Indonesia is deemed to be one of the top five economies globally by 2030, and everyone wants their share in it. Real Estate is fundamental to the growth, and hence the proptech in Indonesia is all set for growth.
It is not news that Indonesia is currently enjoying favoured attention from the global tech giants like Facebook, Twitter, and YouTube. Indonesian startups, as well as foreign companies alike, want to take advantage of the country?s increasing Internet user base. This interest, combined with the interest in residential properties, has ensured that the Indonesian real estate market soars. The real estate market has boomed rapidly in recent years in Indonesia, especially in big cities like Jakarta. This country was also ranked third in the Asia Pacific for real estate investments, as per a survey by the Urban Land Institute.
The booming IT sector has given way for technological innovations and advancements in many sectors there, providing unique solutions to a local problem, and even reinventing the wheel in the proptech or the sector of proptech in Indonesia. While the technology landscape of this country is still at its developing stage, fast thinkers are helping change the proptech in Indonesia.
Real Estate Scenario of Indonesia and its impact on Proptech in Indonesia
Within the BSD City of Indonesia, construction is on in full swing for a so called digital park where the tenants of the office park will have access to high tech facilities like 3D printing, studio for VR content, as well as onsite data centers. This is also the area where Apple is building its first research and development center. As compared to the metropolitan cities of the world where high rise towers have slowed down, Indonesia is building with full gusto.
Real estate developer Lippo Group announced its own massive urban development project Thursday: a 278 trillion rupiah ($20.9 billion) industrial township near Jakarta, known as Meikarta. A core element of the project has been dubbed Indonesia’s Silicon Valley.
These developments are enough to show the growth of this sector and its way ahead. The exponential growth of real estate here makes way for proptech in Indonesia or as the startup world calls it Proptech. Another interesting factor that adds to proptech in Indonesia is the demand for rental and vacation housing in locations like Bali and Jakarta.
Conventional business models are soon to become ineffective with the growth of the real estate market. Proptech is here to revolutionize how Indonesians list, search and buy property in the country and some are even working to provide efficient software for it. And not just from the consumer end, proptech in Indonesia is also changing how developers are making their properties and incorporating cutting-edge technology into urban infrastructure, monitoring their cityscapes via the so-called internet of things.
Some of the early internet models that grew big were property portals from proptech in Indonesia. The routine property portals like Rumah.com (acquired by PropertyGuru), Rumah123 (acquired by iProperty) and Lamudi (backed by Rocket Internet) provide generic services like listings of properties for rent/sale and are based on a freemium or brokerage model. But in recent years, exposure to the global market, as well as the rise in entrepreneurship, has led to the advent of portals that solve unique Indonesian problems, with a twist. Some of them are:
CoHive is an ecosystem that provides you with enabling platforms and services that helps foster your businesses or individual growth. Convenience, Coziness, Coworking and Connections – these 4 co’s define CoHive’s new coliving space concept. Live in a full-service apartment, work next door at our coworking spaces and play with your like-minded neighbors at our live-in events.
GoWork is Indonesia’s leading premium coworking space with a mission to help people be their best. It provides world-class workspaces that are inspiring and fully equipped with amenities and tools to help companies thrive. They pursue its mission by creating business community platforms for its members through researched spatial design, integrated technology and empowering content and services. The venture is backed by several well-known venture capitalists and partnered with leading brands in co-working, lifestyle and real estate.
Properin is a property investment company that creates a real estate investment platform
Gradana’s solution approach aimed to tackle the low penetration issue against the high housing demand, all despite the 20 per cent growing rate of Indonesian mortgage market. The unmet demand, according to the data provided by tryb’s official statement, has been quantified as a 13.5 million housing backlog with 800,000 added every year.
WAY AHEAD FOR PROPTECH IN INDONESIA / REAL ESTATE TECH IN INDONESIA
PropTech or Real Estate Tech in Indonesia is currently at its nascent stage but is set to boom along with the rise in its real estate sector. Bets have been placed for Indonesia to be a powerhouse country and this is set to soar the demand for innovative technologies.