Industrial Land and Landed Houses to Drive Property Market in 2026

Growing Demand for Industrial Land

The property market in Indonesia is expected to be driven by the industrial land and landed houses segments in 2026, according to Leads Property. Associate Director Head of Industrial Services at Leads Property, Esti Susanti, stated that the cumulative demand for industrial land is projected to increase to 190-200 hectares in 2026. This growth is primarily driven by Chinese companies looking to capitalize on Indonesia's large consumer market share while mitigating the impact of trade tariffs imposed by the United States.

Shift in Investment Preferences

Esti explained that Chinese companies are now focusing on diversifying their production locations to reduce geopolitical and tariff risks. These companies prefer ready-to-use factories on a rental basis rather than purchasing land outright, as it allows them to commence production quickly. The preference for rental transactions is driven by the lengthy acquisition process involved in buying land.

Market Implications

The increasing demand for industrial land is expected to have a positive impact on the property market in Indonesia. The trend is likely to continue as more companies look to establish a presence in the country. This development is also expected to boost economic growth and create new job opportunities.

Conclusion

In conclusion, the industrial land and landed houses segments are poised to drive the property market in Indonesia in 2026. The growing demand from Chinese companies and the preference for ready-to-use factories on a rental basis are key factors contributing to this trend.