An overview of the property market in Bali

Bali is an island in the Malay Archipelago within Indonesia. By all accounts, this is one of the most unique places, practically untouched by Western civilization. Many come to Bali in search of authentic exoticism, someone - for a comfortable stay in luxury complexes against the backdrop of natural beauty. Thousands of tourists come to the island every year to enjoy the favorable climatic conditions and the unique Balinese culture. Bali is the most popular tourist destination in Indonesia, which over the past decades has made the island one of the richest regions in the country. About 80% of the island's economy depends on the tourism sector. The island's real estate market attracts both local and foreign investors. Bali is also famous for its large-scale coral reefs and white sandy beaches and numerous cultural attractions. The island is part of the so-called Coral Triangle - an area with an increased biodiversity of marine fauna. About 500 different coral species grow here, which is almost 7 times more than in the Caribbean region. The climate on the island is mild, equatorial monsoon. Instead of the usual 4 seasons, Bali has only two - dry (June-October) and wet (November-March). In some areas of Bali, the difference between them is almost imperceptible. During the wet season, precipitation falls locally, usually at night in the form of short (1-2 hours) thunderstorm showers. Average annual temperatures range from 4 degrees around 26 ° C. The ocean water temperature is 26-28 ° C. About 80% of tourists in Indonesia come directly to Bali to enjoy the local culture. Unlike the rest of Indonesia, where Islam is the main religion, Hinduism is practiced in Bali. There are about 20,000 Hindu temples on the island, and religious holidays are constantly held on the island throughout the year. A particularly popular cultural spectacle among tourists is dance performances depicting the Hindu epic Ramayana accompanied by ethnic instruments. The most popular and densely populated area of Bali is Badung, located in the southwestern part of the island. Here are the main resorts of Bali, as well as the capital of the island - Denpasar. Ngurah Rai International Airport is also located here. The most popular beaches here are Suluban, Bangin and Labukhan Sait. Denpasar is more like a typical Indonesian city in the sense that it is a modern, developing city with a large percentage of young people, modern buildings, shops, cafes, restaurants, and a developed transport infrastructure. At the same time, "modern" in the context of Bali will still mean a rather secluded place by European standards. To the south is Seminyak , the most fashionable place in Bali. Stylish bars and restaurants attract crowds of wealthy tourists and expats. Property prices are the highest on the island. With scenic sunset views from the beaches of Seminyak, the site is often used for religious processions. The island's most luxurious villas and hotels are also located here, as well as spas, expensive boutiques, restaurants and bars. Of all the resorts on the island of Seminyak, it most resembles a typical advertising image of a Southeast Asian resort. Legian is another popular tourist resort that is distinguished by its many wide beaches, especially popular with surfers. There are many bars and restaurants within walking distance of the beaches. Legian is also distinguished by a variety of offers of services and goods for vacationers, both in terms of prices and categories. Jimbaran is a small village located on the shores of a bay with white sands and calm waves. This is one of the most important spiritual centers for local residents. The dance performances "barong" are regularly held here, during which the dancers (after long dances) fall into a trance. In the very center of the village stands the Ulum-Sivi temple dating back to the 17th century. However, over the past decade, many luxury residential complexes have been built here, which somewhat diluted the local flavor. Kuta is a popular destination for budget tourism. It is one of the most populous resorts on the island, just 5 km from the airport. On the narrow streets literally one step away from each other there are souvenir shops, restaurants and cafes. During the terrorist attacks of 2002 and 2005, the city was badly damaged. In memory of the victims, the Kuta Karnival festival is held here annually, in which many state and international organizations participate. Buying Real Estate Bali has a complex land tenure system whereby only large families can own land. Direct purchase of real estate by foreigners is prohibited by law. However, foreigners can take advantage of the hak pakai form of ownership. This form allows foreigners to obtain the exclusive right to use land owned by others, with the registration of the appropriate title. The property operates as a long-term lease, on average, for 25 years, with the possibility of further renewal. In addition, Indonesia has a minimum price threshold for foreigners to buy real estate. The minimum purchase amount must be at least $ 168,388, which is considered a fairly high price by Indonesian standards. Supply Bali's property market has been growing steadily since 2008. Over the past 5 years, there has been strong economic growth. Despite this, Bali's real estate market is not among the fastest growing in the world. The reason for this is high interest rates (most of the buyers on the island are Indonesians), a ban on the purchase of real estate by foreigners and high taxes on real estate. 2013 saw a record annual price increase of almost 10%. The tourist interest in the island is only growing, and thanks to the year-round holiday season, the Bali market can be considered a profitable investment. Due to the large number of tourist services, developed infrastructure and the unique cultural appearance of the island, Bali's real estate market is the most developed in the upscale segment. In addition, luxury villas generate a stable income all year round - according to experts, no less than 10%. Prices for luxury properties range from $ 400,000 to $ 2,000,000. Despite strong demand, the island remains quite affordable for foreign buyers. Prices are on average 30-40% lower than for similar offers in resorts in Thailand . In Bali, the construction of villas is largely restricted by law. Despite the fact that recently there has been an active construction of projects with apartments on the island, villas still remain the most desirable type of real estate among foreign buyers. Many buyers choose to purchase land for the subsequent construction of villas. However, land prices are currently very high - up to $ 2000 per sq.m. in some of the more popular areas. Daniil Burygin HomesOverseas.ru