From luxurious beach life to exploring serene landscapes and immersing yourself in rich cultural experiences, Bali’s tourism industry offers many enticing attractions that draw vacationers from around the world. But there is another industry that directly benefits from this growing global interest – the island’s thriving rental property market.
Bali tourism surge
Splash Every year, more and more people from all over the world visit the island. Tourists come to Bali not only for vacation, but also for real estate investment. They see the island’s potential as a place to start a business, buy a villa or apartment for their own residence or to rent out.in Bali
Interestingly, after the coronavirus pandemic, Bali saw about 2.3 million visitors in 2022 and already 3.4 million in 2023 as of August. The number of inbound travelers is expected to increase again, given Bali’s continued appeal as a global leisure destination.
Tourists don’t choose hotels anymore
This increase in tourism has impacted the rental property market in Bali. With an increase in visitors ranging from backpackers and freelancers to luxury vacationers, the demand for temporary accommodation has skyrocketed. Tourists often choose rental properties, such as villas, apartments and houses, as a place to stay because of the increased privacy, comfort and immersive experience in Bali that you can’t get from a hotel room.
The growing popularity of private vacation rentals is noticeably increasing the demand for luxury apartments – spacious properties with swimming pools, garden plots and management companies ready to handle almost all your problems.
Investor interest is peaking
Naturally, this wide range of tourist preferences and motivations has attracted the close attention of both local and foreign investors, who have identified it as a market with the potential to generate substantial profits. Investors are seeing the benefits of purchasing real estate in Bali to rent out to tourists. Apartment rentals, in particular, have proven lucrative given the consistent high demand and yields.
The optimal option remains short-term rentals. On average, a property owner can get from $500 for an apartment to $1,500 for a villa per day. Long-term rental rates depend on the level of comfort of housing, but even an apartment can bring more than 100,000 dollars a year. This figure is a starting point, as premium properties are rented at even higher prices.
It also creates additional jobs and attracts new residents to the island. Buying real estate in Bali becomes not only an investment, but also an opportunity to have a permanent residence in a beautiful place.
Accommodation search sites
Much of this growing demand is due to the advent of online platforms that have made traveling much easier. On such platforms, Bali property owners can display their homes and attract visitors from all over the world, allowing properties to stay idle and guaranteeing consistent occupancy rates of 70-80% throughout the year.
The role of government and infrastructure development
The Indonesian government has played a crucial role in strengthening Bali’s attractiveness to tourists and investors from around the world. It continues to develop local infrastructure, improving road networks and airports. Special attention is paid to promoting sustainable tourism development to ensure that the growth of the tourism sector does not jeopardize Bali’s natural and cultural heritage, which ultimately contributes to the prosperity of rental properties.