10 Reasons to Choose Bali as the Go-To Investment Destination

 

Bali, the Island of the Gods with its enchanting landscapes, rich cultural tapestry, and promising investment opportunities. For people seeking a wise and alluring investment, Bali emerges as an irresistible choice. Here are ten compelling reasons why investing in a villa in Bali is a decision that aligns seamlessly with the aspirations of discerning expats.

 

Cultural Richness and Lifestyle:

 

Beyond its natural beauty, Bali's rich cultural heritage and vibrant lifestyle contribute to its allure. The island uniquely blends traditional ceremonies, arts, and spiritual practices. Investing in a villa in Bali is not just a financial decision but a gateway to a culturally rich and fulfilling lifestyle.

 

Year-Round Tropical Climate:

 

Bali's tropical climate, warm temperatures, and abundant sunshine are a significant draw for expatriates seeking a comfortable living experience. The island's consistent weather allows for year-round enjoyment of outdoor activities and relaxation, adding to the overall appeal for potential investors.

 

Developing Amenities and Infrastructure:

 

Bali has witnessed substantial development in recent years, resulting in improved amenities and infrastructure. From international schools and medical facilities to high-end dining and shopping options, Bali caters to the needs and preferences of expatriates, ensuring a seamless transition to a new way of life.

 

Booming Tourism Industry:

 

Bali's tourism industry is thriving, making it a hotspot for short-term rentals. The island's popularity among tourists ensures a consistent influx of visitors throughout the year, creating a lucrative market for those considering rental income from their villa investment.

 

Diverse Investment Options:

 

Bali offers various investment options to cater to diverse preferences. Whether you seek a beachfront paradise in Seminyak, the lush tranquility of Ubud, or the surfer's haven in Canggu, Bali provides a variety of locales, each with its unique charm. This diversity allows investors to choose a location that aligns with their lifestyle and investment goals.

 

Favorable Exchange Rates and Affordability:

 

The favorable exchange rates in Indonesia make Bali an affordable investment destination for expatriates. With a reasonable investment outlay, you can own a piece of paradise without compromising on the quality and amenities of your dream villa.

 

Ease of Doing Business:

 

Indonesia has made strides in simplifying its business regulations, making it easier for foreigners to invest in property. The Indonesian government has implemented measures to streamline processes and provide greater clarity, creating a more conducive environment for expatriates looking to invest in Bali.

 

Natural Beauty and Outdoor Activities:

 

Bali's breathtaking landscapes, including pristine beaches, lush rice terraces, and volcanic mountains, offer a paradise for outdoor enthusiasts. Whether it's surfing in Uluwatu, exploring the water temples in Ubud, or trekking Mount Batur, Bali provides many activities for those who appreciate nature and adventure.

 

High ROI and Strong Resale Value:

 

The demand for Bali's real estate remains robust, contributing to the island's strong resale market. As Bali continues to attract global attention, properties in well-chosen locations are likely to appreciate over time, offering a sound investment with potential returns.

 

Community and Expat Network:

 

Bali offers a thriving expatriate community, providing a supportive network for newcomers. The diverse community includes individuals from various backgrounds and professions, creating a welcoming environment for expats. Connecting with the local and expat community enhances the overall living experience and adds value to your investment.

 

In conclusion, Bali stands as a beacon of opportunity for expatriates seeking a rewarding villa investment. From its diverse locations to the promise of a rich lifestyle, Bali encapsulates the essence of a tropical paradise with a robust real estate market. For those considering Bali as your investment destination is not just a financial decision but a step towards an enriched and fulfilling life in one of the world's most coveted destinations.

 

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?”

 

How does Bali grab the opportunities to rise after the pandemic?

 

The G20 Bali Summit between the heads of states worldwide will be held on 15-16 November 2022. The G20 presidency that Indonesia hosted brought up the theme “Recover Together, Recover Stronger”, as a response to the economic situation after the world went through a pandemic.

Indonesia took up the relay stick to host the event from Italy, and Bali was chosen as the Summit venue. How does Bali prepare itself to be the best host and make this event an opportunity for a re-rise after the pandemic? Let’s take a look.

 

What Exactly is the G20 Event?

 

G20 is actually a long-year event between central banks, ministers, and heads of state of developed and emerging economy countries.

It was formed in 1999 and was initially founded to find a solution when the 1997-1999 financial crisis hit the global economy.

 

At first, the G20 was a meeting between central bank governors and finance ministers, but it eventually evolved to include various developmental issues groups discussion.

The heads of state finally joined the G20 after the 2008 financial crisis and from then on the G20 Summit was born.

 

The G20 2022 participants represent approximately 60% of the world population, 80% of global GDP, and 75% of international trade.

This event will focus on three main issues that are critical to a strong and sustainable recovery, which are:

 

1. Strengthening of Global Health Architecture
2. Digital Transformation
3. Energy Transition

 

Format-wise, the G20 2022 has two pillars of discussion. The first one is the Finance Track which aims to address financial issues and the second one is the Sherpa Track, which will discuss non-financial economic and developmental issues.

 

Besides the two main groups, there will also be an Engagement Group. They consist of ten community groups from diverse professional circles and discuss a variety of topics.

Each Engagement Group will recommend concrete ideas and targeted policies for G20 Leaders at the Summit.

 

The G20 2022 series of events are held from the 1st of December 2021 to the 1st of December 2022.

The more than 180 series of activities are spread to more than twenty cities across Indonesia.

 

Bali itself will host at least 40 of those activities, including the Summit that is scheduled on the 15-16th of November 2022.

This Summit will also represent the peak of the year-long series of events.

 

Meeting between ministers at G20 2022

Photo from g20.org

 

Infrastructures and Venues

 

The Indonesian government has constructed and renovated several infrastructures across Bali, primarily the venue that will host the summit event. As Nusa Dua has been chosen as the final location, several hotels have been designated to accommodate international guests.

 

These hotels have passed through strict evaluation including facility readiness, supporting facilities, appropriateness, implementation of CHSES certificate (Cleanliness, Health, Safety, Environment, Sustainability), health protocol, and the security of the location.

 

At least there are 8 hotels at Nusa Dua as places to stay for G20 2022 Summit guests. They are The Laguna Luxury Collection Resort & Spa, Grand Hyatt Bali, The St. Regis Bali Resort, Melia Bali, Merusaka Nusa Dua, The Westin Resort Nusa Dua Bali, Sofitel Bali Nusa Dua Beach Resort, and Nusa Dua Beach Hotel & Spa.

 

The venue for the summit event itself is arranged at The Apurva Kempinski Bali and Bali Nusa Dua Convention Center (BNDCC).

 

Venues prepared for the G20 2022 event

Photo from kemenparekraf.go.id

 

G20 2022 for Bali Economy

 

Looking back to the previous G20 events in Argentina, Turkey, China, and Japan, this event does have a certain direct impact on the host country's economy.

On average, the international delegates were recorded to reach more than 13 thousand people.

 

More than 20 thousand delegates are expected to attend the meeting held in various regions of Indonesia.

According to Indonesia’s Ministry of Foreign Affairs, it is also estimated that every G20 Summit generates more than US$100 million (approximately IDR 1.4 trillion) in revenue for the host country.

 

Bali’s Governor, I Wayan Koster, said in his speech that the G20 2022 Summit will be the turning point for Bali’s economic rise. 

 

The pandemic hit the world economy hard, and it's even more apparent in tourist-dependent Bali.

Currently, Bali is making a steady recovery after more than two years of the pandemic. 

 

With more than 30 countries’ and organizations’ representatives coming, it will bring massive exposure to Bali and the perfect opportunity to send a message to the world that Bali is recovering and open for business.

 

Economy activities in Bali resurrected after the pandemic

Photo from unsplash.com/belart84

 

Reaffirm Bali as the Major International Destination

 

Bali has been widely known for its vast and profound cultural heritage and nature hotspots.

From the UNESCO-certified terraced rice field and the unique irrigation system of Subak to the natural wonders of beaches, mountains, and waterfalls, Bali still has more layers to discover. 

 

Tripadvisor even picked Bali as the number one choice for the 2021 Traveler’s Choice Award.

 

For the G20 Summit events, Indonesia Tourism minister, Sandiaga Uno said the government has prepared the Spouse Program which will provide tourism guidance for the international delegates and their companions while in Bali. 

 

As a host, Bali can make the most of this opportunity to show more of the lesser-known gems across the island and strengthen the well-known parts.

The G20 2022 will reaffirm and cement Bali as a major international destination.

 

There are several types of destinations tourists can enjoy in Bali. Bali has everything from the most buzzing and bustling to the serene and tranquil one.

You just have to know where to look.

 

Beach has been the top-of-mind of Bali for people around the world, and you always have more options to choose from.

From the renowned Kuta and Seminyak to the more virgin ones on the south and northern coast. 

 

Countless surfers worldwide also dubbed Bali as one of the best spots for wave riders. Not to mention the diving spots that you can find on the eastern coast. You can explore our recommended list of beaches in Bali.

 

Pristine beach in Bali

Photo from pexels.com/alesiakozik

 

Now, if you want to get deeper into the cultural and spiritual parts of Bali, Ubud will get you covered.

This area has been widely known as the Mecca of yogis. International reputed shalas and yoga communities will mostly crowd in Ubud. 

 

Art is also an inseparable part of the sub-district. Crafters, painters, and dancer will find their home here. 

 

Ubud also housed many sacred and well-known Hindu temples like Goa Gajah, Gunung Kawi, Saraswati, and Pura Gunung Lebah.

These temples are just one of the well-known of the many Pura (Hindu temples) that spread across Bali.

 

Tranquil Pura by the lake

Photo from unsplash.com/kharlantonipaica

 

Kuta, Seminyak, and Canggu will welcome the global digital nomads and people who fancy some shopping, and dining.

These places are the hub for nightlife and networking alike. It’s simply a world village with all the amenities especially targeted for the ex-pats.

 

You can do your remote work at co-working spaces in the morning and smash the dance floor at the beach clubs beyond the middle of the night.

International music festivals and artists have frequently graced the areas and boosted Bali as a world-class nightlife destination.

 

There are still countless other destinations that are worth exploring across the island.

The G20 2022 event will be the opportunity for Bali to showcase its rich and various destination options that are available for every kind of tourist.

It is even more so for the less-aware international investors and economic actors to realize Bali's potential for future development.

 

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.