The Truth About Property Investment in Bali: What to Expect in 2024

If you’re looking to grow your wealth and are interested in real estate investment, considering Bali in 2024 could be your key to success.

Why invest in Bali? There are several compelling reasons.

The most straightforward reason to invest in property in Bali is the growing interest in the area, both from tourists and investors. 

While famous spots like Canggu and Seminyak remain popular, new areas are emerging, attracting attention thanks to their beautiful scenery and improved accessibility. This expansion means more opportunities for investors like you.

But there’s more to it than just financial gain. Investing in Bali allows you to tap into a growing market where demand often exceeds supply, giving you leverage in rental and resale markets.

Whether new to overseas property investment or looking to expand your portfolio, Bali offers unique opportunities in 2024.

How can you make the most of this opportunity? By understanding the critical truths about Bali’s property market this year.

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Truth #1: The Shifting Landscape of Bali’s Tourism Destinations

Bali, a beautiful island in Indonesia, has long been a popular tourist destination. 

For years, Kuta, Nusa Dua, and Seminyak were the most famous tourist areas. However, things are starting to change.

Nowadays, tourists are drawn to new areas in Bali that were once less well-known. These emerging destinations include Seseh, Kedungu, Cemagi, and Tabanan. 

What’s causing this shift?

The government of Bali has been working tirelessly to develop the island’s infrastructure, including roads, utilities, and public facilities, and introduce new tourist attractions.

This comprehensive development plan has made it easier and more exciting for people to visit these lesser-known areas. The government’s policies and planning have helped make these places more appealing to tourists.

This shift in tourism trends presents some exciting opportunities for investors looking to get into the Bali property market.

By focusing on these emerging destinations, investors may be able to find properties that are not as expensive as the more famous areas yet still have the potential to attract a lot of visitors and generate substantial returns on investment.

Truth #2: Affordability and Profitability of Bali’s Property Market

Bali is known for its stunning beaches, but did you know it’s also one of the world’s most affordable and profitable places to invest in property?

According to a study by Realiste, a global real estate research company, Bali is one of the top locations for investors looking to get the most bang for their buck. 

The average price of an apartment in Bali is just $283,381, which is incredibly low compared to other popular investment destinations worldwide.

For example, the average apartment price in Monaco, one of the world’s most expensive real estate markets, is a staggering $6.5 million! That’s over 20 times more expensive than Bali.

So, what makes Bali such an attractive investment location? 

Well, it’s a combination of factors. Bali has a thriving tourism industry, with people from around the globe flocking to the island to experience its natural beauty and unique culture. 

This means there’s a constant demand for high-quality rental properties, which can provide investors with a steady stream of rental income.

At the same time, Bali offers a tranquil and luxurious lifestyle that many investors are looking for. 

You can find beautiful villas and apartments with stunning views in other popular vacation destinations at a fraction of the price.

This makes Bali a dream destination for budget-conscious investors seeking luxury in a tranquil setting.

Truth #3 Market Resilience and Long-Term Prospects

Property investment can be tricky, especially when the global economy is going through uncertain times. 

However, the outlook for the real estate market in Indonesia is surprisingly strong, particularly in the popular destinations of Bali.

Despite the economic ups and downs, the Indonesian real estate market has shown remarkable resilience. 

Even though housing prices have remained relatively flat, the long-term prospects for the market are quite promising.

One key reason for this resilience is Indonesia’s robust economic fundamentals. 

According to forecasts from organizations like the International Monetary Fund (IMF) and the World Bank, the country’s economy is expected to grow by around 5% each year over the next few years.

This steady economic growth means that the demand for housing in places like Bali will likely remain high. Even when you factor in things like inflation and fluctuations in the local currency, the Indonesian real estate market has still managed to see modest price increases over the past decade—around 16% in total.

Truth #4 The Cost of Real Estate in Bali

Bali is a beautiful island that attracts visitors from all over the world. It’s no surprise that the cost of real estate in this tropical paradise can be pretty high. But just how much does it cost to buy a property in Bali?

Let’s take a closer look at the different types of properties and their average prices:

Small Villas:

If you’re looking for a smaller villa in Bali, you can expect to pay around 2 billion Indonesian Rupiah (IDR), about USD 140,000.

Larger Villas:

The average price for a bigger, more luxurious villa is around IDR 10 billion or USD 700,000.

Beachfront Villas:

If you want to live on the beach, the prices can increase. Beachfront villas in Bali can cost anywhere from 10 billion IDR (USD 700,000) up to 25 billion IDR (USD 1.75 million).

What’s driving these high prices? It’s all about supply and demand. 

Bali is an incredibly popular destination for local Indonesian buyers and foreign investors. 

Bali’s beautiful beaches, rich culture, and tropical climate make it a dream location for many people. With so much interest in its real estate, prices have risen steadily.

So, if you dream of owning a piece of paradise in Bali, be prepared to spend significant money. But for many, the chance to live in such a gorgeous and vibrant place is well worth the investment.

Truth #5 ​​Projected Home Price Increases in 2024

If you’re considering investing in real estate in Bali, you might wonder what the future holds for home prices.

Well, the good news is that experts predict home prices will continue to rise in 2024, although at a slower pace than during the COVID-19 pandemic.

During the pandemic, home prices skyrocketed as people sought to buy more space and move to new locations. But even though the market has cooled off a bit, the demand for homes in Bali is still strong.

So, what’s causing this steady increase in home prices? There are a few key factors:

High Mortgage Rates: Mortgage rates have been rising, which makes it more expensive for people to buy homes. This can slow the pace of price growth, but it hasn’t stopped the demand completely.

Low Home Supply: There just aren’t enough homes being built to keep up with the number of people who want to buy. This shortage of homes means that prices can continue to go up, even if the pace is slower.

Despite these challenges, the overall demand for homes in Bali remains high. People are still eager to invest in this beautiful island and willing to pay a premium.

According to a real estate investment company, home prices in Bali are expected to increase from below 1% to as much as 3-4% in 2024. 

So, if you’re looking to invest in Bali’s real estate market, you can expect prices to keep going up, even if the pace is slower than during the pandemic. It’s a great time to get in on the action and secure your piece of this tropical paradise.

Truth #6 Rising Demand and Undersupply in the Market

If you’re considering investing in real estate in Bali, consider this: the demand for homes is expected to be much higher than the available supply in the coming years.

Experts have forecasted a steady increase in the housing undersupply in Bali and the rest of Indonesia. They predict a cumulative shortfall of 720,000 homes between 2023 and 2028.

What does this mean for you as an investor? Well, it means there are likely to be more people looking to buy homes than homes available. This creates a situation where the demand is higher than the supply.

With high demand and low supply, homes are often more expensive. Investors can take advantage of this by buying properties in Bali before prices increase.

So, if you’re considering investing in Bali’s real estate, keep an eye on this supply-and-demand imbalance. It could create great opportunities for savvy investors who get in before the market heats up even more.

Conclusion 

Investing in property in Bali can significantly increase your wealth, bring new opportunities, and offer a paradise where demand often exceeds supply.

At first, it might seem complicated, with so many things to consider.

However, focusing on the key facts about Bali’s real estate market and looking for the best new investment opportunities can be easier than you might think.

The most important thing to remember is that investing in Bali’s property market is long-term. You won’t get rich overnight. Making the biggest gains requires ongoing effort and the ability to adapt as the market changes.

With the right knowledge and approach, buying property on this beautiful island could be a fantastic investment for your future.

Which part of Bali’s real estate market will you explore first?

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