ANALYSIS OF FACTORS INFLUENCING LAND INVESTMENT DECISIONS RELATED TO THE DEVELOPMENT OF NORTH BALI INTERNATIONAL AIRPORT

Abstract

The development of the North Bali International Airport in the Kubutambahan area, Singaraja, is expected to influence the region’s economic dynamics, particularly in terms of land investment. This study aims to analyze the influence of land value changes and interest rates on land investment decisions in the airport development area. Using a quantitative approach, simulated data constructed based on relevant literature and theories were analyzed using multiple linear regression. The analysis results indicate that land value change has a significant effect on land investment decisions, with a regression coefficient of 3,271.549. In contrast, interest rate does not show a significant influence, as indicated by a significance value greater than 0.05. The regression model explains 93.3% of the variation in land investment decisions and has a statistically significant F-value at the 0.05 level. These findings suggest that land value change is the more dominant factor in attracting land investment in North Bali, in line with the airport development, which is expected to stimulate economic growth and enhance the investment appeal of the region.