The real estate market in Bali continues to attract the attention of both locals and investors from other countries. Housing trends in Bali suggest further development, supported by both internal demand factors and external changes in the investment climate.
Increasing supply
The niche of modern housing in the Bali market is in the early stages of development, opening up new perspectives for investors. However, there is already a noticeable increase in supply, indicating dynamic market growth. The supply volume is about 500,000 square meters, including 4,800 projects planned for delivery from 2023 to 2025. Approximately 31% of these projects entered the market in 2023. Despite the increasing supply, demand for quality housing in Bali remains high, making this market attractive to investors.
Elite housing and investor attraction
The growth of elite residential construction in Bali clearly indicates the attractiveness of this region to investors. High annual occupancy rates exceeding 70-75% indicate the potential for investment in this market segment. Elite housing in Bali offers a good opportunity for high profitability.
These figures shape the level of return on investment (ROI) that interests investors worldwide. ROI (Return On Investment) is a measure of investment efficiency that helps evaluate the profitability of a project. This coefficient allows determining how effectively funds are used and the overall investment efficiency.
Market offer analysis in Bali: segments and regions
The main segments of the housing market in Bali include apartments and villas. Apartments account for 34% of the total number of represented projects. The choice of region for investment is important. For example, the western coast of Bali (Seminyak, Canggu, Kuta) attracts over 48% of the total planned projects. This is explained by the unique atmosphere and a large number of diverse offers in this region. In Canggu, about 35% of the total number of new projects are planned.
Demand and demand stimulation
The overall demand for premium real estate in Bali remains high. The scarcity of land for development and restrictions on land ownership for foreigners contribute to market stability. The average number of units sold per month corresponds to approximately 2–3 villas and 3–5 apartments per project. This indicates a stable demand for real estate on the island. Developers are starting to implement their projects at early stages of development, attracting potential buyers' attention. On average, sales in the primary market account for 85% to 90% of the total sales volume, confirming high interest in new real estate projects.
Price growth
According to official statistical data published by the Central Bank of Indonesia (Property Price Index), the average annual increase in property value from 2018 to 2022 was 2.4%. This index provides generalized information on all regions and sectors of the real estate market in the country. Due to limited supply in the luxury housing segment, competing with premium-class hotels, prices in this category are rising faster than average market prices. During the construction phase, prices for such properties begin to rise even faster.
Projects located directly on the beaches typically sell for 40-50% more than similar quality properties at distances of 600 to 800 meters or more in the same region.
Development trends: Innovative Approaches
Recently, there has been a trend towards creating innovative projects that combine housing with various amenities and services. The "all-in-one" concept, which involves coworking spaces, cafes, pools, gyms, and SPA centers in the complex, is becoming increasingly popular among professional developers. These innovative approaches attract the attention of both locals and foreign investors, contributing to the diversity of offerings in the Bali real estate market.
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