Bali is the real tourist wealth of Indonesia. Therefore, buying real estate in Bali is considered one of the most lucrative destinations for foreign investors. And this is not surprising, because this island is recognized as the most desirable place in the world according to Booking rating, the most popular tourist destination according to TripAdvisor and the region with the highest investment attractiveness according to Forbes.
In this article, we take a look at all the features and predictions of the real estate market in 2024 and find out whether you should buy a home in Bali for profit.
Buying real estate in Bali: advantages and statistics
Bali is not only a popular island among tourists, but also a place with significant investment potential. According to statistics, the net profit from the sale of residential properties purchased at the construction stage is 44% after 3 years. And for 4–6 years of renting apartments can fully return the full cost of real estate in Bali.
In addition, it is also worth mentioning the fact that foreigners can buy real estate in Bali, even without having Indonesian citizenship.
Indonesia ranks 7th in the world ranking in terms of economic development. According to expert forecasts, by 2030 the country should rise to the 4th position. Indonesia has stable economic growth, neutrality in global political issues and an attractive investment climate. In 2023, Bali was recognized as one of the most "Instagram" places in the world. According to statistics, the island is visited by more than 500 thousand tourists a month.
In the world ranking of investment attractiveness, Bali took the 4th position. This is facilitated by the constant economic development of the island. For example, in 2022 the port in Sanur was completely reconstructed. And already in 2023 opened the Bali International Hospital. The year 2024 will be dedicated to the reconstruction of Bali's transportation infrastructure: the Gilimanuk - Mengwi expressway and the port of Gilimanuk. In 2025, they plan to open a large theme park Paramount park
Real estate in Bali: trends and expert forecasts
Bali is a globally recognized real estate investment center. It is also predicted to grow rapidly in the years to come, thanks to a developing economy and a thriving tourism industry.
The first trend to look out for is the increasing demand for luxury real estate. Many people associate Bali with luxury resorts and expensive villas, so many investors favor high-end townhouses and beachfront properties.
Experts forecast the Bali real estate market to grow from USD 61.22 billion in 2023 to USD 81.24 billion by 2028 at a compound annual growth rate of 5.82% during the forecast period. This is supported by one of the highest property yields in Bali: 15% p.a. excluding property values (one of the highest in the world, the average is 5%).
The rental value of residential properties in Bali is also expected to increase by 15-20% in 2024. The average occupancy rate of residential properties is expected to be 65-80%. Thanks to simple math calculations, it can be concluded that the purchased property will pay for itself in 5–6 years.
The best areas to buy real estate in Bali
Changgu district is one of the best places to invest in real estate on this Paradise Island. It is a popular seaside location, which translates to "foreigners' village" from the language of the locals. This area has the highest possible demand for residential real estate. In addition, there is significant potential for foreign investors here, as some areas of Chang are just beginning to develop.
Buying real estate in Bali: popular objects for investment
Foreign investors can buy land, apartments or villas in Bali. When choosing the type of real estate should take into account the goals of the investor.
According to experts, apartments are the best option for investing in real estate in Bali. These residential properties have a low level of investment and a wide range of functionality. Buying an apartment in Bali will be a great tool for passive income, as well as a profitable option for resale.
Investing in real estate in Bali: advantages and financial benefits
Citizens of most countries can visit Indonesia on a tourist, visitor or investor visa, thanks to which you can also get a residence permit in Bali.
Buying real estate in Bali will provide you with passive income and a quick return on investment. Bali boasts the highest return on real estate investment in the world (up to 35%). Therefore, your investment will pay off in 5–7 years.
In addition, it is worth noting that in Bali is actively under construction of new villas and other residential facilities, which demonstrates the high demand for real estate on the island. Long-term rental apartments in popular tourist areas are in particular demand.
And one of the main advantages of buying real estate in Bali is an Investor's visa. This document is issued for 5–10 years, and on its basis you can even get a residence permit in Indonesia.
Expert forecasts promise a promising development of the real estate market in Bali in the period from 2023 to 2024. This provides unique prospects for potential investors. Tourism continues to be a key pillar of the country's economy. Thanks to the new opportunity for foreigners to obtain a second home visa in Indonesia, it has become even more attractive to purchase a home on the island - all without the need for a residence permit, just a passport. What's more, this also comes with the right to stay for up to 10 years.
Currently, Bali pleases with favorable prices, making this the best time to invest in real estate. The prospect of further growth in the value of real estate in Indonesia provides a unique opportunity for investors to earn high returns. It also allows you to manage your finances carefully, avoiding losses, and eventually become the owner of luxury apartments close to the ocean shore. Thus, the prospects for investing in Balinese real estate are extremely favorable, and the current situation with favorable prices creates excellent opportunities for those who seek to invest their funds in a reliable and promising direction.