We don't talk about it much but there's another side to Bali's property market away from luxury villas with private swimming pools and uninterrupted ocean views.
As Bali's population grows finding land suitable for houses and housing projects is becoming more difficult according to Pande Agus Permana Widura, Chairman of Real Estate Indonesia (REI) Bali, which is tasked with providing affordable housing for low-income groups.
There are a number of reason for this shortfall, one of which is the price of land, especially in the Regency of Badung and in the Denpasar area, which Widura believes is already too high for most people to consider buying.
He blames speculators for the rising prices.
There is currently a backlog of some 270,000 low-income residences in the region that have not been built because of inflated land prices according to a recent report in the Bali Post. This has forced many people seeking accommodations in one-room homestays, which Widura believes are not condusive to positive living environments.
Widura believes the situation is "critical" and solutions must be found and building low income houses in Buleleng, Karangasem and Jembrana, where land is cheaper, is not the way forward as these areas are not practical for those who work in Denpasar and Badung.
The REI, the Indonesian Chamber of Industry and Commerce (KADIN) and the Association of Indonesian Architects (IAI) believe the only viable option to keep prices affordable for most people is to build apartments.
Apartments, or "Vertical Housing" however, touches on a cultural issue unique to Bali as local Hindu's believe any construction taller than a coconut tree will anger the gods that inhabit the island.
Widura plans to work closely with the IAI to design options that respect the Balinese culture. "We want to keep the Balinese culture itself. It is possible to build vertically but keep a Balinese nuance," he said.
Source: Bali Post
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