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The best way to invest in Bali is through real estate. Bali boasts a plethora of beautiful landscapes, some vibrant culture and promising investment potential for those willing to delve into the real estate market.
2024 is an exciting and enticing time for Bali’s property market and investors. In this article, we will summarise six reasons why 2024 is the best time to invest in Bali’s property market.
So, what are the Key Benefits of Investing in Bali Property?
Bali’s property market offers various benefits for real estate investors. With its growing tourism sector, proven ROI rates, thriving expat communities and more, Bali investments are almost guaranteed to bear fruit. Investing in Bali’s real estate scene is perhaps the safest and most lucrative sector.
1. Growing Tourism Sector
The COVID-19 pandemic hit investors all over the globe, hard. Many regions and sectors have since failed to recover to their pre-pandemic level – not Bali.
As of 2023, Bali has recovered by 88% when compared to pre-pandemic levels of visitors as it received over 5,270,000 foreigners in 2023 alone. This is an increase of almost 145% since 2022 (according to the Central Bureau of Statistics for Bali).
Both Bali’s tourism industry and the real estate sector operate in tandem. With an increasing number of tourists and ex-pats opting for Bali as their destination of choice, the demand for luxury villas and accommodation is huge. This trend continues to present lucrative opportunities for those willing to invest in Bali and provide luxury accommodation.
2. High Return on Investment
The allure for property investors is predicted to rise in the near future as the tourism boom in Bali shows no signs of slowing. Now is an exciting time to invest in Bali’s real estate market and pervious ventures have historically yielded impressive ROIs.
Of course, property prices depend greatly on the types of properties you are selling/purchasing and the location of the villa. In 2024, a single-storey villa can cost as low as $475 per sq metre. A luxurious high-end villa can fetch upwards of $1,500 per sq metre. A standard multi-storey villa usually falls in between these two figures at around $700-750 per sq metre.
The average Bali villa rentals are yielding an astonishing 15-20% annually, meaning you could pay off ALL costs in as little as 5 years. And with a luxurious villa in a prime location, this figure can creep closer to the 30% mark.
The investment potential of construction in Bali is remarkable. According to the IMF, Indonesia’s GDP is one of the fastest growing in the world at 7.7% (largely thanks to Bali). Bali’s economy has been steadily growing since the COVID-19 pandemic and the Balinese government is optimistic for 2024.
3. Diverse Investment Property Types
Bali’s real estate market is extremely diverse and therefore investment opportunities in Bali in this space are widespread. From luxurious beachfront villas with stunning surf on the doorstep to tropical inland properties surrounded by Bali’s famed lush greenery, there is something for every type of investor.
Bespoke designs and builds offered by companies such as us at 888 Design & Build provide a blank canvas for investors to truly create the villa of their dreams here in Bali.
Everything from high-end luxurious properties to more affordable options for stable rental income can be found here – Bali’s real estate market is accessible and potentially extremely profitable for all.
The great diversity of real estate investment opportunities in Bali caters to numerous investment strategies. Not only this, but it also ensures resilience and a sense of reliability in the ever-changing realm of market fluctuations. Whatever your desired investment niche or predicted market trends are, you will face no difficulty in finding a property or project in Bali that aligns with your vision.
4. Strategic Location Opportunities
There is no greater factor in determining the value, ROI or desirability of a villa in Bali than its location. A villa with a prime location will guarantee massive yields, attention and profits.
The only other factors that come close to location in terms of value are the size of a villa in Bali, or potentially the quality of the build or materials used. But these are plastic features and can be adapted; location cannot. Therefore the best-located villas and land will always be worth the most capital.
Strategic location choice is paramount in any Bali property investment project. There are two types of strategic location choices…
The first is the obvious choice of opting for an expensive plot of land right on the beach in the south of the island’s popular areas such as Canggu, Seminyak, and Kuta. Opting to invest in a property in Bali in one of these locations is risk-averse. The initial costs of land leasing will be expensive, but returns are almost guaranteed.A strategy with the potential to yield higher ROIs, without guaranteed results would be to invest in an ‘up and coming’ location, such as Amed or Uluwatu. Uluwatu in particular is a rapidly growing area and will no doubt be a prime area to buy, develop or build in Bali over the next few years.
5. Thriving Expat and Digital Nomad Communities
Bali is perhaps the largest and most significant digital nomad hotspot on Earth. Record numbers of ex-pats and digital nomads are moving to Bali, many of them with successful businesses, high-paying careers, and lucrative amounts of wealth – over 540,000 tourists visited last July (2023) alone.
With a fine work-life balance, Bali stands out as a near-perfect location for remote workers. The island’s natural beauty is so incredibly diverse and intense. Everything from stunning waterfalls and exotic wildlife to beautiful beaches and magnificent volcanoes can is abundant in Bali. All this can be found within a short excursion of bustling hubs of coffee shops, gyms, coworking spaces and restaurants.
The island’s lifestyle and ex-pat community is truly thriving and shows no signs of slowing. Wherever you walk, streets are littered with wealthy Russians, Australians, Americans and Europeans.
The robust, consistent and increasing tourism numbers (particularly of long-term stays) are a fantastic indicator that long-term rental properties and Bali real estate investments will continue to thrive and yield impressive profits.
6. Sustainable and Eco-Friendly Construction Trends
Bali is famous for its lush green landscapes and serene natural beauty. To maintain the qualities that make this location so appealing, Bali is embracing sustainable and eco-friendly construction practices as part of its efforts towards environmental conservation.
The usage of natural or recycled materials such as bamboo is on the rise and the implementation of eco-friendly features such as rainwater collection systems and solar panels is also becoming increasingly more popular in the construction space.
This trend not only aligns with global sustainability goals but is also attractive to environmentally conscious investors and consumers. With the growing demand for eco-friendly accommodation in Bali, along with the inevitable collective greener future the world is shooting for, properties and investors in Bali that position themselves to capitalize on this trend look set to be rewarded with long-term value appreciation.
Invest in Bali: Embracing the Island’s Real Estate Market for Lucrative Returns
Bali investments in the real estate sector are a surefire way to not only guarantee bountiful returns on investments but also create inspiring, eco-friendly spaces that benefit the local communities and tourism sector.
Bali’s unique position as a digital nomad hotspot in a developing location provides the perfect scenario for low-cost, high-yielding investments. With an evergrowing tourism sector in addition to the presence of many up-and-coming locations, opportunities for real estate investors in Bali are still as plentiful as ever.
Beyond the numbers though, Bali’s charm and uplifting aura make it a wonderful place to visit, invest in and integrate yourself into as an investor. There are fabulous networking opportunities here and the professional, entrepreneurial and creative connections you can make here are often priceless.
Are you ready to begin your real estate investment journey with the best real estate developer in Bali?
Contact us now with any inquiries about beginning your real estate development journey in Bali via email or mobile.
Alternatively, you can schedule a FREE consultation call to discuss your first steps.
