Here are the factors driving Bali’s skyrocketing growth, turning it into a top destination for savvy property investors seeking tropical paradise and lucrative returns.
- Accessibility
- No Citizenship Requirement: Foreigners can invest in Bali’s vibrant economy without needing Indonesian citizenship or residence.
- Government Support: The Indonesian government actively promotes foreign investments by simplifying conditions, the taxation system, and legislation for foreign investors.
- Long-Term Lease: While foreigners cannot own land, they can secure it through long-term leases. At Leaf-Bali, we offer a head lease providing up to 48 years of villa ownership, ensuring long-term value and resale potential.
- Robust ROI
- Market Growth: Analysts estimate that the Indonesian real estate market will reach USD 64.78 billion in 2024 and grow to USD 85.97 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 5.82% from 2024 to 2029.
- High Yields: Bali offers an average yield of 15% per year, far above the global average of 5%.
- Rising Rents: Rent prices increase by 15-20% annually, with occupancy rates between 65-80%.
- Quick Payback: Investments can be repaid in just 5-6 years.
At Leaf-Bali, our exclusive three- and four-bedroom villas at the heart of Berawa and Canggu offer a guaranteed 16.7% annual ROI.
- A Growing Economy
- Global Ranking: Currently the 7th largest economy globally, expected to climb to 4th by 2030.
- Stable Growth: GDP growth remains stable. In the first quarter of 2024, it reached 5.98 per cent (year on year) and 5.71 per cent in 2023.
- Currency Stability: The Indonesian rupiah is stable, with maximum fluctuation against the dollar at just 13% since 2016.
- Moderate Inflation: Inflation rates vary between 3-5.5%.
- Investor Protection: Indonesia ranks 10th globally in the “Investor Protection” category, ensuring a secure investment environment.
- Thriving Tourism
- Top Tourist Destination: In 2023, TripAdvisor ranked Bali as the 2nd most popular tourist spot globally and is one of the most Instagrammed locations, attracting 500,000 tourists monthly.
- Diverse Visitors: Tourists primarily come from China, India, Japan, the UK, and Australia.
- High Investment Appeal: Bali ranks 4th worldwide in investment attractiveness.
- Future Prosperity Assured
- 2022: Completion of the Sanur port reconstruction.
- 2024: Opening of Bali International Hospital, in collaboration with the Mayo Clinic USA.
- 2024: Construction of the Gilimanuk – Mengwi expressway and renovation of the Gilimanuk port, increasing passenger traffic to 14 million annually.
- 2025: Opening of Paramount Park, the largest theme park by the Paramount brand.
