Business Advantage Property in Jakarta Bigger than London



Advantages build and sell property in Jakarta is much greater than in London, England. The selling price of the property in Jakarta is still very low, while high growth opportunities, can reach up to 20 per cent despite the weakening market conditions.

Not only that. To favorite areas, growth could break the 50 percent to 100 percent. By contrast, in London, property prices are already so high that price growth opportunities were slim.

CEO of PT Jaya Property Indonesia, Amrit Lakhiani, revealing comparison of the condition of the property market in Jakarta and London, the company's business expansion plan related to Kompas.com, Tuesday (11/25/2014). He said that, although offering the advantages of thin, but London is much more neat and professional, both in terms of the licensing of the roof that is easy and friendly investment and quality of construction.

In Jakarta, and Indonesia in general, according to Amrit, too many areas "gray" (gray area). For example when he asked permission to build Win del Rio. Expected to be completed in just four months, the project permits actually stretch up to 13 months.

"Moreover, in London, we learn to build with more efficient and effective manner. One of desk work can be done by just four people. Compare with Jakarta, to work on a desk only need 10 to 15 people," he said.

So, Amrit said, if only permits a more orderly and better quality buildings, Indonesian property market will grow more rapidly again. In fact, Indonesia could become a major global investment destination.

"It must be corrected. Moreover, Indonesia has a greater potential than London or Mumbai in India. The number of developers Indonesia is still small, while the high needs. What needs stemming from the middle class with high purchasing power that has not been met," said Amrit.

Not "bubble"

The same thing is said Coldwell Banker Residential Services Partner Indonesia, Frances Hendri. According to him, the Indonesian middle class demographically much more. It became a great opportunity for developers to build dwellings appropriate representative of its purchasing power.

"Another interesting thing is, in Indonesia there will be no bubble or property bubble, as is happening now is the transformation of buyers from investors to real buyers. So, that is ongoing at this time is a real need (real demand)," said Frances.

It was very different with the property market in Dubai or China are controlled by investors. Thus, the growth rates do not occur naturally because it does not depart from the real needs.

He added that in the period 2009-2013 composition Indonesian investors in the property market more than 60 percent, while this would end users (end user) more, which is above 55 percent. It dismissed the possibility of property prices down.

"In addition, the portion of the mortgage was still comparatively little to total bank credit Indonesia. So the property market we are still safe," he said.

1 Response to "Business Advantage Property in Jakarta Bigger than London"

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