24 октября
Investment review of Bali real estate market
Bali is the pearl of Indonesia and a unique island for successful and profitable investments. Here nature harmoniously combines with luxury, creating a unique opportunity for recreation, life and investment.
The average return on investment real estate in Bali is 12-15%, or from $20-30'000 per year. On resale, you can earn 20-30% of the original value.
If you compare with other popular regions, this is really high. For example, in Turkey, Dubai or Thailand, the average annual return is about 8%.
In recent years, tourists from all over the world have been increasingly choosing Bali for their vacations. In the first half of 2024 (January to June) alone, Bali's Ngurah Rai Airport handled 11,259,019 passengers and 68,202 aircraft flights. This is 16% more than a year earlier. In 2023, there were 9,743,788 passengers during the same period.
What kind of real estate in Bali investors invest their capital in
Bali offers different types of real estate ranging from luxury villas to compact apartments. This allows investors to choose a property depending on their preferences and budget. Investment strategies over the past 2 years show the potential to actually generate 10-15% operating rental income, in addition to increasing property values.
There are several types of real estate in Bali:
- Villas and townhouses are the most popular type of housing among foreigners. They often have their own swimming pools and well-maintained grounds.
- Apartments - ideal for those who prefer an urban lifestyle. In major cities you can find both budget options and luxury apartments.
- Commercial real estate - with the growing number of tourists and businesses in Bali, investing in restaurants, cafes and stores is becoming increasingly attractive.
Real estate prices in Bali
Prices for real estate in Bali depend on the location, area and type of object. Developed infrastructure, proximity to the ocean directly affects the cost per square meter.
Cost per square meter in popular areas of Bali
Cost per 1 m², $
Ubud - 1’500 – 2’500
Changgu - 2’100 – 4’500
Bukit - 3’000 – 4’000
Uluwatu - 3’000 – 5’000
Seseh - 3’600 – 6’300
Why is it profitable to invest in Bali real estate?
- The mild climate, warm ocean and lack of seasonality all attract millions of tourists to Bali all year round. The average occupancy rate of rental properties is 85%.
- Increasing tourist flow and paying customers from Australia, England, USA, China and India. High demand for short-term rentals provides an opportunity to generate a stable income all year round.
- Deficit market: about 10-15% of the island is suitable for development, so high demand allows investors to make profits all year round.
- Stable economy. Annual inflation is 2-4%. At the same time, Indonesia ranks 7th in the world in terms of GDP.
- Security and ease of payments. Payment for real estate is possible with cryptocurrency, cards, bank transfer. There is no need to confirm the origin of your funds.
According to recent studies, the real estate market in Bali is showing steady price growth
Forecasts show that in the next few years the value of properties may increase by 5-10% per year. This is due to the increasing number of foreign investors and growing interest in ecotourism. In addition, the development of infrastructure, including new roads and airports, also contributes to higher real estate prices.
If you want to learn more about investment opportunities in Bali - leave a request and our manager will answer questions and help you find a property for your individual strategy.
Today, Legion Real Estate is ranked #1 in sales by the major real estate developers on the island
We have a good understanding of the local market. We personally know the best developers on the island and select properties with high returns for our investors.
With us, you will not only be able to invest in Bali real estate, but also be sure of the legal purity of your property. Legion Real Estate is your reliable partner in the Bali real estate market.
