Introduction
North Bali International Airport (NBIA), projected for completion in 2027, represents one of Indonesia’s largest infrastructure investments to date, with the goal of transforming Bali into an accessible global destination. Currently, Bali’s only international airport, Ngurah Rai, in the south, handles up to 24 million passengers annually. This new airport in the north is set to open up investment opportunities across the island, especially in less-developed regions with untapped real estate potential.
Investment and Infrastructure Details
The NBIA project comes with a price tag of approximately $2.5 billion. The airport, covering 700 hectares, is designed to serve an annual capacity of 20 million passengers initially, with further plans to expand based on demand. Construction includes runways equipped for wide-body aircraft and facilities expected to rival top international airports in Southeast Asia.
This massive project is part of a larger infrastructure strategy targeting not just tourism but sustainable, long-term economic growth in the region. By easing accessibility to North Bali, it is anticipated that regional land values will increase, attracting local and foreign investment.
Impact on Property and Land Values
The airport’s presence is expected to lead to a 10-15% annual increase in property values in the immediate vicinity over the next few years, according to market analysts. Land prices in North Bali, which currently sit at approximately $20-$50 per square meter in key areas like Singaraja and Lovina, are likely to see substantial growth. In comparison, South Bali’s land prices in prime areas already average $500-$1000 per square meter.
A significant increase in demand is expected for commercial and residential developments, including resorts, villas, and vacation homes. Given that 85% of Bali’s tourism is concentrated in the south, the new airport will encourage greater distribution across the island, potentially alleviating congestion in southern Bali and boosting occupancy rates in the north.
Tourism Growth Projections
The Indonesian Ministry of Tourism forecasts a 15-20% increase in overall tourism to Bali in the first three years after NBIA’s opening. The plan includes incentives to attract both budget and luxury travelers, offering unique experiences in North Bali’s unspoiled landscapes, temples, and waterfalls.
With international tourism steadily rebounding post-pandemic, NBIA is poised to position Bali as a key transit hub in Southeast Asia, linking it more efficiently with major markets like Australia, China, and Europe. Bali already accounts for 30% of Indonesia’s tourism revenue; this share could rise with increased tourism to the north.
Supporting Infrastructure Developments
Complementing the airport project, additional infrastructure improvements are underway. These include an expressway connecting South and North Bali, reducing travel time from up to three hours to just one hour. Other planned developments include new ports, improved public transportation, and upgraded utilities to support the expected influx of visitors and residents.
Implications for Real Estate Investors
For real estate investors, North Bali presents an opportune moment to capitalize on a market that is still in its growth phase. Given current conditions, experts forecast the following:
• Land Price Appreciation: In areas within a 10-15 km radius of the airport, land prices are expected to double within five years of the airport’s opening.
• Rental Yields: With a projected rise in demand for vacation rentals, particularly eco-friendly and luxury accommodations, investors could see annual rental yields of 8-12%.
• Capital Gains Potential: Properties developed now may realize capital gains of 50-70% within the first decade, assuming infrastructure and tourism growth targets are met.
Conclusion
The North Bali International Airport promises to be a catalyst for regional economic development and a landmark opportunity for investors. With rising tourism, land values, and an influx of amenities, early investments could yield significant returns. Real estate in North Bali is likely to transition from a speculative investment into a lucrative, steady-income asset as infrastructure brings new vitality to the region.
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