Future Urban Development in Bali: Key Projects to Explore

Published on October 4, 2025 and written by Cyril Jarnias

Bali, Indonesia’s paradise island, is on the brink of a major transformation. Long considered a haven for tourists seeking dream beaches and spirituality, the island is preparing to enter a new era of urban development. Ambitious projects are underway, promising to modernize infrastructure while preserving Bali’s unique charm. For real estate investors, these changes pave the way for exceptional opportunities.

The island has experienced sustained population and tourism growth for years. In 2024, Bali welcomed over 7 million international visitors, a number expected to reach 10 million by 2027. Faced with this influx, local authorities and the Indonesian government have launched a series of projects aimed at improving infrastructure and creating new attractions. These developments don’t just address current needs; they anticipate Bali’s future as a world-class destination.

Bali’s already dynamic real estate market is poised for renewed momentum thanks to these projects. Property prices in areas affected by these developments have already started climbing, with increases ranging from 8% to 15% annually in some sectors. Savvy investors who can identify high-potential areas stand to benefit from significant capital gains in the coming years.

Bali’s New Face: Projects Reshaping the Island

Bali is preparing for a spectacular metamorphosis with a series of large-scale projects that will redefine its urban landscape and appeal. These developments aim not only to modernize the island but also to create new points of interest for residents and visitors alike.

Bali International Airport City: A Futuristic Airport Hub

At the heart of this transformation is the Bali International Airport City project. This ambitious complex, whose construction began in 2024, will span over 1,000 hectares around Ngurah Rai International Airport. The project, estimated at $6.5 billion, will include a new state-of-the-art airport terminal, luxury hotels, shopping centers, and office spaces. The goal is to create a world-class airport hub capable of handling up to 65 million passengers annually by 2030.

This development isn’t limited to airport infrastructure. It also includes the creation of an adjacent “smart city,” equipped with cutting-edge technologies for urban management and sustainability. This smart city will offer investment opportunities in residential and commercial real estate, with plans for luxury condominiums and international business centers.

Nusa Dua Integrated Resort: A Prestigious Tourist Complex

In the Nusa Dua region, known for its pristine beaches and luxury hotels, a major new project is underway: the Nusa Dua Integrated Resort. This 250-hectare complex, scheduled for completion in 2026, promises to redefine luxury in Bali. With a $2 billion investment, the project will include several 5-star hotels, a world-class water park, a convention center, and a signature golf course.

This development aims to attract high-end clientele and position Bali as a premier destination for luxury tourism and international conferences. For real estate investors, this project offers unique opportunities in the luxury segment, with private villas and prestige apartments integrated into the complex.

Benoa Bay Reclamation Project: A New Urban Frontier

One of the most ambitious and controversial projects is the Benoa Bay Reclamation Project. This project aims to create 12 artificial islands in Benoa Bay, covering a total area of 700 hectares. The planned $3 billion investment will transform this area into a new urban center including hotels, shopping malls, a theme park, and even a Formula 1 circuit.

Although the project has raised environmental concerns, authorities claim its implementation will follow strict sustainability standards. For investors, this development represents a rare opportunity to acquire properties in a completely new area of Bali, with considerable growth potential.

Impact on the Real Estate Market: A New Dynamic for Bali

The major urban development projects underway in Bali aren’t just transforming the island’s landscape; they’re also redefining the contours of the local real estate market. This evolution creates a new dynamic, full of opportunities but also challenges for investors.

Price Increases in Strategic Areas

The announcement and launch of these large-scale projects have already begun to influence property prices in affected areas. According to data from the Bali Real Estate Association, land prices within a 5 km radius of the future Bali International Airport City have increased by an average of 20% since the project’s announcement in 2023. This upward trend is expected to continue as work progresses.

In the Nusa Dua region, where the new integrated complex is under construction, luxury villa prices saw a 15% increase in 2024, and experts predict similar growth for the coming years. This rapid appreciation of real estate assets offers interesting capital gain prospects for investors who can position themselves strategically.

Diversification of Real Estate Offerings

The new projects are also leading to significant diversification of real estate offerings in Bali. While the island was primarily known for its traditional villas and resorts, new types of properties are now emerging:

• Luxury apartments in secure residential complexes
• Modern condominiums with hotel services
• Office spaces and commercial premises in new urban areas
• Eco-friendly properties incorporating the latest green technologies

This diversification allows investors to target different market segments and meet varied demand, whether for second homes, rental properties, or commercial investments.

Evolution of Prime Investment Areas

Urban development projects are redrawing the map of attractive investment areas in Bali. While regions like Seminyak or Canggu were traditionally the most sought-after, new areas are emerging as real estate investment hotspots. For example:

• The area around the future Bali International Airport City is now attracting attention from visionary investors
• Coastal areas near the Benoa Bay project are becoming increasingly popular
• The hills of Ubud, known for their zen atmosphere, are seeing the arrival of high-end residential projects incorporating wellness and ecological concepts

This evolution offers investors the opportunity to diversify their portfolios and capitalize on the growth potential of these new developing areas.

Seizing Opportunities: Strategies for Savvy Investors

Faced with Bali’s urban transformation, real estate investors are presented with a range of promising opportunities. However, to fully capitalize on this evolving market, it’s crucial to adopt well-thought-out strategies and have a deep understanding of local dynamics.

Targeting High-Growth Potential Areas

One key strategy for investors is to identify and target areas that will benefit most from new development projects. For example, land located near the future Bali International Airport City offers significant medium to long-term capital gain potential. Similarly, properties in the peripheral areas of Nusa Dua, which will be directly impacted by the new integrated complex, could see their value increase considerably in the coming years.

It’s also wise to consider areas that, while less directly affected by major projects, will benefit from economic spillovers and infrastructure improvements. Regions like Jimbaran or Sanur, for example, could experience renewed interest due to improved accessibility and influx of new visitors.

Diversifying Investments

Diversification is a key strategy to minimize risks and maximize opportunities in an evolving market. Savvy investors should consider spreading their investments across different property types and geographic areas. For example:

• Combining investments in traditional residential properties with stakes in more modern development projects
• Balancing investments between established tourist areas and new developing zones
• Considering investment in commercial properties, such as office spaces or commercial premises, in addition to residential properties

This approach not only reduces risks but also allows capitalizing on different growing market segments.

Betting on Sustainability and Innovation

With growing awareness of environmental issues, sustainable and innovative real estate projects are gaining popularity in Bali. Investors who position themselves in this segment can benefit from increasing demand and potentially faster property appreciation. Among the options to consider:

• Eco-villas using sustainable materials and renewable energy technologies
• Residential complexes incorporating permaculture and self-sufficiency concepts
• Real estate projects focused on wellness and healthy lifestyles, aligned with Bali’s image as a wellness destination

These types of properties not only attract high-end clientele sensitive to environmental issues but are also likely to better withstand market fluctuations.

Partnering with Local Experts

Navigating the Balinese real estate market, especially in a context of rapid transformation, can be complex for foreign investors. It’s therefore crucial to partner with local experts who understand market subtleties, current regulations, and emerging trends. This can include:

• Real estate agents specialized in the Balinese market
• Lawyers familiar with Indonesian land laws
• Investment consultants with specific expertise in development projects in Bali

These partnerships can help identify the best opportunities, navigate administrative processes, and make informed investment decisions.

Challenges and Considerations: Navigating a Changing Market

Although investment opportunities in Bali are numerous and promising, it’s crucial to consider the specific challenges and considerations of this rapidly transforming market. A thorough understanding of these issues will enable investors to make informed decisions and minimize risks.

Regulations and Restrictions for Foreign Investors

One of the main challenges for foreign investors in Bali lies in the complex regulations governing real estate ownership in Indonesia. Although relaxations have been introduced in recent years, foreigners still cannot directly own land in Bali. Available options include:

• Right of Use (Hak Pakai) for residential properties, limited to 30 years but renewable
• Long-term leases (up to 80 years) for commercial properties
• Using Indonesian company structures (PT PMA) to indirectly hold real estate assets

It’s essential to fully understand these options and their legal and tax implications before investing. Investors must work closely with local legal advisors to structure their investments in a compliant and optimal manner.

Managing Environmental Risks

Bali, like many tropical destinations, faces environmental challenges that can impact the real estate market. Investors must be aware of these risks and integrate them into their investment strategy:

• Coastal erosion risks in certain areas, potentially affecting seaside property values
• Waste management and pollution issues, which can influence the attractiveness of certain regions
• Seismic risks, with Bali located in a tectonically active zone

It’s recommended to conduct thorough environmental impact studies before any major investment, particularly in coastal areas or new development zones. Projects incorporating sustainable and environmentally friendly solutions may offer better protection against these long-term risks.

Balancing Development and Cultural Preservation

One of the major challenges of urban development in Bali is maintaining a balance between modernization and preserving the island’s unique cultural identity. Investors must be sensitive to this issue for several reasons:

• Projects that don’t respect local aesthetics and traditions may face community resistance
• Preserving cultural heritage is essential for maintaining Bali’s long-term tourist appeal
• Properties that harmoniously integrate traditional Balinese design elements may have added market value

Savvy investors will seek opportunities that combine modernity with respect for local traditions, thus contributing to sustainable and culturally sensitive island development.

Managing Tourism Market Fluctuations

Bali’s real estate market is closely tied to the tourism industry, which can make it vulnerable to seasonal fluctuations and global events. The COVID-19 pandemic clearly demonstrated this vulnerability. To mitigate these risks, investors can:

• Diversify investments between different property types (residential, commercial, short-term and long-term rental)
• Focus on properties that attract diverse clientele (tourists, expatriates, local residents)
• Invest in areas less dependent on mass tourism, such as developing regions around new infrastructure projects

A flexible and adaptable investment strategy is essential for navigating Bali’s tourism and real estate market cycles.

Urban development projects in Bali are opening a new era for the Island of the Gods, creating a fascinating landscape of opportunities for real estate investors. From the ambitious Bali International Airport City to the luxurious Nusa Dua Integrated Resort, and the controversial but potentially transformative Benoa Bay Reclamation Project, Bali is preparing to enter an unprecedented phase of modernization.

These developments promise not only to redefine the island’s urban landscape but also to create new dynamics in the local real estate market. Savvy investors who can navigate this evolving context, strategically targeting high-potential areas, diversifying their investments, and remaining attentive to sustainability and cultural preservation issues, can leverage these unique opportunities.

However, it’s crucial to keep in mind the inherent challenges of this changing market. Complex regulations for foreign investors, environmental considerations, and the need to preserve Bali’s unique cultural identity are all factors to consider in any investment strategy.

Ultimately, Bali remains an attractive investment destination, offering a unique blend of growth potential, quality of life, and cultural richness. For those willing to commit to a thoughtful, long-term approach, the opportunities presented by Bali’s urban development could prove to be exceptionally rewarding investments.