The Bali Urban Subway (LRT) project aims to revolutionize transportation on the island. It is designed to attract foreign tourists and provide free rides to local residents. With an ambitious timeline for completion, the project is anticipated to improve accessibility, alleviate traffic congestion, and bolster the island’s flourishing tourism industry. This substantial infrastructure investment is expected to bring long-term benefits to property buyers and owners in Bali.
Bali’s LRT is aimed at tourists with premium fare
The Bali LRT project is mainly aimed at foreign tourists. It offers a week-long pass for IDR 600,000 ($39), allowing visitors to travel on all LRT routes. This makes it a convenient and efficient option for exploring Bali. The decision to focus on foreign tourists is in line with Bali’s status as a global travel hotspot. The LRT is expected to capture 85% of tourist movement along the first phase routes, including popular destinations like Kuta and Seminyak. For property owners, this could lead to increased demand for properties near LRT stops, especially in high-traffic areas.
Free transport for local residents
In an effort to support the local community, individuals with a Balinese ID card (KTP) may be eligible to ride the LRT for free. This initiative seeks to ensure that locals can take advantage of the new infrastructure development, providing convenient access across the island without the financial strain of transportation expenses. For property investors, this is expected to help sustain local property demand and strike a balance between the growth driven by tourism and the needs of the community.
Multi-billion dollar investment and timeline
The Bali LRT project will be implemented in four phases. The first phase is expected to be finished by the second quarter of 2028, and full operations are anticipated by the end of 2031. Phase 1 involves building a 16-kilometer route from Ngurah Rai Airport to Cemagi via Kuta and Seminyak, covering key tourist areas. The total project cost is estimated to be USD 20 billion, with the first two phases requiring USD 10.8 billion in investment. Property investors should take note of this large-scale infrastructure project, as it has the potential to increase property values along the LRT routes, making it a strategic investment opportunity.
Impact on Bali’s real estate market
The Bali LRT project is expected to have a significant impact on the local real estate market. The LRT will provide easier access to popular tourist and residential areas, potentially increasing the value of properties near LRT stations. Foreign property investors should consider the potential for high returns as there will likely be an increase in demand for convenient transportation from tourists. Additionally, the LRT aims to alleviate traffic congestion, which could improve the quality of life for residents and tourists, making Bali an attractive location for both residential and commercial real estate.
This significant infrastructure investment signifies a new era for Bali’s development, uniting tourism expansion with local accessibility. For potential investors in Bali’s real estate sector, the LRT project indicates a promising future.
