Bali remains one of the most lucrative real estate markets for international investors

Bali remains one of the most lucrative real estate markets for international investors

Bali  has long remained one of the most desirable holiday and living destinations in the world, with an average of about 500,000 tourists visiting the island each month. The bulk of visitors are from China, India, Japan, the UK, and Australia. This also makes the island one of the most lucrative real estate markets for international investors. Bali is also favoured by the fact that foreigners do not need to have citizenship, or even a resident visa, to be able to invest in the local economy and withdraw profits.

Indonesia’s economy has already reached seventh place in the world, and by 2030, it may grow to fourth place. Steady growth is maintained at 5% of GDP in annualised terms. For example, in Q1 2023, growth amounted to 5.03%, while a year earlier, a growth of 5.01% was recorded. The national currency has also remained stable despite all the global turmoil. Since 2016, the largest fluctuation in the exchange rate has been 13%. Inflation is in the range of 3–5.5%.

Indonesia is currently ranked fourth in the global ranking of investor attractiveness. A fresh market analysis shows good prospects for profiting from property investments on the island in the next few years. Experts indicate that the net profit from the purchase of an apartment under construction in the next three years will be 44%. If you subsequently rent out the property, the investment will return within five to six years. The demand for rental accommodation in Bali is high, and it is quite easy for landlords to find tenants.

Looking back at some of the bigger construction projects, the completion of the harbour redevelopment in the Sanur area in 2022 can be remembered. The Bali International Hospital will be opened by the end of 2023. A major Gilimanuk-Mengwi toll motorway connecting the entire south-west of the island could be completed in 2024. In 2025, “Paramount Park,” a Paramount brand theme park, will be opened in Bali.

Overall, Indonesia’s property market is expected to grow by $20.02 billion by 2028, reaching a value of $81.24 billion. The market’s CAGR is projected to be around 5.82%. The average return on investment in Bali is 15% per annum, excluding rising housing costs. Rental values on the island are increasing by 15–20% annually, with occupancy rates at 65–80%.

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