Real estate in Bali: the most profitable location in the world for investors

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Real estate in Bali: the most profitable location in the world for investors

Bali is a tourist pearl of Indonesia, and therefore real estate on the islands is one of the most profitable areas for investors. Find out what type of property and in which areas of Bali is best to buy, how to find the best deals, and how much you should expect to spend

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Bali is an island that is simultaneously recognized as the most desirable destination in the world according to Booking, the best tourist destination according to Tripadvisor and the top region for investment attractiveness according to Forbes.

Foreigners can invest in Bali's economy without having Indonesian citizenship, and there are no mandatory residence requirements.

How to settle on this paradise island? Everything you wanted to know about investing in the most profitable location in the world is told in this material.


Should you buy property in Bali?


Bali is a great place to buy property for both a second home and an investment, as the island is not only full of charm but also has untapped potential.

According to experts, the amount of net profit from the sale of apartments purchased at the construction stage will be 44% in three years. When renting real estate, you can return the investment in 5-6 years.

Another benefit of investing in Bali, aside from the high income potential and high demand for vacation rentals, is that foreigners can invest without having Indonesian citizenship—it's a lot easier than it seems.


Why Bali?


The economy of Indonesia is actively developing, now the country ranks 7th in the world, it is planned that by 2030 it will become the fourth. Economic growth in Indonesia remains stable. The latest data released by BPS-Statistics Indonesia shows GDP growth of 5.03% in the first quarter of 2023, up slightly from 5.01% in the previous period. The local currency, the rupee, is quite stable, the maximum fluctuation against the dollar since 2016 was 13%. The inflation rate in the country varies between 3-5.5%. Indonesia has a stable political situation. The state maintains neutrality in world political issues. Investing in Indonesia's economy is as safe as possible, because in the category "Investor Protection" Indonesia ranks 10th in the world.

In 2023, Bali took second place in the world among the most popular tourist destinations and was recognized as one of the most Instagrammed places in the world. On average, 500,000 tourists visit the island every month. Most travelers come from  China, India, Japan, Great Britain and Australia.

In terms of investment attractiveness, Bali ranks 4th in the world. A significant advantage is that the island is constantly developing. In 2022, the reconstruction of the port in Sanur was completed. At the end of 2023, they plan to open the international hospital Bali International Hospital, which is being built in cooperation with the Mayo Clinic USA.

2024 will be the year of reconstruction of the island's transport system: the Gilimanuk - Mengwi expressway will be built, which will pass through the entire island and connect Bali and Jakarta. Passenger traffic will also increase to 14 million per year due to the renovation of the Gilimanuk port, a key passenger and cargo hub between the islands of Java and Bali.

In 2025, Paramount park - the largest theme park from the world-famous Paramount brand - will open in Bali.

 

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Real estate market in Bali: forecasts and rating


In recent years, Bali has become a center for real estate investment. The market is expected to continue to grow in the coming years due to the growth of the economy, which is steadily developing, in part due to the booming tourism industry.

One of the key trends we can expect to see in the Bali real estate market is an increase in demand for luxury properties. Bali has always been known for its luxury resorts and villas, but in recent years there has been a sharp rise in demand for luxury residential properties. Investors are flocking to Bali to purchase luxury villas, beachfront properties and high-end townhouses.

The Indonesian real estate market is expected to grow from USD 61.22 billion in 2023 to USD 81.24 billion by 2028 at a CAGR of 5.82% during the forecast period.

Real estate in Bali has one of the highest yields in the world. On average, 15% per year, without taking into account the increase in the cost of housing. For comparison, the average real estate yield in the world is 5%.

The cost of rent on the island increases by 15-20% per year on average. Average real estate occupancy during the year is 65-80%. Therefore, the purchased real estate can be repaid in 5-6 years.


Why should you buy real estate in Bali?


Bali is a great place to buy property for both a second home and an investment, as the island is not only full of charm but also has untapped potential.

According to experts, the amount of net profit from the sale of apartments purchased at the construction stage will be 44% in three years. When renting real estate, you can return the investment in 5-6 years.

Another benefit of investing in Bali, aside from the high income potential and high demand for vacation rentals, is that foreigners can invest without having Indonesian citizenship—it's a lot easier than it seems.


Where to buy real estate in Bali?


One of the best places in Bali to invest in real estate is Canggu, a trendy and popular seaside area that is sometimes called 'kampung bule', which translates to 'foreigners' village'. The demand for apartments in Canggu is very high. Also, some areas of Canggu are still developing, this factor provides significant potential for novice investors.


What is the best type of property to buy in Bali?


Foreigners in Bali can buy land, apartments or villas. In general, the choice of the type of real estate depends on the investor's goal.

However, apartments can be an ideal option, thanks to the relatively low level of investments, compared, for example, to the purchase of a villa, as well as wide functionality:

● a great real estate option for living;

● a good tool for receiving passive income - renting with the support of a management company that undertakes the search for clients, service and solving all organizational issues;

● a profitable option for resale - you can buy apartments during the construction stage and sell the property immediately after its completion (or even in the process) and receive almost 50% of the income from the sale.


How to find apartments for investment in Bali?


When buying apartments at the construction stage, it is important to choose a reliable developer:

● first of all, check all documents: land rights, building rights, tax documents. The consultation of a highly qualified lawyer will help to understand all the intricacies of Indonesian legislation.

● then check the list of works of the developer - it is better if the company already has completed projects.


A profitable investment option in Bali is the purchase of premium apartments ANTA Residence Canggu from the reliable international developer ANTA Group, which has been operating in the real estate market for over 10 years. ANTA Group creates infrastructure around the world: in Ukraine, Turkey, Great Britain and Indonesia.

ANTA Residence Canggu is a complex of category 5* with a unique infrastructure, in the most fashionable location of Bali, on the main street of Canggu - Batu Bolong and 7 minutes from the Indian Ocean, the beach and the surf spot.

Nearby are supermarkets, restaurants, bars, Premium sports club, schools and kindergartens, the airport is only 40 minutes away.

The ANTA Residence Canggu construction project was launched in the 1st quarter of 2023 and is scheduled to be completed in the 2nd quarter of 2025.

The ANTA Residence Canggu complex will include 113 apartments with a total living area of 4,052 m². Infrastructure of the complex - Jungle roof-top (jungle park on the roof), tropical infinity pool with an ocean view, world-brand restaurant and cafe, underground car park with your own bike as a gift (choice of pcx or nmax), co-working area, personal transfer on a golf cart, a children's area with a babysitter, a surf school, a beauty and SPA salon, a smart GYM and an event hall on the roof.

There are 5 options of apartments starting at $135,000 and with an area of 38 m².

For your comfort, complex management of the apartments will be provided by the international hotel operator RIBAS HOTELS Group (more than 28 hotels under management).


How to buy apartments in ANTA Residence Canggu?


1. Sign the reservation contract.

2. Enter the booking amount - $1,000.

3. Sign the main investment agreement.

4. Make the first installment - 25%.

5. Agree to pay 75% of the cost in 0% installments.


Cost and additional costs


The price of apartments starts at $135,000. Taxes are included in the price of the unit. In addition, only 1% is paid for the notarization of the contract, and in case of resale, the owner pays a profit tax of 10%.


Buying real estate in Bali is a profitable investment that will definitely change your life. Do you have any questions? Look for answers at the link.




Products from Visit World for a comfortable trip:


Checklist for obtaining a visa and necessary documents in Indonesia;

Legal advice on businessmigrationtourism in Indonesia;

Travel and medical insurance for foreigners in Indonesia;

Insurance for foreign students in Indonesia.




More articles on the topic:


Gold Visa to Bali: a new program for investors.

The best countries for investment in 2023 - find here.

Investing in foreign real estate: everything you need to know.

Golden rules of investing: what to look for for successful investments.

Find here the key factors of investment attractiveness of a real estate object.

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