Real estate rentals in Bali: how to get a stable passive income
Table of contents
Bali is the most popular region for buying real estate among foreign investors. The island's tourism sector is constantly developing and the demand for real estate is growing every year. Most owners of apartments in Bali have earnings from rental properties. We tell you how to get a stable passive income from your own real estate in Bali in 2024
Stunning beaches, mountains and landscapes make Bali an ideal place not only for vacation, but also for real estate investment. Every year, more and more people dream of owning their own corner of this paradise island.
Along with the growing number of tourists coming to Bali in search of privacy and relaxation, the demand for apartment rentals is also increasing. This trend creates favorable conditions for property owners who want to earn a stable income from their real estate properties.
What opportunities for earning on their own real estate in Bali are available to international investors - find out further in the article.
Why is Bali so popular among investors?
Tourist Attractiveness
Bali attracts tourists from all corners of the world due to its variety of exotic flora, landscapes, as well as cozy bars and cafes with local flavor.
After a period of pandemic, the region has quickly regained activity, attracting a large number of visitors.
In 2023, 6.3 million people arrived on the island, reflecting a 127% increase in passenger traffic and a 103% increase in the number of flights.
The tourist season lasts all year round and half a million people visit the island every month. This gives a high occupancy rate of real estate, namely 70-80%.
Following the tourists, expats from various countries also come to Bali, which stimulates the growth of the rental real estate market.
Developed economy
Indonesia, one of the fastest growing economies, continues to show impressive economic growth rates.
With Gross Domestic Product growth of 5% annually, it deservedly ranks high in the global economy.
The country currently ranks 6th in terms of GDP in the global economy.
Complementing this with a favorable inflation rate kept at 3% annually, Indonesia's tourist resorts, particularly Bali, are increasingly attracting the attention of international investors.
Stable real estate market and high yields
Real estate in Bali is an attractive investment opportunity due to its stable market and high yields.
On average, every year the rental value of real estate on the island increases by 15-17%, and the increase in property values by 15-20%, providing investors with significant returns.
The average return on investment in real estate in Bali is from 12 to 20% per year, which is significantly higher than the average return in global practice (5%).
Favorable economic climate, as well as high demand for housing on the island, contribute to the stable growth of real estate value and provide an opportunity to recoup investment within 5-6 years.
The possibility of equity investment
Equity investment in real estate - one of the most profitable forms of investment, because it is available to a wider range of people.
International developer ANTA Group offers exclusive equity investment in premium apartments in Bali's most popular area - Changgu, in the complex ANTA Residence Canggu.
Investing in Bali real estate through equity investment is a significant advantage for investors:
- Affordability: Investing in a share allows you to invest less money, which is especially relevant for young investors.
- Portfolio diversification: The ability to buy shares in several properties allows you to reduce risk and ensure a stable income.
- Professional management: Cooperation with management companies facilitates the issues of renting, maintenance and management of real estate.
Real Estate Income in Bali
One way to generate income from real estate in Bali is through rental properties. Owners can rent out properties for both long and short term through popular platforms such as Booking.
Another way to earn money is to invest in unfinished projects. This can help earn more in the long run, especially if the complexes are in popular locations and have convenient infrastructure.
Long-term leasing
Long-term leasing involves renting out a property for a period of 6 months to a year or more, providing a stable and regular income.
The owner needs to sign a lease agreement, after which he receives monthly payments from the tenant.
Unlike short-term rentals where continuous recruitment of new guests is required, the owner is relieved of this concern.
Long-term leases also offer a number of other benefits. For example, not having to invest in marketing to attract new tenants saves time and resources.
In addition, tenants tend to take responsibility for minor repairs and maintenance of the property.
However, there are some disadvantages to long-term leases: the owner is limited in his or her ability to control the use of the property during the lease term, and cannot use it for personal needs.
Short-term rentals
Short-term rentals in Bali offer owners the opportunity to earn a steady income, thanks to the high demand for short-term accommodation in this popular tourist destination.
Renting out Bali properties for short-term rentals also has its advantages:
-High income potential: Bali attracts many tourists, which creates a high demand for short-term accommodation. This allows property owners to charge higher daily or weekly payments.
-Flexibility of use: Owners can rent out their property during periods when they are not living in it, allowing them to enjoy the resort for part of the year and generate rental income the rest of the time.
-Manageability: Short-term rentals give owners more control over their properties. They can choose when and who to rent to, as well as monitor maintenance and cleanliness.
Return on Investment
Buying a property in the early stages offers great prospects for significant returns, which can range from 30 to 60% and sometimes as much as 100%.
The average payback period for properties purchased at the construction stage is between 5-6 years, which is also one of the best in the world.
The net annual yield from long-term rentals is from 9%.
As for short-term rentals, yields of 15 to 20% per annum are quite realistic with the right choice of real estate.
Properties in developed locations with good infrastructure or concept hotels can quickly generate profits, usually paying off within 6─12 months.
Which property to choose for investment in Bali?
The most profitable option for investing in real estate in Bali is investing in apartments that are part of apart-hotels.
These are apartments or studios that provide an opportunity to live in your own apartment, while using the service of the hotel, as well as receive passive income from renting apartments if necessary.
A good investment option in Bali is the purchase of premium apartments ANTA Residence Canggu.
- 5* business class apartments with unique infrastructure
- on the main street of the most fashionable location of Bali, Changgu - Batu Bolong.
- 7 minutes from the Indian Ocean, beach and surfspot.
- 5 variants of apartments, from 40 m², from 139 000 $
The complex includes 113 apartments with modern renovation, furniture and appliances, as well as combines all possible services - Jungle roof-top (jungle park on the roof), tropical infinity pool overlooking the ocean, restaurant and cafe, underground parking with your own bike as a gift, co-working, personal transfer by golf cart, children's area with babysitter, surf school, beauty and SPA salon, smart gym and event hall on the roof.
Close to supermarkets, restaurants, bars, Premium sports club, schools and kindergartens, airport only 40 minutes away.
ANTA Residence Canggu has been developed by a reliable international developer AntaGroup, guaranteeing high quality construction.
More offers, current prices and competent advice from the developer AntaGroup at the link.
Daria Rogova, Head of Insurance at Visit World
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More articles on the topic:
Reasons for choosing global investment: the power of international investment.
Global Investment Opportunities: Where to Look for the Best Deals?
Investing abroad: how to invest in foreign markets.
Comparison of investment instruments: pros and cons of investing in real estate.
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