy own properties. This is the major driver for the real estate sector in Indonesia. Secondly, the country has a young population, with around 50% of them below the age of 30 years, implying that many Indonesians are expected to buy their first property by their middle age.

Restraints and Challenges

Increasing concerns about the property bubble have slowed down the economy and growth in the real estate sector in Indonesia. Bank of Indonesia tightened its policy in the second half of 2013 by raising the minimum down payment required for property purchases and curbed mortgages for second home ownership (to prevent an excessive build-up of housing debt). Banks were also barred from providing loans for the purchase of properties that were still under construction (for the second time, or more, home buyers). Another challenge is the interest rate in the country, which touched a record low in 2012 but the Bank of Indonesia aggressively raised it again by the end of 2013. Hence, the concerns for property bubble that have led to such situations are the major restraints for the market.

Opportunities

In line with the global trend, Indonesia has also been experiencing the process of (rapid) urbanization. Currently, over half of Indonesia's total population resides in urban areas. In the past, the United Nations (UN) stated that by 2050 two-thirds of Indonesia’s population is expected to live in urban areas. This indicates that there are many more houses, apartments and condominiums to be built in Indonesia’s urban regions to meet the future demand; investing in real-estate in one of the best investments, globally. The size and scale of the real estate market make it an attractive and lucrative market for many investors. Investors can invest directly in a physical real estate or choose to invest indirectly through managed funds.

About the Market

  • PESTLE Analysis (Overview): Macro market factors pertinent to this region.
  • Market Definition: Main, as well as, associated/ancillary components constituting the market.
  • Key Findings of the Study: Top headlines about market trends & numbers.
  • Market Dynamics:
  • Drivers: What are the key factors driving growth in the market?
  • Restraints: Most relevant threats and restraints which hinder the growth of the market?
  • Opportunities: Sectors of high return or quick turn around on investment?
  • Market Concentration: Porter’s 5 Forces Analysis quantified by a comprehensive list of parameters.
  • Chain Analysis:
  • Competition:
  • Market Share Analysis: Top players in the market (by value and volume).
  • Company Profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders with contact, operations, product/service offerings, financials and strategies & insights.

1. Introduction

                1.1 Scope of the Report

                1.2 Regional Analysis

                                1.2.1 PESTLE Analysis

                                1.2.2 Analysis of Ease of Doing Business

2. Market Dynamics

                2.1 Drivers

                2.2 Restraints

                2.3 Opportunities

                2.4 Trends

3. Market Demand Analysis

                3.1 Socio-Economic Segmentation

                3.2 Demographic Strengths & Weaknesses

                3.3 Spending Patterns

                3.4 Target Market Identification

4. Real Estate Market Size (USD millions) and Market Share

                4.1 Market Data

                                4.1.1 Offices

                                                4.1.1.1 Market Size

                                                4.1.1.2 Market Share Analysis

                                                4.1.1.3 Rental vs Purchase Trends

                                4.1.2 Retail

                                                4.1.2.1 Market Size

                                                4.1.2.2 Market Share Analysis

                                                4.1.2.3 Rental vs Purchase Trends

                                4.1.3 Industrial

                                                4.1.3.1 Market Size

                                                4.1.3.2 Market Share Analysis

                                                4.1.3.3 Rental vs Purchase Trends

                                4.1.4 Residential

                                                4.1.4.1 Market Size

                                                4.1.4.2 Market Share Analysis

                                                4.1.4.3 Rental vs Purchase Trends

                                4.1.5 Others

                                4.1.6 Mortgage Market Overview

                4.2 Stakeholders in the Industry

                                4.2.1 Value Chain Analysis (with Key Stakeholders)

                                4.2.2 Key Vendor Profiles

5. Laws and Regulations Related to Real Estate and Commercial Property Holding

                5.1 Overview

                5.2 Mortgage Market Laws

                5.3 Loan Brokerage Laws

6. Valuation Trends and Methodologies

7. How to Register a Company

                7.1 Registration Processes

                                7.1.1 Ministries Involved

                                7.1.2 Criteria and Conditions

                                7.1.3 List of Forms & Documents

8. Sources

9. Disclaimer

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