As tourism in Bali is increasing every single year, it makes this beautiful island even more interesting to investors that see multiple advantages in investing in real estate in Bali. So far, Bali has over 4 million tourists visiting it every year and this number is growing constantly. Here we will highlight why Bali is a good real estate location.
The impressive growth in the tourism sector is influenced by multiple reasons, including a warm climate, beautiful flora, fauna, nature, beaches, and a rich local culture and cuisine.
If you decide to invest in real estate property in Bali, you can choose between creating two forms of income: passive and active. More to it, such investment is much safer than investing in shares because the value of real estate in Bali is increasing every year thanks to the increased flow of tourists.
On top of that, in order to invest in Bali’s real estate, you don’t really have to purchase land or property – you can simply lease for a long period of years and rent it to someone else. Or, for example, you could open a fancy hotel or even a restaurant.
Other than these self-evident reasons why it’s worth investing in Bali, we want to share some specific points on why you should find interest in investing in this beautiful place.
It Is a Safe Place For Your Investment
In the Indonesian region, there are a lot of places that attract tourists, however, Bali attracts most of them because of the safe environment and friendly culture that it can offer. Also, the locals in Bali are very welcoming to foreigners. Bali can be considered a safe destination with a low crime rate since very few visitors come across any real problems.
5th Place In The Chart of the World’s Biggest Economies
It has been said that in 2045, the whole Indonesian region should become the 5th biggest economy in the world and the entire economy is expected to grow by 5% during 2022 already. Therefore, long-term investment in Bali’s real estate is looking good.
It’s Legal to Purchase Property Even If You Are A Foreigner
Even though foreigners can’t own land or any other real estate object under the status of Hak Milik, you can purchase freehold property that gives you the right to obtain land under the Hak Pakai or Hak Guna Bangunan status. On top of that, you need to either obtain a residence permit (KITAP or KITAS) to Indonesia or start your own company (PT PMA).
There is also an option to purchase a leasehold property and build a business there or lease it to other people or business owners.
It’s One of The Most Famous Travelling Destinations
Visit the TripAdvisor app or website. You’ll discover that Bali is in the 1st top position as one of the most visited and want-to-visit countries in the entire world, which also increases the rate of tourism on the island of Bali.
On top of that, traveling to Bali is a desirable and economic option because it has everything you could wish for in one place: exotic flora, elephants, beautiful beaches, volcanoes, Komodo dragons, and a wonderful culture of delicious cuisine.
The Real Estate Value Is Stably Increasing
Purchasing property in a foreign country can be a difficult process full of bureaucracy, therefore a lot of investors choose the leasehold option for tens and tens of years instead of buying property.
Also, over time, as more and more people come to spend their holidays and digital nomad journeys in Bali, the property value appreciates. No matter if you choose to invest your money in a busier area or a calmer location on the island, in both ways you will receive a good return on investment.
Development of The Infrastructure
Before buying land as an investor, it is very important to investigate the area and especially the current and future developments of the infrastructure. As Bali’s economy is growing so fast, it has a fully developed infrastructure and its own airport to welcome the guests of the island.
More to it, Bali’s government is constantly working on improving the infrastructure to make it as welcoming for tourists as possible, so in the future, it will advance even more. That’s why Bali is such a good location for real estate.
Strong Domestic Visitor Arrivals
Not only is the number of tourists increasing in Bali – the amount of domestic visitors is growing as well. It is forecasted that in the year 2023, the number of domestic visitors will reach 12.9 million, which is a lot.
Thus, investing in real estate property and renting it out both for tourists and domestic visitors is even more beneficial.
How to Buy Property In Bali?
The best way to buy property in Bali is by opening up a company called “PT PMA” to get Hak Guna Bangunan and Hak Pakai/HP certificates.
Below, you will find a useful table that explains the purpose and validity of each status.
| Name of certificate | Purpose | Validity |
| Hak Guna Bangunan | The right to build | 25 years + extensions for a total of 80 years |
| Hak Pakai | The right to use property | 25 years + extensions for a total of 80 years |
These are the steps you need to take if you’re interested in investing in real estate in Bali:
- Fill in the forms to request a certificate for a real estate property and submit them to the Indonesian National Land Office (BPN). In normal practice, this procedure is done by a representative.
- Provide proof that conditions for Hak Guna Bangunan or Hak Pakai are met.
- Get the building permit for the Right to Build.
- A certificate under your company’s name will be issued by the BPN.
As you can see, Bali’s real estate world has its own rules and you have to play by them. As mentioned before, it may be quite tough because of the local bureaucracy and things may move a bit slower.
However, you can always find a professional team to help you out during the process of purchasing or building a property. Our team in BCD real estate consists of local professionals that know the local law and culture extremely well, which is always helpful, especially if you’re a foreigner.
See also >> How To Calculate ROI On A Rental Property In Bali
For more information regarding investor protocol in Indonesia, visit www.BKPM.co.id
