Indonesia’s property market is undergoing a structural shift as new asset classes gain ground beyond conventional homes, apartments, offices, and malls. The transformation reflects changing lifestyles, technological expansion, and evolving economic dynamics — marking a new chapter for the country’s real estate sector.
The trend is widely known as the “new economy in property sector,” a concept that has developed globally and is now influencing Indonesia.
“New Economy in Property Sector refers to sectors that grow in line with current economic conditions and the way today’s economy is evolving,” said Anton Sitorus, Head of Research & Consulting at CBRE Indonesia, as quoted by Antara.
For years, Indonesia’s property landscape has been dominated by what industry players call the “old economy” sectors — landed housing, office buildings, shopping centers, apartments, and hotels. However, shifting demographics and rapid digitalization are driving demand for more specialized real estate assets.
Healthcare Tops Regional Demand
Across Asia Pacific, healthcare facilities rank as the most in-demand property sector. These include life sciences centers, medical offices, and modern healthcare infrastructure that support advanced medical services.
Indonesia has begun developing similar assets, supported by rising health awareness, population growth, and improving medical standards. As demand for quality healthcare services increases, purpose-built medical properties are becoming attractive to both local and foreign investors.
The second-most attractive segment in the regional survey is real estate debt, reflecting growing interest in property-backed financing instruments as alternative investment vehicles.
Data Centers Power the Digital Shift
Data centers are also emerging as a high-growth real estate segment. As Indonesia’s digital economy expands — fueled by e-commerce, fintech, cloud services, and mobile connectivity — demand for secure and reliable data infrastructure continues to rise.
Anton emphasized that growth in this sector is expected to remain strong.
“Data centers will continue to expand as long as we hold smartphones, use the internet, and rely on our phones for daily needs,” he said.
With internet penetration increasing and digital services becoming integral to everyday life, data centers are evolving into critical infrastructure that supports the broader technology ecosystem.
Alternative Living Concepts Gain Traction
Innovation is also visible in the residential segment. Retirement villages are emerging as an option for seniors seeking independent living arrangements during retirement. Meanwhile, co-living spaces are gaining popularity among younger residents who value flexibility, affordability, and shared social spaces.
These developments highlight a broader diversification within Indonesia’s property market, as developers and investors explore alternative asset classes aligned with modern lifestyles.
Opportunities and Challenges
While the new economy property sector offers promising long-term potential, it also presents challenges. Healthcare facilities require substantial capital investment, advanced technology, and skilled professionals. Data centers demand high security standards, reliable power supply, and strong connectivity infrastructure.
Despite these hurdles, demand fundamentals remain solid. As digital adoption accelerates and consumer preferences evolve, Indonesia’s property market is expanding beyond traditional real estate models toward assets that support economic and technological transformation.
As developers and investors adjust to this transformation, Indonesia’s real estate sector is no longer just about physical space — it is increasingly becoming part of a broader economic and technological ecosystem.
Source: Antara, Detik
Photo Credit: ©PhonlamaiPhoto (istockphoto.com)
