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Real estate news in Indonesia

Bali starts the construction of a $592 million underground train in September 2024

beach in bali

Bali announced the start of the construction of an underground Light Transit Rail (LRT) system in September 2024, with a budget of $592 million. The primary objective of this strategic development is to manage the rising number of tourists and improve the city’s urban mobility. Additionally, this project will enhance the real estate landscape and overall living experience in Bali, making it a more attractive destination for foreign investors and tourists alike.

Resolving Bali’s traffic congestion

Bali’s new LRT system has been introduced with the primary goal of resolving the long-standing issue of traffic congestion on the island, particularly in the southern regions where popular tourist destinations such as Denpasar and Seminyak are located. Bali attracts approximately 18,000 tourists daily, and the situation is only expected to worsen. The LRT system aims to provide a fast and efficient mode of transport for both residents and visitors by directly connecting I Gusti Ngurah Rai International Airport to these key areas. This is expected to enhance the appeal of Bali’s southern corridor as a prime location for real estate investment.

Strategic underground development amid local constraints

Bali has specific environmental and cultural regulations that prohibit buildings from being taller than a coconut tree and require the preservation of sacred and agricultural spaces by land zoning laws. As a result, the LRT project has been planned to be an underground system. This approach not only honors the local traditions and landscapes but also highlights the creative solutions being implemented to upgrade Bali’s infrastructure while preserving its heritage.

Impact on property values in Bali

The construction of the LRT (Light Rail Transit) system in Bali is expected to significantly impact property values, especially in the areas surrounding its stations. This presents a great opportunity for foreign investors who want to capitalize on the growing demand for properties located close to efficient public transport.

The project is being funded and operated through a joint venture between the Central government and Bali’s provincial government, which ensures robust support and sustainable development. This partnership also reassures potential investors of the project’s credibility and long-term viability.

The start of construction is scheduled for September 2024

The LRT project is set to begin in September 2024 and is progressing quickly towards becoming a reality. The first phase of the project will stretch approximately 30 kilometers and connect the airport to Kuta. Future expansions are planned to extend the network to Mengwi and potentially other congested areas such as Sunset Road, Legian, and Canggu. This expansion is part of a larger strategy by Indonesia’s Minister of Transportation, Budi Karya Sumadi, to integrate mass transportation solutions into Bali’s urban fabric, promising a brighter and more accessible future for the island.

The LRT project in Bali promises to bring about significant improvements in accessibility and convenience, making Bali an even more desirable location for living, working, and investing. The project is expected to add value to properties in Bali, making it an attractive destination for those who are looking to invest in overseas property. Overall, this project is expected to enhance the quality of life in Bali, which is already one of the most sought-after island paradises in the world.

Your guide to buying property in Indonesia

Written by Matt Timmermans

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