Bali, an island of exoticism and luxury, attracts the attention of investors seeking to invest in real estate and increase their income. Indonesia is becoming one of the most promising destinations for investment and boasts the largest economy. Let's take a closer look at what makes Bali such a successful place to invest in real estate.
Economic growth and tourism
Indonesia is a country experiencing active economic growth, with Bali emerging as the epicenter of this success. A stable GDP growth exceeding 5% creates favorable conditions for investors. In 2022, tourism contributed over 20% to the country's economic development, making Bali one of the leading destinations in terms of investment opportunities.
Opportunities are expanding, especially in the real estate sector, thanks to the sustained interest from tourists. However, despite all the advantages, it is necessary to carefully analyze the market and select projects considering their prospective growth.
Administration investments in infrastructure
Administration investments in infrastructure serve as a significant stimulus for real estate development in Bali. Developing areas become more accessible and attractive to potential buyers and investors.
These investments, besides improving infrastructure, also contribute to the increase in property values in areas made easily accessible by new transportation routes. Therefore, investors can expect property prices to rise in these areas in the medium to long term.
Recovery after the COVID-19 pandemic
Bali is successfully adapting to the new realities post-pandemic, creating additional opportunities for investors. With active recovery in the tourism sector, interest in real estate is growing. This underscores the prospects for those seeking not only stable income but also capital growth.
Recovery trends post-pandemic also open up new horizons for investors in tourism-related industries, such as the rental housing sector and the hotel business. Balancing investment portfolios across various real estate segments ensures a stable income flow in a volatile market.
Average daily room rate (ADR) and demand
Hotel real estate in Bali continues to be in demand.
ADR (average daily room rate) is the average price per night for staying in a hotel, calculated as the total revenue from room sales divided by the number of occupied rooms for a certain period, usually one day. This indicator is used to assess the hotel's operational efficiency and financial success. The higher the ADR, the higher the average room price and, typically, the higher the hotel's profit.
The average ADR is at a level that ensures high income for investors. High ADR indicators and a stable influx of tourists ensure a steady demand for hotel real estate on the island.
The demand for real estate highlights market activity and the attractiveness of Bali for those seeking stable investments in the hotel business. Investors focused on earning stable rental income will find this region a promising place for investment.
Price trends
There is a stable upward trend in property prices in Bali. This is explained not only by high demand but also by limited supply in some market segments. Prices are expected to continue rising, especially in popular areas, making Bali a good place for investment.
Price growth trends underscore the prospects for capital development for investors. Regular market monitoring and adaptation of investment strategies will help maximize potential profits. Additionally, as construction is completed, prices for offered properties usually increase by 30-40%.
By purchasing real estate on the island of Bali, you not only ensure yourself high profits but also invest in a promising market that continues to demonstrate stable growth with each passing year.
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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.
