Bali’s tourism industry is recovering well post-pandemic. According to Trading Economics, the first five months of 2023, saw international tourist arrivals to Bali surge by more than 300% from the same period in 2022, with 30-international flights and 36-airlines now serving Bali’s Ngurah Rai International Airport including the latest Emirates Airbus A380, which made its maiden flight to Bali on June 1.
This should come as no surprise as the island is blessed with a unique combination of natural beauty, cultural richness, warm hospitality, diverse offerings and a warm tropical climate, making it a highly attractive destination for travellers and expatriates from around the world.
International tourism surged in Bali by more than 300%
As a result, Bali’s property eco-system is thriving, boasting a diverse range of accommodation options to suit all budgets. However, if you’ve been looking for investment opportunities or following Bali’s booming property scene you’ll have noticed a significant variance in both purchase and rental prices across different regions and different types of properties.
This price variance in Bali’s accommodation market is driven by a combination of factors, including region, location, service quality, and build standards. Investors and travellers alike should consider these when evaluating properties for purchase or rental. Whether seeking a lucrative investment or a luxurious getaway, understanding these factors can guide decision-making in Bali’s dynamic real estate market.
Here are some insights as to why that may be and which factors contribute most to this price disparity, shedding light on why certain properties command higher prices and hopefully offering you insights into where to make your next investment in Bali.
Kiara Beachfront – Luxury serviced residences located on prime Nusa Dua beachfront.
The region in which a property is located plays a pivotal role in determining its price. Bali’s hottest tourist destinations like Berawa, Canggu, Nusa Dua, Seminyak, Uluwatu, and Ubud for example, attract a larger number of short and long-term visitors, which in turn leads to an increased demand for accommodation. This heightened demand subsequently drives up land values, property prices and rental rates as well as an increased interest in developing more attractions to keep visitors entertained.
The proximity of a property to key attractions such as beaches, surf breaks, restaurants, beach clubs, and cultural landmarks also directly influences property prices and rental rates.
Beachfront or cliff front properties, for example, especially in a tourist hotspot, command premium prices for obvious reasons, which include increased numbers of visitors and easy access to attractions, popular restaurants, nightlife hubs, and entertainment venues as well as things like the west coast’s incredible sunset views from the Bukit Peninsula’s cliff fronts to Berawa’s beaches and beyond.
Amali Luxury Residence – The only cliff-front residence of it’s kind in Bali
Another crucial factor that impacts pricing is the level of service provided to guests and timely property maintenance. Managed properties, usually associated with reputable developers and management companies like Mirah Investment & Development, offer enhanced services including professional and accountable management, 24-hour security, daily housekeeping services, concierge assistance, and maintenance, all resulting in higher rental rates. These properties provide a hassle-free experience for both owners & guests, and certainly contribute to their elevated value.
The construction quality, fixtures, sanitary facilities, and furnishing of property directly affect its value and rental potential. Mirah Investment & Development’s properties, for example, boast superior build quality and upscale furnishings offering enhanced comfort and a more pleasing aesthetic appeal to guests, which offer more value for higher prices. Investors and renters are often willing to pay more for these well-maintained properties that promise a comfortable stay and a superior guest experience over cheaper options where more can be left to chance.
Nila Residence – Luxury residential complex with a bespoke interior built to western standards
Higher-priced properties demand a more significant upfront investment, but they offer a range of benefits that contribute to better rental rates, appreciation, and overall value.
Investing in properties with higher price points can yield several advantages:
Properties in prime locations with superior amenities and services can generate higher rental income and return on investment, compensating for their initial cost.
High-quality properties are likely to withstand the test of time and retain their value over the long term, contributing to greater capital appreciation.
Properties situated in sought-after regions offer a luxurious lifestyle to owners and renters, with easy access to attractions, entertainment, and dining options. Kiara Beachfront, a luxury apartment complex in the prestigious Nusa Dua area, has an on-site restaurant, grocer & café, gym, and beachfront infinity pool.
Managed properties provide a sense of security and accountability through professional management, ensuring that the property is well-maintained and secure.
Properties with exceptional build quality, strategic location, and desirable amenities tend to have a higher resale value, providing owners with a potentially more lucrative exit strategy.
Secana Beachtown – Recently completed development located in Berawa with high resale value
As Bali’s leading property developer with 57,000-square metres under construction and 116,000-square metres of completed construction, Mirah Investment & Development are well established as the market leader with years of experience in bringing luxury developments to the most sought-after locations across the Indonesian archipelago. An extensive in-house team of locals and expatriates offer end-to-end services from architecture and design to professional property management as well as legal, taxation and immigration support, which means your assets are protected, re-sale values rise, ROI’s are higher and you’ve always got someone to go to if you’re not happy.
For more information contact Mirah Investment & Development via Email: email@example.com or phone: +62 85 100 800 800
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Interested ProjectKiara Beachfront Amali Luxury Residence Exclusive Villa Collection Exclusive Villa Collection NILA Residence セカナビーチタウン コカナリゾート クアラ Kiara Ocean Place Kiara Ocean Place Alegria de la Vida オンバッドゥア オンバックセマギ ロイヤルガーデンレジデンス