Sinergi Group

Key Reasons to Invest in Real Estate in Bali

invest real estate in bali

Invest real estate in Bali has seen a dramatic rise.

Investors are competing to reap the rewards of coming to Bali, even outpacing countries like Thailand, where interest has surged, and Dubai in the UAE.

So, what’s behind this? Why is Bali so highly considered?

Let’s explore the top reasons.
Sinergi Group – Bali Investment & Development

5 Top Reasons to Invest in Bali

1. Tourist Visits

Since COVID-19, Bali has experienced significant growth, consistently showing a positive trend in tourist visits over the past three years.

In just the first half of 2024 (January-June), Bali recorded 2,910,679 international tourists, an increase of 23.59% compared to the same period in 2023.

According to data from the Bali Hotel Association, Australian nationals comprised the most significant portion of tourists (24.11%) as of June 2024, followed by China, India, Russia, Singapore, and Vietnam.

Why does tourist volume play a key role in real estate investment decisions? Here’s why:

  • The higher the tourist influx, the greater the potential for rental demand.
  • Increased tourist visits contribute to higher property values and profit potential.
  • With such a positive trend, investors gain more confidence and see a stable and lucrative market in the long term.

This factor also influences the next key point.

2. Attraction of the Destination

While Bali may attract fewer tourists than Thailand (17.5 million visitors), it is still considered a high-quality destination.

Even though the cost of living might be higher, visitors continue to choose Bali for various reasons:

  • The unique cultural identity, as Bali maintains its distinct Hindu traditions and practices despite being part of a predominantly Muslim country.
  • Stunning natural landscapes, each region offering something different, from Uluwatu to Canggu, Ubud, Amed, and Seminyak.
  • Bali is ideal for finding peace, with activities like yoga and meditation or simply exploring serene village landscapes.
  • Bali offers diverse ecosystems, giving tourists unforgettable eco-tourism experiences.
  • The island is known for its rich and spicy cuisine, making it hard to find a comparable food experience elsewhere.

Invest Real Estate in Bali can offer excellent portfolio diversification with minimal risk and high customer satisfaction potential.

3. Infrastructure Projects

With rising tourist numbers, the government has paid increasing attention to Bali.

Ongoing infrastructure developments and completed projects aim to improve facilities.

One major project in progress is the Bali Urban Rail, a long-term solution to the traffic congestion in areas like Canggu.

Notably, the government ensures these developments harmonize with Bali’s cultural and traditional heritage.  

These infrastructure improvements will likely boost real estate investment returns by making the area more accessible and comfortable for tourists.

4. Occupancy Rate

Bali boasts one of the most stable and profitable occupancy rates in the long term.

According to Kevin Bo, founder of Bali Invest, who shared his experience of investing in Bali on YouTube, during high season, Bali’s occupancy rate can exceed 90%, and it averages around 60% during low season.

These figures are difficult to find elsewhere, so Kevin recommends Bali over Thailand if you’re focusing on financial benefits.

Even Sinergi Group’s analysis estimates an average Return on Investment (ROI) of around 20% annually, potentially reaching a Break-Even Point (BEP) by the fifth year.

5. Supportive Legal Framework

Indonesia still offers relatively lenient property ownership regulations, especially with the introduction of the golden visa (KITAS), making it easier for foreign investors to participate in Bali’s real estate market.

However, it’s advisable to stay updated on potential legal changes that could be introduced to align with the demands of the local population.  

There are still plenty of opportunities, especially given the sustained interest in tourism and Bali’s welcoming community.

However, avoiding high-risk projects is essential, especially those that may harm Bali’s natural beauty.

Damaging the environment could decrease property values in the future.

So, Is Invest Real Estate in Bali Worth It?

The answer is YES. It’s rare to find a destination that ticks all five boxes.

Bali presents an excellent prospect for short-term and long-term investment with minimal risk.

What’s more, tourist numbers are expected to rise in the coming years, which will positively impact all four of the other factors.

This makes Bali an even more attractive option for investors. Are you one of them?

Consult with Sinergi Group for Real Estate Investment

To gain insights and learn about even more lucrative real estate investment opportunities in Bali, consult us at Sinergi Group: Bali Property Development.

Our professional and experienced team, with over seven years in the industry, will help you design, analyze, and plan comprehensive strategies for your investment success.

Click this link “sinergi-group.com/contact-us” , and we’ll get back to you shortly.

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