Utami is here as a marketing intern at Bukit Vista. This article delves into the promising of Bali villa development in Ungasan. Drawing from the insights and strategic framework provided by our Business Intelligence Team, we navigate through the nuances of transforming a prime 5 square meters land parcel into an investment opportunity. With a focus on capitalizing on Ungasan’s burgeoning potential as Bali’s next premier luxury destination, this piece combines firsthand industry knowledge and analytical expertise to outline a path to profitable real estate development.
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In the expanding arena of Bali villa development, a prime 5 square meters plot within a 13.2 square meters landscape in Ungasan stands poised for transformation. This sloping terrain, ranging from 170 to 172.249 meters in section A and from 171.5 to 175.5 meters in section B, offers the prospect of sea views that could become a key selling point. However, the potential for obstructed views due to future constructions warrants strategic planning for the land’s utilization.
However, investors must strategically navigate the risk of future developments that could impede these views. The owner is presented with two viable paths: Build & Rent, offering continual revenue, or Build & Sell, promising a quick return on investment. The current preference leans towards Build & Rent, reflecting a commitment to long-term investment in Ungasan’s thriving property landscape.
Location Assesment
The decision to Build & Rent is indicative of the owner’s confidence in Ungasan’s property investment climate. By choosing a sustained revenue model, the owner is tapping into the steady growth of Ungasan, where the demand for luxury villas with sea views shows promising upward trends. The land’s varied elevation not only provides a distinct advantage in the competitive market but also challenges the developer to preserve the land’s natural vistas in the face of rapid construction growth in the region.
Gross Revenue Estimation
To achieve a gross annual revenue ranging from $70,000 to $160,000, a strategic focus is placed on hitting the sweet spot of $130,000. This requires a robust daily gross revenue target of $450. With an 80% occupancy rate as our benchmark, the financial model hinges on consistent performance and meticulous rate setting, ensuring the villa’s profitability throughout the varying seasons in Ungasan.
Strategic Revenue Goals
The objective is to balance the allure of Ungasan’s property market with pragmatic financial planning. By dissecting the annual revenue target into daily goals, we confront the tangible task of accruing $450 each day. This granular approach allows for precise adjustments in pricing and promotions, aimed at maintaining high occupancy without sacrificing the ADR—pivotal for reaching the envisaged $130,000 mark in the competitive Bali villa development sphere.
Product User Fit: Analyzing Market Demand with Airbnb Data
In the Bali villa development, particularly in Ungasan, Airbnb’s expansive data for 2023 reveals that accommodations boasting 1-3 bedrooms, especially those equipped with a private pool, markedly attract guests. This preference dictates our product user fit, guiding us to focus on properties that align with these in-demand characteristics.
2023 Airbnb data for Bali, having a pool is a pivotal amenity that greatly enhances the building’s value. It can significantly enhance the property value, making it an essential feature for potential guests.
In the 2023 Airbnb Bali data, we notice a notable number of reviews within the price range of $10 to $400.
Examining the Ungasan area more closely, we identify a long-tail distribution, with reviews accumulating predominantly in the price range below $500.
Upon closer examination, we find that a significant number of reviews are left for accommodations priced up to 600, with a diminishing number above that threshold.
The majority of reviews for accommodations priced under $600 are concentrated in the $0-100 range, followed by $101-200 and $201-300.
Refining the Product Mix
Given the evidence from Airbnb Bali data, a strategic narrowing of our product types is essential. Bukit Vista’s internal metrics indicate that in Ungasan, 2-bedroom units with private pools outperform their 3-bedroom counterparts in occupancy and revenue generation. In response, we have honed our offerings to two key product types: the higher-priced 2-bedroom villas with a private pool at a median price of $275, and the more accessible 1-bedroom villas, also with a private pool, targeted at a median price of $200.
Aligning with Guest Preferences
Our investment strategy in Ungasan is tailored to meet the demands of today’s discerning travelers. While the emphasis on a private pool remains non-negotiable due to its proven value addition, we’ve opted to eliminate the 3-bedroom configuration from our portfolio. This decision is rooted in data-driven insights, ensuring our property investments resonate with market trends and guest preferences, ultimately fostering a profitable product user fit.
Identifying Areas Needed for Unit Types
For the discerning Bali villa market, we draw inspiration from Villa Zyloh to propose units that encompass the modern Mediterranean style, complete with private pools. The design calls for an allocation of approximately 6.5 ares to accommodate spacious 2 and 3-bedroom villas. This blueprint is not merely aesthetic but strategic, aimed at elevating Ungasan property investment with a touch of luxury that promises lucrative returns.
Crafting a Diverse Portfolio
Our analysis underscores the construction of two distinct unit types to achieve an anticipated annual gross revenue of $138,700. While other configurations could also meet the minimum target of $130,000, this particular combination is favored to ensure a diverse portfolio that sustains healthy competition. It’s a calculated move designed to position our Ungasan property investment as a pacesetter in the landscape of Bali villa development.
Design Recommendation
Design Recommendation for Modern Mediterranean
Design Recommendation for Tropical Villa
Land Allocation
In our Bali villa development blueprint for Ungasan property investment, we recommend partitioning the sloping terrain into two rectangular plots, one comprising 3 areas and the other 2 areas, to maximize the potential sea views given the topography. The provided visual outlines our conceptual division, with the final land allocation contingent on the design selected by the property owner, ensuring each villa optimally leverages the unique landscape for both aesthetic appeal and investment value.
Conclusion: Unlock Bali Villa Development with Your Own Project
The strategic blueprint crafted by Bukit Vista for property development in Ungasan stands as a testament to meticulous planning and visionary market analysis. It is tailored to elevate the potential of property owners’ investments and to cement their projects in the profitable terrain of Bali villa development. Our approach is a harmonious blend of data-driven insights and innovative design, focused on maximizing returns while catering to the sophisticated tastes of Bali’s visitors.
We invite potential partners to embark on their journey into villa investment strategy in Bali with Bukit Vista as their guide. Our expertise as a Bali villa management company is not just in creating strategies but in forging pathways that lead to success and profit in the property market. Start your venture with us, and together, let’s shape the future of Bali villa development to achieve unparalleled results. Contact Bukit Vista today to begin crafting your investment legacy in Bali landscapes.