The pandemic has had a significant impact on the island's real estate market, keeping sales to a minimum. During a volatile global situation, demand for housing has fallen, and those who wanted to get rid of property have sold it at prices well below pre-Covid-19 levels. A year later, the situation changed and the influx of foreigners to Bali contributed to a significant revival in the local real estate market.
Analysts expect that activity in this sector will be restored in the near future. Today, an increasing number of foreigners are interested in buying property in Indonesia and in Bali in particular. There are several reasons for this:
- a country with a developing economy, an attractive taxation system and a comfortable climate is a great relocation and tourist destination, which means that investing in local housing is profitable;
- the purchased property ensures investors a predictable rental yield, reaching up to 10% per year in some areas;
- rising house prices. Reselling a unit will provide significant profit, especially if you buy a unit in an off-plan residential project.
In the first half of 2023, the demand for housing in Bali among foreign property hunters almost doubled. The more active the tourist flow is, the higher the demand for local housing gets. Therefore, rent rates have increased significantly compared to the period before Covid-19 and so did the demand for housing among tourists and expats.
In addition, Bali is becoming a sought-after destination for long-term digital nomads. This allows you to receive a stable income without constantly looking for new tenants.
Thanks to tourists, expats and digital nomads, buying property in Indonesia remains a promising investment, especially when considering popular tourist destinations along the coast.