Significant growth in retail and apartment rentals in Bali
The retail and apartment rental prices saw significant increases, with retail prices growing by 15.09% and apartment prices by 9.71% year over year. This surge indicates a higher demand for these types of properties, especially in popular areas. Specifically, retail rentals increased by 6.93% and apartment rentals by 7.55%. These trends suggest that investors interested in entering the Balinese real estate market could find profitable opportunities in these segments, particularly as demand continues to rise.
Moderate growth in hotel and office rentals
The retail and apartment sectors experienced significant growth, while the rental prices for hotels and office spaces increased at a more moderate pace. Hotel rentals went up by 5.91% year over year, and office space rentals grew by 3.50% year over year. Although these numbers show slower growth compared to previous quarters, they still suggest a healthy market. Investors in these sectors may expect steady, albeit slower, returns, especially as the market stabilizes after the pandemic.
Tourism-driven demand boosts property market
The increase in commercial property prices in Bali is closely tied to the island’s thriving tourism industry. The second quarter of 2024 coincided with a high season and school holidays, leading to a 5.51% year-over-year increase in the Property Demand Index. This surge in demand has been a driving force behind the rising rental prices, making Bali an attractive market for property buyers and investors. The continued growth in tourism is expected to sustain this demand, offering promising prospects for those investing in Bali’s commercial real estate.
For foreign investors and property owners, these developments illustrate the increasing attraction of Bali as a strong real estate market. With property prices and rental yields on the rise, now may be a great time to consider investment opportunities in Bali’s commercial property sector. However, potential investors should conduct comprehensive market research and carefully consider the long-term sustainability of their investments in this dynamic market.
