Bali has been a favorite holiday destination for decades and will likely stay that way for a very long time to come. Investing in Bali real estate is a long-standing topic among foreigners, which is not surprising given that the island’s tourism continues to grow larger and the vacation rental market thrives because of it. The property market has performed very well in recent years and investors are confident that it will be even better than before.
Therefore, there are some important questions you should ask before putting your hard-earned savings into an investment, and this article will give you brief answers to each of them.
Also read: Can Foreigners Buy Property in Indonesia?
1. Is it worth buying property in Bali?
Bali is an amazing place to buy property whether for a second home or investment, as this island is not only full of charm but also untapped potential. Bali has been named the world’s best destination several times by TripAdvisor, and Forbes even named Canggu the 4th best place to live and invest in the world in 2019. One of the advantages of investing in Bali aside from the potential for large returns and high vacation rental demands is that foreigners can invest without holding Indonesian citizenship. It is much simpler than it seems.
2. Where should I buy property in Bali?
First, you must identify your goal. If you plan to stay, consider buying the villas for sale in Umalas or Canggu. They are very popular among expatriates thanks to the readily available international schools, banks, gyms, health centers and supermarkets. Villas in Ubud or Sanur are great choices for retirement as these areas offer a more mature atmosphere and similar accessibility. For truly stunning views like nowhere else, buy a property in the Uluwatu area, where you can enjoy sea views from the top of the hill.
If you are only focused on investing for quick returns then you can’t go wrong buying a property in Seminyak, Canggu or Pererenan where villa rentals are highly profitable. For a balanced combination of living and investment, Berawa offers the best of both worlds as it is the most desirable neighborhood in Bali and the villa rental market is growing. Villas for sale in Berawa are sought after due to their proximity to the beach, beach clubs, restaurants and many other attractions, which in return allows them to command higher rents than the surrounding area.
3. What type of property should I buy?
You can buy different types of villas, such as beachfront villas or peaceful villas in quiet areas. Villas are one of the most popular types of accommodation for tourists in Bali. Buying a villa as your property in Bali, can be a great way as you can use it for personal use or rent it out to tourists.
The second type of property that you can buy in Bali is a boarding house. A boarding house is a great option if you think a villa could be too expensive to afford. Buying a boarding house as your property in Bali means you need to buy or build a house, then rent out each room to tourists. This type of accommodation can be applied for both short term and long term rentals.
Apart from buying a building that can be used as accommodation in Bali, another option for buying Bali property is land. Investing in land property is a lucrative business because of the high long-term returns. By buying land, you can also build your own accommodation from scratch and make it according to your taste.
4. How much does it cost to buy a property in Bali?
Property prices in Bali have changed to a large extent due to several reasons. Based on the research we collected, Bali property and real estate prices also differ by property type.
For example, the cost of a building property is usually an estimate depending on building standards and the size of the property. Starting from 4.5 million Rupiah per square meter for basic building standards. The highest standard of building is probably around 12 to 14 million Rupiah per square meter, at this price you would expect the highest quality materials.
The increase in Bali property prices is largely due to people’s willingness to pay, the situation of people selling property to boost prices and the situation of dealing with people from abroad who do not understand the real estate market in Bali.
As for land, the price also increases rapidly, sometimes due to the will of the people. Another aspect that affects the price of land is the location of the land. For example, in several remote villages, land is sold for around IDR 100 million for 100 square meters. Sanur is around 600 million rupiah, and Canggu is around 600 to 800 million rupiah.
That’s all you need to know about Bali property and real estate. You can make these points your consideration before buying a property in Bali.