Bali has always been a paradise for people all around the world. But it’s not only the beautiful landscapes and vibrant culture that are drawing attention. Investors from all around the globe are interested in investing in Bali’s real estate. The year 2023 brought significant development in the real estate sector, driven by tourism, and a notable shift towards long-term rentals, reflecting Bali’s popularity as a business destination.
What will 2024 bring? This article delves into the expected trends in Bali’s real estate market, as forecasted by the industry experts from Own Property Abroad.
1. Rising demand for high-end properties
One of the trends that can be expected is an increase in demand for luxury properties. While Bali has always been known for its luxurious resorts and villas, in recent years, there has been a significant increase in the demand for high-end properties, including luxury villas, beachfront estates, and upscale townhouses.
The reason for this is that there has been a shift in preferences from traditional hotels and resorts towards more unique and personalized accommodations, such as villas. The diverse range of luxury villas available means that there is something to suit everyone.
Furthermore, the affordability of these villas is increasing, resulting in a growing demand. Generally speaking, luxury villas are still more expensive than hotels and resorts, but prices have come down in the last few years due to increased competition and the rise of online platforms.
But what are high-end properties?
High-end properties in Bali typically refer to luxurious and exclusive real estate assets. These properties feature premium facilities, such as beautiful natural surroundings and designs. These properties frequently come with features like pools, private staff, and a high level of comfort to cater to all needs.
Most people looking to rent a high-end property are expats, international investors, or vacationers who are looking for a short rental or a long-term rental. They often look for properties with lots of space, a great location, luxury facilities, and smart technology.
How can you respond to this trend as an investor?
Responding to the rising demand for luxury properties presents an opportunity for real estate investments. When considering buying a property in Bali, try to have a diverse portfolio by investing in different types of high-end properties. Focus on prime locations with premium features and sustainable features to attract expats and tourists who are looking for personalized and sustainable accommodations.
2. Focus on eco-friendly properties
Bali’s real estate landscape for 2024 is transforming as new trends are growing. Being mindful of sustainability has been a trend for a long time, and it is no surprise that more and more people embrace the concept of sustainable living. Besides being cost-saving in the long run, prioritizing sustainability is more environmentally friendly.
Bali’s real estate developers respond to this growing demand by creating more eco-friendly properties. While strategies might differ from one developer to another, plans typically include creating sustainable designs, using renewable energy such as solar panels and solar water heaters, and green building materials like bamboo and reclaimed wood to minimize the environmental impact of construction. In 2024, more people will be looking to rent and invest in sustainable real estate in Bali.
Why is sustainability so crucial in Bali?
The importance of sustainability in Bali cannot be talked about enough. The island is dealing with overdevelopment, threatening the island’s natural beauty. There is a lot of traffic, including many older vehicles, that expels a lot of emissions, which is affecting the overall quality of life of residents and visitors.
Lastly, Bali is facing a significant plastic pollution problem. More than 50% of the plastic waste is openly burned or dumped. As a result, 33.000 tonnes of plastic waste are annually leaked into the island’s waterways and ocean.
What can villa owners do to make their villa more sustainable?
As a villa owner or a future villa owner, there are several things you can do to make your villa more sustainable. Invest in renewable energy, use green building materials, promote waste management, and use eco-friendly features.
By incorporating different sustainable practices, you will not only contribute to the island’s welfare but also appeal to the growing demand for eco-friendly properties.
3. More commercial properties
Bali is not only a tourist paradise; the island is gaining more popularity as a business destination. Many digital nomads, entrepreneurs, and startups are coming to Bali to work or set up their businesses, resulting in a surge in demand for commercial properties.
The need for commercial properties will only keep rising in 2024. These properties include office buildings, coworking spaces, and retail shops.
How can investors benefit from this trend?
There are several strategies an investor can follow to benefit from this trend. Two approaches are investing in commercial properties such as office buildings, which can generate rental income from the increasing number of businesses and digital nomads looking for workspaces in Bali. Second, investing in retail properties in areas most visited by tourists, such as Canggu, Seminyak, and Kuta, can be beneficial.
4. Choose a modern design (and skip the Mediterranean trend)
In recent years, many villas in Bali have been built and are still designed in a Mediterranean style, resulting in an overload of Mediterranean-style villas. But is this trend sustainable in the long run?
Even though the Mediterranean style is trendy at this moment, it might be less popular now in five years. Investing in a different villa style, such as villas with a modern design, can be a wise choice for 2024.
Before investing in Bali real estate, it is essential to understand how to navigate through the Indonesian market and regulations. Own Property Abroad is a platform that informs and helps individuals to buy property abroad, such as in Bali. On their platform, you can find valuable information on buying property in Bali, from legal and taxes to costs and locations.