Bali stands out as an attractive real estate investment destination for a number of reasons:
1. Indonesia's fast-growing economy
Indonesia is the largest economy in Southeast Asia and one of the fastest growing economies in the world. According to the International Monetary Fund (IMF) and the World Bank, in 2024, Indonesia is among the top 8 largest economies in the world in terms of purchasing power parity (PPP), and its nominal GDP exceeded US$1.4 trillion.
The average annual economic growth rate has held steady at 5-5.3% over the past decade, making the country one of the leaders in the G20 group. At the same time, inflation in the country remains moderate at less than 2.5% per year, thanks to the sound monetary policy of the Central Bank of Indonesia (Bank Indonesia).
Key growth drivers:
Active development of infrastructure projects, from new airports to expressways and industrial zones;
Steady inflow of foreign investment, especially in real estate, tourism, renewable energy and technology;
A young, fast-growing and digitally oriented population (over 270 million people, average age 29 years);
Indonesia's participation in major regional and global trade agreements (e.g. RCEP).
HSBC and Morgan Stanley forecast that Indonesia could become one of the world's top five economies by 2045, the centenary of its independence. All of this makes the country not only sustainable, but also a strategically advantageous platform for long-term investments, especially in real estate and rentals.
2. High rental yields on Bali real estate
Real estate in Bali shows one of the highest returns in the world among resort destinations. This is due to the stable and ever-increasing demand for rentals - both from tourists and digital nomads who choose the island for long-term stays.
Annual rental yields in Bali are as high as 12-15% and can exceed 18% per annum in certain locations such as Changgu, Ubud, Uluwatu and Seminyak. During peak seasons, properties with high ratings on short-term rental platforms (Airbnb, Booking) have an occupancy rate of over 80%** and allow owners to achieve a quick return on investment - on average in 5-7 years.
The key factors that ensure this profitability are:
- Year-round tourist flow (more than 6 million foreign tourists in 2023);
- Active development of transportation, social and tourism infrastructure;
- Strong domestic demand from expats, remote workers and investors;
- Affordable cost of market entry compared to other popular destinations such as Dubai, Miami or Maldives.
Choosing the right location, type of facility and management strategy is critical to maximizing returns. This is why it is important to consult with experienced investment experts who can help you match the asset to your objectives, calculate ROI and provide full transaction support.
3. Steady tourist flow
Bali welcomes millions of travelers every year, showing a steady growth in tourist flow. In 2023 alone, more than 6 million foreign and 9.4 million domestic travelers visited the island.
These figures confirm that Bali maintains its status as one of the most sought-after destinations in the world, ranking among the top destinations according to TripAdvisor, Forbes and BBC Travel.
For investors, this means a constant demand for rentals, both short and long term. Regardless of the season, Bali real estate remains a sought-after asset that generates a stable income.
Благодаря такому стабильному турпотоку вы инвестируете в рынок, где ваша недвижимость будет постоянно работать на вас, обеспечивая высокую заполняемость и быструю окупаемость.
4. Infrastructure development
Infrastructure development is the key to capital growth and living comfort
Bali is undergoing an active phase of infrastructure development, which has a direct impact on the island's investment attractiveness. Major projects are underway, including the construction of the Gilimanuk-Mengwi Expressway, the expansion of the existing airport (to 32 million passengers per year), and planning for a new international airport and rail link.
Amid Bali's growing popularity as a place to live and invest, foreign entrepreneurs are moving here in droves, opening restaurants, boutiques, beauty salons, fitness studios and educational centers, offering international quality services.
These changes are shaping a new quality of life on the island and creating additional growth points for investment: locations previously considered “up-and-coming” are rapidly transforming into new centers of attraction with a developed urban environment.
5. Attractive environment for foreign investors
Indonesia, and especially the island of Bali, is becoming an increasingly attractive destination for foreign investors due to the government's open policy. In recent years, the country's authorities have been actively simplifying the rules of real estate ownership for non-residents, making the process transparent and safe. However, it is important to understand that only an expert deeply versed in investment and legal nuances will be able to guide you through all stages of the transaction, secure the capital and maximize the investment potential, as they do in Ferox Real Estate.
One of the key benefits is the ability to obtain an investor visa (Investor KITAS), which is issued for up to 2 years and can be renewed. This visa allows investors not only to stay legally in Indonesia, but also to actively participate in the management of a business or rental activity. The investor visa can be issued by registering a PT PMA company - a legal entity.
In 2022, a Second Home visa (up to 10 years) is also introduced for wealthy foreign nationals who own real estate worth at least 5 billion Indonesian rupiah or have a corresponding bank deposit.
Indonesia offers foreigners:
- A stable economy;
- high tourist demand all year round;
- a fast-growing rental market;
- transparent tax and legal arrangements.
Thanks to these conditions, Bali is a leader in Asia as a destination for long-term and profitable real estate investments.