Bali has long been attracting investors from all over the world as one of most perspective real estate markets in South-East Asia. In this article we’ll be looking at the key advantages of investments into real estate on this tropical island.
The dynamics of real estate market growth
Stable price growth.
According to the data by real estate agencies, the average price of real estate in Bali has grown by 40-50% within 5 years. For instance:
- In popular districts of Seminyak and Canguu the annual price growth has comprised around 8-12%
- The average price for a villa has increased from $250,000 in 2019 to $350,000 in 2024
Advantages of investing
- High potential of rental income
- Average annual yield from short-term rentals makes up 6-10%
- Popularity of Bali as a tourist destination ensures constant demand
- Opportunity to rent out via Airbnb and local agencies
- Favorable tax
- Low taxes on real estate
- Easy registration and ownership procedures for foreigners
- Opportunity to obtain ownership via various legal schemes
- Growing flow of tourists
- More than 6,3 million foreign tourists visited Bali in 2024
- Tourist flow is forecast to grow up to 7-8 million by 2026
- Steady demand for short-term rentals and apartments
Investment strategies
Types of real estate with better yield
- Villas in Seminyak and Ubud
- Apartments in Canggu
Potential risks
- Seasonality of tourist flow
- Possible changes in the immigration law
- Ecological constraints on construction
Conclusion
Investing into real estate in Bali remains one of the most attractive destinations for long-term investments. Stable price growth, high investment potential and unique location make this island a perfect choice for investors.
