The increase in international visitors is largely due to Bali's successful vaccination program, the easing of travel restrictions, and multiple high-profile international events like the G20 Presidency and the ongoing ASEAN Summit in Labuan Bajo.

Occupancy Rate

The occupancy rate of rental properties in Bali shows a delightful image. The graph shares a similar pattern to the same quarter in the years before the pandemic and massively surpasses the first quarter between 2020-2022. 

Canggu has the highest occupancy rate on average, with its rich amenities and robust international activities. Bukit Peninsula is the dark horse as an up-and-coming popular area for development. 

Source: Airdna

Revenue

Now, let's talk about revenue. This is where the competition between the four areas becomes fierce. Total revenue-wise, Seminyak reigns supreme, but the annual growth of the Bukit Peninsula is surprisingly the highest, despite being the last of the four areas in terms of overall revenue. The Bukit Peninsula saw more than 161% growth annually, while Seminyak, which still holds the crown for total revenue, is in third place at around 122%.

The first quarter of 2023 marks the transition to the "new normal" in Bali's property market, with a growth pattern similar to pre-pandemic years. It's typical to see lower revenue during this period following the peak season.

Among the four popular rental areas in Bali, Canggu had the lowest growth with a decline of 6.38% in Q1 2023, while Bukit Peninsula followed with a decrease of 4.68% in third place. Seminyak topped the revenue growth category with a decline of only 0.95%, while Cemagi-Seseh came in second place with a decline of 2.31%.

Source: Airdna

Daily Rate Growth

Seminyak has the highest average daily rate in Bali, indicating strong interest from visitors in the area. Canggu, Bukit, and Cemagi-Seseh follow with slightly lower rates but still show healthy growth.

Source: Airdna

Summary

Overall, the Bali property market in the first quarter of 2023 is showing excellent growth. International visitor numbers have hit new highs, and the occupancy rate of rental properties is surpassing pre-pandemic levels. Seminyak is still the king of revenue, but the Bukit Peninsula is showing impressive growth. Canggu is the most popular area for renters, with its rich amenities and international activities, while Seminyak has the highest average daily rate.

Looking to invest in Bali property? Explore our extensive catalog of Bali villas located in Canggu, Seminyak, Bukit Peninsula, Cemagi-Seseh, and more. If you would like to learn more about investing in property in Bali, book an appointment for a free consultation with our team of highly knowledgeable agents who specialize in Bali's local property market.

Disclaimer: The data presented in this article on the Bali property market are sourced from independent third-party reports and research. While Bali Home Immo has made every effort to ensure the accuracy and reliability of the information provided, we cannot guarantee its complete accuracy or timeliness. The property market is subject to fluctuations and changes over time, and data may be subject to revisions or updates. Therefore, Bali Home Immo will not be held responsible for any inaccuracies, errors, or omissions that may occur as a result of changes in data or market conditions at a later date. It is recommended that readers verify the information independently and consult with professionals for specific property-related advice

According to the report published by Statistics of Bali Province (BPS), the number of foreign travelers that arrived in March 2022 via air travel was 14.617 visitors, which is 11 times more than in February when travel restrictions began to ease. This number grew exponentially again in April, reaching 58.315 visitors in just one month. The official figures for May and the subsequent months weren’t released yet at the time of this writing, but it’s apparent that Bali is welcoming more and more visitors considering the recent development in the vacation home rental market which we’ll discuss below.

Digital nomads will be able to work from Bali for 5 years using a special visa

Photo by Peter Olexa

In addition, the government has announced the plan to issue a special visa for digital nomads soon. This visa will be a huge advantage for remote workers in Bali because it has a 5-year validity and the visa holder’s foreign-sourced income won’t be taxed. The plan was meant to be launched back in 2021 but had to be put on hold due to worldwide travel restrictions, and now is just the right time to put it back in motion again. 

Also read: Top 5 Places in Bali For Villa Investment

Villa rental revenue & occupancy rate increases significantly

The average monthly revenue of vacation home rentals continues to increase every month since Bali reopened, yielding double the amount generated in February within 3 months. Occupancy rate experienced a steady increase as well, with an average of over 60% from February to April and reached 80% in May. Villas in the 75th percentile performed remarkably better, yielding almost triple the revenue in February alone while the occupancy rate remained steady at over 90% from February to May.

Monthly revenue & occupancy rate of vacation home rentals in February - May 2022

Source: AirDNA

The opening brought back the trend that was last seen in 2019, when the vacation rental market enjoys good returns and continues to grow each year. Despite still in the early phase, the data proves that Bali’s short term rental industry can rebound quickly provided that the number of international visitors continues to skyrocket. At Bali Home immo, we also noticed that many villas for long term rental that were frequently available are now difficult to book due to overwhelming demand, which is a good indicator of increasing occupancy rate not only in short term rental but also in yearly and monthly rental villas.

Also read: How to Start an Airbnb Rental in Bali as a Foreigner

Market trend is shifting to pre-COVID statistics

After a long hiatus, the trend has shifted to pre-COVID times in such a short time span. Market revenue in May 2022 nearly matches the historical data of December 2019 and January 2020, yielding almost 120 billion IDR in just 3 months. Before COVID, the market was at an all time high with demand and revenue constantly increasing over the years. This development might mark the return of Bali’s lucrative vacation rental industry, presenting a golden opportunity for real estate investors to welcome a new wave of travelers eager to spend their holidays or settle on the island.

Villa rentals in Bali are thriving since the border reopened

Photo by Bali Home Immo

Looking to buy or rent a villa in Bali? Our selection of villas for sale and rent covers 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.

Also read: How to Earn Passive Income from Property Investment in Bali 

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.

Also read: 17 Bali Property Sale Terms That You Must Know

What should I avoid when renovating a villa?

Renovating an investment property should be differentiated from renovating a home. If the villa is only for private use, then you can do whatever you please to make it truly yours. If it's for a rental investment, focus on improving features that will make the villa sell better and easier because the goal is to generate the most revenue by spending as little as possible. Keep in mind that short-term renters have different preferences from long-term ones, hence you should plan your renovation accordingly.

3 Bedroom Villa for Sale Leasehold in Seminyak

The scale of renovation is also limited by the villa’s original design, otherwise you will have to alter the structure and it will cost a lot. Beware that full scale renovation costs as much as building a new villa, so it’s best to minimize structural modifications and avoid remodeling an entire property. Converting a traditional Joglo villa into something more modern while keeping existing features such as the distinctive roof and building layout is great in concept, but expensive to carry out.

Also read: 6 Things You Must Know Before Buying Property in Bali

Is villa renovation worth the money?

Renovation improves the rental and resale value of a villa, even with only minor improvements. If you’re using it as rental property, we recommend doing small upgrades to make it more attractive towards renters. Enclosing the living room, renovating the bathroom, replacing the kitchen appliances, and adding more furniture are simple and cost-efficient improvements which can increase the villa’s rental value and appeal without making any structural changes. Upgrading a villa to modern standards allows you to charge higher rent and offset the renovation costs, but don’t spend too much or you’ll risk earning lower ROI.

1 Bedroom Villa for Sale Leasehold in Pererenan

Looking for renovation properties in Bali? We have a handpicked selection of villas that will greatly benefit from improvements. Do you have any questions about Bali property or need some insights on villa investment? Please don’t hesitate to contact us.

Also read: How to Start an Airbnb Rental in Bali as a Foreigner

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.