Buy foreign real estate for living and investment

The attractiveness of investment in real estate Bali in 2024

The main rule of investment is diversification. When considering the purchase of foreign real estate for the purpose of investment, the same thing works correctly. The most important factor in creating a successful investment portfolio is always choosing the right expert to develop an investment strategy.

Real estate market o. Bali today shows excellent investment indicators, and in some respects the best in the world, and the international consulting company VelesClub Int. recommends including this asset in your portfolio in 2024.

Economy as a key indicator for investors

Indonesia is showing stable economic growth. Since 2000, Indonesia has quadrupled its GDP and has experienced steady growth of 5% per year. For 20 years before the pandemic, the country did not experience critical losses in its GDP.

“Construction and real estate have had a significant impact on the country's economic recovery. Thus, according to Statistics Indonesia, the share of the real estate sector in the country's economy has been constantly increasing since 2014. It is predicted that this sector will continue to develop and by 2028 its volume will grow to $81.24 billion, compared to the current $61.22 billion.” - notes the head of analytics and investment unit VelesClub Int. Ksenia Shamitko.

This market has enormous potential. The country's economy has come a long way in development: the country currently ranks 16th in the world economy, but according to forecasts, by 2045 it is planned to rise to 4th position.

Year-round resort

O. Bali is one of the most popular and attractive locations not only for short-term trips and holidays but also for long-term living. And the COVID-19 period has only strengthened the trend of experts from various fields relocating to this “paradise” place. Mild climatic conditions create a feeling of endless summer, which promotes tourism and recreation all year round. The growing popularity of the resort leads to a constant increase in the cost of housing and at the same time the cost of renting apartments increases, by about 20% annually.

Infrastructure development

Local authorities are actively developing the region, including attracting international investment and infrastructure development is one of the important areas in this matter:

• construction of a new airport designed to accommodate 32 million passengers annually, which will double the capacity of the current airport;
• the construction of a Paramount Pictures theme park that will surpass the famed French theme park by offering themes and entertainment that will exceed the expectations of even the most sophisticated tourists;
• the construction of a Formula 1 track has almost been completed on the island of Lombok, and the construction of another track has been announced on the island of Bali;
• Bali will have a port to accommodate cruise ships, which will attract more tourists and funds for development.
• And this is only the smallest part of the government’s strategy for the country’s infrastructural development and about. Bali in particular.

High profitability

Thanks to its climatic advantages, economic privileges and constantly developing infrastructure, real estate in Bali offers high potential for income generation.

The numbers say it all:

• 300% increase in land value since 2017;
• 73% average occupancy of tourism infrastructure;
• rental yield reaches up to 20% per year;
• real estate can increase in value up to 30% per year

“Currently, the investment market on this island is not yet saturated, and therefore choosing to invest in Bali can bring good prospects,” summarizes the General Managing Partner of VelesClub Int. Sergey Tumanov.

How to choose an area to buy property in Bali?

It's simple - you always need to first decide what problems you solve and what your preferences are.

The areas of Canggu and Seminyak show one of the highest rental yields. These are the popular and most developed areas, “movement” and “party” areas, a Mecca for surfers. These locations attract tourists from all over the world like a magnet. There is a shortage of land here, the cost of real estate is higher, but the cost of rent is also higher.

Ubud is another famous area in Bali and is the cultural center of the island. This place attracts tourists from all over the world for yoga tours, retreats and practices. Located away from the beaches, Ubud offers spectacular views of tropical jungles, waterfalls and rice terraces.

Despite the intensive development of the area, there is still great potential for good growth during the construction phase and high rental yields. There are not only many tourists here, but also families who live there permanently or come for a long period.

The Bukit Peninsula has been actively gaining popularity over the past year. This is one of the most sought after and fastest growing areas of Bali. This is where the largest number of new projects is due to the available free land for development.
Bukit attracts tourists with the variety and beauty of its beaches with white sand and clear azure water. There are beaches not only for surfing, such as in the Uluwatu area, but also for a quiet family holiday, as in the Nusa Dua area. For Russian tourists, an additional advantage is the presence of a large Russian-speaking community on the peninsula.

“We predict an increase in demand for real estate in this area, as modern luxury complexes are being actively built here. Some of them offer huge territories, their own hotel infrastructure and all the necessary amenities for permanent residence.” - Development Director of VelesClub Int gives an assessment. Natalya Bazhenova.

Sanur is one of the oldest resort areas of Bali, which surprises with its special flavor. This green, quiet area attracts lovers of secluded recreation who want to get away from the hustle and bustle. There are no high waves in the coastal area of Sanur; the beaches are ideal for swimming. There is also a famous 5.5 km pedestrian promenade where you can enjoy a walk, ride a bike or dine in a cozy restaurant overlooking the ocean.
As a result of large investments from the state and foreign companies, Sanur is quickly becoming the center of the strategic development of the island and one of the most promising tourist locations.
In the near future, Sanur will undergo a global transformation, when large-scale facilities of global importance will be opened, which have a significant impact on the economic growth of the area and contribute to an increase in the flow of tourists: the largest medical center in Indonesia with an area of 44 hectares, a port for cruise ships, a marina for superyachts and a unique shopping mall. -entertainment center ICON.
Due to all the factors and the shortage of land, it will be profitable to purchase real estate in this area both for resale and for generating rental income.

Of course, these are not all the locations on Bali where you can buy real estate. Each location will have its own uniqueness and characteristics, but remember that not every unique location has high investment potential.

Making a decision to invest in real estate requires careful evaluation and trust in market experts. A team of experienced managers at VelesClub Int. is ready to help you with all questions and provide support at all stages of the transaction, as well as in the subsequent reinvestment and diversification of your investment portfolio.