In an exclusive interview with MAXON Development, a prominent developer in Bali, The London Economic explores the fascinating world of high-end real estate in this tropical paradise. MAXON sheds light on their choice of Bali as a prime location, the island’s surging popularity among international buyers and investors, and the economic and policy factors that have fostered a thriving real estate market. The interview also delves into the unique features of premium flats in Bali, MAXON’s current development project “Area 1”, construction techniques for the region’s tropical climate and earthquake-prone nature, infrastructure challenges, sustainable development practices, and future trends in the industry.
INTERVIEWER: What were the primary factors that led your development company to choose Bali as the location for your premium flat complex?
MAXON: First and foremost, we were captivated by the sheer beauty of Bali, which attracts creative, ambitious individuals from all corners of the globe. The island boasts unique natural landscapes, stunning beaches, picturesque mountains, and awe-inspiring temples, among other captivating attractions. Moreover, Bali has emerged as a thriving hub for networking and business connections, fostering a culture of creativity and entrepreneurship.
Second, as we explored the real estate market in Bali, we noticed a significant gap for premium services and high-quality properties. While Bali is known for its traditional bamboo houses and pristine natural surroundings, the island has transformed into a sought-after destination for successful individuals and a great place to call home. Furthermore, Indonesia, as a whole, has been displaying one of the most promising and rapidly growing economies in the world, and Bali stands out as a highly desired tourism destination.
And last but not least, over the past five years, the Bali real estate market has experienced rapid growth, offering tremendous potential for foreign investors. In fact, it boasts one of the highest return-on-investment indicators in the world, with figures averaging around 15-20 percent, making it an attractive proposition for those seeking profitable real estate opportunities.
INTERVIEWER: In your opinion, what are the key reasons behind Bali’s growing popularity among international buyers and investors in the real estate market?
MAXON: There are several key reasons contributing to Bali’s growing popularity among international buyers and investors in the real estate market.
Firstly, Bali’s vibrant market and its dynamic economy create a compelling need to attract investments in order to develop high-quality services. This growing demand for premium offerings aligns with the aspirations of the market and offers a swift return on investment.
Secondly, Bali benefits from a significant influx of tourists and continuous growth in their numbers, which adds to its allure. Combined with the island’s year-round season, these factors contribute to consistently high occupancy rates for properties and the steady appreciation of real estate prices. With an average occupancy rate of 80% and a 50% buyout rate, Bali offers an appealing investment opportunity.
INTERVIEWER: Are there any specific economic or policy factors in Bali that have encouraged real estate investment and development in recent years?
MAXON: Yes, Bali has several key economic and policy factors that have facilitated real estate investment and development:
- The simplified company registration process
- Convenient procedures for obtaining visas and permits
- Low tax rates
- Streamlined income declaration system
These factors collectively contribute to Bali’s appeal as an attractive destination for real estate investment, providing a favorable environment for both local and international investors.
INTERVIEWER: Are there any particular amenities or features that premium flat buyers in Bali look for, which might be different from other locations?
MAXON: It’s worth noting that some basic amenities that are commonplace in European capitals may be absent in Bali. For instance, closed living areas, fully equipped kitchens, high ceilings, and in-unit laundry facilities are not as commonly found in the local market. However, we recognize these demands and incorporate such features into our new premium flat complex “Area 1”. In many residential complexes, there is a lack of on-site restaurants, bars, fitness centers, spas, and concierge services. We have considered this in our project to ensure that these amenities are available to future “Area 1” residents.
INTERVIEWER: Can you tell us about your current development project in Bali, premium flat complex “Area 1”, and what sets it apart from other projects in the region?
MAXON: Having over 10 years of experience in constructing premium real estate, we have identified a demand for such properties in Bali. We aim to fulfill this need by creating meticulously planned, spacious layouts and thoughtful designs that embody minimalism and taste.
We offer a holistic approach, providing essential services for a comfortable lifestyle. Our restaurant is designed to be a trendy coffee shop, offering a cozy and welcoming atmosphere. It’s more than just a place to dine; it’s a hub for socializing, conducting business meetings, working remotely, and unwinding at any hour. Our aim is to create a space that encourages networking, where driven and accomplished individuals can connect. We have plans to organize business breakfasts and conferences, fostering interactions among like-minded individuals.
Area 1 boasts nature-inspired architecture and features that are truly Instagram-worthy. We prioritize creating one-of-a-kind attractions that will captivate architecture enthusiasts, design lovers, and influencers, providing them with an extraordinary experience.
INTERVIEWER: Can you discuss any unique construction techniques or materials used in building premium flats on Bali, considering the tropical climate and earthquake-prone region?
MAXON: Due to the high seismic activity in the region, we employ careful design and incorporate additional concrete, metal, and structural reinforcements compared to more stable areas. This experience stems from our previous projects in similar circumstances, such as in Cyprus. In addition, we prioritize special membranes, waterproofing systems, and high-quality ventilation and air conditioning to combat the high humidity levels. Daily supervision of construction processes is crucial in such regions. Lastly, strategic planning of construction timelines is necessary during the rainy season, including the use of thermal insulation and specialized coverings to protect against water damage.
INTERVIEWER: What are the infrastructure and logistical challenges involved in the construction of premium flats on an island like Bali?
MAXON: Narrow roads and traffic congestion present specific challenges, necessitating meticulous planning of logistical movements. Scheduling material deliveries during off-peak hours helps avoid urban transportation congestion. We also coordinate closely with local police and district authorities to ensure smooth operations and compliance with regulations regarding the movement and placement of construction vehicles.
INTERVIEWER: What measures do you take to ensure sustainable development practices and minimize the environmental footprint of premium flat projects in Bali?
MAXON: At our development company, we prioritize sustainable development practices and strive to minimize the environmental impact of our premium flat complex in Bali. Our architectural design takes inspiration from the island’s rice fields and mountains, seamlessly integrating with the natural surroundings by incorporating abundant plants, internal gardens, panoramic windows, and the use of natural materials.
We carefully integrate our complex into the environment, striving to minimize disruption to local flora and preserve vegetation. After construction, we plan to hold recreational events that contribute to the restoration of green spaces. Our complex “Area 1” also features green areas with native plants that require less water for irrigation.
Panoramic windows maximize natural daylight throughout the complex, including spacious halls. Our approach to nighttime lighting is minimal, preventing light pollution and allowing residents to enjoy the starry sky. Naturally, we utilize energy-efficient lighting systems.
We provide dedicated recycling facilities and collaborate with local waste management services to ensure proper disposal and recycling of waste materials. We provide educational materials and organize awareness campaigns to encourage environmentally responsible practices.
INTERVIEWER: What steps do you take to ensure that “Area 1” meets the highest quality standards and provides a premium and comfortable living environment?
MAXON: Our experienced team meticulously plans and executes the engineering and structural aspects, creating a solid foundation for a high-quality project. Our stylish and modern design embraces warm tones and minimalism for a sophisticated atmosphere. We approach each project as if we were building a home for ourselves. We understand the expectations of those seeking quality and style, aiming to provide a comfortable and premium living environment.
INTERVIEWER: Are there any partnerships or collaborations with local artisans, designers, or suppliers that contribute to the uniqueness and authenticity of your current project, “Area 1”?
MAXON: We collaborate with local companies in critical design areas such as construction and engineering, ensuring the authenticity and quality of our current project. While we plan to source furniture and materials externally, we are open to utilizing inventory produced by authentic local factories, such as plates, vases, and other items, to enhance the project’s uniqueness.
INTERVIEWER: Looking ahead, what trends or innovations do you foresee in the premium flat development industry in Bali in the coming years?
The premium flat development industry in Bali is influenced by various factors, including tourism, economic conditions, foreign investment regulations, and infrastructure development. Looking ahead, some trends and innovations that may shape the industry in the coming years include:
- Eco-friendly design. There is a growing trend towards sustainable living, and developers can incorporate eco-conscious features such as green building materials, energy-efficient systems, water conservation methods, and waste management systems.
- Smart homes and technology integration. Integration of smart home technologies can provide residents with enhanced comfort and convenience. Elite flats may include automated lighting, temperature control, security, and entertainment systems, empowering residents to control their living spaces effortlessly.
- Lifestyle amenities. Developers can focus on providing a range of premium amenities within the properties, such as high-end fitness centres, spa facilities, rooftop gardens, landscaped pools, and communal spaces for socializing and entertainment.
- Integration with nature. Bali’s natural beauty is a major attraction. Developers can integrate elements of nature into their projects, such as green spaces, landscape gardens, and panoramic views, to create a serene and harmonious living environment.