Foreign investment in Indonesia's economy has quadrupled in the past 10 years
To understand if real estate investment in Bali is profitable, learning more about Indonesia's economy is essential. International investors trust this market and are ready to invest in the country for five main reasons:
Indonesia, and specifically Bali, is a region where investors' investments are reliably protected from inflation, democratic tools regulate property ownership, and the real estate market is boosted by the growing local population and state efforts to attract foreign investments.
Indonesia's powerful and growing economy ranks 7th in the world;
GDP grows by 5% annually;
Since 2018, inflation has been below 4%, which is less than in the US and EU;
A politically neutral country that remains stable during geopolitical crises;
The working-age population is growing at the highest rate in the region. By 2030, it will increase by 13 million people (while in aging Thailand it will decrease by 2.4 million, and in China by 27 million). This encourages Indonesian authorities to actively create jobs, including through attracting international investments;
+5.1% GDP ★ 3% Inflation ★ 17,000 Islands ★ 7th Largest Economy in the World ★ +5.1% GDP ★ 3% Inflation ★ 17,000 Islands ★ 7th Largest Economy in the World
Now let's figure out if it's worth buying property in Bali. The Indonesian authorities aim to scale the island's success and invest millions of dollars in 10 promising regions across the country (the 10 New Balis project).
However, this has not brought the desired results. About 40% of all state tourism revenue is still generated by one island - Bali.
Here, all the conditions for global popularity converge, ensuring growing international investment in construction in Bali.
In Bali, you can find landscapes to suit any taste: from white sandy beaches with aquamarine waves to mountainous jungles and rice terraces.
For example, the surf spot Uluwatu, where the PARQ SOHO SURFSIDE complex is located, ranks 4th in the TOP 50 best global spots, according to CNN Travel.
Bali is a Hindu island in Muslim Indonesia. Local architecture and traditions have developed in isolation, forming a unique cultural complex that fascinates travelers from around the world.
The Balinese people are genuinely friendly to the island's guests, not just putting on a show of hospitality. This makes vacationing and living on the island some of the most comfortable experiences in Southeast Asia.
Friendly local population
Prices on the island are comparable to those in the capitals of CIS countries, but the main audience in Bali consists of Australians, Europeans, and Americans (about 50% of the total tourist flow). For them, the cost of living and vacationing on the island remains significantly lower than what they are accustomed to in their home regions.
Low cost of living
70% of foreign tourists in Bali prefer villas and apartments over hotels. These are the data from the Central Statistics Bureau of Indonesia (BPS).
For investors, this means that the growing tourist flow to the island (+140% in 2022 compared to 2023) creates a high demand for modern real estate in Bali. In 2023, the island was visited by 5.2 million foreign tourists and more than 18 million Indonesians. That's why 76% of investors choose the rental strategy when purchasing property in Bali.
The average annual real estate yield in popular regions is around 8%. Why do investments in Bali villas generate twice the profit?
The main reason is the year-round tourist season. Investors receive their income 12 months a year, while the high season in other popular investment destinations lasts 6-8 months.
The second reason is the solvent audience from Australia, Europe, and the USA, interested in high-quality individual accommodations for short vacations or long-term "wintering" (50% of tourist flow).
Thanks to these factors and an average occupancy rate of 80-90%, long-term rental yields reach 8-15%, and daily rental yields reach 12-20%. The highest figures are shown by one-bedroom units located in top locations by the ocean.
This directly affects the payback period - a villa project in Bali within a complex with quality infrastructure in Bukit (a prestigious southern peninsula of Bali) will pay off in 5 years, after which it will bring a net income of about $5,000 per month.
Why Bali Yields 20%
For example, a one-bedroom villa in the PARQ Blue complex is located 500 meters from the island's most "Instagrammable" beach, Melasti, and has access to 20,000 sq.m of infrastructure for living, working, and leisure. Click the button to see the income calculation table for this villa.
12-month season ★ Up to 20% yield ★ Payback 5-8 years ★ Entry threshold from $70,000 ★ 80-90% occupancy ★ 12-month season ★ Up to 20% yield ★ Payback 5-8 years ★ Entry threshold from $70,000 ★ 80-90% occupancy
GET INCOME CALCULATION
Leave a request, and we will send you the profitability table for a 75 sq.m Villa in the PARQ Blue complex to your email and chosen messenger.
Let's now understand how to invest in Bali real estate most effectively.
Ten years ago, a bungalow with a fan in the jungle was a popular accommodation option, but today travelers want to enjoy authentic Bali with European comfort.
How to choose real estate with high-income potential and not lose money on a risky investment?
How to Choose Profitable Real Estate in Bali
Natural Attractions - Key to Stable Income
Popular beaches, landmarks, and natural beauty attract tourists to Bali. Properties near these attractions have remained popular over the years.
It's impossible to predict whether newcomers will complete projects (whether they have the capital and skills to communicate with the local administration), and if they do, whether reality will match the promotional images. Only the presence of completed projects demonstrates a developer's real ability to implement an investment project.
Accessible Infrastructure - Key to High Demand
Today, it's not enough just to build a villa in Bali and wait for tourists. Travelers aren't willing to drive an hour to another area for a coffee or sunscreen. The optimal solution is projects that already include comprehensive infrastructure.
Experienced Developer - Guarantee of Reliable Investment
In 2023 alone, 240 new developers appeared on the island. Most of them have no construction experience not only in Bali but also in a tropical climate.
PARQ Development has been building high-yield investment properties in Bali for 16 years. 120,000 sq.m have already been completed, and another 530,000 sq.m will be ready by 2026.
Of these, 65,000 sq.m is the legendary multifunctional center PARQ Ubud, offering ready-to-invest properties in Bali for foreigners and local clients.
All key events on the island take place here. The complex hosts up to 2,000 guests daily, and occupancy consistently exceeds 90%. In PARQ Ubud, investors already earn 8-12% on long-term rentals and up to 15% on short-term rentals, which is atypical for inland properties (Ubud), not having ocean access.
Today, PARQ Development is the completed PARQ Ubud complex and 5 developing infrastructure centers in 4 prime locations on the island.
PROJECT MAP
PARQ Ubud
Ready real estate in the legendary complex
SOHO Surfside
Luxury villas and apartments at the top surf spot Uluwatu
PARQ Blue
Villas at the most Instagrammable beach in Bali, Melasti
PARQ Family
A complex with the best family infrastructure
Ocean City by PARQ
An entire city on the oceanfront
Citadel by Parq
Elite villas in the fortress city
All units come fully furnished and equipped, and PARQ handles property management tasks (maintenance and care, full rental cycle, tax optimization, and financial reporting). The investor receives passive income on autopilot.
Submit your request
and we will select investment properties for you in one of PARQ's six projects in Bali's top locations.
Let us send you the prices, layouts and calculations of the profitability of our best offers in the messenger or by e-mail. And you can always ask an additional question to the manager. And we won't get lost :)