Real estate investments in Bali always starts with a dream. The dream comes in many different ways and different values. I remember back about 20 years ago the dream was to just be and have a part of paradise.
It was a place to detach from hectic life back home, and at the same time attach to something different and something strong, the Balinese people and their culture. The Island of the Gods.
Today that dream still remains but is also mixed with other dreams such as lifestyle, fun, beaches and making money in the Bali real estate market.
It attracts investors of all kind, the one Bali villa/unit investor, the seasoned developer, institutional investments, even pension funds and lately new bees wanting to take advantage of the real estate uplift likely to continue for many years yet as the market is still undervalued, offer great value for money and an ever growing tourism as well as what i call residential tourism.
Culture and Nature
Bali has breathtaking beautiful nature, from beaches to mountain tops and Bali’s famous rice fields and Subak systems. The diversity of one part to the other with in relatively short distance is in many ways one of Bali’s attractions. From a real estate perspective this does open up also for many different type of investors. From the one that want to surf mixed with some fun and hang out around Canggu or Uluwatu to the various retreats in Ubud, or perhaps an eco/mountain/wellness resort in Batu Karu or one of Bali’s other mountain.
But the number one attraction for Bali is its rich culture and somewhat unique culture. It’s into everything and every part of peoples life, spirituality, nature, architecture, customs and much more. People often come alive in Bali, burning with a brighter flame than ever before.
Investment opportunities
The current real estate market keep increasing in size and overall price. Just over the last year thousands of villas has popped up in Ulu Watu, Canggu, Ubud and other areas. The demand probably had an un-natural uplift with Bali coming out of covid as well as some geo political aspects with a few nationalities looking for safe havens.
This now seem to have normalized but there is no doubt the tourism will continue to grow and the residential market will continue to grow. While in the past people bought into more typical villas with pool and gardens today we see interest ranging from town houses and one bed room units to eco resorts in remote areas. All of them performing well in its own way and its own market.
Legal Landscape
Bali operates with several ownership options, and we will go into details around them all in a later part of the dream. But they range from freehold, to HGB (commercial title) to a simple lease. And ownership will depend on purpose of investment whether it’s for an ROI, or retirement or a combination. Is it one villa? Or is it a portfolio? There are also various aspects to look into such as proper zoning, build and operational permits as well as various taxes to pay.
Balinese Architecture and Design
Believe it or not, regulations do actually enforce a Balinese touch to all building permits. It may not look like it when one look at what is build but it’s a clear requirement. Currently there is an ongoing dialog if this should be retained or not and most believe it should to keep this as part of Bali’s cultural heritage and attraction.
Even down to how a village area is developed in terms of flow and settings although right now this is not the case. When you do your drawings from an exterior look this is important to be aware of to prevent to many revisions from the application system for PBG (build permit) and eventual SLF (permit to use).
Lifestyle and Amenities
Bali has an unrivaled lifestyle opportunity and is constantly elected top best islands in the world year after year. Everything from exotic restaurants, spa’s, wellness, with some of the worlds best beach clubs, and more For the more cultural and eco approach there is now also plenty of options and more coming. Even for families and people operating business in the area or being remote workers there is today plenty of great international schools and easy to travel around the region.
Challenges and Considerations
Today the main challenges for Bali is with in infrastructure, traffic, waste management and water. But there are good actions from the central government to overcome this. On infrastructure several projects are set to take of this year. Toll road from Gillimanuk to Mengwi, ring road Ulu watu, underground train from airport to Central Parking, and eventually further developments with other tracks.
Waste management regulations are being worked on from central government so that scalable solutions can come in. And last water where the central government now controls the well permit process making it illegal to do with out proper permits which is hard to get, as well as 5 large reservoirs being build and completed very soon.
Success Stories
Bali has a lot of successful stories from developers starting with very little and today being massive companies building hundreds of units. Hundreds of smaller developers and thousands of successful investors. Unfortunately some bad stories happens as well but overall with a good solid structure real estate investments in Bali is a very lucrative business.
Are you ready to explore your dream? Let us know what it is and how we may be able to help. Reach out today to Seven Stones Indonesia. Visit our office at Sunset Road, Seminyak or fill in our contact form below.