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.

Bali - Indonesia's Best Investment Market

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Why the World Comes to Bali

Comfortable temperatures of 25-30°C year-round

Diverse and picturesque landscapes

Some of the best surfing conditions in the world

Ancient and unique culture

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.

How Investors Make Money in Bali

Top 5 Investment Properties

High-income real estate in Bali

Villa PARQ Blue

Daily rental income: 18,83%

Long-term rental income: 12,90%

Area: 75 sq.m

Hollywood Quarter

Payment plan: 30% | 30% | 30% | 10%

Installments: 0%

The best for short-term rental

Payback period: from 5.3 years

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$ 292,500

Payment in rupiah: 4,680,000,000 IDR

Villa

Long-term rental income: 12,9%

Area: 100 sq.m

in Ocean City

Payment plan: 30% | 30% | 30% | 10%

Installments: 0%

The best for long-term rental

Payback period: from 7.78 years

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$ 290,000

Payment in rupiah: 4,205,000,000 IDR

Classic Villa

Daily rental income: 17,78%

Long-term rental income: 12,35%

Area: 73 sq.m

in Citadel by PARQ

Payment plan: 40% | 30% | 20% | 10%

Installments: 0%

The best for resale

Payback period: from 5.6 years

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$ 262,800

Payment in rupiah: 3,810,600,000 IDR

Apartments

Daily rental income: 14,75%

in PARQ Family

Long-term rental income: 10,82%

Payment plan: 50% | 20% | 20% | 10%

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$ 75,000

Payment in rupiah: 1,200,000,000 IDR

Installments: 0%

Area: 30 sq.m

The best for a small budget

Payback period: from 6,77 years

Villa

Daily rental income: 20,77%

Long-term rental income: 13,25%

Payment plan: 30% | 30% | 30% | 10%

Installments: 0%

Payback period: from 4,82 years

Area: 96 sq.m

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$ 374,400

Payment in rupiah: 5 990 400 000 IDR

in Soho Surfside

The best for profitability

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.

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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

Renting can bring income to an investor for many years, but Bali is also attractive for short-term investments and rapid portfolio restructuring.

Quick Investments in Bali

The possibility of quick profit is due to three factors:

Bali real estate is scarce because only about 20% of the island's land is suitable for development;

Land prices in popular areas: +300-700% over 5 years;

This allows investors to achieve phenomenal returns of up to 86% on invested funds even before the projects are completed.

Property prices in developing complexes increase on average by 40% from foundation to key handover;

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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.

SUCCESSFUL EXPERIENCE OF PARQ DEVELOPMENT

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