An overview of Bali’s property prices

If you are a travel enthusiast, conceivably, at least for one single time in your life you have dreamt of visiting Bali in Indonesia, since it is one of the world’s most desirable places. One cannot get enough of the incredible landscapes, more so in an appreciable culture; be it for a traveler or an investor. Big merchant princes are also getting mesmerized and attracted to Bali’s lavish property market day by day.

Thinking about prices is important before stepping onto the field of the real estate market with the aim of investment. Let’s have an overview of Bali’s properties cost of the past few years to date.

According to some data in 2011, 2012, and 2013, Bali has the highest rate of increase in land prices in Indonesia. The lands near beaches seemed to be costlier and witness the highest rise in comparison to other areas in Bali. Beaches in Seminyak, for example Legian, Petitenget and Batu Belig, are a few of the highest rated places.

Basically, the cost of living in Bali relies on the lifestyle and the city you choose for investment. If you count from the bottom, you can buy a room in a family compound. You will be able to get Western-style apartments with A/C and kitchens if you add a bit more.

Increase in Bali Land Prices

If we look back, some research says that average land prices in Bali started increasing exponentially since 2011 while the percentage of the growth ranged from 34 percent. The return on investment and capital gains on the property in Bali has risen like never before.

Since the massive demand  and commercial transactions were happening every now and then, property prices increased by an average of 20% in most of the areas. In popular areas, the prices increased up to about 40%. The investors with a tighter budget had begun to stand out as they headed further north to Tabanan or to islands off the coast of Bali, where 2 bedroom properties could be chosen for $US100k.

When an investor in 2014 wanted a high-end villa right on the beach, they had to pay an amount similar to Australia or America since Bali’s property prices vary from place to place as per the demand. The same villa’s price may be lower in another low-end place. By negotiations, opportunist investors even managed to grab an incomplete project where they could capitalize on.

Data says that a 2 bedroom villa on a 250m² block of land relating to the central part of the town in Seminyak priced about $US500k. Then, in Canggu, Jimbaran or Nusa Dua, the price dropped at about $US300k. In Denpasar City, it dropped more at $US250k, and in Tabanan, it became $US100k. Besides, to lease property for 25 years (Hak Pakai- Right to Use), an investor usually had to pay about half the freehold price.

Land Price affected by Coronavirus

The cost of the properties was pretty similar then until the Coronavirus pandemic has occurred. Since 2019, covid-19 proceeded with wreaking havoc on the world economy. Not unlike so many places around the world, this virus shook Bali’s property market. Real estate in Bali links directly to tourism, due to the Covid-19 tourism sector facing a standstill. As a result, property sales went to almost zero in the initial days of the pandemic.

However, from May 2020, again deals are being made and uplift from the poor situation seemed to be seen. Though prices are still advertised at nearly pre covid-19 levels, deals that are taking place these days are struck at prices between 30-50% below pre Covid-19 asking prices. These are mostly freehold real estate.

If you're thinking of investing in Bali during the Covid-19 pandemic, be sure to check out the things you need to do before buying or selling your property.

Now, the question appears. What would be the scenario of the property market in the next year of 2021? Is it going to recover? The answer mostly depends on how the tourism sector will perform. The real estate market will follow in the footsteps.

But, arguably, researchers think that the situation is going to recover eventually. There is even a prediction that Bali is going to become more attractive than before for the foreign residents who would want a more balanced lifestyle after the stress they are facing during the pandemic. Moreover, Bali is a perfect example for warm weather and soothing environment where people can live a balanced life.

Have questions to ask after having a general overview of their land prices? Drop your info down below, and we'll answer them!