Indonesia is a former Dutch colony, so residents in different regions can speak different languages. But the official language is Indonesian. For foreigners, the Indonesian destination has become popular relatively recently. And Bali Island became the most in demand. Since 2024, the authorities have slightly simplified the process of buying real estate by foreign persons. The Bali Regional Office of the Ministry of Justice and Human Rights (Kanwil) has confirmed that foreigners with any residence permit and any type of visa can rent, buy and arrange real estate of any type. However, be careful! When buying, for example, secondary real estate in Bali, do not forget that there is a minimum cost for foreigners, which varies depending on the region.
According to analysts, along with the growing number of tourists in Bali, the cost of housing and its rent is steadily increasing. On average, the annual rental rate increased by 15%. Accordingly, income from the rental business increased by 12%, and in more prestigious areas by 15%.
Many apartment owners in Bali’s secondary market pay attention to the fact that the island is populated and developed unevenly. Therefore, as investors, you will benefit from areas that are popular with tourists. These include the Seminyak resort, Canggu, and the Bukit Peninsula.
Seminyak is a resort that is “well-known” to most tourists. It is especially easy to rent apartments on the first coastline here, despite the fact that the rental price increases every year. So, in 2023, during the peak months — February, March — the cost of rent increased by almost 28%, in 2024, according to forecasts, it may also increase by autumn. Due to the fact that Seminyak is popular with investors, there is practically no free land left, so secondary real estate in Bali, including this resort, has become in demand. On our website you can consider offers for Seminyak.
Canggu is most often chosen by foreigners who come here for a long time. And although the cost of real estate here is also increasing every year, secondary housing in Bali is often chosen by surfers, for whom the waves of this beach are the best. A successful investment would be to purchase a villa in the Canggu region, which can be rented by a family or a company of several people.
Bukit is another favorite place to surf. It is here that the world-famous Padang Padang and Uluwatu waves are located. Real estate here can be found cheaper than in Seminyak and Canggu, but at the same time, the demand for rental housing is in demand all year round.
Other areas of Bali, which are not so popular with tourists, but without the “tourist noise”, are chosen by immigrants and digital nomads who have settled in these parts for a long time. Some of them are trying to buy real estate in the secondary market of Bali without intermediaries, but it does not always turn out to be profitable. After all, it is much safer to make transactions in cooperation with a trusted agency.
Investing in Bali’s secondary real estate market offers a unique blend of affordability, high rental yields, and the potential for significant property appreciation. To help you navigate this lucrative market, here are some key strategies and insights:
Investment Strategies for Bali’s Secondary Real Estate
Diversification of Property Types
Balancing your portfolio with a mix of apartments, villas, and townhouses can mitigate risks and enhance returns. Each property type caters to different segments of the rental market, from short-term tourists to long-term expatriates.
Long-Term vs. Short-Term Rentals
While short-term rentals can yield higher nightly rates, long-term rentals offer stable and consistent income. Assessing your investment goals will help determine the best rental strategy for your property.
Understanding Property Ownership Laws
Foreigners can now purchase and rent properties in Bali with fewer restrictions, but it’s essential to understand the local laws and regulations. Engaging a reputable legal advisor can ensure that your investment complies with all legal requirements.
Navigating the Purchase Process
From property search to finalizing the purchase, understanding each step is crucial. Trusted agencies like VelesClub Int. provide expert guidance to streamline the process, ensuring a secure and efficient transaction.
Financial Planning and Financing Options
Budgeting for Your Investment
Setting a realistic budget that includes property costs, taxes, and maintenance fees is vital. Proper budgeting helps prevent financial strain and ensures a smooth investment experience.
Financing Your Purchase
Explore various financing options, including local mortgages and international loan programs, to find the best fit for your financial situation. Understanding the terms and conditions of each option will help you make informed decisions.
Property Management and Rental Optimization
Effective Property Management
Maintaining your property and ensuring it remains attractive to tenants is essential for maximizing rental income. Consider hiring a professional property management service to handle day-to-day operations.
Maximizing Rental Income
Setting competitive rental prices and marketing your property effectively can significantly increase your rental income. Utilize online platforms and local networks to reach a broader audience.
Seminyak
Benefits of investing in this high-demand area and insights into property trends. Seminyak’s exclusivity and continuous demand ensure strong rental yields and property value appreciation.
Canggu
Understanding the appeal to long-term expatriates and digital nomads. Canggu’s vibrant community and excellent surf spots make it an ideal location for high-yield rental properties.
Bukit Peninsula
Exploring investment opportunities in popular surfing spots and premium coastal areas. Bukit’s consistent rental demand and scenic beauty provide a solid foundation for profitable investments.
Current Market Trends
Analysis of recent developments and their impact on property values and rental demand. The steady increase in tourism and infrastructure improvements continue to drive market growth.
Future Projections
Insights into where the Bali real estate market is headed and emerging opportunities for investors. Sustainable development and technological integration are set to shape the future of Bali’s secondary real estate market.
Success Stories and Testimonials
Investor Experiences
Sharing real-life success stories of investors who have benefited from purchasing secondary real estate in Bali. These narratives highlight the potential for high returns and long-term growth.
Case Studies
Detailed examples of profitable investments, highlighting key factors that contributed to their success. Understanding what made these investments successful helps in identifying similar opportunities and avoiding common pitfalls.
Expert Consultation
How VelesClub Int. assists investors in finding the right properties and navigating the purchase process. Our team provides personalized advice and support to ensure your investment goals are met.
Comprehensive Property Listings
Benefits of accessing VelesClub Int.’s vetted catalog of secondary properties in Bali. Our listings include verified properties in sought-after locations, ensuring you have access to the best investment opportunities.
Investing in Bali’s secondary real estate market offers numerous benefits, including high rental yields, strong property appreciation, and a strategic location that attracts tourists year-round. By implementing effective investment strategies, understanding the legal framework, and leveraging financial incentives, investors can maximize their returns and build a robust real estate portfolio in one of the world’s most desirable destinations.
For more detailed information and access to a curated catalog of verified secondary properties in Bali.
