How Weakening Rupiah Sends Expats on Housing Crunch

September 18, 2026 | 01:13 pm

TEMPO.CO, Jakarta - Commercial real estate agency Colliers Indonesia said the rupiah's weakening pushes multinational companies to become more selective in house-seeking for their expatriate workers.

"Pressure on the exchange rate affects the types of housing these companies can realistically get within their available budgets in Jakarta," said Ferry Salanto, Head of Research at Colliers Indonesia, in a written statement on Thursday, September 17, 2026.

Colliers' research found a deepening gap between corporate budgets—which use an exchange rate of around Rp16,000-16,800 per US dollar on average—and the market exchange rate, which hovered around Rp17,900-18,000 per US dollar throughout the first half of 2026.

As a result, companies seek smaller housing units, expand their choice of locations, or switch from landed houses to apartments.

Nevertheless, the demand for expatriate housing has not disappeared. In fact, the market for expatriate housing in Jakarta expanded in the first six months of 2026, supported by various large-scale investment projects in the energy, mining, technology, and industrial sectors in Indonesia.

In contrast to previous market recoveries, primarily driven by economic normalization, Colliers reckoned the current cycle reflects the realization of long-term capital investment projects. This condition has encouraged a more sustainable influx of expatriate professionals while strengthening demand for housing.

Demand Remains High Despite Affordability Issues

Head of Residential Services at Colliers Indonesia, Lenny van Es-Sinaga, said affording desired property proves to be difficult for expatriates due to weakening rupiah. "Not only for limited availability, but also due to exchange rate fluctuations that push rental costs beyond their allocated budgets," Lenny said.

Amid these dynamics, Lenny said demand remains high, especially for landed houses located outside and within housing complexes.

At the same time, property owners, especially those with high-quality assets, tend to maintain their rental prices. Thus, there is limited room for negotiation on price reductions. Lenny stated that this situation makes the rental process more selective and, in some cases, takes longer.

Colliers asserted that affordability issues do not automatically weaken demand. To offset the problem, the company implements several strategies, including making use of serviced apartments, expanding the property search area, and evaluating the cost-benefit ratio offered by each property.

Colliers estimates that demand for expatriate housing will remain positive throughout the second half of 2026 and into the medium term. Furthermore, long-term projects that support the influx of expatriates could create a relatively stable flow of housing demand.

However, Colliers stated that future leasing activity will be influenced by the gap between tenants' budgets and property owners' price expectations. Amidst increasing corporate budget pressures, owners of high-quality, renovated properties remain in a strong bargaining position due to the limited availability of suitable housing.

Read: Prabowo Chairs Limited Meeting on Affordable, Decent Housing

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