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.
Future Forecasts
Experts predict the continued growth of Bali’s real estate market in 2025, driven by:
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
Booming tourism growth
Rental yields also exceed global benchmarks:
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
Exceptional Market Performance
Bali’s real estate market demonstrated impressive results in 2023 compared to 2022:
- Real estate transactions increased by 40%
- Property prices rose by 15%
- Rental occupancy rates grew by 50%
- Rental yields increased by 25%
- Property management revenues soared by 300%
Investment strategies
Types of real estate with better yield
- Villas in Seminyak and Ubud
- Apartments in Canggu
The Indonesian real estate market as a whole demonstrates stable growth:
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.
