In the past few years, the trend of developing the property business is higher. Bahlan developers began to direct the industry to the condotel hotel category. This condominium is an apartment called a condotel that has different characteristics compared to ordinary apartments. For those who are looking for investment products, property investment provides a great opportunity to be occupied. This is based on the excess property investment that will provide a large return to the culprit. Before deciding to invest, it must be understood about the opportunities and challenges in it.
In 2016, property investment was getting better compared to the previous year, which means that many entrust their capital into this vehicle, and it can be seen from several existing indicators. The first is regarding the growth of Growth Domestic Product or GDO in Southeast Asia, which means that in Indonesia also experienced an increase. Indonesia has good stability in investing so that investment opportunities are opened wider for domestic and foreign investors. In the property sector, there was a 50 percent increase in capital investment compared to the previous year. This is good news for investors, both domestic and foreign nationals.
Second, the government has made efforts to provide tax amnesty, which has provided good investment stimulation this year. The Asian Development Bank and the World Bank make predictions that Indonesia in the economic segment will enjoy growth in the range of 5.3 to 5.4 percent. To make a big profit, the property market will create widescreen investment and grow better in a positive direction that continues to be conducive and increasing from year to year. It is very likely that in the future, the development of the property industry will be more valuable because there will be more demand.
Even though the situation is increasingly siding with investors, still there are always challenges that must be faced. The developer must be careful in developing the property business where the assessment must be done properly so that the decision making is not based on assumptions only, but assessed adequately so that the results of investment products will be easily sold and liked by investors. The new business model is needed as an innovation in which the business will be more diverse if it continually carried out different innovations in each season. Diversification also needs to be applied in development so that the existing property can become a modern residence that interests the community.
Not only opportunities that must be taken into account because euphoria instead must be faced with caution. The challenges that come in the realm of property do exist when developments are taking place where investors and developers do not have to feel arrogant but also think about how in the future so that business in this industry continues. Prospective investors, in this case, should pay more attention to how the consideration will be decided for a medium-term investment, not just the short-term focus on products with added value.
Because the government influences this industry, the government must issue clear policies so that those policies can be fixed and not be changed for several reasons. The government has now issued a policy for foreign nationals so they can own property in Indonesia. But until now, the opportunity given by the government has not been responded well by foreign investors. This could be a great opportunity for domestic investors to be able to have large investments in their own country without worrying about the dominance of foreign citizens in Indonesia.
Opportunities and challenges will always come hand in hand, especially in the property sector. Where there are opportunities, there will also be challenges that must be faced to make this business more known and sought after by investors. As a leak, investors in Indonesia have a mindset about the long-term residential and modern property so that if the property type matches their mindset and taste, they will automatically start investing their capital in the product.
