Jakarta will see a considerable spike in construction of new skyscrapers during the next few years, according to the Jakarta Post, which reports development of these commercial real estate properties will likely double by 2015.
One main reason for the boom in CRE building throughout the city is the preference of major investors to make their mark in the industry and create legacies, the paper notes.
Anton Sitorus, Jones Lang LaSalle Indonesia's head of research, indicated the rise in investment and development of these high-end properties is due to a couple main factors.
"Land prices have become increasingly expensive in Jakarta. Therefore, developers want to maximize the use of their land," he told the newspaper. "Besides, they also want to make an iconic building on which they can put their names."
The increase in building in Jakarta may be needed to meet the demand for office space around the city. According to Jones Lang LaSalle data, the office occupancy rate during the first quarter was 96 percent.