Bali Real Estate: Why Do Some Properties Appreciate While Others Don't?

Bali is a dream island that attracts millions of tourists every year. It is no wonder that investing in Bali real estate is becoming increasingly popular. However, the real estate market here is not uniform: some properties are rapidly growing in price, bringing investors significant profits, while others barely cover maintenance costs. What determines this difference? Why do some apartments increase in price by 30-40% by the time they are rented out, while others do not?

The secret lies in understanding the key drivers of Bali real estate growth. It is not enough to simply buy a plot of land or an apartment – ​​you need to understand what factors influence their future value. It is at this stage that many investors make mistakes. We have identified three main factors that directly correlate with the rate of price growth:

1. Proximity to the ocean: premium location, premium price.

This is perhaps the most obvious, but no less important factor. Land in Bali, especially coastal, is limited. Beaches, picturesque sunsets, the sound of the surf - all this is priceless for tourists and those who dream of living by the ocean. Limited supply and huge demand lead to the fact that the cost per square meter in coastal projects increases much faster than the island average. This is a fundamental law of the market: the more exclusive the location, the higher the price.

2. Developed infrastructure: comfort and convenience are the key to high profitability.

Infrastructure plays a key role in the attractiveness of the property. Convenient transport interchanges, proximity to the airport, the presence of entertainment centers, restaurants, surf spots and other points of attraction for tourists - all this directly affects the demand for rent.

High demand for rent, in turn, guarantees a stable income and increases the value of the property. A project located in a convenient location with well-developed infrastructure will always be more attractive to potential tenants and buyers.

3. Unique characteristics: exclusivity as an investment strategy.

Some projects stand out for their unique characteristics that significantly increase their attractiveness. These may include:

• On-site amenities: swimming pools, fitness centers, spas, playgrounds, private beach clubs.
• Unusual architecture: stylish design solutions, use of environmentally friendly materials, harmonious combination with the surrounding nature.
• Hotel service: concierge services, room cleaning, maintenance of swimming pools and grounds - all this increases the comfort of living and makes the property more attractive for rent.
• Participation of famous design bureaus: the reputation of famous designers significantly increases the value of the project.

As a result, investing in real estate in Bali is not only buying square meters, but also investing in a unique location, developed infrastructure and exclusive characteristics of the property. Understanding these factors allows you to avoid risks and make a profitable investment, ensuring a significant increase in the value of your property.