RealEstat.id (Jakarta) – Bali is one of the areas that offers property price increases (capital gains) and high occupancy rates. The increasingly massive tourism sector on the Island of the Gods has also encouraged property development, thus attracting more interest from local and international investors.
The strong and consistent price growth trend during 2023 - 2024 in Denpasar confirms the strength of the property market in Bali which is also influenced by a number of policies and incentives from the Government that support foreign ownership and the tourism sector.
According to Head of Research Rumah123, Marisa Jaya, throughout the first quarter of 2024, Denpasar was one of the most consistent and resilient areas in annual price growth and had the highest margin above the annual inflation rate.
"The residential market in Denpasar also tends not to be affected by the Ramadan and Eid al-Fitr moments. This shows that the property market in Denpasar is developing well and makes it even more potential from an investment perspective," said Marisa Jaya.
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Meanwhile, the results of the Residential Property Price Survey (RPPS) of Bank Indonesia for Bali Province show that residential property prices in Bali continue to show an upward trend in the second quarter of 2024.
The Residential Property Price Index (RPPI) recorded a figure of 104.27, with an annual growth of 1.86% (yoy). This figure is higher than the RPPI in the previous quarter which was at 103.81 (1.48%; yoy).
The Head of the Representative Office of Bank Indonesia for Bali Province, Erwin Soeriadimadja, also stated that the increase in building prices was one of the main factors driving the growth of the RPPI.
The survey showed that 43% of respondents identified the increase in building prices as the main factor of the increase in housing unit prices.
The rapid development of the property industry on the Island of the Gods has prompted NPG Indonesia, a Bali based property development company, to provide its views on this condition.
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"There are three main trends that affecting Bali’s property market. First, is the increasing demand for sustainable and environmentally friendly properties, along with increasing awareness of environmental issues,” said Evgeny Obolentsev, General Manager of NPG Indonesia.
According to him, Developers are increasingly incorporating green building practices, renewable energy sources, and sustainable materials into their projects. This trend is expected to continue, attracting environmentally conscious buyers and investors.
Second, the digital transformation of the real estate industry is a trend to be watched. Online platforms, virtual tours, and digital marketing strategies are becoming essential tools for property transactions.
"These innovations make it easier for potential buyers to explore properties remotely and for sellers to reach a global audience," he said.
Third, there is the increasing demand for remote workspaces. Villas and residences with a home office concept, high-speed internet, and a conducive work environment are highly sought after by remote workers and digital nomads.
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"And Bali is the perfect place to implement the remote working trend, because currently the supporting facilities for the work, life, balance concept are easily available," said Evgeny Obolentsev.
"On the other hand, the government's strategic focus on quality and sustainable tourism is designed to attract high-spending tourists, as well as increasing the island's attractiveness as a premium destination," he added.
However, he added, what needs to be observed further by property investment enthusiasts is the shift in interest of tourists to the western part of Bali, such as Seseh, Kedungu, Cemagi, Nyanyi, and Pererenan, which is one sign of the opening of new opportunities for the property sector to continue to grow.
Sanur, Seminyak, and Ubud remain the primadonna. However, for the younger generation, they are more interested in new locations that are greener and closer to Bali's nature.
"The Nyanyi area in Tabanan Regency, for example, has become a hidden gem for those seeking a life closer to nature," Evgeny explained.
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He said that Nyanyi Beach is known as a beach with exotic black sand, big waves suitable for surfing enthusiasts, and has a beautiful sunset panorama. The location of this new development also offers untouched and beautiful natural scenery.
Tabanan Regency can be said to be one of the most prospective areas for investment in Bali. In 2021, Tabanan Regency was in fifth place after Badung, Denpasar, Gianyar, and Jimbaran, with a property demand index reaching 3.28%.
This area is also included in the development for the Bali metropolitan area, Sarbagita (Denpasar-Badung-Gianyar-Tabanan).
"Even in terms of the property demand index ranks, Tabanan is above Nusa Dua, Seminyak and Ubud," said Evgeny.
This area was formed based on Presidential Regulation Number 45 of 2011, and then amended by Presidential Regulation Number 51 of 2014 initiated by the National Development Planning Agency, making it an ideal place for promising property investment in the future.
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"One of the basic principles of property investment is choosing an area that still has room for development, compared to areas that are approaching maturity. Thus, the increase in investment returns will be higher in the future," he explained.
Furthermore, Evgeny Obolentsev highlighted Nuanu Creative City as a key landmark in the Nyanyi area of Tabanan Regency. Spanning 44 hectares, Nuanu is a visionary hub in Bali that embodies a commitment to harmonious living.
It nurtures a vibrant community of creators, leaders, and changemakers, offering thoughtfully designed spaces for education, art & culture, wellness, entertainment, and nature-inspired living. Together, these interconnected elements form a seamless ecosystem that fosters collaboration, creativity, and meaningful connections.
Among Nuanu’s standout features is the newly launched Dome Experience by Labyrinth Collective, a 600-square-meter immersive space at the forefront of art, technology, and innovation.
Featuring a cutting-edge 192,000-lumens light projection system and Indonesia’s first advanced audio system, the Dome sets a new standard for immersive experiences in the region.
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Complementing this is the first phase of Magic Garden, a 3,600-square-meter sanctuary dedicated to Bali’s native flora and fauna. From endangered butterflies to rare native plants, Magic Garden offers an enchanting space that honours and preserves biodiversity in Nuanu and Bali.
“As Nuanu Creative City continues to grow, we are excited to introduce Ecoverse, a premium residential project located at the gateway to this visionary development,” added Evgeny Obolentsev.
Ecoverse is a residential complex that features 34 apartment units and 16 2-and 3-storey townhouse units, which offer extraordinary comfort through high-quality building construction and harmony with the surrounding nature.
He explained that NPG Indonesia is a development 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 always prioritizes the principles of sustainability in every residential project that is developed.
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"We always apply several sustainability features, such as renewable energy in each unit through the use of solar panels, waste processing systems, osmosis water filters, and Rain Water Traps," he said.
According to Evgeny, the real challenge is how to adapt the building to the surrounding nature. After all, that's what makes everyone fall in love with Bali, its nature and culture.
He added that when the Ecoverse project is completed in Q4 2025, all residents will be able to enjoy the facilities owned by Nuanu Creative City, such as ProEd Global School and Luna Beach Club which can be reached in just a few minutes' walk.
"This is very important for us, in order to create a harmonious balance between tourism growth and the nature and culture of Bali itself for the future residents of Ecoverse," he concluded.
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