Indonesia property outlook remains bullishThe Indonesia property market is set for a consecutive bullish year in 2011.

Two important factors that will play a major role in real estate double digits growth this year are Indonesia's promotion to investment grade status and real estate foreign ownership reform.

These two drivers will ensure a strong and stable growth in Indonesia's property market for years to come.

Achieving investment grade status means that Indonesia is recognized as a reliable and stable borrower of funds. Currently set at BB by S&P, Indonesia is just one step away to achieving investment grade status.

 

Higher Foreign Direct Investment (FDI) and optimism from local corporates will boost economic activity and growth, which in turn will positively affect the local property market. 

 Relaxation of foreign ownership restriction on real estate in Indonesia has been intensely advocated by both local and foreign interest parties, such as REI and FIABCI.

Comparing to other major cities in Asia, Jakarta property market is still undervalued, but with higher rental yields. A more relaxed foreign ownership lay will certainly boost the overall property market in Indonesia.

The CBD Jakarta market has also enjoying strong consecutive growth. As an indicator, Century 21 Ambassador's revenue growth in 2010 vs 2009 is at 44%, driven largely by increasing number of apartment rentals by expatriates and investments and rental of commercial and office space by both local and foreign corporates.

 As predicted in Q1 2011, the property market will continue to enjoy a strong growth this year due to healthy economic growth and political stability in Indonesia. This is especially true in the Central Business District of Jakarta, according to various market reports from prominent property management and consultant companies such as Jones Lang LaSalle, Coldwell Banker, and Procon.