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Real estate news in Indonesia

Expansion of Bali’s Ngurah Rai Airport set to drive real estate boom

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Bali’s Ngurah Rai International Airport is currently undergoing a significant capacity expansion to handle the increasing number of international flights and the rise in passenger traffic, especially during the school summer break. This development is anticipated to substantially impact the local real estate market, creating new opportunities for property buyers and owners in Bali.

Increase in passenger capacity at Ngurah Rai International Airport

The Ngurah Rai International Airport, which is an important entry point to Bali, is planning to increase its capacity from 24 million to 32 million passengers. This expansion is a response to the growing demand for international flights and the significant rise in passenger traffic. Handy Heryudhitiawan, the General Manager of PT Angkasa Pura I Ngurah Rai International Airport, stated that the current number of passengers is expected to reach at least 23.6 million soon, which makes the expansion necessary to accommodate future growth.

During the school holiday period, there was a 19% increase in passenger traffic at Ngurah Rai International Airport. The airport served an average of 74,000 passengers per day during this period, compared to the overall average of 62,000 passengers per day in 2024. This surge in passenger traffic emphasizes the necessity of ongoing expansion and indicates a positive trend for the future.

Expansion plans to enhance airport infrastructure

The airport’s capacity will be increased by expanding several vital areas, including the x-ray area, departure hall, and passenger waiting rooms. Heryudhitiawan mentioned that four or five major expansion projects are planned, which will collectively raise the airport’s capacity to 32 million passengers. This increased capacity is expected to be enough until around 2031 or 2032, offering a long-term solution to handle the growing number of passengers.

Response to growing international flights

The expansion of Ngurah Rai International Airport is a response to the increasing number of foreign airlines establishing more international flight routes to and from Bali. This improved connectivity makes Bali an even more appealing destination for tourists and expats. The enhanced accessibility is expected to benefit the local economy and, in turn, the real estate market. Property buyers and owners can anticipate a rise in demand for both residential and commercial properties as more visitors and potential residents move to the island.

Implications for property buyers and owners in Bali

The expansion of Ngurah Rai International Airport presents a significant opportunity for property buyers. The enhanced infrastructure and increased flight connectivity are expected to increase demand for real estate in Bali. This is especially important for those interested in investing in vacation homes or long-term residences, as the surge in tourists and new residents will improve the rental market and property values.

Property owners in Bali can also benefit from this development. The expected increase in demand for housing and commercial spaces will likely result in higher property values and rental income. Keeping properties well-maintained and upgraded to meet the expectations of international buyers and renters can further maximize returns.

Your guide to buying property in Indonesia
Written by Matt Timmermans

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