Investing in real estate in Bali attracts many people due to the high returns, stable price growth and unique tourist potential of the island. However, in order to make the right choice and maximize your return on investment, it is important to consider a few key factors. In this article, we will look at how to choose the right Bali property for investment to minimize risks and maximize market opportunities.

Bali's development prospects

The island of Bali, which is known as an exotic tourist paradise, is attracting the attention of investors from all over the world due to its booming real estate market.

Indonesia's GDP grew by 5.05% in 2023, the highest since 2013. The country's inflation rate also remains low, not exceeding 4%, which is significantly lower than many other countries.

Bali offers unique opportunities for investors due to its popularity among tourists and favorable business environment. The real estate market in Bali promises stable returns that exceed global averages.

Annual growth in real estate values is 15-20%, which is three times higher than the global average. Rental values are also showing strong growth at 15-20% per year. High occupancy rate (70-80%) and the ability to recoup investment within 5-6 years make real estate in Bali a reliable and profitable investment.

Modern infrastructure is combined here with picturesque nature - volcanoes, rice fields, restaurants and bars overlooking the sea and mountains. The most popular way to use real estate in Indonesia is to use it as a second home. This format allows the owner to spend a vacation by the sea, and the rest of the time to rent the object to tourists.

Real estate market research in Bali

The real estate market in Bali is a dynamic and promising area for investment, attracting the attention of both local and foreign investors.

Researching the real estate market in Bali should begin with understanding the legal framework for investment and the procedures for buying and selling real estate in the country.

This includes learning about the laws governing real estate transactions and familiarizing yourself with the property procedures.

Budget and investment strategy

Determining a budget is a key step in planning a real estate investment in Bali. Investors should consider not only the cost of the property itself, but also all associated costs, including taxes, maintenance, legal and administrative costs, repairs and upgrades.

It is also important for investors to assess their financial capacity and determine whether they are prepared to manage the investment in the long or short term.

- Short-term investment: Involves the purchase of real estate for the purpose of quick resale once infrastructure projects are completed or market conditions improve. This approach requires active management and quick decisions.
- Long-term investments: Involves owning and leasing real estate for the long term. This can provide stable income and growth in the value of the property over time. It is important to consider the costs of managing the property and keeping it in good condition.

Choosing the type of property

There are many types of real estate in Bali, each with its own characteristics and appeal to different categories of buyers or tenants.

- Apartments (apartments): Most sought after in city centers and popular tourist areas. Ideal for short-term rentals by tourists.
- Villas: A popular choice for long-term investments and rentals. Villas on the coast or overlooking rice paddies and volcanoes appeal to affluent buyers and renters.
- Duplexes and townhouses: A good option for families and those seeking a compromise between city life and privacy.

When researching the different types of real estate in Bali, investors should consider the characteristics of each type and their appeal to potential buyers or renters.

Choosing the most suitable neighborhood on the island

To assess the investment appeal of a property, you need to pay attention to its location and features.

One of the most popular and promising neighborhoods in Bali is Changgu. This area attracts a large number of tourists, which creates a high demand for rental properties and provides a stable income for owners.

When choosing a property, it is important to consider its distance from key locations such as beaches, stores, airport, medical and educational facilities.

In Changgu, many properties are located in close proximity to beautiful beaches popular with surfers and outdoor enthusiasts.

In addition, the area is renowned for its developed infrastructure, including a variety of cafes, restaurants, stores and spas, making it a great place to live and work.

Transport accessibility, good environmental conditions and a high level of security also play an important role when choosing an area to live or invest in.

Changgu is one of the most sought-after areas for investors due to its high tourist traffic and high return on investment. The high demand for rental properties in the area allows owners to earn a stable and high income.

Internal infrastructure, area and layout of the property

Assessing the condition of the structure and its reliability is the first priority. It is important to check the quality of materials used in construction and the reliability of engineering systems such as water, electricity and ventilation.

Bali offers a variety of sizes and layouts, ranging from compact studios and one-bedroom apartments suitable for single renters or couples who prefer compact living, to spacious multi-room apartments ideal for families or groups of tourists who value space and comfort.

The presence of a balcony or terrace adds additional space to relax and enjoy nature. Views of the ocean, rice paddies or rainforest can greatly enhance the appeal and value of a property. Such views are especially appreciated by renters and buyers looking for a unique experience and comfort.

The infrastructure of a residential complex also plays an important role. Modern complexes in Bali often offer a variety of amenities such as swimming pools, fitness centers, playgrounds, secured areas and parking spaces. These factors increase the attractiveness of the property to potential tenants and buyers.

Factors affecting real estate values

When deciding on their investment strategies in the Balinese real estate market, investors should consider a number of factors that may affect property values in the future:

- Infrastructure projects: The construction of a new international airport, a theme park by Paramount Pictures, a Formula One track and a new cruise port promise to significantly increase tourist traffic and occupancy rates at the island's tourist facilities.

- Economic Development: A stable economy and favorable investment climate attract both foreign and local investors. New business development and job growth are also leading to an increase in demand for housing.

- Tourist Flow: A steady influx of tourists provides stable rental income and contributes to rising real estate values. The tourism industry plays a key role in Bali's economy, and any improvements in infrastructure or increased tourist numbers have a positive impact on the real estate market.

- Environmental factors: Consider the location of the property in relation to natural and cultural attractions. Proximity to beaches, rice terraces and volcanoes increases the appeal of a property. Picturesque views and unique nature make such properties more valuable to buyers and renters.

Bali offers unique opportunities for investors due to its stable real estate market, high growth rate and favorable business environment.

Investing in real estate in Bali requires careful planning and consideration of many factors. Determining a budget, assessing your financial capabilities and developing a clear investment strategy will help you maximize your investment and achieve the desired returns.

How to choose the right Bali real estate to invest in

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