Jakarta ranks first on the most preferred destinations list for real estate investment, according to the "Emerging Trends in Real Estate: Asia Pacific 2013" survey report, published jointly by Washington-based Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC).
It shot up to the number one position from 11th place and overthrew Singapore, which topped the list last year.
The report shows that Jakarta leads both city investment prospects and city development prospects lists with scores reaching 6.01 and 6.10, respectively, outperforming Shanghai, Singapore, Sydney and Kuala Lumpur.
For the report, ULI, a nonprofit research institute, and PwC interviewed and surveyed over 400 individuals, which represented various industry experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers and consultants.
The report found that demand for property in Jakarta was strong, supported by Indonesia's stable interest rates and inflation, steady gross domestic product (GDP) growth and increasing foreign direct investment (FDI).
"FDI grew by 39 per cent in the first half of 2012, while year-to-year office rent leaped by 29 per cent," the report says.
The report quoted one executive who said that "getting things done" in Indonesia was relatively easy compared to other markets such as Vietnam.
Another executive, who worked for a large developer, said that Indonesia was going through a "boom period" and everyone was looking at it "very aggressively".
In the retail market sector, Jakarta topped the list, driven by its growing consumer spending power, followed by Shanghai, China's secondary markets, Ho Chi Minh City and Manila.
However, the report warns that Jakarta's retail market will prove tough for average investors to tap.