RealEstat.id (Jakarta) – Bali's property industry continues to show significant growth, both in the residential and commercial segments.
One of the main drivers of this growth is the tourism sector which continues to grow, thus attracting the interest of local and international investors.
The government's strategic focus on quality and sustainable tourism is designed to attract high-spending tourists, thus increasing the island's attractiveness as a premium destination.
The rapid development of the property industry on the Island of the Gods has prompted NPG Indonesia, a property development company based in Bali, to provide its views on the situation.
Read More: NPG Indonesia, Preserving Bali's Nature and Culture is Our Shared Responsibility
"Currently, Bali has become a hot spot for property investment destinations, not only in Indonesia, but also in Asia," said Evgeny Obolentsev, General Manager of NPG Indonesia.
He added that property prices in Bali are expected to increase in 2025. This is driven by a combination of increased tourism and foreign investment.
"Although there some challenges, such as changes in regulations and environmental issues, Bali's attractiveness as a tourist center continues to drive demand levels. In addition, the unique cultural and natural attractions continue to attract buyers from all over the world," he said.
According to data from I Gusti Ngurah Rai International Airport in Bali, there was a significant increase in foreign arrivals in the period January - August 2024 compared to the same period last year.
Read More: How to Buy Property in Indonesia: A Foreigner's Guide
In January - August 2024, foreign arrivals to Bali were recorded at 4,465,685 visitors. This figure has increased by 22.6% compared to the 3,641,896 visitors who arrived in the period January - August 2023.
Airport Aeronautical Manager Angkasa Pura Ngurah Rai Airport, I Wayan Arjana, revealed that the trend of foreign tourist visits from January to August 2024 was dominated by tourists from Australia in first place with a total of more than one million people, followed by India (347,469 people), China (326,431 people), Great Britain (202,856 people), and South Korea (192,728 people).
Furthermore, the number of tourist visits to Bali via the Airport is estimated to reach 24 million people in 2025. This figure reflects very significant growth and can be fuel for the growth of the Bali property industry in 2025.
According to the latest data from REID (realinfo.id), the average property price in Bali has increased by 7% annually over the past five years, with several areas experiencing higher growth rates.
Read More: What Are The Most Crucial Aspects of Managing Commercial Buildings?
The data shows that Bali property offers the highest rental yield in Indonesia. A significant increase in total revenue occurred in June 2024, reaching USD142 million, or growing 33% compared to previous months. This also marks the highest revenue point in the first semester of 2024.
"It is necessary to note the shift in interest of tourists in the western part of Bali, such as Seseh, Kedungu, Cemagi, Nyanyi, and Pererenan, as one of the signs of new opportunities for the property sector to continue to grow," added Evgeny.
He said, for those who have often visited Bali for a long time, Sanur, Seminyak, and Ubud areas remain the prima donna. However, for the younger generation, they are more interested in new locations that are greener and closer to Bali's nature.
"In fact, many of them who initially thought of Bali as just a tourist destination, but recently they started thinking about living and working in Bali," said Evgeny.
Read More: Asia Pacific Office Markets: Unlocking Tangible Office Real Estate Savings
According to him, one important thing that the Covid-19 pandemic has taught us is that we can work remotely, and Bali is the perfect place to do that, because currently the supporting facilities for the work, life, balance concept are easily available.
"The Indonesian government's policy of initiating the Work From Bali program in 2021, as well as several regulations that make it easier to live and own property in Bali also play an important role," he explained.
Furthermore, Evgeny Obolentsev also highlighted the Government's plan to accelerate infrastructure development in Bali, which he said would play a very important role in increasing property prices in Bali.
As has been widely reported, the Bali Urban Subway will be built in four phases. The first phase will be 16 kilometers long I Gusti Ngurah Rai Airport - Kuta Sentral Parkir - Seminyak - Berawa - Cemagi route. While the second phase connects I Gusti Ngurah Rai Airport - Jimbaran - Ubud - Nusa Dua along 13.5 kilometers.
Read More: Indonesia's Journey Into The Digital Era Linked to The Rapid Expansion of Data Centers
The third phase is Kuta Central Park - Sesetan - Renon - Sanur route. While the fourth phase connects Renon - Sukawati - Ubud. Currently, the third and fourth phases are still in the feasibility study (FS) stage or feasibility test.
"Of course, like the previous experience in cities that have MRT or LRT facilities, there will be an increase in property prices in areas passed by these public transportation routes," said Evgeny.
Premium Residential Project: Ecoverse
He explained that NPG Indonesia is a developer company that focuses on developing real estate in Bali by aligning buildings, facilities, and modern lifestyles with nature and the surrounding environment.
Furthermore, Evgeny Obolentsev explained that NPG Indonesia always prioritizes the principles of sustainability in every residential project that is developed.
Read More: Colliers: Asia Pacific Remains Dominant Source and Destination for Global Capital
The real challenge is how to adapt buildings to the surrounding nature. Because that is what makes everyone fall in love with Bali, its nature and culture.
"Like Ecoverse, a premium residential project that we are working on with target completion in the Fourth Quarter of 2025. We always apply several sustainable features such as renewable energy in each unit through the use of solar panels, waste processing systems, osmosis water filters, and Rain Water Traps," said Evgeny.
Ecoverse is a residential complex that features 34 apartment units and 16 townhouse units with 2 and 3 floors, which provide extraordinary comfort through high-quality construction facilities and harmony with the surrounding nature.
Not only connected with the surrounding nature, it turns out that most of the workers who built the Ecoverse project were also local workers.
Read More: Jakarta Office Sector: Landlords Need Strategic Initiatives to Retain Tenants
"While we transfer our European expertise in construction, we were able to learn about local culture and wisdom, especially the concept of Tri Hita Karana," said Evgeny.
Konsep kehidupan masyarakat Bali yang menitikberatkan hubungan manusia dengan sesama, alam, dan Tuhan ini, dinilainya mampu menumbuhkan toleransi dan rasa damai.
The concept of Balinese life that emphasizes the relationship between humans and others, nature, and God, which able to foster tolerance and a sense of peace.
"This is very important for us, in order to create a harmonious balance between tourism growth with nature and Balinese culture itself," he concluded.
Read More Interesting News and Articles on Google News
