INVESTING IN BALI

Investing in real estate in Bali is a smart choice for those looking for long-term financial stability and growth. With its growing tourism industry, beautiful natural landscape, and government initiatives to attract foreign investment, Bali offers great potential for real estate investors.

The trend of buying property in Bali has shown exponential growth in return on investments and capital gains. Property prices keep rising by 20% and in some popular areas even reach 40% per anual as the highest increase rate in land prices in Indonesia.

The number of Bali’s domestic visitors has also grown over the past year and is expected to keep doing so in the next few years. In fact, domestic visitor arrivals are forecasted to reach 12.9 million by the year 2023. This is another indicator that there will be a sustained demand for accommodations in Bali so taking the opportunity to invest in a rental property on this island destination while the prices are still reasonable can be very fruitful.

Approximately 90% of foreign real estate investors in Bali opt for long-term rental investments, rather than purchasing properties outright. These long-term rental options usually include agreements of 25 or 30 years.
This trend can be attributed to the limited availability of real estate properties that can be purchased and owned by foreign investors in Bali, as well as the legal restrictions on foreign ownership of property on the island.
An alternative option for foreign investors looking to own property in Bali is through the establishment of an investment company (PT PMA), however, this requires not only a significant initial capital investment of around 800,000 US dollars but also to comply with all requirements of Indonesia's tax policy, including reporting the company's financial activities to the financial authorities on a monthly basis.

Making the option of renting a more feasible option for many foreign investors. From a financial perspective, opting for a long-term rental investment proves to be more cost-efficient when compared to purchasing properties through a PT PMA, as it not only requires lower initial capital investment but also generates a faster return on investment.

As the value of real estate in Bali continues to appreciate over time, the island presents a compelling investment opportunity for both business-minded individuals and holiday-seekers. Many investors in Bali's property market have reaped significant returns on their investments through rental income generated on a weekly, monthly, and yearly basis.

Bali offers a diverse range of investment opportunities that cater to different preferences and investment strategies. While popular tourist hotspots like Seminyak and Canggu have demonstrated high potential for short-term returns in the past decade, the Bukit peninsula, particularly the areas of Bingin and Uluwatu, are now the fastest-growing tourist areas of the island, showing particularly promising potential for real estate investments due to the overwhelming demand for modern accommodation compared to its current supply, and the limited amount of building plots.

For success in the Bali real estate market, it is crucial to choose the right location and partner. An investment in a tourist-popular area can yield returns within five years or even earlier. However, viable markets can also be found on the island for those seeking more residential areas. The value of land and properties on Bali is relatively affordable, providing higher returns on investment than other exotic destinations around the world. Furthermore, laws and regulations in Indonesia are generally more stable and favorable for business, making it easier for foreigners to invest in the country.

With our collaboration, you can be sure that your investment will be handled with the utmost professionalism, giving you peace of mind and ensuring that your investment will yield maximum returns in the long run.

Our team ensures that investing in Bali is a seamless and secure process from start to finish.
We create opportunities for property investment in areas where we have insider knowledge and expertise. We choose only the most promising locations for our projects and only work with reputable construction companies with a history of positive references. We are well-versed in all legal aspects of property transactions and eliminate any potential risks that may arise during the investment process.

We also invest our own capital in our projects, indicating our confidence in their success. By working with us, you can be certain that your experience investing in real estate on Bali will be positive.