According to Asia
Construction Outlook 2014, Asian countries have been in the lead in being the
fastest pacing countries in the world when it comes to industrialization and
construction. Jakarta, Indonesia is forecast to have the highest potential in
terms of growth and development.
Despite the slow
development, the warnings of downfall and the great fluctuations of global
economy, Asian countries have remained strong and have maintained their growth
and development. The reason for this is said to be because of the demands of
urbanization within their walls.
Indonesia emerges
as a particularly interesting market. Construction spending in the world's
fourth-most-populous country accounted for more than a quarter of the nation's
gross domestic product last year, with about half of this expenditure funding
infrastructure projects. Aecom's survey also found that Jakarta is viewed as
the No 1 city in the region for potential market growth and profitability.
The country’s
development is already one of the main topics by analysts and economists and
has been in discussion by many sectors all over the world.
According to
Global Intelligence Alliance report last 2014, property industry in Indonesia
is expected to grow within 2015 on rising middle class and infrastructure
spending. Indonesian middle class is expected to increase to 90 million. The
report also anticipates property prices to increase to 15%-20% as they respond
to fuel prices, electricity prices and bank interest rates.
The fact that
foundation contractors plan to increase prices by 5% in March will also have an
impact. The price increase will mostly affect small developers and the
low-level segment. The middle-upper market should not be significantly
impacted, however, because of the strong rise in purchasing power. Property
developers in the retail and condominium segments are particularly interested
in the suburbs and outskirts of Jakarta. This shows the fast-paced expansion of
the country and its potential to compete in the global market.
A review from
Aecom 2014 also adds that Indonesia is the top-rated country for expected
market growth in the near term, followed closely by China. The city or
metropolitan region with the most profitable construction market in Asia will
be Jakarta.
Because of the
country’s fast growth towards urbanization, big construction companies such as Axis
Capital Group who sells and rents construction equipment and is based in
Singapore, also branched out their services and products in the country’s
capital, Jakarta.
Analysts and
economists are expecting more from Indonesia to pave the way for Asia towards
great development.
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