Bali is best known for tourism. According to the Central Statistic Agency (BPS), the number of tourists visiting Bali during the first three months of 2012 has increased 11.09 percent compared to the same period last year. As a tourism driven island, Bali is the perfect destination for property investment, especially in that of temporary accommodations.
One trending investment on the Island is condominium hotel or better known as condotel. Coldwell Banker Commercial stated that investing in such property in Bali is rewarding because aside from being able to personally use the property during holiday or business trip, owners can put the property on lease and gain 9 to 10 percent profit return, higher than what the average bank deposit on offer.
The most popular tourist spots within the island are still around Kuta, Legian and Seminyak. Knight Frank Indonesia, a property research and consulting firm, stated that Kuta held 68 percent of the four-star and five-star condotel developments in Bali. As more new project developments are taking place in Kuta, dears arise that property investors are likely to eye other areas on the island. A number of new projects are currently seen in the southern part such as Ungasan and Nusa Dua, as well as in the northern part such as Tabanan and Ubud.
Eaton Luxe condotel has emerged as a response to this trending investment on Bali Island. The condotel was built as a part of 5-year development plan of Nirwana Bali Resort in Tanah Lot, Tabanan. The development is slated to conclude in 2015. “The raising interest in Bali property investment is in line with the growth of Indonesian economic development and the increasing number of tourists coming into the island,” said Deden Sudarbo, chief marketing officer of Hotel Development, Hotels & Resorts Bakrieland. “This could be documented by the average number of occupied rooms in Pullman Bali Legian Nirwana in Kuta and Pan Pacific Nirwana Bali Resort in Tanah Lot. Both reached 70 percent in 2011.”
Built on an area of 20,000 sqm, the Eaton Luxe Nirwana Bali houses 178 units comprising 133 standard units, 24 one-bedroom units and 21 two-bedroom units. The property is equipped with outstanding facilities, ranging from infinity pool and function room to all day dining restaurant. What makes Eaton Luxe different is its view toward the award-winning 18-hole golf course, designed by legendary player Greg Norman. Offering the concept of simple, modern and young, this condotel targets youth and young professional market segments.
Having the condotel operated by Langham Hospitality Group, Norman Daulay, managing director of Hotel Development, Hotels & Resorts Bakrieland, said that in developing Eaton Luxe, Bakrieland has appointed the renowned contractors and consultants which are Airmas Asri – Indonesia for architecture and WOW Design Architects – Singapore for interior design. Eaton Luxe Nirwana Bali guarantees a 40 percent Return on Investment within the first five years.
Bakrieland is not the only one in the condotel business. PT Budimulia Prima Realty from Brasali Group, in partnership with Accor International for condotel operation, launched its Condotel Mercure Bali Legian earlier this year. The four-star project consists of 317 units and is scheduled to complete construction in 2014.
Bina Propertindo Group announced its development of Watu Jimbar Condotel in Sanur late last year. Metropolitan Land Tbk topped off their Horison Seminyak condotel in March. Sun Motor Group, together with Gapuraprima Group, has built The Sun Heritage Condotel@Sunset, Kuta. The condotel is expected to fully operate by the end of this year with Best Western Premier being the operator.
PT Total Camakila Development has partnered with Ramada Hotel & Suites in developing Ramada Hotel & Suite Sakala condotel in Tanjung Benoa. With Ramada Hotel & Suites being the operator, the condotel is scheduled to operate this year. Ramada condotel offers 219 one-bedroom suites, 22 two-room suites and 14 exclusive two-bedroom villas.
Similar to condotel, villatel is now introducing the market. A villatel offers freehold ownership certificate and is fully furnished with utilities and free maintenance. Villate is also professionally operated by a hotel management, but what distinguishes villatel from other accommodations is that it is more suitable for families.
Situated in the luxurious hub of Nusa Dua Hills, Bellevue Heritage Villas are marketed in limited number. “Available only in 50 units, each villa has its own private pool. “ Said Arvin F. Iskandar, president director of Best Prima Indonesia. The villas are available in two-bedroom and three-bedroom types. All are located within an integrated area of 12,000 sqm, and include meeting rooms, children playground, fitness center and other five-star facilities. Bellevue Heritage Villas offer view toward Benoa Port, Jimbaran Beach and Padang Padang Beach.
According to Knight Frank Indonesia, condotel and villatel have gained popularity in Bali since the past year owing to the property investment potential on the island, which is more than just a regular tourist destination. Bali is also popular for hosting big conferences and festivals. Therefore, the demands for meeting places and exhibitions are very high.
Generally, property investment attracts investors because it is a one hassle-free investment with high return. An owner of condotel or villatel can own a unit with strata title ownership. Condotel and villatel investments are indeed ones of those lucrative investment propositions on offer. Both condotel and villatel are professionally run and managed by hotel managements, thus owner can earn passive income without having to worry about maintenance and promotion.
By Ruth Ninajanty. Published in The Jakarta Globe on July 12, 2012.