When a new toll road opens, property values near it tend to appreciate. Everyone knows that. But 2024 showed us something more interesting: infrastructure creates entire new real estate markets where none existed before.

Start with the numbers. The Cimanggis-Cibitung toll road cost USD 683.9 million to build, but look at what it actually accomplished. It connected the Jakarta Outer Ring Road 2 to areas that were previously inefficient to reach. Suddenly properties in corridors previously considered remote became attractive for commuters. That's not incremental appreciation. That's market creation.

The story is similar across Indonesia. Premium housing inventory in Bali increased 96% quarter-over-quarter in Q3 2024. What triggered this surge? The beginning of MRT and LRT construction connecting Ngurah Rai Airport to Ubud. The infrastructure hadn't even opened yet, but developers saw the opportunity and capitalized on it. They understood that connectivity fundamentally changes property values.

More concrete: The new LRT Jabodebek line that launched in August 2023 improved connectivity across East Jakarta, Bekasi, and Depok. Within a year, property transactions in areas served by that line increased significantly. The LRT didn't just improve mobility. It created real estate demand in places that previously didn't have it.

We're seeing this play out systematically now. Yogyakarta recorded 281% inventory growth in Java, directly tied to the Solo-Yogya Toll Road completion. North Sumatra jumped 122% thanks to Trans-Sumatra Toll Road sections. East Kalimantan grew 118% supporting Nusantara development. These aren't independent stories. They're the same pattern repeating: infrastructure drives developer confidence, developer confidence drives supply, supply drives occupancy and appreciation.

The government's commitment to infrastructure is serious. Bank Indonesia's forecasts show 5.1% economic growth in 2025, with continued government investment in transportation networks. The Bali LRT project represents USD 20 billion in planned transit infrastructure. Bandara Dhoho Kediri in East Java is getting USD 567.7 million in airport development. These are real commitments with real consequences for property markets.

Why does this matter for real estate investors? Because infrastructure creates arbitrage opportunities. Early investors who recognize that a toll road will open or that a transit line is coming can acquire property before the market fully prices in the new connectivity. The property in Depok that's currently considered peripheral becomes strategic once the transit connection improves. That's not speculation. That's market dynamics playing out predictably.

What's really important is that the government's new administration, led by President Prabowo, has pledged to continue infrastructure-focused policies. This isn't a one-year trend. It's a multiyear trajectory. The Nusantara capital development alone is expected to generate construction activity through 2029, supporting property development in surrounding cities.

The practical takeaway? Property appreciation near infrastructure corridors isn't random. It follows logical patterns. When you see government investment in toll roads or transit systems, you can fairly confidently predict that adjacent and nearby properties will become more valuable. Cities serving Nusantara—Bontang, Balikpapan, Samarinda—showed consistent quarterly growth in home purchase searches. That's not accidental. That's rational investors and families positioning themselves ahead of infrastructure completion.

For developers, this is instruction clear: Build near infrastructure corridors. The demand exists and will continue to exist. For institutional investors, it means understanding that infrastructure investment is the leading indicator for real estate opportunity. When government commits to building connections, markets follow.

The completion of toll roads and opening of transit systems in 2024 and early 2025 has created genuine new market opportunities outside traditional Jakarta markets. Smart capital has already started flowing to these areas. The question isn't whether infrastructure drives real estate demand. It's whether investors can move quickly enough to capitalize on the opportunity before the market fully recognizes it.