ULUWATU, Bali (BPN) – Palm Developments (PALM), a Hong Kong-headquartered real estate developer, has commenced the construction of ADAYA: a prestigious luxury villa project featuring 1-3 bedroom villas in Bingin, Uluwatu, Bali.
ADAYA comprises 10 one-bedroom villa units and 3 three-bedroom villa units, accompanied by a Resort Welcome Center. The completion of the first unit is projected for February 2024.
James Hartshorn, Co-Founder and Director of Palm Developments said that the three long-term business partners, who are the founders of PALM, identified the Bingin area in Uluwatu as the perfect location for ADAYA, their inaugural real estate project in Bali, Indonesia.
“PALM is not the sole developer or investor with an eye on Bingin and Uluwatu to tap into the booming local real estate market, especially within the luxury property and short-term rental sector. There are numerous reasons behind this trend,” said James at the Adaya Villas construction celebration through a Balinese traditional ceremony on Saturday (8/26/2023).
Apart from its beautiful beaches, charming cuisine, and rich cultural heritage, Bali is also notorious for its traffic congestion.
James explained, that with a considerable surge in tourism over recent years, the island witnesses millions of visitors annually, leading to heavy traffic on roads ill-equipped to handle the rising number of vehicles.
Areas like Kuta, Seminyak, and Canggu, recognized for their nightlife, eateries, and shops, suffer from severe congestion and prolonged traffic jams, especially during peak tourist seasons.
“Uluwatu has emerged as a fresh travel hotspot within Bali, boasting a thriving community and beaches deemed even more picturesque than those in Canggu,” he said.
Among these destinations, Bingin in Uluwatu has captured the attention of numerous developers and investors. The area presents a distinctive blend of scenic white-sand beaches, upscale venues, and laid-back villages. A key advantage is its well-established and convenient infrastructure, setting it apart from the more congested Canggu and Seminyak.
Notably, the central Indonesian government is strongly backing the development of Uluwatu’s infrastructure with substantial financial support.
Community leaders in the renowned surfing destination of Uluwatu in Bali have unveiled intentions to enhance road access to tourist zones. Additionally, they have confirmed ongoing plans to acquire strategic parcels of land from residents, aiming to establish five new access routes into the core of the resort area. While the project is currently in the planning stage, local leaders express confidence that it will be finalized by 2024.
Moreover, Bingin provides easy access to over 15 exquisite beaches, all within a short drive. The area is also home to top-notch cafes, restaurants, and beach club-style cliff establishments. This combination has earned the region a reputation for both entertainment and an idyllic island lifestyle.
The Indonesian government has introduced a range of favorable policies and incentives to encourage Foreign Direct Investment (FDI).
A notable announcement is the introduction of a “second home visa” program in 2022, enabling foreigners to reside and work in the country for a period of five to ten years.
This program is set to become effective by the end of September 2023 and is believed to attract a greater influx of foreign investors and bolster the tourism sector. This initiative not only appeals to foreign investors but also enhances the island’s allure as an investment hub within the local property market.
Bingin and Uluwatu district are strategic locations for investors who are looking for high returns (rental price and capital appreciation) on their investments.
There is only a limited supply of land near coastal and beach areas with roads built for easy access, the demand for luxury rental properties in these areas is very strong and makes it an appealing prospect for developers who want to create a sense of exclusivity in their offerings.
Bingin, in particular, is becoming a popular location for short-term rentals. The area’s popularity with tourists and expatriates, coupled with the limited supply of luxury property, means that there is a huge demand for rental properties in Bingin.
Investing in villas in Bingin can generate significant passive income through short-term rentals for property owners.
James Hartshorn said that ADAYA is Palm Developments’ first new luxury villa development project in Bali. Nestled between the Dreamland and Bingin Beaches, and conveniently within walking distance of these beaches, ADAYA is set to be the ultimate haven for investors and high-income professionals seeking refined luxury holiday homes and profitable investment properties.
In an area where prime coastal lands are fully purchased, ADAYA presents an unparalleled passive investment opportunity paired with 5-star service for discerning investors.
Given the strong short-term rental demand in Bingin and around the coastal areas, the villas can be rented out at a projected rate of US$250 a night for one-bedroom villas or US$520 a night for three-bedroom villas, targeting an impressive occupancy rate of 83-85% throughout the year. Investing in ADAYA villas in Bingin can offer investors a US$40,000-US$92,000 target annual income, for about 20-24% Return on Investment (ROI).
Additionally, PALM provides Fractional Investment options with fixed interest during the construction phase, allowing investors to start earning income from day one and reducing both time and opportunity costs.
Villa prices start from US$210,000, and off-plan offers are available. Fractional investment options start at US$56,000, boasting a targeted ROI of 18.7% or higher.