Location, location, location!
You’ll find that advice in just about every property book you read.
However, it’s much easier said than done. Like Robert Kiyosaki said,
“The problem with real estate is that it’s local. You have to understand the local market.”
If you want to invest in property in Bali, it’s impossible to take location out of it.
A property in a great location determines whether your investment yields high returns.
So, how can you find a profitable location that shows rapid growth in the future?
All that boils down to how you approach your research in the first place…
Find the growth areas in Bali.
If you’ve been thinking of investing in Bali, you might have found some locations that promise a high return…
But it might be more expensive.
In a moment, I will tell you which locations have the potential for future growth and are still affordable…
But before that, you must understand what criteria to look at:
1. Capital growth rates
Capital growth rates in Bali have shown resilience and promise, particularly in areas where expats love to live.
For example, reports say that property values in places like Seminyak and Canggu have increased by more than 10% each year for the last five years.
This shows that investing here could give you good returns over time.
2. Infrastructure development project
The Balinese government’s commitment to enhancing infrastructure — from roads to airports — is a crucial driver of property value.
This makes areas around these projects more desirable and valuable.
These developments create convenient and attractive locations for future buyers.
3. Local employment
A healthy local job market means a steady flow of residents who need housing.
Ubud’s growing digital nomad scene and robust tourism industry make it a hot spot for property investment.
A strong local economy means both buying and renting properties can be profitable.
4. Supply and demand
Bali’s beauty is matched by its limited land, which restricts the number of properties available.
In contrast, demand keeps rising due to international interest and Indonesia’s growing wealth.
This imbalance is critical to finding good investment areas. Places with limited new development but high interest are ideal for investors seeking capital appreciation.
5. Occupancy rates data
High occupancy rates, especially in vacation rentals, show a location’s popularity.
Hotel Booking Trends’ Data from the most extensive and detailed global dataset on hotel reservations shows a 55 percent increase in the length of time bookings are made in advance in Indonesia, especially in Bali.
This surge is attributed to increased international reservations and eager travel planning by tourists from Australia, England, the United States, and more.
What’s more, the price of renting a place in Bali is expected to increase by 15-20% every year.
The average occupancy rate throughout the year is predicted to be between 65-80%.
If you buy property there, you can earn back your money in 5-6 years.
Those are five criteria of a location showing healthy growth.
Now you have armed yourself with the information on identifying a great location…
It’s time to show which locations offer one or more of the aspects above.
Best locations in Bali for Investment
These locations mentioned below have a proven track record of handing property investors high returns in Bali…
And you might want to be the next.
Let’s dive in!
1. Uluwatu – luxurious living and surfers paradise
Uluwatu is now experiencing a surge in property development ranging from its luxurious resorts and upcoming developments…
Which shows promising signs of property value appreciation.
Uluwatu attracts a different range of visitors but is mostly popular among surfers.
With its stunning white sand beach, Uluwatu is the perfect spot to catch a good wave in the ocean or just relax and enjoy the sunset.
This popularity makes Uluwatu attractive to investors who want to own luxurious villas or start a business like restaurants or shops.
Because of the limited supply but increased demand for luxurious villas, the occupancy rate in Uluwatu can achieve 74%-85% occupancy rates with more than 19% ROI.
2. Canggu – digital nomads
Canggu is a cool and trendy spot in Bali known for its laid-back vibe, beautiful beaches, and great surf spots.
It’s become a favorite place for many who want to invest or live there.
However, Canggu is super popular with young businesspeople and people who work online. They love its coworking spaces, cafes, and fast internet.
This is where you can have your dream work-from-home situation, work whenever you want, and have close access to beaches.
With the popularity of Canggu, properties in Canggu have a 91% average occupancy rate.
Source: Canggu shows 91.6% average occupancy rates
3. Ubud – A peaceful retreat
Though Ubud is far from beaches, it attracts different types of visitors.
Ubud is famous because of its calm and natural setting, which attracts people who want to enjoy a quieter life.
Ubud is famous for its traditional dances, crafts, and art galleries.
People interested in Bali’s rich culture and arts scene find Ubud the perfect place to immerse themselves.
Not only that, with its numerous yoga studios, holistic healing centers, and organic eateries, Ubud attracts those looking to focus on their health, wellness, and spiritual growth.
So, if you’re targeting these types of people and enjoy a steady and regular rental income, then Ubud is the right choice.
4. Pererenan
For those looking for a calm place away from busy tourist areas, Pererenan is ideal.
Though it’s still a developing area, Pererenan is located next to Canggu and close to beaches, which is so convenient if you want a change of scenery once in a while.
Pererenan is not just about the beach.
It’s also great for walking, biking, and exploring the beautiful rice fields. It’s a fun place for anyone who likes to be outside and active.
As more people learn about Pererenan, it’s becoming a smart choice for investors…
Buying property here is a good idea because the prices are still reasonable but might increase as the area becomes more popular.
Best location in Bali for families
If you’re looking for a lucrative location for investment but also family-friendly…
Then Sanur is your option.
It is popular with its white sand beach and has a calm wave perfect for your kids to play around.
The emergence of new infrastructures, like a new ICON Bali Mall Grand, signals future growth, which means increased occupancy rates for your property in Sanur.
Sanur also has better road access and international hospitals, which are vital for visitors.
Market experts think more people will want to buy homes and places for businesses in Sanur.
It’s getting better international infrastructure, and there isn’t much land left. They believe this will raise property prices significantly in the next few years.
Conclusion
Picking the right place is super important.
Each location has the characteristics that make it lucrative.
Choosing where to buy is about looking at what’s happening in the area, like new projects, job opportunities, and how many people want to live there versus the number of houses available.
With this info, you’re already on your way to making a smart investment in Bali.
If you want to find the right investment property in Bali, contact our real estate experts at [email protected] or schedule a free consultation here.
Are you ready to find your ideal spot in Bali for property investment?
