Tuesday, November 24, 2009

Commercial Real Estate in Jakarta

Commercial Real Estate in Jakarta

The capital and the largest city of the Republic of Indonesia, Jakarta is situated on the northwest coast of the Java Island. With more than 300 ethnic groups speaking different languages, Jakarta boasts of a diverse culture, linguistic, and religious traditions.

A special territory with the status of a province, Jakarta is the center of government, trade, and commerce in the country. Further, its strategic location makes it the principal gateway to other parts of the country. Apart from its amazing tourist destinations such as Merdeka Square, Sunda Kelapa Port, Chinatown, Kebun Binatang Ragunan, the National Museum, and several restored colonial period buildings - Jakarta also boasts of a vibrant nightlife and shopping facilities. Above all, Jakarta is a city of contrasts, blending traditional and modern and the rich and the poor.

With these umpteen attractions, Jakarta serves as an entry point for many tourists and business people. Its rapid growth into a bustling, modern metropolitan city has led to fast development in the economic, industrial, political, and social sectors of the country. In recent years, the city has expanded its facilities to include a plethora of world-class hotels and resorts, most sophisticated apartments and villas, exotic restaurants, and modern shopping malls.

Hence, it is no wonder that why many people, including westerners, prefer to stay here and carry out their business activities. This in turn has led to an increased demand for both residential and commercial real estate in Jakarta.

In other words, since many foreigners flock to the city not only to experience its tourist attractions but also to stay here as well as conduct their core business functions, the demand for commercial real estate in Jakarta has increased than even before. The demand for commercial property in the city is further driven by the growing number of financial institutions and accounting and law firms. Apart from foreign investors, a large number of local companies and organizations also now invest in commercial spaces in Jakarta.

Different types of commercial real estate are available in Jakarta according to the preferences of investors. One of the most preferred commercial spaces here is flex commercial properties, which are a blend of office and industrial properties. This type of commercial spaces are mostly used for laboratorial set ups or research purposes.

Another popular category of commercial property is niche commercial spaces, which is especially designed for storage purposes or for doctors as well as other healthcare professionals. Commercial real estate in Jakarta also include infrastructure type properties that are suitable for set ups such as hospitals, schools, and municipal buildings. In addition, commercial properties are available for selling apparels, electronic items, and other consumer products. In short, Jakarta's commercial real estate includes everything from offices, retail stores, and shopping malls to restaurants, factories, and industrial parks.

Investing in Jakarta commercial properties can fetch you a host of benefits. High yield income and secured as well as stable long term cash flow are just few among them. Further, there is considerable savings in maintenance cost, since it is the responsibility of tenants to maintain the commercial property.

However, the Indonesian government has imposed certain restrictions for foreigners to invest in real estate in the country. In other words, foreigners cannot have their own freehold property in Jakarta. Land tenure in the country has been categorized into certified property and uncertified property. Certified land procedures are recorded with the office of the National Land Agency. In most cases, almost all commercial as well as residential properties are built on certificate land. According to the Basic Agraria Law, foreigners can invest in commercial property through certain ways, such as through an Indonesian nominee or a PMA (Penanaman Modal Asing) company.

No matter you want to invest in any kind of commercial real estate in Jakarta, a lot number of realtors and property builders are in the scenario to provide world-class services in order to assist you in finding a property that go with your business needs. Many of them offer superb services to deal with the daunting laws and procedures in connection with the acquisition of property in the city, while some even provide the assistance of an expert lawyer or consultant to verify the documents related to commercial real estate. Above all, there are also realtors arranging mortgages for the acquisition of commercial property in the city.

By Wantanee Khamkongkaew

Wantanee Khamkongkaew is an independent author evaluating and commenting on leading International Property Consultants in Asia and Greater China, especially CB Richard Ellis.

Article Source: http://www.articlesbase.com/real-estate-articles/commercial-real-estate-in-jakarta-259494.html