Top 7 reasons to invest in Bali
Several reasons, such as the growing tourism industry and favorable property prices, make it profitable to invest in Bali. Let’s look deeper at the top seven reasons to invest in Bali.
1. High demand for rental properties
Bali is one of the most popular tourist destinations in the world, with a high demand for rental properties. Investing in Bali can be a wise decision as it provides access to a lucrative market of short-term holiday rentals. Property owners who invest in Bali can expect a consistent rental income, as the island attracts a steady influx of tourists throughout the year.
An increasing number of families, digital nomads, and expats are choosing to reside in Bali, leading to a rising demand for long-term rental properties. This can increase the occupancy rate of investment property in Bali, making it profitable to invest in Bali.
The most popular areas among tourists include Canggu, Seminyak, Uluwatu, and Ubud. Therefore, investing in Bali property can be a great opportunity to earn a regular income from rental properties.
2. Growing tourism industry
The tourism industry in Bali is currently experiencing a surge, which has a direct impact on the real estate market. In 2023, Bali welcomed an average of 450,000 foreign tourists every month, and the government anticipates that this number will continue to rise in the coming years. As more people visit Bali, there is an increasing demand for accommodation, which leads to a rise in the value of investment properties.
This growth in tourism is not only a temporary trend but also a stable economic driver, making investing in Bali a profitable opportunity.
3. Potential for capital appreciation
Over the past few years, real estate in Bali has consistently shown a trend of capital appreciation. This indicates that buying property in Bali is not just about earning rental income, but also an opportunity for long-term growth. It’s important to note that the degree of capital appreciation varies depending on the type of property ownership. Freehold properties in Bali benefit more from capital appreciation than leasehold properties do.
Property values are expected to rise as Bali continues to develop and attract more investors. This is especially true for areas that are still underdeveloped and have a higher potential for growth, such as northern or eastern Bali, where prices for properties in Amed, Singaraja, Sidemen, and Lovina are still low, despite an increasing number of tourists visiting these places. This creates a perfect opportunity for those who want to invest in Bali real estate.
4. Diverse investment opportunities
If you are looking for property investment opportunities, Bali has a lot to offer. From luxurious villas to beachfront properties and commercial real estate, you can choose from a wide range of options. As a foreign investor, you can buy land and sell it later at a higher price to make a profit or lease it to those who want to build their dream home. Another option is buying a house in Bali and renting it to short-term or long-term guests for a steady income. Commercial real estate, apartments, resorts, and guesthouses are also popular among real estate investors.
The vast selection of investment properties available in Bali makes it easy for investors to find a suitable property that meets their investment goals, budget, and risk profile. This is further amplified by Bali’s popularity as a tourist destination, providing endless investment opportunities.
5. Favorable property prices
Compared to other popular destinations, Bali offers relatively affordable property prices. This makes the real estate market accessible to a broader range of investors. As of 2024, the average cost for a villa in Bali was IDR 42.63 million ($2,685) per square meter. The table below provides an overview of the average villa and land prices in popular tourist areas that offer property investment opportunities in Bali.
| Average villa price/m2 | Average land price/m2 | |
|---|---|---|
| Singaraja | IDR 17 million ($1,071) | IDR 1 million ($63.01) |
| Canggu | IDR 42.63 million ($2,685) | IDR 9.94 million ($626) |
| Seminyak | IDR 53.42 million ($3,366) | IDR 18.21 million ($1,147) |
| Ubud | IDR 27.94 million ($1,760) | IDR 2.64 million ($166) |
6. Favorable investment climate
Due to the restrictions on foreign property ownership in Indonesia, it can be challenging to invest in Bali. However, the government has taken steps to create a more favorable investment climate in Bali by simplifying the process of buying property for foreigners. They introduced the Second Home Visa KITAS, which allows foreigners to reside in Bali through property investment. In 2023, the government announced that foreigners could invest in Bali and buy a villa by simply showing their passport, as long as the villa has a minimum value of IDR 5 billion ($315,000) and is bought under the Hak Pakai land title.
7. Lifestyle and cultural appeal
Investing in Bali is not just a financial opportunity, but a chance to enjoy an incredible lifestyle. The island boasts a rich culture, stunning nature, friendly communities, and delicious food. By owning a property in Bali, you can enjoy all the fantastic experiences this unique place offers. It’s no wonder many foreigners are drawn to Bali as a second home or retirement destination, taking advantage of its lifestyle.
Why is buying property in Bali a good investment?
Investing in Bali offers a unique combination of lifestyle and financial benefits. The island’s growing tourism industry, favorable property prices, potential for capital appreciation, and diverse investment opportunities make it an attractive market for real estate investment. Additionally, Bali’s improving investment climate and lifestyle appeal add to its allure. Whether it’s for generating rental income, capital growth, or personal use, buying property in Bali presents a good investment opportunity.
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Frequently Asked Questions (FAQs)
Is it easy to invest in Bali?
Investing in Bali has become easier due to improved foreign ownership regulations and websites such as Own Property Abroad that make Indonesian regulations easier to understand. However, the key to a successful investment in Bali is understanding the local laws and property prices and working with reliable professionals. Property management companies in Bali make it easy to maintain your villa and rent it out on Airbnb while you’re not in Bali.
Is owning a villa in Bali profitable?
Yes, owning a villa in Bali can be profitable, mainly due to the high demand for rental properties driven by Bali’s robust tourism industry. People who invest in Bali often see a good return on investment (ROI) through holiday rentals, making buying a villa in Bali a potentially lucrative investment.
Is buying a villa in Bali smart?
Buying a villa in Bali can be a smart investment due to the island’s growing tourism, potential for rental income, and capital appreciation. However, it’s essential to do your research before you invest in Bali villas.
What is the ROI for Bali villas?
The ROI for Bali villas varies but generally falls between 12-20% per annum. Factors influencing ROI include location, property type, and management strategy. With Bali’s vital tourism sector, well-located and well-managed villas can offer attractive returns.
How to buy property in Bali as a foreigner?
Foreigners can buy property in Bali through leasehold, under a Hak Pakai or Hak Guna Bangunan title, with a PT PMA, or by meeting the requirements to buy it with only their passport.
Where to find Bali property for sale?
Bali property for sale can be found through various channels, including online real estate platforms, local real estate agents, and property expos. Websites and agents specializing in Bali real estate offer multiple options, from luxury villas to commercial properties, catering to different investment needs.
What are the major business opportunities in Bali?
Major business opportunities in Bali include tourism-related ventures, hospitality services, real estate, and wellness industries. The island’s popularity as a tourist destination creates diverse business opportunities catering to tourists and expats.
What investment opportunities does Bali offer?
Bali offers a range of investment opportunities, including investment property in Bali, commercial real estate, hospitality ventures, and tourism-related businesses. The island’s dynamic market caters to various investment preferences, from buying a house in Bali to investing in a startup.
