Real estate and property in Bali remains reasonable despite the rise in global housing price

By Catur, 2024.05.31

Insane is the right word to describe the pricing of real estate and property around the world right now. Although property remains a great way to invest, owning an apartment or a house is deemed impossible for the general public. The younger generation suffers most in this respect as they are excluded from owning properties due to the surging of prices. Renting is still the only remaining option and, sadly, this seems to be the reality for younger generations in the years to come.

But what if there is a solution to this? What would you do with the opportunity of a leasehold on an island known for its natural beauty?

Surrounded by the Indian Ocean, a rich culture, and a tropical atmosphere, Bali has been a staple tourist destination for decades. In the last ten years or so, the island has become more than just a place to visit; it is also an ideal place to live or invest. The signs ‘land for sale’ or ‘Bali villas for sale’ are visible across the island, which really makes Bali’s real estate market a competitive one. This article delves deeper into global property pricing and opportunities for investment in Bali.

Aerial view of one of the property area in Bali

The younger generation is facing a bitter reality when it comes to real estate ownership as their choices are limited. There isn’t any wide range of options to consider as the choice is either renting a place at a ridiculously high price or moving back to live at their family house in order to save money. The thought of investing is the last thing on their mind as they barely survive on their monthly income.

House layouts and Global Market statistics

There are several factors as to why investment opportunities are literally off-limits for the younger generations:

These factors cannot be taken literally, as individual circumstances and economic situations vary. Nevertheless, they represent a consensus on why young people are singled out from the housing market.

Property Pricing and Living Costs in Popular Areas Around the World

Due to the high price of real estate, buying a house, whether in the US or Europe, is considered a luxury. Moreover, in popular cities, renting a two-bedroom apartment costs a fortune. Here are some comparisons between the housing, renting market, and living costs in the US, Europe, and Bali.

Two men are discussing the Property Pricing and Living Costs

RENTING

LOCATION
TYPE OF PROPERTY COST PER MONTH
New York City Two-bedroom apartment US $3,000 – US $6,000
Los Angeles Two-bedroom apartment US $2,500 – US $4,500
Chicago Two-bedroom apartment US $1,800 – US $3,500
Paris Two-bedroom apartment US $1,600 – US $3,700
Amsterdam Two-bedroom apartment US $1,600 – US $2,700
London Two-bedroom apartment US $1,900 – US $4,300
Bali Two-bedroom villas US $500 – US $1,500

BUYING

LOCATION
TYPE OF PROPERTY COST PER MONTH
New York City Two-bedroom apartment US $800,000 – US $2 Million
Los Angeles Two-bedroom apartment US $600,000 –  US $1 Million
Chicago Two-bedroom apartment US $300,000 – US $600,000
Paris Two-bedroom apartment US $538,000 –  US $1,614,000
Amsterdam Two-bedroom apartment US $400,000 – US $800,000
London Two-bedroom apartment US $540,000 – US $615,000
Bali Two-bedroom villas US $150,000 – US $400,000

AVERAGE LIVING COST

LOCATION
LIVING COST PER MONTH
New York City US $1,200 – US $1,800
Los Angeles US $1,000 – US $1,500
Chicago US $800 – US $1,300
Paris US $900 – US $1,350
Amsterdam US $1,100 – US $1,600
London US $900 – US $1,350
Bali US $500 – US $800

From the numbers above, it is clear that the costs of owning a property, renting a property, and living in Bali are far cheaper than in the world’s biggest cities. Although the process of finding the right villas or apartments in Bali can be challenging, the numbers offer a general overview indicating that Bali is still affordable when it comes to real estate pricing.

The Serene Tropical Life in Bali

Serene Balinese landscape of city and the coast

Bali is not only about tourism; owning a villa or simply investing in Bali has become a hot commodity. Living in Bali has many perks compared to living in big cities like New York or Paris.

Tourism and Its Relation to Commercial Bali Real Estate

The tourist with his son on the background of temple in Bali

Outside of the COVID-19 pandemic, the number of visitors in Bali keeps increasing. As these figures show, more visitors mean more people are looking for holiday villas to stay in Bali. This offers a good impression of property and real estate profitability in Bali, especially in beachfront areas like Canggu, Seminyak, and Pererenan.

The average Return of Investment (ROI) percentage numbers show that the Bali real estate market is stable. This shows how Bali is still a sought-after market for investors, specifically regarding real estate.

YEAR
NUMBER OF VISITORS
2013 3.278.598
2014 3.766.638
2015 4.001.835
2016 4.927.937
2017 5.697.739
2018 6.070.473
2019 6.275.210
2020 1.069.473
2021 51.000
2022 2.155.747
2023 5.273.258
YEAR
Average Return of Investment (ROI) in %
2 8
3  9
4  9
5 10
6 10
7 11
8 11
9 11
10  12
11  12
12  12

The figures for Return of Investment potential show a slightly more accurate depiction of the property market in Bali. The table above is just an example of a property valued at US $470,000: a four-bedroom villa in Seminyak with a leasehold of 25 years. In general, the average property ROI in Bali falls between 12–20% yearly, depending on the property price and location.

Top 5 villas for sale in Bali

The couple near the swimming pool of one the villas in Bali

Finding listings of Bali properties for sale is easy as you can find them anywhere on the island. These five villas are incredible examples of luxurious villas with a stylish yet minimalist design and an architectural wonder incorporating Balinese design and nature. These properties for sale in Bali can be your forever home or an investment estate.

Sunset Haven Villa

Sunset Haven Villa is situated in the vibrant Seminyak renowned for its lively nightlife, upscale dining, trendy boutiques, cafes, and beach clubs. It is perfect for anyone looking for easy access without being too far from the beach.

The territory of Sunset Haven Villa in Seminyak

💸 Price: US $800,000 – US $1,200,000

📍 Location: Seminyak

🌎 Area: 300–400 square metres

🏠 Bedrooms: 3–4

☎️ Contact: Bali Luxe Villas Agency 

Ocean Breeze Retreat

Ocean Breeze Retreat is situated in Jimbaran, an area known for its white sandy beach and for being close to the fish market and seafood restaurants, where you can get the freshest catch of the day.

The beautiful swimming pool in Ocean Breeze Retreat

💸 Price: US $600,000 – US $900,000

📍 Location: Jimbaran

🌎 Area: 250–350 square metres

🏠 Bedrooms: 2–3

☎️ Contact: Paradise Living Bali Agency

Jungle Serenity Estate

Ubud is the perfect choice for anyone who appreciates serenity and calmness as the Jungle Serenity Estate provides exactly this. Wellness centres and world-class dining restaurants are all within your reach.

The Jungle Serenity Estate hotel - a small courtyard with the pool

💸 Price: US $700,000 – US $1,000,000

📍 Location: Ubud

🌎 Area: 400–500 square metres

🏠 Bedrooms: 3–4

☎️ Contact: Ubud Retreats Agency

Rice Terrace Residence

Incorporating picturesque rice terraces with a depth of Balinese traditions, the Rice Terrace Residence is designed for those who want to immerse themselves in Bali’s cultural centre while enjoying the greenery of the rice fields.

Rice Terrace Residence hotel with the pool near the rice field

💸 Price: $900,000 – $1,500,000

📍 Location: Tabanan

🌎 Area: 350–450 square metres

🏠 Bedrooms: 4–5

☎️ Contact: Tabanan Estates Agency

Cliffside Oasis Villa

Uluwatu is famous for its limestone cliffs and the Cliffside Oasis Villa offers stunning sunset views, as well as world-class surfing spots at your fingertips.

The lounge zone with sofas and the pool in Cliffside Oasis Villa

💸 Price: US $1,200,000 – US $1,800,000

📍 Location: Uluwatu

🌎 Area: 500–600 square metres

🏠 Bedrooms: 5–6

☎️ Contact: Uluwatu Dream Homes Agency

These are just a few excellent examples of real estate for sale in Bali that you can purchase. Though not representing everything, it gives you a general idea of the island’s best properties that cater to everyone, whether it’s beachfront properties in Bukit, Pererenan, and Seminyak or the secluded, pristine, and peaceful nature of Ubud. Bali’s real estate options vary, depending on your tastes and preferences.

Property in Bali, Investment, and Property Development Aerial view of the property near the beach in Bali

Buying property in Bali, whether for personal purposes or as a rental income, is challenging. Finding the right property, premium locations, perfect architecture, and a profitable prospect is difficult. Moreover, there are local legal requirements about leasing land or owning a villa that you need to think about. Yet, signs about land for sale in Bali are everywhere.

As the numbers show, property market developments in Bali, especially in areas like Canggu, Ubud, Seminyak, and Pererenan, are not slowing down. On the contrary, now is the right time to find an estate in Bali if you’re considering a long-term investment. The Indonesian government is constantly revising the laws and policies about property in Indonesia, but Bali is still the number-one destination in the country. This could make it ideal for you as a buyer to find suitable properties.

Catur

The author of the project On Bali

Hi everyone! My name is Catur, and I was born and raised in Central Java. I moved to Bali in 2011 but left the island in 2016 before returning in 2018. Bali feels more than a home to me, and maybe that’s why my name feels like a premonition. Catur means four, both in the Balinese and Javanese languages. It is spoken like ‘c’ in chess, which is also the meaning of my name in Indonesian.

Date of Last Update: May 31, 2024

OTHER ARTICLES