The relocation of Indonesia’s capital from Jakarta to Nusantara, also known as IKN (Ibu Kota Nusantara), has significant implications for the Balikpapan real estate market.
Under the leadership of President Prabowo, the commitment to develop and complete the new capital city remains strong.
“Pak Jokowi, I believe, has already taken on a historical role. He initiated it, and at the very least, I will continue it; if possible, I will be part of completing it,” Prabowo stated, as reported by Kompas.com.
As construction in Nusantara progresses, nearby Balikpapan is experiencing a surge in property investment, transforming its real estate market into a hotbed of opportunity.
Investors are drawn by Balikpapan’s strategic location near the new capital, making it an ideal choice for both residential and commercial property ventures.
Balikpapan: The Gateway to Indonesia’s New Capital, Nusantara
Balikpapan is the second-largest city in East Kalimantan, just behind Samarinda. Its location serves as a gateway to IKN, providing essential services, logistics, and infrastructure.
The scale of the IKN project, which includes government buildings, residential areas, and green infrastructure, requires a solid foundation of support that Balikpapan is well-positioned to provide.
Its proximity to the new capital makes Balikpapan an ideal spot for residential and commercial investments, as businesses and government agencies seek to establish operations nearby to improve efficiency.
As the development of Nusantara progresses, Balikpapan’s role as a logistical and economic support center is expected to grow, transforming the city into a bustling hub that complements the new capital’s needs.
Surging Property Demand in Balikpapan Amid IKN Development
Balikpapan has recorded a significant increase of as much as 69.1% in property demands, especially for the landed house sector.
As much as 54,8% of people showed high interest in these residential properties, with prices ranging from Rp.400 million – Rp 1 billion
This rise in residential demand shows the middle-class market is actively searching for property in Balikpapan.
Commercial properties, such as office spaces, retail outlets, and logistical centers, are also experiencing significant growth as companies establish a presence to support IKN-related operations.
This trend is expected to continue over the next few years, fueled by ongoing investments in IKN’s infrastructure.
Why Balikpapan is a Prime Investment Opportunity
As development in Nusantara progresses, demand for both commercial and residential properties in Balikpapan is expected to rise.
This interest in property can lead to substantial potential for rental yields and property appreciation.
The city’s improved infrastructure, such as transportation networks like the Balikpapan – Samarinda Highway, the Sultan Aji Muhammad Sulaiman Sepinggan International Airport
and improved public amenities make it an attractive base for businesses and residents.
Investors in Balikpapan can benefit from a growing market with solid returns, making it an ideal choice for those seeking growth in Indonesia’s evolving real estate landscape.
With rising demand fueled by the influx of businesses, workers, and government agencies supporting IKN, Balikpapan offers significant opportunities for both immediate returns and long-term growth.
For investors seeking a foothold in Indonesia’s evolving landscape, Balikpapan stands out as a valuable choice with lasting potential in a dynamic and rapidly developing region.
Source: Kompas.com, rumah123.com
Image: Getty images
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