Investing in Indo #2: the 4 most popular places of Bali

We started our series of articles on the real estate market in Indonesia by trying to answer the question: Is Bali (still) a good place to invest in?

In this article, we will share some insight into the Balinese real estate market and offer data we gathered about the four main investment areas of the Island of the Gods (Seminyak, Canggu, Uluwatu and Ubud). Of course, there are many more places to discover and to talk about (such as Sidemen, Nusa Lembongan or Amed), we will keep them for a future article.

This analysis is based on our knowledge and understanding of the real estate market in Bali. We might have overlooked some information, happy to discuss it in the comments or by private message. And please remember to make your own research and due diligence before investing in Indo ??

SEMINYAK

“Seminyak is a beach resort area at the southern end of Bali, Indonesia, with many luxury hotels, villas and spas, as well as high-end shopping and restaurants.”

One of the busiest areas before covid, Seminyak suffered a lot in the last 18 months with the absence of (Australian and Chinese) tourists. It looks like a dead town lately as many hotels, restaurants and shops have closed for more than a year.?

However, prices did not drop as expected. You can hardly find a piece of land at less than 25 million IDR / are / year in the centre of the town, and freehold lands are usually negotiated at more than a billion IDR per are. Prices can decrease significantly if you look for properties further North, notably after the Sunset Road.

Before covid, Seminyak had one of the highest occupancy rates as well as average daily rent of the Island, and the demand was strong! According to Airbnb data from 2017 to 2019, the average growth (all type of properties, so take it as a general idea of the market) was :

+19% Daily rates?

+13% Occupancy?

+59% nights booked

CANGGU

“Canggu is a resort village on the south coast of the Indonesian island of Bali. It's surrounded by terraced rice paddies and known for beaches like Canggu and Echo, with strong surf.”?

In a few years, Canggu replaced Seminyak as the hottest destination in Bali. A trendy and growing area where you can find hundreds of restaurants, bars and clubs only minutes away from your villa or hotel. And within a 2 km radius, you will find a waterpark, a bowling alley, a football field, an equestrian centre, international schools and many yoga centres and gyms.

The area gathers expats, digital nomads and wealthy tourists looking for private luxury and less crowded places than in Kuta or Seminyak. Most of the best co-working places on the Island are based there and it must have been the only “crowded” area for the last 18 months.

For these reasons, the price of lands and properties increased a lot in the last few years. It will be difficult to find a nice piece of land in the centre of Canggu for less than 20 million IDR / are / year nowadays. The neighbourhood areas (Berawa, Pererenan, Padonan, Seseh, Babakan…) follow the same trend with an are of land negotiated around 10-12 million / are / year, and increasing.

According to AirBnb data from 2017 to 2019, the average growth (all type of properties, so take it as a general idea of the market) was :

+6% Daily rates?

+15% Occupancy?

+84% nights booked

ULUWATU AND THE BUKIT

Uluwatu is located on the Bukit Peninsula where you will find one of the most famous surf spots in the world. This area is also a very picturesque natural site between limestone cliffs and caves.?

In the last few years, the Indonesian government has encouraged the development of the area with new infrastructures and high-end tourist facilities. Although most of the projects have been paused due to the global pandemic, the development will certainly start again once borders reopen.

In some areas of the Bukit (beachfront and prime location), prices are similar to the ones in Seminyak and Canggu. With many zones restrained from construction (Green Zone), the competition to grab a nice piece of the Bukit is tough.

According to AirBnb data from 2017 to 2019, the average growth (all type of properties, so take it as a general idea of the market) was :

+4% Daily rates?

+21% Occupancy?

+307% nights booked

UBUD

“The town of Ubud, in the uplands of Bali, Indonesia, is known as a centre for traditional crafts and dance. The surrounding Ubud District’s rainforest and terraced rice paddies, dotted with Hindu temples and shrines, are among Bali’s most famous landscapes.”

Known as the cultural and artistic centre of Bali, Ubud is also at the heart of the Balinese yoga and retreat scene. With its rainforest, rice paddies, waterfalls and monkey forest, it is a must-visit when you are in Bali. Although the area saw an important increase in development projects in the last few years, Ubud is not as developed as the South of Bali. Pieces of land are still affordable compared to Seminyak or Canggu but construction can sometimes be more challenging, due to the steep lands and remote areas.

According to AirBnb data from 2017 to 2019, the average growth (all type of properties, so take it as a general idea of the market) was :

+10% Daily rates?

+13% Occupancy?

+69% nights booked