Bali is the tourism gem of Indonesia and real estate on the island is one of the most lucrative sectors for investors. Find out in this article what type of property is best to buy in Bali and in which areas to find a profitable deal and how much it might cost.
Bali is the most desired place in the world according to Booking, the best tourist destination according to TripAdvisor and one of the most attractive regions for investment according to Forbes. Foreigners can invest in Bali's economy, even without mandatory residency requirements and without Indonesian citizenship.
Considering starting a life on this paradise island? We are ready to tell you everything about investing in the most profitable region.
Buying property in Bali: Is it necessary?
Bali is a wonderful place to buy another home or investment property. This island has high potential and is a very attractive place for recreation and living. According to experts' estimates, the net profit of a house purchased during the construction phase will be 44% in three years.
One of the other advantages of investing is the high demand and great potential for renting out property during vacations. It's much simpler than you think.
Why choose Bali island?
According to the Statistical Office of Indonesia (BPS) the GDP growth in the first quarter of 2023 was 5.03%, slightly higher than the 5.01% in the previous quarter. The local currency the rupiah experienced the most significant fluctuation against the dollar since 2016 at 13%. Domestic inflation fluctuates within the range of 3-5.5%. The political situation in Indonesia remains stable, maintaining neutrality in global political affairs. Indonesia ranks 10th globally in the "Investor Protection" category.
In 2023, Bali was recognized as the second most popular tourist destination globally and acknowledged as one of the most Instagrammable places in the world. The island attracts an average of 500,000 tourists every month.
One of the significant advantages is the continuous development of the island. In 2022, the reconstruction of the Sanur port was completed. Plans include the opening of Bali International Hospital by the end of 2023, built in partnership with Mayo Clinic USA
In 2024 a highway Gilimanuk-Mengwi connecting Bali and Jakarta will be constructed throughout the island as part of the comprehensive renovation of the island's transportation system. Additionally, the reconstruction of the Gilimanuk port (a key passenger and cargo hub) is expected to increase the annual passenger traffic to 14 million.
What type of real estate is preferable to buy in Bali?
Foreigners residing on the island have the option to purchase land, apartments, and villas. The choice of real estate type largely depends on the investor's goals.
However, apartments can be an ideal choice as they offer a relatively low level of investment compared to buying a villa and provide various features:
- Great residential property options
- Leasing through a management company, which serves as an excellent tool for passive income. The management company handles client acquisition, services, and resolves all organizational issues
- There is a lucrative resale option – you can acquire apartments during the construction phase and sell the property immediately upon completion (or even during construction), obtaining nearly 50% profit from the sale
How to find apartments suitable for investment in Bali?
When buying an apartment during the construction phase, it is crucial to choose a reliable developer:
- First, check all documents including land ownership rights, construction permits and tax documents. Consulting with a qualified lawyer will help you navigate the intricacies of Indonesian legislation
- Then, review the developer's task list. It's preferable if the company has already completed a project
- Study the real estate market in Bali paying attention to different areas and types of properties. Understand changes in property values and demand in different locations
- Determine your budget for investing in apartments. It's essential to consider not only the purchase cost but also potential expenses for maintenance, taxes, and other costs
- Explore the possibility of collaborating with local real estate agents who know the market and can help find profitable deals
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ISIA is your guide in the world of real estate and investments. Our expert team offers a full range of services, including market analysis and finding favorable conditions for successful investments. We provide legal support and documentation, ensuring legal protection for your investments. With ISIA, you get not only access to exclusive offers and property management but also the opportunity to minimize risks and optimize tax obligations. With us, you'll create a diversified portfolio of investments for stability and profitability. ISIA is your partner in achieving financial success through real estate investments.
