The Indonesian property sector is experiencing development mainly in their residential, office, retail and hotel sector. Demand for apartments is rising with developers concentrating on areas in Surabaya and Jakarta due to the availability of rare and expensive lands. As at the first half of 2007, supply of hotels remained at 87 hotels. However, in 2008 / 2009, 15 additional hotels will be in operation with 5 located in the CBD area. The occupancy rates for services apartments and hotels have been increasing due to the growing number foreign tourist, which is expected to continue rising. Also, many overseas business entities are interested in expanding to Indonesia, and this will eventually drive demand for office space. In Jakarta's CBD area, total supply grew by approximately 10% in 2007 and is expected to further increase with more office buildings in 2008. In respect of retail property, the total existing supply in Jakarta for the first half of 2007 amounted to 2.89 mn sq m. An additional 1.02 mn sq m of shopping centers are expected between the years 2007 and 2009, mostly in non CBD areas.
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