What determines the price of real estate in Bali?

Bali is a dream island, beckoning with its beaches, volcanoes and exotic culture. It is no wonder that more and more investors are turning their attention to Bali real estate. However, the prices, which seem incredibly low compared to other popular destinations (for example, Dubai), often cause mistrust.

Apartments from $80,000, villas from $200,000 - for this money in Dubai you can buy only a studio on the outskirts, and most likely without furniture and equipment, which, by the way, are usually included in the price in Bali. So what is the secret? Why does real estate in Bali seem so affordable? Let's figure it out.

The key difference between the Bali real estate market and what many are used to is the land ownership system. In Bali, you do not buy land in full ownership (freehold). You are offered a leasehold - the right to rent for a certain period, usually from 25 to 50 years, with the possibility of extension.

This land lease and the ownership of the building are included in the price of the property. So you are not paying for the land as an asset, but for the right to use it for a set period. This significantly reduces the initial cost of the property.

Unlike some countries where buying property can be the basis for obtaining a residence permit or citizenship, this is not the case in Bali. Buying property does not automatically guarantee you a residence permit or a resident visa.

The absence of this "bonus" also affects pricing, keeping the cost lower.

The Bali real estate market is relatively young and developing dynamically. The high rate of construction of new projects allows for a reduction in costs and implementation time, which naturally affects the price of the finished property.

New apartments and villas are ready for occupancy in just a year and a half, reducing the financial costs of developers and, accordingly, future owners.

Despite the relatively low cost of land now, it is necessary to take into account that Bali is an island with a limited area suitable for development.

As the island's popularity grows and demand increases, the price of land will inevitably rise, which will affect the cost of real estate in the future. Now, this is an excellent opportunity for investment in a promising region.

The low price of real estate in Bali is not the result of some trick or hidden risks, but the result of a combination of specific factors: the leasehold system, the absence of immigration benefits, high construction rates and still moderate land prices. However, before making an investment decision, it is necessary to carefully study all legal aspects of the transaction, leasehold conditions and market development prospects.

It is important to remember that investing in real estate always involves risks, and Bali is no exception. But the potential for price growth on this island, given its popularity and limited resources, is quite significant.