Bumi Kinar’s Organic Farming Model Inspires Sustainable Luxury in Bali Real Estate

Thinking of Bali property with a difference or an environmentally friendly investment opportunity? Organic farming is increasingly becoming one of the trends of the times in Bali real estate – and we are seeing this firsthand here at Bumi Kinar. Our 23 acre Bumi Kinar Resort’s very own organic Kinar Village — a 23-hectare farm just outside Ubud in central Bali and about an hour’s drive from north Bali’s Tabanan town — has given us an extraordinary chance to bring old Bali’s proud farming traditions up to date and be at the heart of the global move towards environmentally and socially responsible lifestyle property and far-sighted, environmentally friendly investment options.

Bumi Kinar is a wellness and hospitality brand but it is also a model of sustainability and sustainable agriculture practices that increase the value of the land and therefore appeals to a new breed of guests and owners who value a sustainable lifestyle and are looking for an eco-investment opportunity. Since 2018, Bumi Kinar Estate has been practicing organic farming free of pesticides and has maintained an ancient Balinese subak irrigation system that is part of UNESCO’s World Heritage listing of water management heritage for the benefit of the environment and the local community.

The farm operates and integrated farming system method known locally as ‘Sabicaitala’ which enhances biodiversity and maintains the balance of natural resources. It involves raising livestock such as cattle and fish, keeping bees, growing rice, vegetables and fruit trees in a closed circular system. Therefore, a farm with this type of integrated sustainable farming system will enhance the value of land for sale to Bali’s discerning buyers, especially for land intended for use as luxury farm-to-table fine dining, eco tourism and wellness resorts. The growing trend of demand for luxury land in Bali, especially in prime locations like Ubud and Tabanan further support this type of integrated sustainable farming method.

So why should you care? We at Elite Havens always point out that land with a sustainable agricultural or conservation focus to it tends to retain value and appreciate more predictably. This is because Bali’s government is increasingly looking to develop protected area and farmland and is also starting to put more restrictions on the development of land in order to maintain the island’s lush balance. Additionally, with the growing trend for tourists to look for authentic and green places to stay and do business, our sustainable farms can help boost rental yields for any nearby properties.

Properties within a short drive of Ubud’s fastest growing farming and eco-resort locations are now pricing between 4 and 10 billion IDR (USD 270,000 to 670,000) approximately. Families with children are starting to move here for a better lifestyle and the more mature investor is realizing the potential from current occupancies, which are running at approximately 65% in the Ubud boutique villa sector. Yields of 5-7% are achievable from well managed projects in prime positions, close to the expanding number of sustainable tourism initiatives.

A number of risks were highlighted for potential buyers. These include the need to verify that any land purchase has an IMB/PBG (land use permit) and an understanding of the very specific and rigorous zoning rules on the island to protect subak water management systems and agricultural land. Another issue to be aware of is the rising demand for land in environmentally-focused developments, which is leading to rising competition and government intervention in a number of locations.

Easy, lifestyle living allows access to your own farm to table produce and local, organic ingredients and sustainable farming, which is an important aspect of the healthy living lifestyle. Convenient access to local, organic produce and sustainable farming, as well as wellness services, which is also appealing to digital nomads and retirees, wishing to escape the noise of popular tourist destinations in search of tranquility.

Future wise, the land of Bali will reap great benefit from adopting integrated sustainability models, such as Bumi Kinar’s approach to sustainable living. Moving on from simply being about luxurious developments, the times are upon us to usher in a new wave of ethically stewarding the land in which we live and reside. This comes at a time when conscious travellers and consumers are increasingly taking matters into consideration about their impact upon the world. And so we too will reap the rewards of sustainability on a long term basis when it comes to our properties.

Practical Takeaways for Buyers & Investors:

• Buyers in the market with a budget of around USD 300k may want to look at properties in Ubud that are close to an organic farm in order to capitalise on the demand for wellness tourism.
• Please always confirm the land location legal status whether it is an agricultural land and/or lies within a subak area to avoid future problem with the permit.
• Take into account the potential premium rental rates for villas that can offer true eco-tourism experiences. These rates will generally be higher than for regular rentals.
• Families and retirees want access to fresh food, affordability and a peace ful atmosphere so choose land with easy access to fresh produce and a calm ambience that will enhance quality of life and reap future capital gains.

Sustainability is beginning to rise to the surface in Bali, and we're not just talking about using reusable water bottles and saying no to plastic bags. The Balinese property scene is also undergoing a shift, and we think sustainable agriculture like Bumi Kinar’s could play a huge role in where investors and expats decide to plant their roots. If you're looking for an authentic taste of Bali, beyond just a postcard landscape, this could be an opportunity you shouldn't miss.