How Weakening Rupiah Sends Expats on Housing Crunch
Rupiah depreciation disrupts companies' ability to provide housing for expatriate workers.
Jakarta has witnessed an increased demand for expatriate housing due to the weakening rupiah, according to commercial real estate agency Colliers Indonesia. Head of Research Ferry Salanto noted that the gap between corporate budgets and the current exchange rate is causing companies to seek smaller housing units, opt for alternative locations, or switch from landed houses to apartments.
Despite the affordability issues, demand remains high, particularly for landed houses within and outside housing complexes. Property owners have maintained high rental prices, limiting negotiation room and making the rental process more selective and time-consuming. Colliers predicts that demand for expatriate housing will remain positive throughout 2026 and the medium term, driven by long-term projects supporting the influx of expatriates.
However, future leasing activity will depend on the gap between tenants' budgets and property owners' price expectations.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
