International arrival to Bali is steadily rising and Bali Villa is welcoming the opportunity

 

It has been 6 months since the Indonesian government decided to reopen its border to international arrivals. After a long pandemic, Bali started welcoming foreign nationals to relieve the pent-up pressure after the pandemic. We’re delighted to show you how Bali is faring so far.

 

Bali Tourist Arrival Spike

 

Bali is still experiencing a steady increase in foreign tourist influx to the island. Since the border reopened in February 2022, foreign tourists have started flocking to Bali.

 

In July, the statistics are already showing a similar number as in 2012 and 2013, when Bali tourism began to flourish. This is only the foot of the mountain as the number of arrivals is expected to rise.

 

On that note, the current market villa in contrast to that years is incomparable, as the villas on the market now are already in higher demand and way more expensive.

 

Source: BPS Provinsi Bali (2022)

 

Bali Resilience and Its History of Strong Rebound to Recover

 

Looking back to its previous record of major disruptive events, Bali typically showed a tendency to rebound stronger from adversity.

 

In 2003 the SARS outbreak forced several countries to restrict their borders and further reduced tourists coming to Bali by another 22.76%. However the next year, Bali rebounded strongly with 48.23% growth compared to the previous year.

 

An interesting case was also observed when Mount Agung erupted in 2017. This was followed by multiple minor eruptions in 2018 and 2019. However, international arrivals to Bali unexpectedly increased in those years.

 

This demonstrates Bali's strong attraction to international tourists despite the natural disaster occurrence.

 

Bali comes back stronger after a difficult period.

Photo by Ruben Hutabarat

 

The most recent post-pandemic event in Bali shows the same signs of a strong U-shaped recovery in its statistics. In 2021 Bali received only 51 visitors for the whole year. Upon reopening the border in February, the number of international visitors surged to more than 600 thousand by July. That is a more than 10 thousand percent growth.

 

Pent-up demand after a long period of lockdown might also contribute to its explosive growth.

 

Bali always recovers stronger from challenging periods.

Source: BPS Provinsi Bali

 

Bali Villa Market Overview

 

Despite the number of international arrivals to Bali having a shocking spike and constant rise, the 4-5 starred hotel experienced a dynamic trend and relatively low occupancy rate. On average, the occupancy rate between January to July only scores around 25-27%. 

 

Despite the massive rise in foreign tourist arrival, the starred hotel still maintains a relatively low occupancy rate.

Source: BPS Provinsi Bali (2022)

 

A stark difference in the occupancy rate of villas. The 50th percentile of villas in Bali alone at least had a 60% occupancy rate in March. This number continues to rise until it finally reached 91% in August.

 

Villa occupancy retains a higher rate compared to starred hotels

Source: AirDNA (2022)

 

The demand and revenue growth for villas also continues to increase. The number of nights booked keeps rising from March until reaching nearly 40,000 in August.

 

Villa booking between March to August saw a staggering 152% increase.

Source: AirDNA (2022)

 

Bali villas in the 50th percentile range generated 20.9 million IDR in monthly revenue in March and steadily climbed to 110 million IDR in August. Whereas the 75th percentile of Bali villas generated around 53 million IDR a month in March and reached 179 million IDR in August.

 

Source: AirDNA (2022)

 

Opportunity for Bali Villa Market

 

The data shown above is a sign for Bali villas to seize the golden opportunity.

 

The lower numbers of people staying in hotels and positive growth in the demand for villas indicate that there’s a growing trend among international travelers that led them to lean toward villa rentals rather than hotels. It is even more so after the pandemic.

 

It stands to reason that villas offer more varied options for various kinds of tourists. It can accommodate the single digital nomad while also providing options for the large tourist group.

 

According to a survey, more people preferred to rent a private villa than a hotel for added privacy, security, and peace of mind.

 

Villa offers more variable options to choose from.

Photo by Bali Home Immo

 

Besides the supporting market statistics, there are other factors worth considering for the villa business in Bali after the border reopened.

 

As Indonesia established its vision to organize tourism that would bring brand awareness and revenue, its government also introduced convenient regulations and favorable policies that would facilitate tourism.

 

The most recent one is the implementation of a digital nomad visa that may let foreigners stay continuously in Indonesia for a total of 6 months.

 

The digital nomad visa will be an opportunity for the Bali villa

to capture the longer-stay international visitors.

Photo by Unsplash

 

The second home visa also might entice the advanced age group to spend their retirement years in a more climate-friendly Bali.

 

G20 as one of the most influential international events also brings new bouts of tourists to Bali, expanding its brand awareness and range of visitors to a considerable degree.

 

Also Read: Bali Opportunity in the G20 2022

 

With all these factors considered, the villa rental market in Bali should seize the golden opportunity presented.

 

Looking to buy or rent a villa in Bali? Our villas for sale and rent cover the best areas, including Canggu, Seminyak, Pererenan, Sanur, Uluwatu, and more. Interested in buying land suitable for residential or investment development? 

 

We also have an extensive selection of land for sale and lease that you might be interested in. No matter what your goal is, we aim to help find the right property that suits you perfectly so please don’t hesitate to contact us.

Disclaimer: The content of this publication is provided as general information only and does not constitute legal, financial, tax, or other professional advice from Bali Home Immo. Some of the information provided in this publication is obtained from a third-party source, and we do not guarantee that the content of this publication is accurate, complete or up-to-date. Past performance is not indicative of future performance and should not be relied upon as a basis for an investment decision.

Bali is an ever-emerging market for property and real estate, since the day people like Walter Spies, Vicky Baum and Colin McPhee bought or rented a piece of real estate in this island.

Bali’s nature, exoticism (even to me, Hinduism still offers an unfathomable aura of mystery) and culture, have magnetized tourists and expats alike, and always will. In recent years, with more opportunities open up, the thinning of boundaries between nations and abundant “work from home” opportunities, Bali has seen more ex-pats flooding in than ever.

 

The Problems

The demand for residential places increased as a result. Rules are made to accommodate this spurt of growth, while others are broken. Wealthy Indonesians from Jakarta and other big cities like Surabaya and Bandung responded to the increase of visitors each year. New hotels are sprouting, literally overnight, like mushrooms in Bali. And there are more to come. Business partnerships were formed, overseas money flowed in, lawsuits filed and I don’t know what else.

This is quite a challenge for Bali, which naturally is a small island with an even smaller part of the desirable area, with Badung regency taking the lion’s share of it. Concerns were raised. Susi Johnston for example has made a very popular fan page entitled How Much is Too Much just to raise awareness of this seemingly uncontrollable development of hotels and the practices of the developers (so similar to each other as if on cue) of giving a little or no regards toward the environmental issue.

To make matters worse in a point, by prohibiting tall buildings, the local wisdom or kearifan lokal seems to promote the acquisition of massive size of the land plot. This is a setback no one expected, not even the late great Ida Bagus Mantra himself, the wisest governor Bali ever saw, who first codified it in order to respect the sacredness of Pura. This is a loop often utilized and exploited by irresponsible parties to reap profits.

Yes, we all want to make a profit, but surely not at the expense of the island and its future well-being. The solution for all of this is to go back to common sense. The massive sprawl of luxury hotels in every kilometer is not common sense.

However, despite the massive land takeovers conducted by hotel shareholders and developers, the sale and rent of private property e.g. villa and house–or land upon which they will be built–still dominate the property market in Bali.

“How much land do I need for my Bali home?” This question is an important matter in the long run because it’s based on modesty, common sense and it definitely shows responsibility on your part. Like anything else, buying something just because you can, only serves nothing else but inflates your ego. And this is not something Bali could survive from. Paraphrasing Gandhi: “Bali has enough for everyone’s need, but not for everyone’s greed.

Meanwhile, real estate prices keep increasing. As varied as it may– depends on the location–the price is still going one way: up. This could serve as a buffer, to slow down the rates of land conversion from agricultural to residential. However, it creates another problem. Everyone wants their fair share of that cake: a promise of quick money, instant wealth and God knows what else.

Just to follow my curiosity, I compared the price of property in Bali with those in major cities in the world.
In this case I picked New York, Upper East Side; France, Paris, Île-de-France; Italy, Milan and Australia, Sydney.
I know, I know. Others will argue that this comparison is cheeky (place randomly picked, unbalanced etc), but since it serves no other purpose than to fulfill my curiosity and not by any means a thorough comparative study, hold your horses, everyone!

 

Addressing The Problem

Opinions torn in two sides. Those who’ve spent decades in Bali missed the old days (go back in time or maintain status quo), while those who came later, are trying their best to keep up (to develop it further). At this point, everywhere it turns, Bali stares at immediate danger. It is as if impending doom awaits in every corner: economic imbalance, environmental issues, safety and traffic-related ‘disasters’ etc. However,  it's a consequence one should expect from a place that relies heavily on tourism. It's the honey, money, and poison all at once.

The challenge would be to harness all those demands into something constructive and beneficial to the island and to its people. This is the chance to give back to the island, to its culture, to its gods in equal manners, especially considering how this place benefits us, body and soul. There’s no other way. This counts for the locals too, Balinese in particular and Indonesians in general, as they’re part of the interconnected links that both sustain and live off Bali.

Principles-based on local wisdom, common sense and mutual respect should be reinforced. The local government, who many believe is the biggest part of the problem, should keep transparency above all else in every deal concerning these matters.

Only then we will see the Bali we all love is assured of its future. Only then the question I use as the title of this piece will have a decent answer, the same answer people I mentioned earlier would’ve said: “Why not?”

6 Reasons That Make Us The Best Real Estate Agency in Bali

 

At Bali Home Immo, we have been perfecting the art of property brokerage since we first started in 2009. Selling property requires a combination of analytical prowess, market knowledge, and experience to drive the sale of properties that we list, and we have all 3 covered. Here are the core reasons why Bali Home Immo is the best partner for property owners looking to sell their Bali property:

 

Canggu’s first real estate agency with proven track record

 

With over 13 years of experience and counting, we have listed more than 7.000 properties in Bali and helped hundreds of owners in finding the right clients for them. We pride ourselves as the leading experts in Canggu, Seminyak, Umalas, and Pererenan, though our reach extends beyond mainland Bali including Nusa Lembongan, Nusa Penida, Gili Trawangan, Lombok, and Sumba. We prioritize the safety of both buyers and sellers, because investing in real estate requires meticulous attention to detail and we want our clients’ investment to be safe and sound throughout the entire process.

 

 

Photo from Bali Home Immo

 

Our main office is located on the main street of Canggu’s trendiest neighborhood, which is none other than Jalan Pantai Berawa where all the action takes place. If you have passed through this street several times, chances are you already know where our office is. Such a strategic location allows us to attract the attention of various passerbys ranging from curious vacationers to serious real estate investors. We are opening a branch office in Seminyak to expand our local reach even further, and there will be more branches coming as Bali’s real estate industry continues to thrive.

Also read: How to Prepare Your Villa for Rental and Sale 

 

Local expert with global reach

 

Technology changed the way real estate buyers find their homes, and our marketing strategy is driven by a consumer-centric approach that targets potential buyers in places where they are looking for properties in Bali. Your property will be presented in our email campaigns, on social media and website, as well as good ol’ offline marketing. Our website ranks highly on Google, appearing on the first page of organic search results for queries related to Bali real estate. If you love seeing Bali real estate related posts on Instagram, there’s a big chance that you’ve seen our post making an appearance on your feed because we get more than 6 million views every month. Not only that, our global network will boost the exposure of your property well beyond Indonesia as we are affiliated with 93 local and international partners. 

 

We combine the best marketing practices with professional contents to maximize your property’s visibility

Photo from Bali Home Immo

 

We provide professional photography and videography services to showcase your property in its best light for free, and we’ll use the content for promotion on all our platforms. Do you want to be featured in our priority list and push the marketing of your property even further? Listing exclusively with us will unlock access to marketing channels that are not available to open listing properties, which includes paid advertising and publication on international partners’ websites.

Also read: How to Renovate Bali Villas for Investment

 

Personal approach with professional results

 

Every property that we list has its own advantages and challenges, so it’s only natural if we provide a tailor-made service to each owner. Our team is more than happy to discuss the marketing solution that will work for your property and do an in-depth analysis to create a professional valuation based on Bali Home Immo’s local market data as well as vacation rental statistics provided by AirDNA and our short-term rental partners. By knowing the market value of your property and how it compares to other similar properties, you will be able to avoid overpricing or underpricing. Overpricing is often the main cause why a property stays in the market for a long time, whereas underpricing means you will earn less than the property’s fair market value and no owner would want that.

 

Properties listed exclusively with us will get a more comprehensive marketing strategy

Photo from Bali Home Immo

 

Most buyers begin their search by browsing the internet, and there are so many properties for sale in Bali competing for attention. Mass marketing is simply not enough to make a property stick out, which is why we utilize targeted advertising. This allows us to advertise directly towards a specific demographic matching that particular property, and we highlight its most distinguishing features with interactive contents to draw the attention of potential buyers. It’s a proven strategy that has worked with many properties, which is the reason why owners and reputable developers choose to list exclusively with us. Don’t just take our word for it, feel free to visit our Google page and see what other property owners who have worked and still work with us have to say about Bali Home Immo.

 

Also read: Measuring the Impact of Airport Reopening on Bali Villa Rentals

 

Do you have a villa for sale or rent in Bali? Let us help you find the right client by listing it with us. Since 2009, we have successfully helped hundreds of property owners in selling and renting out their properties to clients from all around the world. If you wish to have your property listed with us or have any questions to discuss beforehand, please do not hesitate to contact us.

 

Disclaimer: The content of this publication is provided as general information only and does not constitute legal, financial, tax, or other professional advice from Bali Home Immo. Some of the information provided on this publication is obtained from a third-party source and we do not guarantee that the content of this publication is accurate, complete or up-to-date. Past performance is not indicative of future performance and should not be relied upon as a basis for an investment decision.